[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