,i #aacth ,,congress #ast ,session ,h4 ,r4 #ccji ,,in ,,the ,,house ,,of ,,representatives ,october #bc1 #bjac,mr4 ,goodlatte 7for himself1 ,mr4 ,de,fazio1 ,mr4 ,coble1 ,ms4 ,lofgren1 ,mr4 ,smith of ,texas1 ,ms4 ,eshoo1 ,mr4 ,chaffetz1 ,mr4 ,bachus1 ,mr4 ,marino1 ,mr4 ,farenthold1 and ,mr4 ,holding7 introduced the following bill2 which was referred to the ,committee on the ,judiciary ,a ,,bill ,to amend title #ce1 ,united ,states ,code1 and the ,leahy-,smith ,america ,invents ,act to make improvements and technical corrections1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,innovation ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,definitions4,sec4 #c4 ,patent infringement actions4,sec4 #d4 ,transparency of patent ownership4,sec4 #e4 ,customer-suit exception4,sec4 #f4 ,procedures and practices to implement and recommendations to the ,judicial ,conference4,sec4 #g4 ,small business education1 outreach1 and information access4,sec4 #h4 ,studies on patent transactions1 quality1 and examination4,sec4 #i4 ,improvements and technical corrections to the ,leahy-,smith ,america ,invents ,act4,sec4 #aj4 ,effective date4 #b4 ,definitions ,in this ,act3 7#a7 ,director ,the term ,director means the ,under ,secretary of ,commerce for ,intellectual ,property and ,director of the ,united ,states ,patent and ,trademark ,office4 7#b7 ,office ,the term ,office means the ,united ,states ,patent and ,trademark ,office4 #c4 ,patent infringement actions 7a7 ,pleading requirements 7#a7 ,amendment ,chapter #bi of title #ce1 ,united ,states ,code1 is amended by inserting after section #bha the following3 #bha;,a4 ,pleading requirements for patent infringement actions 7a7 ,pleading requirements ,except as provided in subsection 7b71 in a civil action in which a party asserts a claim for relief arising under any ,act of ,congress relating to patents1 a party alleging infringement shall include in the initial complaint1 counterclaim1 or cross-claim for patent infringement1 unless the information is not reasonably accessible to such party1 the following3 7#a7 ,an identification of each patent allegedly infringed4 7#b7 ,an identification of each claim of each patent identified under paragraph 7#a7 that is allegedly infringed4 7#c7 ,for each claim identified under paragraph 7#b71 an identification of each accused apparatus1 product1 feature1 device1 method1 system1 process1 function1 act1 service1 or other instrumentality 7referred to in this section as an accused instrumentality7 alleged to infringe the claim4 7#d7 ,for each accused instrumentality identified under paragraph 7#c71 an identification with particularity1 if known1 of-- 7,a7 the name or model number of each accused instrumentality2 or 7,b7 if there is no name or model number1 a description of each accused instrumentality that1 when used1 allegedly results in the practice of the claimed invention4 7#e7 ,for each accused instrumentality identified under paragraph 7#c71 an explanation of-- 7,a7 where each element of each claim identified under paragraph 7#b7 is found within the accused instrumentality2 7,b7 whether each such element is infringed literally or under the doctrine of equivalents2 and 7,c7 with detailed specificity1 how the terms in each claim identified under paragraph 7#b7 correspond to the functionality of the accused instrumentality4 7#f7 ,for each claim that is alleged to have been infringed indirectly1 a description of-- 7,a7 the direct infringement2 7,b7 any person alleged to be a direct infringer known to the party alleging infringement2 and 7,c7 the acts of the alleged indirect infringer that contribute to or are inducing the direct infringement4 7#g7 ,a description of the right of the party alleging infringement to assert each-- 7,a7 patent identified under paragraph 7#a72 and 7,b7 patent claim identified under paragraph 7#b74 7#h7 ,a description of the principal business of the party alleging infringement4 7#i7 ,a list of each complaint filed1 of which the party alleging infringement has knowledge1 that asserts or asserted any of the patents identified under paragraph 7#a74 7#aj7 ,for each patent identified under paragraph 7#a71 whether such patent has been specifically declared as essential1 potentially essential1 or having potential to become essential to any standard-setting body1 and whether the ,united ,states ,government or a foreign government has imposed specific licensing requirements with respect to such patent4 7b7 ,information not readily accessible ,a party required to disclose the information described under subsection 7a7 shall include with such disclosure a description of any information described under subsection 7a7 that is not disclosed1 why such undisclosed information was not readily accessible1 and the efforts made by such party to access such undisclosed information4 7c7 ,confidential information ,for good cause shown by a party required to disclose the information described under subsection 7a71 the court may allow certain information that the court determines to be confidential to be filed under seal4 7d7 ,exemption ,a civil action that includes a claim for relief arising under section #bga7;e77#b7 shall not be subject to the requirements of subsection 7a74 4 7#b7 ,conforming amendment ,the table of sections for chapter #bi of title #ce1 ,united ,states ,code1 is amended by inserting after the item relating to section #bha the following new item3 #bha;,a4 ,pleading requirements for patent infringement actions4 4 7b7 ,fees and other expenses 7#a7 ,amendment ,section #bhe of title #ce1 ,united ,states ,code1 is amended to read as follows3 #bhe4 ,fees and other expenses 7a7 ,award ,the court shall award1 to a prevailing party1 reasonable fees and other expenses incurred by that party in connection with a civil action in which any party asserts a claim for relief arising under any ,act of ,congress relating to patents1 unless the court finds that the position of the nonprevailing party or parties was substantially justified or that special circumstances make an award unjust4 7b7 ,recovery ,if a nonprevailing party is unable to pay reasonable fees and other expenses awarded by the court pursuant to subsection 7a71 the court may make the reasonable fees and other expenses recoverable against any interested party joined pursuant to section #bii7;d74 7c7 ,covenant not ,to sue ,a party to a civil action that asserts a claim for relief arising under any ,act of ,congress relating to patents against another party1 and that