[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [H.R. 8134 Introduced in House (IH)] <DOC> 118th CONGRESS 2d Session H. R. 8134 To promote the leadership of the United States in global innovation by establishing a robust patent system that restores and protects the right of inventors to own and enforce private property rights in inventions and discoveries, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES April 26, 2024 Mr. Massie (for himself, Ms. Kaptur, Mr. Cloud, Mr. Davidson, Mr. Good of Virginia, Mr. Gosar, Ms. Greene of Georgia, Mr. Higgins of Louisiana, Mr. McClintock, Mr. Mooney, Mr. Norman, Mr. Posey, Mr. Roy, and Mr. Steube) introduced the following bill; which was referred to the Committee on the Judiciary _______________________________________________________________________ A BILL To promote the leadership of the United States in global innovation by establishing a robust patent system that restores and protects the right of inventors to own and enforce private property rights in inventions and discoveries, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Restoring America's Leadership in Innovation Act of 2024''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings. Sec. 3. Restoring the right of the first inventor to secure a patent. Sec. 4. Abolishing inter partes and post-grant review. Sec. 5. Abolishing the Patent Trial and Appeal Board. Sec. 6. Elimination of fee diversion and full funding of the United States Patent and Trademark Office. Sec. 7. Patentability of scientific discoveries and software inventions. Sec. 8. Limitations on prior art. Sec. 9. Restoring patents as a property right. Sec. 10. Ending automatic publication of patent applications. Sec. 11. Presumption of validity; defenses. Sec. 12. Injunction. Sec. 13. Best mode requirement. SEC. 2. FINDINGS. The Congress finds the following: (1) The Congress created a patent system to ``promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries,'' as provided for in the Constitution of the United States. (2) The Leahy-Smith America Invents Act (Public Law 112-29) enacted on September 16, 2011, and several decisions of the Supreme Court have harmed the progress of Science and the useful Arts by eroding the strength and value of the patent system. (3) The United States Government exists to protect life, liberty, and property, which includes intellectual property. (4) A United States patent secures a private property right to an inventor. (5) This Act restores the patent system as envisioned by the Constitution of the United States. SEC. 3. RESTORING THE RIGHT OF THE FIRST INVENTOR TO SECURE A PATENT. (a) Repeal of First-to-File System Under the America Invents Act.-- Section 3 of the Leahy-Smith America Invents Act (Public Law 112-29), including each amendment made by such section, is repealed and any amendment made by such section to any provision shall be effective as if the provision had not been amended by such section. (b) First-to-Invent.--Notwithstanding any other provision under title 35, United States Code, a person shall be entitled to a patent where the inventor is first to conceive of the invention and diligently reduces the invention to practice. (c) One-Year Grace Period.--Notwithstanding any other provision under title 35, United States Code, a person shall be entitled to a one-year grace period before filing an application for a patent, as the grace period existed before the date of the enactment of the Leahy- Smith America Invents Act under section 102 of title 35, United States Code, and with the same meaning of the terms ``in public use'' and ``on sale in this country'' as interpreted before the enactment of the Leahy-Smith America Invents Act. (d) Sense of Congress.--It is the sense of Congress that-- (1) reverting the United States patent system from a ``first-to-file'' system back to ``first-to-invent'' system will promote the progress of science and the useful arts by securing for limited times to inventors the exclusive rights to their discoveries and incentivize innovation and protect inventors' rights; (2) restoring the one-year grace period before the first and true inventor must file a patent application on an invention will promote the progress of science and useful arts by enabling inventors once again to disclose inventions in order to attract investment, complete research and development on the invention, test, improve, and perfect the invention so as to improve the invention and the quality of the patent application; and (3) the repeal of section 3, and the amendments made by section 3, of the Leahy-Smith America Invents Act, restore sections 100, 102, 103, 135, and 291 of title 35, United States Code, to the way such sections read on the day before the date of the enactment of such Act. SEC. 4. ABOLISHING INTER PARTES AND POST-GRANT REVIEW. (a) Repeal of Inter Partes and Post-Grant Review.--Section 6 of the Leahy-Smith America Invents Act (Public Law 112-29), including each amendment made by such section, is repealed and any amendment made by such section to any provision shall be effective as if the provision had not been amended by such section. (b) Repeal of Codified Titles.--Chapters 31 and 32 of title 35, United States Code, are repealed. (c) Sense of Congress.