[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3160 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 3160

 To amend title 35, United States Code, to invest in inventors in the 
  United States, maintain the United States as the leading innovation 
economy in the world, and protect the property rights of the inventors 
  that grow the economy of the United States, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 1, 2025

  Mr. Moran (for himself and Ms. Ross) introduced the following bill; 
          which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To amend title 35, United States Code, to invest in inventors in the 
  United States, maintain the United States as the leading innovation 
economy in the world, and protect the property rights of the inventors 
  that grow the economy of the United States, 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.

    This Act may be cited as the ``Promoting and Respecting 
Economically Vital American Innovation Leadership Act'' or the 
``PREVAIL Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The patent property rights enshrined in the 
        Constitution of the United States provide the foundation for 
        the exceptional innovation environment in the United States.
            (2) Reliable and effective patent protection encourages 
        United States inventors to invest their resources in creating 
        new inventions.
            (3) United States inventors have made discoveries leading 
        to patient cures, positive changes to the standard of living 
        for all people in the United States, and improvements to the 
        agricultural, telecommunications, and electronics industries, 
        among others.
            (4) The United States patent system is an essential part of 
        the economic success of the United States.
            (5) Reliable and effective patent protection improves the 
        chances of success for individual inventors and small companies 
        and increases the chances of securing investments for those 
        inventors and companies.
            (6) Intellectual property-intensive industries in the 
        United States--
                    (A) generate tens of millions of jobs for 
                individuals in the United States; and
                    (B) account for more than \1/3\ of the gross 
                domestic product of the United States.
            (7) The National Security Commission on Artificial 
        Intelligence has emphasized that--
                    (A) the People's Republic of China is leveraging 
                and exploiting intellectual property as a critical tool 
                within its national strategies for emerging 
                technologies; and
                    (B) the United States has failed to similarly 
                recognize the importance of intellectual property in 
                securing its own national security, economic interests, 
                and technological competitiveness.
            (8) In the highly competitive global economy, the United 
        States needs reliable and effective patent protections to 
        safeguard national security interests and maintain its position 
        as the most innovative country in the world.
            (9) Congress last enacted comprehensive reforms of the 
        patent system in 2011.
            (10) Unintended consequences of the comprehensive 2011 
        reform of patent laws have become evident during the decade 
        preceding the date of enactment of this Act, including the 
        strategic filing of post-grant review proceedings to depress 
        stock prices and extort settlements, the filing of repetitive 
        petitions for inter partes and post-grant reviews that have the 
        effect of harassing patent owners, and the unnecessary 
        duplication of work by the district courts of the United States 
        and the Patent Trial and Appeal Board, all of which drive down 
        investment in innovation and frustrate the purpose of those 
        patent reform laws.
            (11) Efforts by Congress to reform the patent system 
        without careful scrutiny create a serious risk of making it 
        more costly and difficult for innovators to protect their 
        patents from infringement, thereby--
                    (A) disincentivizing United States companies from 
                innovating; and
                    (B) weakening the economy of the United States.

SEC. 3. PATENT TRIAL AND APPEAL BOARD.

    Section 6 of title 35, United States Code, is amended--
            (1) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively;
            (2) by inserting after subsection (a) the following:
    ``(b) Code of Conduct.--
            ``(1) In general.--The Director shall prescribe regulations 
        establishing a code of conduct for the members of the Patent 
        Trial and Appeal Board.
            ``(2) Considerations.--In prescribing regulations under 
        paragraph (1), the Director shall consider the Code of Conduct 
        for United States Judges and how the provisions of that Code of 
        Conduct may apply to the Patent Trial and Appeal Board.'';
            (3) by striking subsection (d), as so redesignated, and 
        inserting the following:
    ``(d) 3-Member Panels.--
            ``(1) In general.--Each appeal, derivation proceeding, 
        post-grant review, and inter partes review shall be heard by at 
        least 3 members of the Patent Trial and Appeal Board, who shall 
        be designated by the Director. The Patent Trial and Appeal 
        Board may grant rehearings.
            ``(2) Changes to constitution of panel.--After the 
        constitution of a panel of the Patent Trial and Appeal Board 
        under this subsection has been made public, any changes to the 
        constitution of that panel, including changes that were made 
        before the constitution of the panel was made public, shall be 
        noted in the record.
            ``(3) No direction or influence.--An officer who has 
        supervisory authority or disciplinary authority with respect to 
        an administrative patent judge of the Patent Trial and Appeal 
        Board (or a delegate of such an officer), and who is not a 
        member of a panel described in this subsection, shall refrain 
        from communications with the panel that direct or otherwise 
        influence any merits decision of the panel.
            ``(4) Ineligibility to hear review.--A member of the Patent 
        Trial and Appeal Board who participates in the decision to 
        institute an inter partes review or a post-grant review of a 
        patent shall be ineligible to hear the review.''; and
            (4) in subsection (e), as so redesignated--
                    (A) in the first sentence--
                            (i) by striking ``the date of the enactment 
                        of this subsection'' and inserting ``the date 
                        of enactment of the Promoting and Respecting 
                        Economically Vital American Innovation 
                        Leadership Act'';
                            (ii) by striking ``by the Director'' and 
                        inserting ``by the Director or the Secretary''; 
                        and
                            (iii) by inserting ``or the Secretary, as 
                        applicable,'' after ``on which the Director''; 
                        and
                    (B) in the second sentence--
                            (i) by inserting after ``by the Director'' 
                        the following: ``, or, before the date of 
                        enactment of the Promoting and Respecting 
                        Economically Vital American Innovation 
                        Leadership Act, having performed duties no 
                        longer performed by administrative patent 
                        judges,''; and
                            (ii) by striking ``that the administrative 
                        patent judge so appointed'' and inserting 
                        ``that the applicable administrative patent 
                        judge''.