subsequently unilaterally extends to such other party a covenant not to sue for infringement with respect to the patent or patents at issue1 shall be deemed to be a nonprevailing party 7and the other party the prevailing party7 for purposes of this section1 unless the party asserting such claim would have been entitled1 at the time that such covenant was extended1 to voluntarily dismiss the action or claim without a court order under ,rule #da of the ,federal ,rules of ,civil ,procedure4 4 7#b7 ,conforming amendment and amendment 7,a7 ,conforming amendment ,the item relating to section #bhe of the table of sections for chapter #bi of title #ce1 ,united ,states ,code1 is amended to read as follows3 #bhe4 ,fees and other expenses4 4 7,b7 ,amendment ,section #bgc of title #ce1 ,united ,states ,code1 is amended by striking subsections 7f7 and 7g74 7#c7 ,effective date ,the amendments made by this subsection shall take effect on the date of the enactment of this ,act and shall apply to any action for which a complaint is filed on or after that date4 7c7 ,joinder of interested parties ,section #bii of title #ce1 ,united ,states ,code1 is amended by adding at the end the following new subsection3 7d7 ,joinder of interested parties 7#a7 ,joinder ,in a civil action arising under any ,act of ,congress relating to patents1 the court shall grant a motion by a party defending against an allegation of infringement of a patent claim to join an interested party if such defending party shows that the party alleging infringement has no substantial interest in the patent or patents at issue other than asserting such patent claim in litigation4 7#b7 ,limitation on joinder ,the court may deny a motion to join an interested party under paragraph 7#a7 if-- 7,a7 the interested party is not subject to service of process2 or 7,b7 joinder under paragraph 7#a7 would deprive the court of subject matter jurisdiction or make venue improper4 7#c7 ,interested party defined ,in this subsection1 the term interested party means a person1 other than the party alleging infringement1 that-- 7,a7 is an assignee of the patent or patents at issue2 7,b7 has a right1 including a contingent right1 to enforce or sublicense the patent or patents at issue2 or 7,c7 has a direct financial interest in the patent or patents at issue1 including the right to any part of an award of damages or any part of licensing revenue1 except that a person with a direct financial interest does not include-- 7i7 an attorney or law firm providing legal representation in the civil action described in paragraph 7#a7 if the sole basis for the financial interest of the attorney or law firm in the patent or patents at issue arises from the attorney or law firm's receipt of compensation reasonably related to the provision of the legal representation2 or 7ii7 a person whose sole financial interest in the patent or patents at issue is ownership of an equity interest in the party alleging infringement1 unless such person also has the right or ability to influence1 direct1 or control the civil action4 4 7d7 ,discovery limits 7#a7 ,amendment ,chapter #bi of title #ce1 ,united ,states ,code1 is amended by adding at the end the following new section3 #bii;,a4 ,discovery in patent infringement action 7a7 ,discovery in patent infringement action ,except as provided in subsection 7b71 in a civil action arising under any ,act of ,congress relating to patents1 if the court determines that a ruling relating to the construction of terms used in a patent claim asserted in the complaint is required1 discovery shall be limited1 until such ruling is issued1 to information necessary for the court to determine the meaning of the terms used in the patent claim1 including any interpretation of those terms used to support the claim of infringement4 7b7 ,discretion ,to expand scope of discovery 7#a7 ,timely resolution of actions ,if1 under any provision of ,federal law 7including the amendments made by the ,drug ,price ,competition and ,patent ,term ,restoration ,act of #aihd 7,public ,law #ih-dag771 resolution within a specified period of time of a civil action arising under any ,act of ,congress relating to patents will necessarily affect the rights of a party with respect to the patent1 the court may permit discovery1 in addition to the discovery authorized under subsection 7a71 before the ruling described in subsection 7a7 is issued as necessary to ensure timely resolution of the action4 7#b7 ,resolution of motions ,when necessary to resolve a motion properly raised by a party before a ruling relating to the construction of terms described in subsection 7a71 the court may allow limited discovery in addition to the discovery authorized under subsection 7a7 as necessary to resolve the motion4 4 7#b7 ,conforming amendment ,the table of sections for chapter #bi of title #ce1 ,united ,states ,code1 is amended by adding at the end the following new item3 #bii;,a4 ,discovery in patent infringement action4 4 7e7 ,effective date ,except as otherwise provided in this section1 the amendments made by this section shall take effect on the date of the enactment of this ,act and shall apply to any action for which a complaint is filed on or after that date4 #d4 ,transparency of patent ownership 7a7 ,amendments ,section #bij of title #ce1 ,united ,states ,code1 is amended-- 7#a7 in the heading1 by striking suits and inserting suits2 disclosure of interests2 7#b7 by striking ,the clerks and inserting 7a7 ,notice of patent suits4--,the clerks2 and 7#c7 by adding at the end the following new subsections3 7b7 ,initial disclosure 7#a7 ,in general ,except as provided in paragraph 7#b71 upon the filing of an initial complaint for patent infringement1 the plaintiff shall disclose to the ,patent and ,trademark ,office1 the court1 and each adverse party the identity of each of the following3 7,a7 ,the assignee of the patent or patents at issue4 7,b7 ,any entity with a right to sublicense or enforce the patent or patents at issue4 7,c7 ,any entity1 other than the plaintiff1 that the plaintiff knows to have a financial interest in the patent or patents at issue or the plaintiff4 7,d7 ,the ultimate parent entity of any assignee identified under subparagraph 7,a7 and any entity identified under subparagraphs 7,b7 and 7,c74 7#b7 ,exemption ,the requirements of paragraph 7#a7 shall not apply with respect to a civil action filed under subsection 7a7 that includes a cause of action described under section #bga7;e77#b74 7c7 ,disclosure compliance 7#a7 ,publicly traded ,for purposes of subsection 7b77#a77;,c71 if the financial interest is held by a corporation traded on a public stock exchange1 an identification of the name of the corporation and the public exchange listing shall satisfy the disclosure requirement4 7#b7 ,not publicly traded ,for purposes of subsection 7b77#a77;,c71 if the financial interest is not held by a publicly traded corporation1 the disclosure shall satisfy the disclosure requirement if the information identifies-- 7,a7 in the case of a partnership1 the name of the partnership and the name and correspondence address of each partner or other entity that holds more than a #e-percent share of that partnership2 7,b7 in the case of a corporation1 the name of the corporation1 the location of incorporation1 the address of the principal place of business1 and the name of each officer of the corporation2 and 7,c7 for each individual1 the name and correspondence address of that individual4 7d7 ,ongoing duty of disclosure to the ,patent and ,trademark ,office 7#a7 ,in general ,a plaintiff required to submit information under subsection 7b7 or a subsequent owner of the patent or patents at issue shall1 not later than #ij days after any change in the assignee of the patent or patents at issue or an entity described under subparagraphs 7,b7 and 7,d7 of subsection 7b77#a71 submit to the ,patent and ,trademark ,office the updated identification of such assignee or entity4 7#b7 ,failure to comply ,with respect to a patent for which the requirement of paragraph 7#a7 has not been met-- 7,a7 the plaintiff or subsequent owner shall not be entitled to recover reasonable fees and other expenses under section #bhe or increased damages under section #bhd with respect to infringing activities taking place during any period of noncompliance with paragraph 7#a71 unless the denial of such damages or fees would be manifestly unjust2 and 7,b7 the court shall award to a prevailing party accused of infringement reasonable fees and other expenses incurred to discover the updated assignee or entity described under paragraph 7#a71 unless such sanctions would be unjust4 7e7 ,definitions ,in this section3 7#a7 ,financial interest ,the term financial interest-- 7,a7 means-- 7i7 with regard to a patent or patents1 the right of a person to receive proceeds related to the assertion of the patent or patents1 including a fixed or variable portion of such proceeds2 and 7ii7 with regard to the plaintiff1 direct or indirect ownership or control by a person of more than #e percent of such plaintiff2 and 7,b7 does not mean-- 7i7 ownership of shares or other interests in a mutual or common investment fund1 unless the owner of such interest participates in the management of such fund2 or 7ii7 the proprietary interest of a policyholder in a mutual insurance company1 of a depositor in a mutual savings association1 or a similar proprietary interest1 unless the outcome of the proceeding could substantially affect the value of such interest4 7#b7 ,proceeding ,the term proceeding means all stages of a civil action1 including pretrial and trial proceedings and appellate review4 7#c7 ,ultimate parent entity 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term ultimate parent entity has the meaning given such term in section #hja4a7;a77#c7 of title #af1 ,code of ,federal ,regulations1 or any successor regulation4 7,b7 ,modification of definition ,the ,director may modify the definition of ultimate parent entity by regulation4 4 7b7 ,technical and conforming amendment ,the item relating to section #bij in the table of sections for chapter #bi of title #ce1 ,united ,states ,code1 is amended to read as follows3 #bij4 ,notice of patent suits2 disclosure of interests4 4 7c7 ,regulations ,the ,director may promulgate such regulations as are necessary to establish a registration fee in an amount sufficient to recover the estimated costs of administering subsections 7b7 through 7e7 of section #bij of title #ce1 ,united ,states ,code1 as added by subsection 7a71 to facilitate the collection and maintenance of the information required by such subsections1 and to ensure the timely disclosure of such information to the public4 7d7 ,effective date ,the amendments made by this section shall take effect upon the expiration of the #f-month period beginning on the date of the enactment of this ,act and shall apply to any action for which a complaint is filed on or after such effective date4 #e4 ,customer-suit exception 7a7 ,amendment ,section #bif of title #ce1 ,united ,states ,code1 is amended to read as follows3 #bif4 ,stay of action against customer 7a7 ,stay of action against customer ,except as provided in subsection 7d71 in any civil action arising under any ,act of ,congress relating to patents1 the court shall grant a motion to stay at least the portion of the action against a covered customer related to infringement of a patent involving a covered product or process if the following requirements are met3 7#a7 ,the covered manufacturer and the covered customer consent in writing to the stay4 7#b7 ,the covered manufacturer is a party to the action or to a separate action involving the same patent or patents related to the same covered product or process4 7#c7 ,the covered customer agrees to be bound by any judgment entered against the covered manufacturer to the same extent that the covered manufacturer may be bound with respect to issues that the covered manufacturer and the covered customer have in common4 7#d7 ,the motion is filed after the first pleading in the action and not later than #abj days after service of the first pleading in the action that specifically identifies-- 7,a7 the covered product or process as a basis for the alleged infringement of the patent by the covered customer2 and 7,b7 how the covered product or process is alleged to infringe the patent4 7b7 ,applicability of stay ,a stay issued pursuant to subsection 7a7 shall apply only to the patents1 products1 systems1 or components accused of infringement in the action4 7c7 ,lift of stay 7#a7 ,in general ,a stay entered pursuant to this section may be lifted upon grant of a motion based on a showing that-- 7,a7 the action involving the covered manufacturer will not resolve a major issue in suit against the covered customer2 or 7,b7 the stay unreasonably prejudices and would be manifestly unjust to the party seeking to lift the stay4 7#b7 ,separate manufacturer action involved ,in the case of a stay