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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1720 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1720

To promote transparency in patent ownership and make other improvements 
             to the patent system, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 18, 2013

  Mr. Leahy (for himself, Mr. Lee, Mr. Whitehouse, and Ms. Klobuchar) 
introduced the following bill; which was read twice and referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
To promote transparency in patent ownership and make other improvements 
             to the patent system, 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 ``Patent 
Transparency and Improvements Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Transparency of patent ownership.
Sec. 4. Customer stay.
Sec. 5. Bad-faith demand letters.
Sec. 6. Small business education, outreach, and information access.
Sec. 7. Improved post-issuance procedures.
Sec. 8. Protection of intellectual-property licenses in bankruptcy.
Sec. 9. Codification of the double-patenting doctrine for first-
                            inventor-to-file patents.
Sec. 10. Technical corrections to the Leahy-Smith America Invents Act.
Sec. 11. Reports.
Sec. 12. Effective date.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Director.--The term ``Director'' means the Under 
        Secretary of Commerce for Intellectual Property and Director of 
        the United States Patent and Trademark Office.
            (2) Office.--The term ``Office'' means the United States 
        Patent and Trademark Office.

SEC. 3. TRANSPARENCY OF PATENT OWNERSHIP.

    (a) Judicial Proceedings.--
            (1) In general.--Section 281 of title 35, United States 
        Code, is amended--
                    (A) by striking ``A patentee'' and inserting ``(a) 
                In General.--A patentee''; and
                    (B) by adding at the end the following:
    ``(b) Initial Disclosure.--The court shall require a patentee who 
has filed a civil action under subsection (a) to disclose to the court 
and to all adverse parties, any persons, associations of persons, 
firms, partnerships, corporations (including parent corporations), or 
other entities other than the patentee itself known by the patentee to 
have--
            ``(1) a financial interest (of any kind) in the subject 
        matter in controversy or in a party to the proceeding; or
            ``(2) any other kind of interest that could be 
        substantially affected by the outcome of the proceeding.
    ``(c) Definitions.--For purposes of this section, the terms 
`proceeding' and `financial interest' have the meaning given those 
terms in section 455(d) of title 28.''.
            (2) Technical and conforming amendment.--Section 290 of 
        title 35, United States Code, is amended in the first sentence 
        by inserting after ``inventor,'' the following: ``any 
        information that a patentee has publicly disclosed under 
        section 281(b),''.
    (b) Patent and Trademark Office Proceedings.--
            (1) In general.--Chapter 26 of title 35, United States 
        Code, is amended by adding at the end the following:
``Sec. 263. Disclosure of information relating to patent ownership
    ``(a) Definitions.--In this section--
            ``(1) the term `period of noncompliance' refers to a period 
        of time during which the ultimate parent entity of an assignee 
        of a patent has not been disclosed to the United States Patent 
        and Trademark Office in accordance with this section; and
            ``(2) the term `ultimate parent entity' has the meaning 
        given the term in section 801.1(a)(3) of title 16, Code of 
        Federal Regulations, or any successor regulation.
    ``(b) Requirement To Disclose Assignment.--An assignment of all 
substantial rights in an issued patent that results in a change to the 
ultimate parent entity shall be recorded in the Patent and Trademark 
Office within 3 months of the assignment.
    ``(c) Disclosure Requirements.--A disclosure under subsection (b) 
shall include the name of the assignee and the ultimate parent entity 
of the assignee.
    ``(d) Failure To Comply.--If subsection (b) has not been complied 
with with respect to a patent, in a civil action in which a party 
asserts a claim for infringement of the patent--
            ``(1) the party asserting infringement of the patent may 
        not recover increased damages under section 284 or attorney 
        fees under section 285 with respect to infringing activities 
        taking place during any period of noncompliance; and
            ``(2) the court shall award a prevailing accused infringer 
        reasonable attorney fees and expenses incurred in discovering 
        any previously undisclosed ultimate parent entities in the 
        chain of title.''.
            (2) Applicability.--The amendment made by paragraph (1) 
        shall apply to any patent issued on or after the date of 
        enactment of this Act.
            (3) Conforming amendment.--The table of sections for 
        chapter 26 of title 35, United States Code, is amended by 
        adding at the end the following new item:

        ``263. Disclosure of information relating to patent 
                            ownership.''.

SEC. 4. CUSTOMER STAY.

