Hatch Continues Call for Patent Reform Following Senate Judiciary Hearing

“I am optimistic the Senate can pass meaningful [patent reform] legislation this year,” said Senate Judiciary member Orrin Hatch, R-Utah, in a statement after a committee hearing on patent issues. “Effective legislation must include mandatory fee shifting and a mechanism to ensure recovery of those fees, even against judgment-proof shell companies.” Hatch said last month that it was time to reform the America Invents Act, which he introduced in 2005 with Sen. Patrick Leahy, D-Vt., (see 1502120047). Patent reform legislation has been proposed, but Hatch said then that he will “oppose any bill that fails to prevent patent trolls from litigating-and-dashing.” "Patent trolls strategically set their royalty demands below litigation costs to entice companies to settle rather than run the risk of expensive and risky patent litigation,” said Senate Judiciary Chairman Chuck Grassley, R-Iowa, in written remarks. “We recognize that abusive patent litigation practices are a corrosive assault on the nation’s patent system and must be forcefully countered,” said Michael Crum, Iowa State University vice president-economic development, in written testimony. But a “careful, fact-based cost/benefit evaluation of each of these proposals must be carried out, particularly given that the evidentiary basis for sweeping patent reform has been called sharply into question,” he said. “The patent landscape has shifted considerably since various patent reform proposals were first proposed, creating fundamental questions about the urgency of broad patent reform at this time.”