entered based on the participation of the covered manufacturer in a separate action involving the same patent or patents related to the same covered product or process1 a motion under this subsection may only be made if the court in such separate action determines the showing required under paragraph 7#a7 has been met4 7d7 ,exemption ,this section shall not apply to an action that includes a cause of action described under section #bga7;e74 7e7 ,rule of construction ,nothing in this section shall be construed to limit the ability of a court to grant any stay1 or expand any stay granted pursuant to this section1 if otherwise permitted by law4 7f7 ,definitions ,in this section3 7#a7 ,covered customer ,the term covered customer means a party accused of infringing a patent or patents in dispute based on a covered product or process4 7#b7 ,covered manufacturer ,the term covered manufacturer means a person that manufactures or supplies1 or causes the manufacture or supply of1 a covered product or process or a relevant part of such product or process4 7#c7 ,covered product or process ,the term covered product or process means a product1 process1 system1 service1 component1 material1 or apparatus1 or relevant part thereof1 that-- 7,a7 is alleged to infringe the patent or patents in dispute2 or 7,b7 implements a process alleged to infringe the patent or patents in dispute4 4 7b7 ,conforming amendment ,the table of sections for chapter #bi of title #ce1 ,united ,states ,code1 is amended by striking the item relating to section #bif and inserting the following3 #bif4 ,stay of action against customer4 4 7c7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act and shall apply to any action for which a complaint is filed on or after that date4 #f4 ,procedures and practices to implement and recommendations to the ,judicial ,conference 7a7 ,judicial ,conference rules and procedures on discovery burdens and costs 7#a7 ,rules and procedures ,the ,judicial ,conference of the ,united ,states1 using existing resources1 shall develop rules and procedures to implement the requirements described in paragraph 7#b7 to address the asymmetries in discovery burdens and costs in any civil action arising under any ,act of ,congress relating to patents4 ,such rules and procedures shall include how and when payment for document discovery in addition to the discovery of core documentary evidence is to occur1 and what information must be presented to demonstrate financial capacity before permitting document discovery in addition to the discovery of core documentary evidence4 7#b7 ,rules and procedures to be considered ,the rules and procedures required under paragraph 7#a7 shall include each of the following requirements3 7,a7 ,discovery of core documentary evidence ,each party to the action is entitled to receive core documentary evidence and shall be responsible for the costs of producing core documentary evidence within the possession or control of each such party4 ,each party to the action may seek nondocumentary discovery as otherwise provided in the ,federal ,rules of ,civil ,procedure4 7,b7 ,electronic communication ,if the parties determine that the discovery of electronic communication is necessary1 such discovery shall occur after the parties have exchanged initial disclosures and core documentary evidence and shall be in accordance with the following3 7i7 ,any request for the production of electronic communication shall be specific and may not be a general request for the production of information relating to a product or business4 7ii7 ,each request shall identify the custodian of the information requested1 the search terms1 and a time frame4 ,the parties shall cooperate to identify the proper custodians1 the proper search terms1 and the proper time frame4 7iii7 ,a party may not submit production requests to more than #e custodians1 unless the parties jointly agree to modify the number of production requests without leave of the court4 7iv7 ,the court may consider contested requests for up to #e additional custodians per producing party1 upon a showing of a distinct need based on the size1 complexity1 and issues of the case4 7v7 ,if a party requests the discovery of electronic communication for additional custodians beyond the limits agreed to by the parties or granted by the court1 the requesting party shall bear all reasonable costs caused by such additional discovery4 7,c7 ,additional document discovery 7i7 ,in general ,each party to the action may seek any additional document discovery otherwise permitted under the ,federal ,rules of ,civil ,procedure1 if such party bears the reasonable costs1 including reasonable attorney's fees1 of the additional document discovery4 7ii7 ,requirements for additional document discovery ,unless the parties mutually agree otherwise1 no party may be permitted additional document discovery unless such a party posts a bond1 or provides other security1 in an amount sufficient to cover the expected costs of such additional document discovery1 or makes a showing to the court that such party has the financial capacity to pay the costs of such additional document discovery4 7iii7 ,limits on additional document discovery ,a court1 upon motion1 may determine that a request for additional document discovery is excessive1 irrelevant1 or otherwise abusive and may set limits on such additional document discovery4 7iv7 ,good cause modification ,a court1 upon motion and for good cause shown1 may modify the requirements of subparagraphs 7,a7 and 7,b7 and any definition under paragraph 7#c74 ,not later than #cj days after the pretrial conference under ,rule #af of the ,federal ,rules of ,civil ,procedure1 the parties shall jointly submit any proposed modifications of the requirements of subparagraphs 7,a7 and 7,b7 and any definition under paragraph 7#c71 unless the parties do not agree1 in which case each party shall submit any proposed modification of such party and a summary of the disagreement over the modification4 7v7 ,computer code ,a court1 upon motion and for good cause shown1 may determine that computer code should be included in the discovery of core documentary evidence4 ,the discovery of computer code shall occur after the parties have exchanged initial disclosures and other core documentary evidence4 7,d7 ,discovery sequence and scope ,the parties shall discuss and address in the written report filed pursuant to ,rule #bf7;f7 of the ,federal ,rules of ,civil ,procedure the views and proposals