High-Tech Executives Urge Obama To Back Overhaul Of Patent System
March 25 2009 - 6:16PM
Dow Jones News
A group of 28 chief executives, including many from leading U.S.
technology companies, wrote President Barack Obama Wednesday urging
him to support legislative efforts to overhaul the nation's patent
system.
The executives said retooling the patent system should be a key
component of revitalizing the U.S. economy.
"Modernizing the U.S. patent system and stopping the abuses we
see now will greatly enhance our efforts to innovate by creating
U.S.-based jobs to help better lead our nation's economic
recovery," they wrote.
Chief executives from Cisco Systems Inc. (CSCO), Dell Inc.
(DELL), Intel Corp. (INTC), Hewlett-Packard Co. (HPQ), Google Inc.
(GOOG) and Oracle Corp. (ORCL) were among those who signed the
letter.
The House and Senate are each considering similar legislation to
overhaul the patent system. The issue, however, is a contentious
one and divides the business community. Such efforts have stalled
several times in Congress in recent years.
One major issue yet to be resolved is how to calculate money
damages against a defendant who infringes an inventor's patent.
Many high-tech companies want legislation to trim the amount of
damages that patent violators have to pay. They say the current
system allows inventors to extract far greater damage awards than
their inventions are worth.
Pharmaceutical and biotechnology companies are among those who
oppose changes to the calculation of damages, saying the position
of the high-tech companies would weaken patent rights and encourage
infringers. Other companies that oppose a reduction in damage
awards include 3M Co. (MMM), Caterpillar Inc. (CAT) and General
Electric Co. (GE).
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com