PATENT Act Clears Committee with Overwhelming Vote of Support
WASHINGTON - The Senate Judiciary Committee today overwhelmingly passed the PATENT Act by a vote of 16-4. The bill was cosponsored by Chairman Chuck Grassley, Ranking Member Patrick Leahy, and committee members John Cornyn, Chuck Schumer, Orrin Hatch, Amy Klobuchar and Mike Lee.
The bipartisan PATENT Act takes concrete steps to stop abusive patent litigation practices and prevent bad actors from further undermining the system that has made the United States one of the most dynamic and innovative countries in the world.
The cosponsors said that there remain a few outstanding issues. In the Manager's Amendment, there is placeholder language for amending claims in the Patent and Trademark Office's proceedings. Negotiations are ongoing regarding this provision. Another issue is in regards to a proposal by the life sciences community concerning the applicability of the Patent and Trademark Office's post grant proceedings to patents that are subject to the Hatch-Waxman Act and Biologics Price Competition and Innovation Act processes. The cosponsors have agreed to work on these issues as the bill proceeds to the Senate floor.
"Abusive patent litigation is a threat to our economy and costs consumers and businesses billions of dollars each year. Too often, small business owners are being targeted for doing nothing more than using off-the-shelf products. These types of frivolous lawsuits cost them millions of dollars and force them to settle despite having a strong defense," Grassley said. "This bill is the product of hundreds of hours of discussion among stakeholders, administration officials and senators. It's a real effort to address concerns from all sides. I look forward to continuing the debate on the Senate floor."
"When businesses are threatened with patent suits just for using a scanner they purchased, or website owners face threats simply for using basic software in e-commerce, the patent system is not working as intended. After two years of hard work, I am proud that the Judiciary Committee came together to support the PATENT Act by a wide bipartisan vote. The bill we approved today achieves a strong balance and brings needed improvements that will ensure the U.S. patent system remains the envy of the world. I look forward to the bill's consideration in the full Senate," Leahy said.
"This legislation will protect entrepreneurs and innovators in Texas and across the country from abusive patent assertion practices that have burdened America's private sector for far too long," said Cornyn. "These sensible reforms are the best way to protect access to justice for plaintiffs with legitimate claims of infringement, and to deter those who seek to game the system."
"This is a critical step forward in leveling the playing field to fight back against patent trolls that are sucking the life out of our innovators. I hope that this balanced and bipartisan bill will move quickly to the floor," Schumer said.
"I am pleased that the Judiciary Committee is moving forward with the PATENT Act. The fundamentals of this bill are very good, with important, commonsense litigation reforms that include fee shifting, heightened pleading standards, demand letter reforms, and a mechanism to ensure recovery of fees against shell companies. This bill is crucial for Utah businesses and families that depend on our innovation economy. There is still work we must do to strike the right balance on IPR reform, and I am committed to work through all remaining issues to ensure that innovators in every sector and industry are protected from patent trolls," Hatch said.
"Today's action in the Judiciary Committee demonstrates a bipartisan commitment to cracking down on the patent trolls that stifle innovation and cost our nation millions," Klobuchar said. "Minnesota has one of the highest rates of patents per capita in the nation, and this legislation also makes important improvements to the patent review process so that legitimate patent holders can better protect their patent rights, which are vital to innovation and competition."
"I am very proud of the work everyone has done on this essential legislation," Lee said. "This bill protects small businesses and startups from abusive patent trolls in a manner that also honors the legitimate concerns of patent holders. I will continue to work hard to ensure a balanced approach, and I look forward to seeing this bill on the Senate floor."
A copy of the bill text that was debated in the Judiciary Committee today can be found here. To watch the proceedings from today's meeting, click here.
-30-
Fake takeover bids, SEC names suspected culprit
Sen. Chuck Grassley of Iowa last week expressed concern to the Securities and Exchange Commission (SEC) about the security of a public filings database after the database apparently was used for fake company takeover bids involving Avon and the Rocky Mountain Chocolate Factory. The SEC today named a Bulgarian man as being an architect behind the hoaxes that fraudulently drove up share prices. Grassley made the following comment on today's news.