of each party on the following3 7i7 ,when the discovery of core documentary evidence should be completed4 7ii7 ,whether additional document discovery will be sought under subparagraph 7,c74 7iii7 ,any issues about infringement1 invalidity1 or damages that1 if resolved before the additional discovery described in subparagraph 7,c7 commences1 might simplify or streamline the case1 including the identification of any terms or phrases relating to any patent claim at issue to be construed by the court and whether the early construction of any of those terms or phrases would be helpful4 7#c7 ,definitions ,in this subsection3 7,a7 ,core documentary evidence ,in this subsection1 the term core documentary evidence-- 7i7 includes-- 7,i7 documents relating to the conception of1 reduction to practice of1 and application for1 the patent or patents at issue2 7,,ii7 documents sufficient to show the technical operation of the product or process identified in the complaint as infringing the patent or patents at issue2 7,,iii7 documents relating to potentially invalidating prior art2 7,,iv7 documents relating to any licensing of1 or other transfer of rights to1 the patent or patents at issue before the date on which the complaint is filed2 7,v7 documents sufficient to show profit attributable to the claimed invention of the patent or patents at issue2 7,,vi7 documents relating to any knowledge by the accused infringer of the patent or patents at issue before the date on which the complaint is filed2 7,,vii7 documents relating to any knowledge by the patentee of infringement of the patent or patents at issue before the date on which the complaint is filed2 7,,viii7 documents relating to any licensing term or pricing commitment to which the patent or patents may be subject through any agency or standard-setting body2 and 7,,ix7 documents sufficient to show any marking or other notice provided of the patent or patents at issue2 and 7ii7 does not include computer code1 except as specified in paragraph 7#b77;,c77v74 7,b7 ,electronic communication ,the term electronic communication means any form of electronic communication1 including email1 text message1 or instant message4 7#d7 ,implementation by the ,district ,courts ,not later than #f months after the date on which the ,judicial ,conference has developed the rules and procedures required by this subsection1 each ,united ,states district court and the ,united ,states ,court of ,federal ,claims shall revise the applicable local rules for such court to implement such rules and procedures4 7#e7 ,authority for ,judicial ,conference to review and modify ,the ,judicial ,conference shall study the efficacy of the rules and procedures required by this subsection during the first #d years following the implementation of such rules and procedures by the district courts and the ,united ,states ,court of ,federal ,claims4 ,the ,judicial ,conference may modify such rules and procedures following such #d-year period4 7b7 ,judicial ,conference patent case management ,the ,judicial ,conference of the ,united ,states1 using existing resources1 shall develop case management procedures to be implemented by the ,united ,states district courts and the ,united ,states ,court of ,federal ,claims for any civil action arising under any ,act of ,congress relating to patents1 including initial disclosure and early case management conference practices that-- 7#a7 will identify any potential dispositive issues of the case2 and 7#b7 focus on early summary judgment motions when resolution of issues may lead to expedited disposition of the case4 7c7 ,revision of form for patent infringement 7#a7 ,elimination of form ,the ,supreme ,court1 using existing resources1 shall eliminate ,form #ah in the ,appendix to the ,federal ,rules of ,civil ,procedure 7relating to ,complaint for ,patent ,infringement71 effective on the date of the enactment of this ,act4 7#b7 ,revised form ,the ,supreme ,court may prescribe a new form or forms setting out model allegations of patent infringement that1 at a minimum1 notify accused infringers of the asserted claim or claims1 the products or services accused of infringement1 and the plaintiff's theory for how each accused product or service meets each limitation of each asserted claim4 ,the ,judicial ,conference should exercise the authority under section #bjgc of title #bh1 ,united ,states ,code1 to make recommendations with respect to such new form or forms4 7d7 ,protection of intellectual-,property licenses in bankruptcy 7#a7 ,in general ,section #aebj7;a7 of title #aa1 ,united ,states ,code1 is amended-- 7,a7 in paragraph 7#c71 by striking 2 and and inserting a semicolon2 7,b7 in paragraph 7#d71 by striking the period at the end and inserting 2 and2 and 7,c7 by inserting at the end the following new paragraph3 7#e7 section #cfe7n7 applies to intellectual property of which the debtor is a licensor or which the debtor has transferred4 4 7#b7 ,effective date ,the amendments made by this subsection shall take effect on the date of the enactment of this ,act and shall apply to any action for which a complaint is pending on1 or filed on or after1 such date of enactment4 #g4 ,small business education1 outreach1 and information access 7a7 ,small business education and outreach 7#a7 ,resources for small business ,using existing resources1 the ,director shall develop educational resources for small businesses to address concerns arising from patent infringement4 7#b7 ,small ,business ,patent ,ombudsman ,the ,patent ,ombudsman ,program established under section #bh of the ,leahy-,smith ,america ,invents ,act 7,public ,law #aab-bi2 #abe ,stat4 #cci2 #ce ,u4,s4,c4 #b note7 shall coordinate with the existing small business outreach programs of the ,office to provide education and awareness on abusive patent litigation practices4 7b7 ,improving ,information ,transparency for ,small ,business and the ,united ,states ,patent and ,trademark ,office users 7#a7 ,web site ,using existing resources1 the ,director shall create a user-friendly section on the official ,web site of the ,office to notify the public when a patent case is brought in ,federal court and with respect to each patent at issue in such case1 the ,director shall include-- 7,a7 information disclosed pursuant to subsections 7b7 and 7d7 of section #bij of title #ce1 ,united ,states ,code1 as added by section #d7;a7 of this ,act2 and 7,b7 any other information the ,director determines to be relevant4 7#b7 ,format ,in order to