SEC. 4. INTER PARTES REVIEW.

    (a) Real Parties in Interest.--Section 311 of title 35, United 
States Code, is amended by adding at the end the following:
    ``(d) Real Party in Interest.--For purposes of this chapter, a 
person that, directly or through an affiliate, subsidiary, or proxy, 
makes a financial contribution to the preparation for, or conduct 
during, an inter partes review on behalf of a petitioner shall be 
considered a real party in interest of that petitioner.''.
    (b) Petitioner Certification and Director Determination.--Section 
312(a) of title 35, United States Code, is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``and''; and
            (3) by adding at the end the following:
            ``(6) the petitioner certifies, and the Director 
        determines, that the petitioner--
                    ``(A) is a nonprofit organization that--
                            ``(i) is exempt from taxation under section 
                        501(a) of the Internal Revenue Code of 1986, 
                        described in section 501(c)(3) of such Code, 
                        and described in section 170(b)(1)(A) of such 
                        Code, other than an organization described in 
                        section 509(a)(3) of such Code;
                            ``(ii) does not have any member, donor, or 
                        other funding source that is, or reasonably 
                        could be accused of, infringing 1 or more 
                        claims of the challenged patent; and
                            ``(iii) is filing the petition for the sole 
                        purpose of ascertaining the patentability of 
                        the challenged claims of the patent and not to 
                        profit from or fund the operations of the 
                        petitioner;
                    ``(B) is currently engaging in, or has a bona fide 
                intent to engage in, conduct within the United States 
                that reasonably could be accused of infringing 1 or 
                more claims of the challenged patent;
                    ``(C) would have standing to bring a civil action 
                in a court of the United States seeking a declaratory 
                judgment of invalidity with respect to 1 or more claims 
                of the challenged patent; or
                    ``(D) has been sued in a court of the United States 
                for infringement of the challenged patent.''.
    (c) Institution Decision Rehearing Timing.--Section 314 of title 
35, United States Code, is amended by adding at the end the following:
    ``(e) Rehearing.--Not later than 45 days after the date on which a 
request for rehearing from a determination by the Director under 
subsection (b) is filed, the Director shall finally decide any request 
for reconsideration, rehearing, or review with respect to the 
determination, except that the Director may, for good cause shown, 
extend that 45-day period by not more than 30 days.''.
    (d) Eliminating Repetitive Proceedings.--
            (1) In general.--Section 315 of title 35, United States 
        Code, is amended--
                    (A) in subsection (b), by amending the second 
                sentence to read as follows: ``The time limitation set 
                forth in the preceding sentence shall not bar a request 
                for joinder under subsection (d), but shall establish a 
                rebuttable presumption against joinder for the 
                requesting person.'';
                    (B) by redesignating subsections (c), (d), and (e) 
                as subsections (d), (e), and (f), respectively;
                    (C) by inserting after subsection (b) the 
                following:
    ``(c) Single Forum.--
            ``(1) In general.--If an inter partes review is instituted 
        challenging the validity of a patent, the petitioner, a real 
        party in interest, or a privy of the petitioner may not file or 
        maintain, in a civil action arising in whole or in part under 
        section 1338 of title 28, or in a proceeding before the 
        International Trade Commission under section 337 of the Tariff 
        Act of 1930 (19 U.S.C. 1337), a claim, a counterclaim, or an 
        affirmative defense challenging the validity of any claim of 
        the patent on any ground described in section 311(b).
            ``(2) Considerations.--In determining whether to institute 
        a proceeding under this chapter, subject to the provisions of 
        subsections (a)(1) and (g), the Director may not reject a 
        petition requesting an inter partes review on the basis of the 
        petitioner, a real party in interest, or a privy of the 
        petitioner filing or maintaining a claim, a counterclaim, or an 
        affirmative defense challenging the validity of the applicable 
        patent in any civil action arising in whole or in part under 
        section 1338 of title 28, or in a proceeding before the 
        International Trade Commission under section 337 of the Tariff 
        Act of 1930 (19 U.S.C. 1337).'';
                    (D) by amending subsection (d), as so redesignated, 
                to read as follows:
    ``(d) Joinder.--
            ``(1) In general.--If the Director institutes an inter 
        partes review, the Director, in the discretion of the Director, 
