Patent office head sees law clearing Congress

WASHINGTON (Reuters) - Patent legislation that has been a political battleground for years will probably pass Congress this year, John Dudas, director of the U.S. Patent and Trademark Office, said on Tuesday.

The U.S. House of Representatives passed a patent overhaul bill on September 7 but it stalled in the Senate because of opposition from drug firms like Eli Lilly & Co (LLY.N: Quote, Profile, Research, Stock Buzz), seed and herbicide company Monsanto Co (MON.N: Quote, Profile, Research, Stock Buzz) and smaller tech companies who said the proposed changes would leave them vulnerable.

But Dudas, a former congressional staffer who has been meeting stakeholders in the bill, told the Reuters Regulation Summit he expected the two sides to reach agreement.

"I'm optimistic that we'll have patent reform because what we see is that there are very real answers," said Dudas.

Under current law, damages can be calculated as the entire market value of the product. That number can be tripled when the patent infringement is found to be intentional or willful.

The Senate bill, which may well change before it goes to the floor, would allow damages to be based on what the infringer would have had to pay if he had bought a license for the patent, according to a draft report that summarizes major portions of the bill.

Other controversial proposals involve limiting how court venues can be chosen, allowing post-grant reviews of patents and changing the punishment for "inequitable conduct." Inequitable conduct refers to a failure to inform the patent office of information relevant to patentability. This can lead to invalidation of a patent.

Tom DiLenge, general counsel for the Biotechnology Industry Organization, has called how to calculate damages for infringement "the toughest nut to crack."

Both the Bush administration and the pharmaceutical industry staunchly oppose the damages portion of the House version of the bill.  Continued...