--It is the sense of Congress that-- (1) inter partes review and post-grant review proceedings introduced by the Leahy-Smith America Invents Act have harmed the progress of science and the useful arts by subjecting inventors to serial challenges to patents; (2) inter partes review and post-grant review proceedings invalidate patents at an unreasonably high rate; (3) patent rights should be protected from unfair adjudication at the Patent and Trademark Office and duly issued patents should be adjudicated in a judicial proceeding; (4) repealing section 6 of the Leahy-Smith America Invents Act abolishes inter partes review, post-grant review, and the previously available inter partes reexamination proceedings; and (5) it is the intent of Congress to preserve ex parte reexamination proceedings under chapter 30 of title 35, United States Code. SEC. 5. ABOLISHING THE PATENT TRIAL AND APPEAL BOARD. (a) Repeal of Patent Trial and Appeal Board.--Section 7 of the Leahy-Smith America Invents Act (Public Law 112-29) is repealed, including each amendment made by such section, and any amendment made by such section to any provision shall be effective as if the provision had not been amended by such section. (b) Board of Patent Appeals and Interferences.-- (1) Amendment.--Section 6 of title 35, United States Code, is amended to read as follows: ``Sec. 6. Board of Patent Appeals and Interferences ``(a) Establishment and Composition.--There shall be in the Patent and Trademark Office a Board of Patent Appeals and Interferences. The Director, the Deputy Director, the Commissioner for Patents, the Commissioner for Trademarks, and the administrative patent judges shall constitute the Board. The administrative patent judges shall be persons of competent legal knowledge and scientific ability who are appointed by the Secretary of Commerce, in consultation with the Director. ``(b) Duties.--The Board of Patent Appeals and Interferences shall, on written appeal of an applicant, review adverse decisions of examiners upon applications for patents and shall determine priority and patentability of invention in interferences declared under section 135(a). Each appeal and interference shall be heard by at least three members of the Board, who shall be designated by the Director. Only the Board of Patent Appeals and Interferences may grant rehearings. The Board shall not invalidate an issued patent except in an ex parte reexamination under chapter 30. ``(c) Authority of the Secretary.--The Secretary of Commerce may, in the Secretary's discretion, deem the appointment of an administrative patent judge who, before the date of the enactment of this subsection, held office pursuant to an appointment by the Director, to take effect on the date on which the Director initially appointed the administrative patent judge. ``(d) Defense to Challenge of Appointment.--It shall be a defense to a challenge to the appointment of an administrative patent judge on the basis of the judge's having been originally appointed by the Director that the administrative patent judge so appointed was acting as a de facto officer.''. (2) Technical and conforming amendment.--The table of sections for chapter 1 of title 35, United States Code, is amended by striking the item relating to section 6 and inserting the following new item: ``6. Board of patent appeals and interferences.''. (c) Appeal to the Board of Patent Appeals and Interferences.-- (1) Amendment.--Section 134 of title 35, United States Code, as reinstated by section 3(a) of this Act, is amended by striking subsection (c). (2) Technical and conforming amendment.--The table of sections for chapter 12 of title 35, United States Code, is amended by striking the item relating to section 134 and inserting the following new item: ``134. Appeal to the Board of Patent Appeals and Interferences.''. (d) Appeal to the Court of Appeals for the Federal Circuit.-- Section 141 of title 35, United States Code, is amended to read as follows: ``Sec. 141. Appeal to the Court of Appeals for the Federal Circuit ``(a) Examinations.--An applicant dissatisfied with the decision in an appeal to the Board of Patent Appeals and Interferences under section 134 may appeal the decision directly to the United States Court of Appeals for the Federal Circuit, or may seek review de novo in any district court of the United States of competent jurisdiction. ``(b) Reexaminations.--A patent owner who is, in a reexamination proceeding, dissatisfied with the final decision in an appeal to the Board of Patent Appeals and Interferences under section 134 may appeal the decision directly to the United States Court of Appeals for the Federal Circuit, or may seek review de novo in a district court of the United States of competent jurisdiction. ``(c) Interference.--A party to an interference dissatisfied with the decision of the Board of Patent Appeals and Interferences on the interference may appeal the decision to the United States Court of Appeals for the Federal Circuit, but such appeal shall be dismissed if any adverse party to such interference, within twenty days after the appellant has filed notice of appeal in accordance with section 142, files notice with the Director that the party elects to have all further proceedings conducted as provided in section 146. If the appellant does not, within thirty days after filing of such notice by the adverse party, file a civil action under section 146, the decision appealed from shall govern the further proceedings in the case.''. (e) Sense of Congress.