Congress passes Patent Reform Act

In an effort to balance the need to protect small inventors with encouragement for large players to innovate, the U.S. House of Representatives on Friday passed the Patent Reform Act. The bill aims to overhaul the patent system, but many consider it a big win for large technology companies like Microsoft and IBM because it allows courts to assess damages in patent infringement cases differently. Currently, courts consider the value of the entire product when a small piece of the product infringes a patent. The new bill allows courts to base damages only on the value of the infringing piece. Large organizations like the direction of the new patent law because it will make it more difficult to be sued unless the entire concept of a new idea is infringed upon. Those who oppose the reform initiative say it will leave small players vulnerable. Among those raising an eyebrow is the White House Office of Management and Budget (OMB). OMB issued a statement on Thursday saying it opposes the bill, citing concerns that the changes in assessment of damages would "introduce new complications and risks reducing incentives to innovate."

For more on the Patent Reform Act:
- read the article in Infoworld