        may join as a party to that inter partes review any person that 
        properly files a request to join the inter partes review and a 
        petition under section 311 that the Director, after receiving a 
        preliminary response under section 313 or the expiration of the 
        time for filing such a response, determines warrants the 
        institution of an inter partes review under section 314.
            ``(2) Time-barred person.--Pursuant to paragraph (1), the 
        Director, in the discretion of the Director, may join as a 
        party to an inter partes review a person that did not satisfy 
        the time limitation under subsection (b) that rebuts the 
        presumption against joinder, except that any such person shall 
        not be permitted to serve as the lead petitioner and shall not 
        be permitted to maintain the inter partes review unless a 
        petitioner that satisfied the time limitation under subsection 
        (b) remains in the inter partes review.'';
                    (E) by amending subsection (e), as so redesignated, 
                to read as follows:
    ``(e) Multiple Proceedings.--
            ``(1) In general.--Notwithstanding sections 135(a), 251, 
        and 252, and chapter 30, after a petition to institute an inter 
        partes review is filed, if another proceeding or matter 
        involving the patent is before the Office--
                    ``(A) the parties shall notify the Director of that 
                other proceeding or matter--
                            ``(i) not later than 30 days after the date 
                        of entry of the notice of filing date accorded 
                        to the petition; or
                            ``(ii) if the other proceeding or matter is 
                        filed after the date on which the petition to 
                        institute an inter partes review is filed, not 
                        later than 30 days after the date on which the 
                        other proceeding or matter is filed; and
                    ``(B) the Director shall issue a decision 
                determining the manner in which the inter partes review 
                or other proceeding or matter may proceed, including 
                providing for stay, transfer, consolidation, or 
                termination of any such matter or proceeding.
            ``(2) Considerations.--In determining whether to institute 
        a proceeding under this chapter, the Director shall, unless the 
        Director determines that the petitioner has demonstrated 
        exceptional circumstances, reject any petition that presents 
        prior art or an argument that is the same or substantially the 
        same as prior art or an argument that previously was presented 
        to the Office.'';
                    (F) by amending subsection (f), as so redesignated, 
                to read as follows:
    ``(f) Estoppel.--
            ``(1) In general.--A petitioner that has previously 
        requested an inter partes review of a claim in a patent under 
        this chapter, or a real party in interest or a privy of such a 
        petitioner, may not request or maintain another proceeding 
        before the Office with respect to that patent on any ground 
        that the petitioner raised or reasonably could have raised in 
        the petition requesting or during the prior inter partes 
        review, unless--
                    ``(A) after the filing of the initial petition, the 
                petitioner, or a real party in interest or a privy of 
                the petitioner, is charged with infringement of 
                additional claims of the patent;
                    ``(B) a subsequent petition requests an inter 
                partes review of only the additional claims of the 
                patent that the petitioner, or a real party in interest 
                or a privy of the petitioner, is later charged with 
                infringing; and
                    ``(C) that subsequent petition is accompanied by a 
                request for joinder to the prior inter partes review, 
                which overcomes the rebuttable presumption against 
                joinder set forth in subsection (b), and which the 
                Director shall grant if the Director authorizes an 
                inter partes review to be instituted on the subsequent 
                petition under section 314.
            ``(2) Joined party.--Any person joined as a party to an 
        inter partes review, and any real party in interest or any 
        privy of such person, shall be estopped under this subsection 
        and subsections (c)(1) and (e)(2) to the same extent as if that 
        person, real party in interest, or privy had been the first 
        petitioner in that inter partes review.''; and
                    (G) by adding at the end the following:
    ``(g) Federal Court and International Trade Commission Validity 
Determinations.--An inter partes review of a patent claim may not be 
instituted or maintained if, in a civil action arising in whole or in 
part under section 1338 of title 28, or in a proceeding before the 
International Trade Commission under section 337 of the Tariff Act of 
1930 (19 U.S.C. 1337), in which the petitioner, a real party in 
interest, or a privy of the petitioner is a party, the court, or the 
International Tra