"It's reassuring that the SEC found the person it thinks was responsible in these cases. But I'm still concerned about whether there are systemic problems that could lead to this happening again. Catching someone after the fact means the damage to the markets already has been done. I look forward to the SEC's response to my inquiry."
Grassley's letter to the SEC last week is available here.
Judiciary Committee Leaders Introduce Legislation to Reform the EB-5 Regional Center Program
WASHINGTON - Senate Judiciary Committee Chairman Chuck Grassley and Ranking Member Patrick Leahy have introduced legislation to reauthorize and reform the EB-5 Regional Center program.
The Immigrant Investor Program, or EB-5, provides visas for foreign nationals who invest a certain amount of capital in the U.S. economy and create jobs. The EB-5 Regional Center program allows for a certain number of those visas for foreign investors to pool their capital in centers that fund U.S. projects and commercial enterprises.
"The EB-5 regional center program was created to benefit American communities through investment and job creation. In many instances the program has helped combat a stagnant economy. At the same time, though, we've seen too many occasions where national security has been put at risk and job creation has taken a back seat. Our bill strengthens oversight, ensures greater accountability and transparency, discourages fraud, and provides a higher priority for national security. I'm pleased to work with Senator Leahy on these much needed reforms, which will be the basis for reauthorization," Grassley said.
Grassley has conducted extensive oversight of the program over the last several years and was instrumental in alerting authorities about allegations brought forward by whistleblowers. Those worries stem from the fact that other federal agencies, including the FBI, had raised national security concerns with the approval of several EB-5 regional centers and visas for foreign investors, as well as allegations from the whistleblowers who said that requests from politically influential people were being expedited.
The Department of Homeland Security Inspector General substantiated the allegations of special access and favoritism for politically connected people. In addition, a Government Accountability Office report due out this summer is also expected to raise questions about the economic impact and the department's ability to assess risks.
The bipartisan bill introduced today helps address some of those concerns. It bolsters the Department of Homeland Security's authorities to administer the program, and provides investors with greater protections and more information about their investments. It also increases transparency and oversight and provides DHS the ability to proactively investigate fraud, both in the United States and abroad, using a dedicated fund paid for by certain program participants. The bill would also raise the amount of investment required and help to restore the program to its original intent, by ensuring that much of the capital generated and jobs created occur in rural areas and areas with high unemployment.
The American Job Creation and Investment Promotion Reform Act
- Provides increased authority to Homeland Security to deny or terminate regional centers or visas where there is fraud, criminal misuse, or a threat to public safety or national security;
- Requires background checks of regional center and project developer principals;
- Requires the Department of Homeland Security to vet EB-5 projects earlier in the process, before foreign nationals apply for visas or invest in projects;
- Enhances the Department's ability to investigate the source of funds from foreign investors and limits the use of loaned or gifted funds;
- Requires increased disclosures to investors regarding business risks and conflicts of interest, and compliance with securities laws;
- Establishes an "EB-5 Integrity Fund" in which regional centers would pay an annual fee to be used by the Department of Homeland Security to conduct audits and site visits to detect fraud and monitor compliance.
- Strengthens the definition of "Targeted Employment Area" (TEA) so more investment goes to areas with high unemployment and rural areas, as Congress originally intended;
- Raises the investment threshold to $800,000 for TEAs and $1.2 million for non-TEAs;
- Requires for the first time that foreign investors prove the creation of direct jobs, in addition to verifiable indirect jobs, before they're able to adjust to permanent residence.
- Sets standards for Homeland Security employees to prevent preferential treatment and enhances transparency of how decisions regarding applications are made.
-30-
DoJ inspector general releases misconduct investigative report, more to come
The Department of Justice Office of the Inspector General today noted that it is now posting certain investigative summaries on its website. The Office of Inspector General said, "These summaries will relate to cases of administrative misconduct involving: (i) members of the Senior Executive Service and employees at the GS-15 grade level or above, and Assistant U.S. Attorneys, in which the OIG found misconduct and no prosecution resulted; or (ii) high-profile investigations, or where there may otherwise be significant public interest as determined by the OIG." The first summary, involving misconduct by a U.S. Marshal, is available here. Sen. Chuck Grassley, chairman of the Judiciary Committee, made the following comment on this development.