--It is the sense of Congress that-- (1) the Patent Trial and Appeal Board shall be replaced with the former Board of Patent Appeals and Interferences; (2) with the abolishment of inter partes review and post- grant review proceedings, the Patent Trial and Appeal Board is no longer needed to conduct these duties; (3) unless otherwise in the context of an ex parte reexamination under chapter 30 of title 35, United States Code, the Board of Patent Appeals and Interferences will not be used to invalidate an already issued patent; (4) the changes described in paragraphs (1) through (3) will protect the rights of patent owners who have been granted a patent and ensure a fair, fully adjudicated proceeding to invalidate an issued patent; (5) the amendment to section 6 of title 35, United States Code, reflects Congress's intent to require a judicial proceeding to invalidate an issued patent; and (6) the amendments to section 134 of title 35, United States Code, and section 141 of title 35, United States Code, are intended to restore each respective section to its prior state, but delete any reference to inter partes reexamination, which is no longer available. SEC. 6. ELIMINATION OF FEE DIVERSION AND FULL FUNDING OF THE UNITED STATES PATENT AND TRADEMARK OFFICE. (a) Patent and Trademark Office Funding.--Section 42 of title 35, United States Code, is amended-- (1) in subsection (a), by striking ``(a) All fees'' and inserting ``(a) In General.--Fees''; (2) in subsection (b)-- (A) by striking ``(b) All fees'' and inserting ``(b) Credit of Fees.--Fees''; and (B) by striking ``Patent and Trademark Office Appropriation Account'' and inserting ``United States Patent and Trademark Office Innovation Promotion Fund''; (3) in subsection (c)-- (A) by striking ``(1) To the extent'' and all that follows through ``fees'' and inserting ``(c) Use of Fees.--(1) Fees''; (B) in paragraph (1), by striking ``shall be collected by and shall, subject to paragraph (3), be available to the Director'' and inserting ``shall be collected by the Director and shall be available to the Director until expended''; (C) by striking paragraph (2); and (D) by redesignating paragraph (3) as paragraph (2); (4) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and (5) by inserting after subsection (c) the following: ``(d) Revolving Fund.-- ``(1) Definitions.--In this subsection: ``(A) Fund.--The term `Fund' means the United States Patent and Trademark Office Innovation Promotion Fund established under paragraph (2). ``(B) Trademark act of 1946.--The term `Trademark Act of 1946' means the Act entitled `An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes', approved July 5, 1946 (15 U.S.C. 1051 et seq.) (commonly referred to as the `Trademark Act of 1946' or the `Lanham Act'). ``(2) Establishment.--There is established in the Treasury a revolving fund to be known as the `United States Patent and Trademark Office Innovation Promotion Fund'. ``(3) Derivation of resources.--There shall be deposited into the Fund any fees collected under-- ``(A) this title; or ``(B) the Trademark Act of 1946. ``(4) Expenses.--Amounts deposited into the Fund under paragraph (3) shall be available, without fiscal year limitation, to cover-- ``(A) all expenses to the extent consistent with the limitation on the use of fees set forth in subsection (c), including all administrative and operating expenses, determined in the discretion of the Director to be ordinary and reasonable, incurred by the Director for the continued operation of all services, programs, activities, and duties of the Office relating to patents and trademarks, as such services, programs, activities, and duties are described under-- ``(i) this title; and ``(ii) the Trademark Act of 1946; and ``(B) all expenses incurred pursuant to any obligation, representation, or other commitment of the Office.''; (6) in subsection (e), as so redesignated, by striking ``The Director'' and inserting ``Refunds.-- The Director''; and (7) in subsection (f), as so redesignated, by striking ``The Secretary'' and inserting ``Report.-- The Secretary''. (b) Effective Date; Transfer From and Termination of Obsolete Funds.-- (1) Effective date.--The amendments made by subsection (a) shall take effect on the first day of the first fiscal year that begins on or after the date of the enactment of this Act. (2) Remaining balances.--There shall be deposited in the Fund, on the effective date described in paragraph (1), any available unobligated balances remaining in the Patent and Trademark Office Appropriation Account, and in the Patent and Trademark Fee Reserve Fund established under section 42(c)(2) of title 35, United States Code, as in effect on the day before the effective date. (3) Termination of reserve fund.--Upon the payment of all obligated amounts in the Patent and Trademark Fee Reserve Fund under paragraph (2), the Patent and Trademark Fee Reserve Fund shall be terminated. SEC. 7. PATENTABILITY OF SCIENTIFIC DISCOVERIES AND SOFTWARE INVENTIONS. (a) Amendment.--Section 101 of title 35, United States Code, is amended to read as follows: ``Sec. 101. Inventions patentable ``(a) In General.--Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title. ``(b) Exception.--A claimed invention is ineligible patent subject matter under subsection (a) if the claimed invention as a whole, as understood by a person having ordinary skill in the art, exists in nature independently of and prior to any human activity, or exists solely in the human mind. ``(c) Eligibility Standard.--The eligibility of a claimed invention under subsections (a) and (b) shall be determined without regard as to the requirements or conditions of sections 102, 103, and 112 of this title, or the claimed invention's inventive concept.''. (b) Sense of