promote accessibility for the public1 the information described in paragraph 7#a7 shall be searchable by patent number1 patent art area1 and entity4 #h4 ,studies on patent transactions1 quality1 and examination 7a7 ,study on ,secondary ,market ,oversight for ,patent ,transactions ,to ,promote ,transparency and ,ethical ,business ,practices 7#a7 ,study required ,the ,director1 in consultation with the ,secretary of ,commerce1 the ,secretary of the ,treasury1 the ,chairman of the ,securities and ,exchange ,commission1 the heads of other relevant agencies1 and interested parties1 shall1 using existing resources of the ,office1 conduct a study-- 7,a7 to develop legislative recommendations to ensure greater transparency and accountability in patent transactions occurring on the secondary market2 7,b7 to examine the economic impact that the patent secondary market has on the ,united ,states2 7,c7 to examine licensing and other oversight requirements that may be placed on the patent secondary market1 including on the participants in such markets1 to ensure that the market is a level playing field and that brokers in the market have the requisite expertise and adhere to ethical business practices2 and 7,d7 to examine the requirements placed on other markets4 7#b7 ,submission of study ,not later than #a year after the date of the enactment of this ,act1 the ,director shall submit a report to the ,committee on the ,judiciary of the ,house of ,representatives and the ,committee on the ,judiciary of the ,senate on the findings and recommendations of the ,director from the study required under paragraph 7#a74 7b7 ,study on patents owned by the ,united ,states ,government 7#a7 ,study required ,the ,director1 in consultation with the heads of relevant agencies and interested parties1 shall1 using existing resources of the ,office1 conduct a study on patents owned by the ,united ,states ,government that-- 7,a7 examines how such patents are licensed and sold1 and any litigation relating to the licensing or sale of such patents2 7,b7 provides legislative and administrative recommendations on whether there should be restrictions placed on patents acquired from the ,united ,states ,government2 7,c7 examines whether or not each relevant agency maintains adequate records on the patents owned by such agency1 specifically whether such agency addresses licensing1 assignment1 and ,government grants for technology related to such patents2 and 7,d7 provides recommendations to ensure that each relevant agency has an adequate point of contact that is responsible for managing the patent portfolio of the agency4 7#b7 ,report on study ,not later than #f months after the date of the enactment of this ,act1 the ,director shall submit to the ,committee on the ,judiciary of the ,house of ,representatives and the ,committee on the ,judiciary of the ,senate a report on the findings and recommendations of the ,director from the study required under paragraph 7#a74 7c7 ,study on ,patent ,quality and ,access to the ,best ,information during ,examination 7#a7 ,,gao study ,the ,comptroller ,general of the ,united ,states shall conduct a study on patent examination at the ,office and the technologies available to improve examination and improve patent quality4 7#b7 ,contents of the study ,the study required under paragraph 7#a7 shall include the following3 7,a7 ,an examination of patent quality at the ,office4 7,b7 ,an examination of ways to improve quality1 specifically through technology1 that shall include examining best practices at foreign patent offices and the use of existing off-the-shelf technologies to improve patent examination4 7,c7 ,a description of how patents are classified4 7,d7 ,an examination of procedures in place to prevent double patenting through filing by applicants in multiple art areas4 7,e7 ,an examination of the types of off-the-shelf prior art databases and search software used by foreign patent offices and governments1 particularly in ,europe and ,asia1 and whether those databases and search tools could be used by the ,office to improve patent examination4 7,f7 ,an examination of any other areas the ,comptroller ,general determines to be relevant4 7#c7 ,report to ,congress ,not later than #f months after the date of the enactment of this ,act1 the ,comptroller ,general shall submit to the ,committee on the ,judiciary of the ,house of ,representatives and the ,committee on the ,judiciary of the ,senate a report on the findings and recommendations from the study required by this subsection1 including recommendations for any changes to laws and regulations that will improve the examination of patent applications and patent quality4 #i4 ,improvements and technical corrections to the ,leahy-,smith ,america ,invents ,act 7a7 ,repeal of civil action ,to obtain a patent 7#a7 ,repeal ,section #ade of title #ce1 ,united ,states ,code1 is repealed4 7#b7 ,conforming amendments 7,a7 ,federal ,circuit jurisdiction ,section #abie7;a77#d7 of title #bh1 ,united ,states ,code1 is amended-- 7i7 in subparagraph 7,a71 by striking except that an applicant or a party and all that follows through the end of the subparagraph and inserting the following3 except that a party to a derivation proceeding may also have remedy by civil action pursuant to section #adf of title #ce2 an appeal under this subparagraph of a decision of the ,board with respect to a derivation proceeding shall waive the right of such party to proceed under section #adf of title #ce22 and 7ii7 in subparagraph 7,c71 by striking section #ade1 #adf1 or and inserting section #adf or4 7,b7 ,federal ,circuit appeal ,section #ada7;a7 of title #ce1 ,united ,states ,code1 is amended-- 7i7 by striking may appeal the ,board's decision to and inserting may appeal the ,board's decision only to2 and 7ii7 by striking the second sentence4 7,c7 ,adjustment of patent term ,section #aed7;b77#a77;,a77iii7 of title #ce1 ,united ,states ,code1 is amended by striking section #ada1 #ade1 or #adf and inserting section #ada or #adf4 7,d7 ,clerical amendment ,the table of sections for chapter #ac of title #ce1 ,united ,states ,code1 is amended by repealing the item relating to section #ade4 7#c7 ,effective date ,the amendments made by this subsection shall apply to any proceeding in which a decision is made by the ,patent ,trial and ,appeal ,board on or after the date of the enactment of this ,act4 7b7 ,post-,grant review amendment ,section #cbe7;e77#b7 of title #ce1 ,united ,states ,code is amended