"I commend Inspector General Horowitz for leading by example as chair of the Council of the Inspectors General on Integrity and Efficiency. This ought to be standard operating procedure for every inspector general. Their work is too important to keep secret. Investigative reports ought to see the light of day so agencies will have to answer for misconduct by senior officials. More disclosure makes it harder for agencies to ignore an embarrassing report. Agencies that aren't doing their jobs or have employees who waste the taxpayers' money ought to be flushed out of the shadows. The same goes for inspectors general who aren't aggressive or productive enough. Transparency brings accountability."
Grassley has long worked toward supporting agency inspectors general in their work, including seeking information from each inspector general on open and unimplemented recommendations and agency attempts to interfere with independence. He is a lead sponsor of the Inspector General Empowerment Act (S. 579), which passed out of the Homeland Security and Governmental Affairs Committee in March and awaits full Senate consideration. The bill's provisions include requiring more disclosure of inspector general investigations involving employees at the GS-15 rate of pay and above where misconduct was found but no prosecution resulted, including the agency's handling and whether it was referred to the Department of Justice, and reports that were authored by the Office of Inspector but not made available to the public.
More Detail Needed on FBI Surveillance Program
In recent weeks, there have been reports of Americans across the U.S. spotting small single-engine aircraft circling above their neighborhoods. That would make anyone a bit uncomfortable if you don't know what they are up to.
This week, the media confirmed what some have suspected?that those planes were being used by the F-B-I to conduct surveillance. An investigation by the Associated Press uncovered more than 100 flights over at least 30 cities and towns in 11 states and Washington, D-C. This is all in a 30-day stretch.
These planes are registered to several shell companies so that they would not be traced back to the F-B-I. And they may be equipped with high-tech devices that allow them to monitor activities on the ground, including people who are not the target of their operation. Often this is done without a court order.
It's not a secret that the F-B-I uses planes to find and catch criminals. But we don't know what technology they are using to conduct surveillance, and what they are doing with information on people who have nothing to do with their operation. The F-B-I should be transparent about what policies are in place to protect the privacy of innocent Americans and guarantee that the program is not being abused.
So, on Monday, I asked the F-B-I for more details on the scope and legal authority of this program. It's important that federal law enforcement personnel have the tools they need to catch criminals and keep us safe. However, we need to make sure that safeguards are in place to protect the privacy and civil liberties of those who are not the intended target
Carper, Murkowski, Heinrich, Cassidy, Coons, and Grassley Introduce Bill to Help Reduce Obesity
Bipartisan, bicameral bill aimed at lowering health costs, preventing chronic diseases and increasing Medicare coverage of obesity treatments
WASHINGTON - Today, Sens. Tom Carper (D-Del.), Lisa Murkowski (R-Alaska), Martin Heinrich (D-N.M), Bill Cassidy, M.D. (R-La.), Chris Coons (D-Del.) and Chuck Grassley (R-Iowa) introduced legislation to help lower health care costs and prevent chronic diseases by addressing America's growing obesity crisis. The Treat and Reduce Obesity Act gives Medicare beneficiaries and their health care providers additional tools to reduce obesity by improving access to weight-loss counseling and new prescription drugs for chronic weight management, among other provisions. An identical bill (H.R. 2404) was introduced in the House last month by Reps. Erik Paulsen (R-Minn.) and Ron Kind (D-Wis.).
Health care costs related to obesity total nearly $200 billion each year. Furthermore, nearly 70 percent of Americans are overweight or obese, and 42 percent of Americans are projected to become obese by 2030. Obesity increases the risk for chronic diseases like high blood pressure, heart disease and type 2 diabetes.
