Coburn threatens to scuttle patent bill over fee provision

Senate Majority Leader Harry Reid (D-Nev.) indicated his intent to call for a cloture vote on the America Invents Act late Tuesday, after The Hill’s deadline. A vote on the bill is expected no earlier than Wednesday.

The legislation would switch the U.S. from a first-to-invent to a first-to-file patent system; Senate leaders have framed it as a job-creating measure.

{mosads}The House bill differs, however, from the version that overwhelmingly passed the Senate earlier this year in that it doesn’t explicitly end fee diversion, which many observers blame for the current backlog of more than 700,000 patents at USPTO.

A compromise reached in the House would reserve the fees collected by USPTO in a fund reserved for the agency’s use, but preserve congressional oversight of the budget process. Coburn termed that agreement unacceptable, arguing appropriators have previously failed to live up to their word.

“The appropriators are insisting, of course, that they have no intention of diverting fees. History suggests they are not to be trusted. They promised to end this practice in the past and kept doing it,” Coburn said.

“The appropriators’ real argument comes down to turf and tradition. … This bill is not the best we can do. It is the path of least resistance.”

A late collapse for the legislation would be a heavy blow to the supporters, which include numerous software and tech industry firms, the U.S. Chamber of Commerce and a host of other industry groups.

Senate Judiciary Chairman Patrick Leahy (D-Vt.) has worked for six years to pass a patent reform bill, and his office expressed optimism Tuesday that a compromise could be reached. He has worked closely with House Judiciary Chairman Lamar Smith (R-Texas) to shepherd the bill through both chambers.

Leahy’s office noted that he included Coburn’s amendment in his original bill, but House leadership made it clear that language would not pass the House, where the Appropriations Committee is vehemently against relinquishing oversight of USPTO’s purse strings.

Coburn said he plans to introduce his amendment to end fee diversion once debate begins on the Senate floor. His office did not respond to a request for comment on Tuesday.