by striking or reasonably could have raised4 7c7 ,use of district-,court claim construction in post-,grant and inter partes reviews 7#a7 ,inter partes review ,section #caf7;a7 of title #ce1 ,united ,states ,code1 is amended-- 7,a7 in paragraph 7#ab71 by striking 2 and and inserting a semicolon2 7,b7 in paragraph 7#ac71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following new paragraph3 7#ad7 providing that for all purposes under this chapter-- 7,a7 each claim of a patent shall be construed as such claim would be in a civil action to invalidate a patent under section #bhb7;b71 including construing each claim of the patent in accordance with the ordinary and customary meaning of such claim as understood by one of ordinary skill in the art and the prosecution history pertaining to the patent2 and 7,b7 if a court has previously construed the claim or a claim term in a civil action in which the patent owner was a party1 the ,office shall consider such claim construction4 4 7#b7 ,post-grant review ,section #cbf7;a7 of title #ce1 ,united ,states ,code1 is amended-- 7,a7 in paragraph 7#aa71 by striking 2 and and inserting a semicolon2 7,b7 in paragraph 7#ab71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following new paragraph3 7#ac7 providing that for all purposes under this chapter-- 7,a7 each claim of a patent shall be construed as such claim would be in a civil action to invalidate a patent under section #bhb7;b71 including construing each claim of the patent in accordance with the ordinary and customary meaning of such claim as understood by one of ordinary skill in the art and the prosecution history pertaining to the patent2 and 7,b7 if a court has previously construed the claim or a claim term in a civil action in which the patent owner was a party1 the ,office shall consider such claim construction4 4 7#c7 ,technical and conforming amendment ,section #ah7;a77#a77;,a7 of the ,leahy-,smith ,america ,invents ,act 7,public ,law #aab-bi2 #abf ,stat4 #cbi7 is amended by striking ,section #cba7;c7 and inserting ,sections #cba7;c7 and #cbf7;a77#ac74 7#d7 ,effective date ,the amendments made by this subsection shall take effect upon the expiration of the #ij-;day period beginning on the date of the enactment of this ,act1 and shall apply to any proceeding under chapter #ca or #cb of title #ce1 ,united ,states ,code1 for which the petition for review is filed on or after such effective date4 7d7 ,codification of the double-,patenting doctrine for first-,inventor-,to-,file patents 7#a7 ,amendment ,chapter #aj of title #ce1 ,united ,states ,code1 is amended by adding at the end the following new section3 #ajf4 ,prior art in cases of double patenting ,a claimed invention of a patent issued under section #aea 7referred to as the first patent7 that is not prior art to a claimed invention of another patent 7referred to as the second patent7 shall be considered prior art to the claimed invention of the second patent for the purpose of determining the nonobviousness of the claimed invention of the second patent under section #ajc if-- 7#a7 the claimed invention of the first patent was effectively filed under section #ajb7;d7 on or before the effective filing date of the claimed invention of the second patent2 7#b7 either-- 7,a7 the first patent and second patent name the same inventor2 or 7,b7 the claimed invention of the first patent would constitute prior art to the claimed invention of the second patent under section #ajb7;a77#b7 if an exception under section #ajb7;b77#b7 were deemed to be inapplicable and the claimed invention of the first patent was1 or were deemed to be1 effectively filed under section #ajb7;d7 before the effective filing date of the claimed invention of the second patent2 and 7#c7 the patentee of the second patent has not disclaimed the rights to enforce the second patent independently from1 and beyond the statutory term of1 the first patent4 4 7#b7 ,regulations ,the ,director shall promulgate regulations setting forth the form and content of any disclaimer required for a patent to be issued in compliance with section #ajf of title #ce1 ,united ,states ,code1 as added by paragraph 7#a74 ,such regulations shall apply to any disclaimer filed after a patent has issued4 ,a disclaimer1 when filed1 shall be considered for the purpose of determining the validity of the patent under section #ajf of title #ce1 ,united ,states ,code4 7#c7 ,conforming amendment ,the table of sections for chapter #aj of title #ce1 ,united ,states ,code1 is amended by adding at the end the following new item3 #ajf4 ,prior art in cases of double patenting4 4 7#d7 ,exclusive rule ,a patent subject to section #ajf of title #ce1 ,united ,states ,code1 as added by paragraph 7#a71 shall not be held invalid on any nonstatutory1 double-patenting ground4 7#e7 ,effective date ,the amendments made by this subsection shall take effect on the date of the enactment of this ,act and shall apply to a patent or patent application only if both the first and second patents described in section #ajf of title #ce1 ,united ,states ,code1 as added by paragraph 7#a71 are patents or patent applications that are described in section #c7n77#a7 of the ,leahy-,smith ,america ,invents ,act 7#ce ,u4,s4,c4 #ajj note74 7e7 ,covered business method patent reviews 7#a7 ,limitation2 repeal 7,a7 ,limitation to first-to-invent patents ,section #ah7;a77#b7 of the ,leahy-,smith ,america ,invents ,act is amended by striking shall not apply to a patent described in section #f7;f77#b77;,a7 of this ,act during the period in which a petition for post-grant review of that patent would satisfy the requirements of section #cba7;c7 of title #ce1 ,united ,states ,code and inserting shall not apply to a patent that is described in section #c7n77#a7 of this ,act 7but is not described in section #c7n77#b7 of this ,act74 7,b7 ,repeal of sunset ,section #ah7;a7 of the ,leahy-,smith ,america ,invents ,act 7#ce ,u4,s4,c4 #cba note7 is amended by striking paragraph 7#c74 7,c7 ,effective date ,the amendments made by subparagraphs 7,a7 and 7,b7 shall take effect on the date of the enactment of this ,act4 7#b7 ,definition2 clarification 7,a7 ,definition ,for purposes of section #ah7;d7 of the ,leahy-,smith ,america ,invents ,act1 the words used in the practice1 administration1 or management of a financial product or service shall be construed consistently with the institution decision of the ,patent ,trial and ,appeal ,board of the ,united ,states ,patent and ,trademark ,office in ,,sap ,america1 ,inc4 v4 ,versata ,dev4 ,group1 ,inc41 ,,cbm#bjab-jjjja1 ,paper #cf 7,january #i1 #bjac74 7,b7 ,scope of prior art ,section #ah7;a77#a77;,c77i7 of the ,leahy-,smith ,america ,invents ,act is amended by striking section #ajb7;a7 and inserting subsection 7a71 7d71 or 7e7 of section #ajb4 7,c7 ,effective date ,subparagraph 7,a7 and the amendment made by subparagraph 7,b7 shall take effect on the date of the enactment of this ,act and shall apply to any proceeding pending on1 or filed on or after1 such date of enactment4 7#c7 ,authority to waive fee ,subject to available resources1 the ,director may waive payment of a filing fee for a transitional proceeding described under section #ah7;a7 of the ,leahy-,smith ,america ,invents ,act 7#ce ,u4,s4,c4 #cba note74 7f7 ,clarification of limits on patent term adjustment 7#a7 ,amendments ,section #aed7;b77#a77;,b7 of title #ce1 ,united ,states ,code1 is amended-- 7,a7 in the matter preceding clause 7i71 by striking not including-- and inserting the term of the patent shall be extended #a day for each day after the end of that #c-year period until the patent is issued1 not including--2 7,b7 in clause 7i71 by striking consumed by continued examination of the application requested by the applicant and inserting consumed after continued examination of the application is requested by the applicant2 7,c7 in clause 7iii71 by striking the comma at the end and inserting a period2 and 7,d7 by striking the matter following clause 7iii74 7#b7 ,effective date ,the amendments made by this subsection shall apply to any patent application or patent that is pending on1 or filed on or after1 the date of the enactment of this ,act4 7g7 ,clarification of jurisdiction 7#a7 ,in general ,the ,federal interest in preventing inconsistent final judicial determinations as to the legal force or effect of the claims in a patent presents a substantial ,federal issue that is important to the ,federal system as a whole4 7#b7 ,applicability ,paragraph 7#a7-- 7,a7 shall apply to all cases filed on1 after1 or pending on1 the date of the enactment of this ,act2 and 7,b7 shall not apply to a case in which a ,federal court has issued a ruling on whether the case or a claim arises under any ,act of ,congress relating to patents or plant variety protection before the date of the enactment of this ,act4 7h7 ,technical corrections 7#a7 ,novelty 7,a7 ,amendment ,section #ajb7;b77#a77;,a7 of title #ce1 ,united ,states ,code1 is amended by striking the inventor or joint inventor or by another and inserting the inventor or a joint inventor or another4 7,b7 ,effective date ,the amendment made by subparagraph 7,a7 shall be effective as if included in the amendment made by section #c7;b77#a7 of the ,leahy-,smith ,america ,invents ,act 7,public ,law ,no4 #aab-bi74 7#b7 ,inventor's oath or declaration 7,a7 ,amendment ,subsection 7g77#a7 of section #aae of title #ce1 ,united ,states ,code1 is amended-- 7i7 by striking claims the benefit and inserting is entitled1 as to each invention claimed in the application1 to the benefit2 and 7ii7 in subparagraph 7,a71 by striking meeting the requirements of subsection 7a7 was executed by the individual and was filed in connection with the earlier-filed application and inserting the following3 executed by or on behalf of the individual was filed in connection with the earlier-filed application and meets the requirements of this section as effective on the date such oath or declaration was filed4 7,b7 ,effective date ,the amendment made by subparagraph 7,a7 shall be effective as if included in the amendment made by section #d7;a77#a7 of the ,leahy-,smith ,america ,invents ,act 7,public ,law ,no4 #aab-bi74 7#c7 ,assignee filers 7,a7 ,benefit of earlier filing date2 right of priority ,section #aai7;e77#a7 of title #ce1 ,united ,states ,code1 is amended1 in the first sentence1 by striking by an inventor or inventors named and inserting that names the inventor or a joint inventor4 7,b7 ,benefit of earlier filing date in the ,united ,states ,section #abj of title #ce1 ,united ,states ,code1 is amended1 in the first sentence1 by striking names an inventor or joint inventor and inserting names the inventor or a joint inventor4 7,c7 ,effective date ,the amendments made by this paragraph shall take effect on the date of the enactment of this ,act and shall apply to any patent application1 and any patent issuing from such application1 that is filed on or after ,september #af1 #bjab4 7#d7 ,derived patents 7,a7 ,amendment ,section #bia7;b7 of title #ce1 ,united ,states ,code1 is amended by striking or joint inventor and inserting or a joint inventor4 7,b7 ,effective date ,the amendment made by subparagraph 7,a7 shall be effective as if included in the amendment made by section #c7;h77#a7 of the ,leahy-,smith ,america ,invents ,act 7,public ,law ,no4 #aab-bi74 7#e7 ,specification ,notwithstanding section #d7;e7 of the ,leahy-,smith ,america ,invents ,act 7,public ,law #aab-bi2 #abe ,stat4 #big71 the amendments made by subsections 7c7 and 7d7 of section #d of such ,act shall apply to any proceeding or matter1 that is pending on1 or filed on or after1 the date of the enactment of this ,act4 7#f7 ,patent owner response 7,a7 ,conduct of inter partes review ,paragraph 7#h7 of section #caf7;a7 of title #ce1 ,united ,states ,code1 is amended by striking the petition under section #cac and inserting the petition under section #caa4 7,b7 ,conduct of post-grant review ,paragraph 7#h7 of section #cbf7;a7 of title #ce1 ,united ,states ,code1 is amended by striking the petition under section #cbc and inserting the petition under section #cba4 7,c7 ,effective date ,the amendments made by this paragraph shall take effect on the date of the enactment of this ,act4 7#g7 ,international applications 7,a7 ,amendments ,section #bjb7;b7 of the ,patent ,law ,treaties ,implementation ,act of #bjab 7,public ,law #aab-baa2 #abf ,stat4 #aecf7 is amended-- 7i7 by striking paragraph 7#g72 and 7ii7 by redesignating paragraphs 7#h7 and 7#i7 as paragraphs 7#g7 and 7#h74 7,b7 ,effective date ,the amendments made by subparagraph 7,a7 shall be effective as if included in title ,,ii of the ,patent ,law ,treaties ,implementation ,act of #bjab 7,public ,law #aab-ba74 #aj4 ,effective date ,except as otherwise provided in this ,act1 the provisions of this ,act shall take effect on the date of the enactment of this ,act1 and shall apply to any patent issued1 or any action filed1 on or after that date4