"Seven in 10 adults struggle with obesity and being overweight, and more than a third of children are overweight or obese. These facts demand that we do more to combat the obesity epidemic," Sen. Carper said. "If we continue to stand idly by while more and more people become overweight and obese, for the first time in our country's history our children will live shorter lives than their parents. The federal government must have a robust strategy for reining in obesity and ensuring that our vital health care programs, like Medicare and Tricare, provide Americans with every available treatment and tool for reducing obesity's physical, social and financial costs."
"As the statistics of obesity continue to grow in our country, and even more so in Alaska, we must improve how we treat and inform Americans to raise their quality of life and help prevent severe long-term conditions down the road," Sen. Murkowski said. "America's obesity problem has morphed from a national nutritional and fitness concern to an economic crisis, becoming a growing financial drain as more and more medical attention is required. By providing children with healthier options now, we can improve their quality of life as adults and avoid these preventable expenses in the future."
"Obesity is a complex chronic disease that affects the health and wellbeing of millions of Americans," Sen. Heinrich said. "This legislation would give patients access to a full range of safe and effective tools that would empower them to improve their physical and mental health."
"As a doctor, I've seen how obesity can affect a person's physical health and mental wellness," said Sen. Bill Cassidy M.D. "There are treatments and services available to treat obesity, but we must work together to make the effective treatment of obesity a priority. This legislation will lower health costs and most importantly give patients access to the proper tools for better health."
"As a nation, we have too often overlooked the growing crisis of obesity among Americans, leading to severe consequences for the health of our children, families, and our economy," Sen. Coons said. "This bipartisan legislation will ensure patients have access to the right information, counseling, and resources they need to improve their health and wellbeing. By improving access to critical resources that address this epidemic now, we can help reduce the prevalence of obesity and cut our nation's health care costs in the future."
"Medicare should reflect the modern practice of medicine," Sen. Grassley said. "Supports, treatments and prescription drugs that are helpful to both beneficiaries and taxpayers should be available."
The Treat and Reduce Obesity Act would, among other provisions:
- Allow Medicare to cover additional obesity treatments such as new, FDA-approved prescription drugs for chronic weight management, already covered by the Veterans Health Administration, the Federal Employees Health Benefits Program and the Indian Health Service.
- Give CMS authority to improve Medicare beneficiary access to benefits for intensive behavioral counseling by allowing additional types of providers to offer this service. Fewer than 100,000 Medicare beneficiaries have taken advantage of this benefit, even though 13 million seniors are obese.
###
Senators Grassley, Ernst urge Agriculture Committee Chairman to Hold Hearing on Federal Government's Response to Bird Flu
WASHINGTON, D.C. - In a letter sent today, U.S. Senators Chuck Grassley (R-IA) and Joni Ernst (R-IA) urged Agriculture, Nutrition and Forestry Committee Chairman Sen. Pat Roberts (R-KS) to hold a hearing on the federal government's response to the ongoing outbreak of the highly pathogenic avian influenza (HPAI). Senators Grassley and Ernst stressed the critical, timely nature of this issue, citing the devastating impact of the disease on Iowa poultry farmers and producers, and the need to address federal actions taken once the outbreak has been contained.
"Due to the sheer size and scope of this outbreak, we have heard from countless folks in Iowa who are concerned about the lack of certainty caused by this situation - many of whom just want to find resolution to this tragedy and get back to work," the Iowa Senators wrote.
"As you know, it is critical for the vitality of our agricultural economy that key stakeholders - producers, ancillary industries, community leaders, and government officials - have the tools and lines of communication available to work with one another to overcome challenges such as HPAI," the Iowa Senators added. "A hearing would provide an opportunity to bring these leaders and stakeholders together to review what has happened, identify what response procedures have worked, what has not worked, and set the stage to ensure we are better prepared in the future."
Full text of the letter can be found here.
Senators Grassley and Ernst urged the U.S. Department of Agriculture (USDA) to properly deploy resources to address the avian flu situation in a letter to Secretary Tom Vilsack last month, following a letter to the USDA sent by the entire Iowa Congressional delegation in April.
# # #