    (a) In General.--Chapter 29 of title 35, United States Code, is 
amended by adding at the end the following new section:
``Sec. 299A. Customer stay
    ``(a) Definitions.--In this section--
            ``(1) the term `covered customer' means a party accused of 
        infringing a patent or patents in dispute based on a covered 
        product or process;
            ``(2) the term `covered manufacturer' means a person who 
        manufactures or supplies, or causes the manufacture or supply 
        of, a covered product or process, or a relevant part thereof; 
        and
            ``(3) the term `covered product or process' means a 
        component, product, process, system, service, method, or a 
        relevant part thereof, that--
                    ``(A) is alleged to infringe the patent or patents 
                in dispute; or
                    ``(B) implements a process alleged to infringe the 
                patent or patents in dispute.
    ``(b) Motion for Stay.--In a civil action in which a party asserts 
a claim for relief arising under any Act of Congress relating to 
patents (other than an action that includes a cause of action described 
in section 271(e) of this title), the court shall grant a motion to 
stay at least the portion of the action against a covered customer that 
relates to infringement of a patent involving a covered product or 
process if--
            ``(1) the covered manufacturer and the covered customer 
        consent in writing to the stay;
            ``(2) the covered manufacturer is a party to the action or 
        a separate action involving the same patent or patents relating 
        to the same covered product or process;
            ``(3) the covered customer agrees to be bound under the 
        principles of collateral estoppel by any issues finally decided 
        as to the covered manufacturer in an action described in 
        paragraph (2) that the covered customer has in common with the 
        covered manufacturer; and
            ``(4) the motion is filed after the first pleading in the 
        action but not later than the later of--
                    ``(A) 120 days after service of the first pleading 
                in the action that specifically identifies the covered 
                product or process as a basis for the alleged 
                infringement of the patent by the covered customer, and 
                specifically identifies how the covered product or 
                process is alleged to infringe the patent; or
                    ``(B) the date on which the first scheduling order 
                in the case is entered.
    ``(c) Applicability.--A stay issued under subsection (b) shall 
apply only to those asserted patents and products, systems, methods, or 
components accused of infringement in the action.
    ``(d) Lift of Stay.--
            ``(1) In general.--A stay entered under this section may be 
        lifted upon grant of a motion based on a showing that--
                    ``(A) the action involving the covered manufacturer 
                will not resolve a major issue in suit against the 
                covered customer; or
                    ``(B) the stay unreasonably prejudices and would be 
                manifestly unjust to the party seeking to lift the 
                stay.
            ``(2) Separate actions.--In the case of a stay entered 
        under this section based on the participation of the covered 
        manufacturer in a separate action described in subsection 
        (b)(2), a motion under paragraph (1) may only be granted if the 
        court in such separate action determines that the showing 
        required under paragraph (1) has been made.
    ``(e) Waiver of Estoppel Effect.--If, following the grant of a 
motion to stay under this section, the covered manufacturer in an 
action described in subsection (b)(2)--
            ``(1) seeks or consents to entry of a consent judgment 
        involving one or more of the common issues that gave rise to 
        the stay; or
            ``(2) fails to prosecute, to a final, non-appealable 
        judgment, a final decision as to one or more of the common 
        issues that gave rise to the stay,
the court may, upon motion, determine that such consent judgment or 
unappealed final decision shall not be binding on the covered customer 
with respect to one or more of such common issues based on a showing 
that such an outcome would unreasonably prejudice and be manifestly 
unjust to the covered customer in light of the circumstances of the 
case.
    ``(f) Rule of Construction.--Nothing in this section shall be 
construed to limit the ability of a court to grant any stay, expand any 
stay granted pursuant to this section, or grant any motion to 
intervene, if otherwise permitted by law.''.
    (b) Conforming Amendment.--The table of sections for chapter 29 of 
title 35, United States Code, is amended by adding at the end the 
following new item:

        ``299A. Customer stay.''.

SEC. 5. BAD-FAITH DEMAND LETTERS.

    (a) In General.--Chapter 29 of title 35, United States Code, as 
amended by section 4 of this Act, is amended by adding at the end the 
following:

``SEC. 299B. BAD-FAITH DEMAND LETTERS.

    ``(a) Definition.--In this section, the term `affiliated person' 
means a person affiliated with the intended recipient of a written 
communication.
    ``(b) Unfair or Deceptive Acts or Practices.--It shall be an unfair 
or deceptive act or practice within the meaning of section 5(a)(1) of 
the Federal Trade Commission Act (15 U.S.C. 45(a)(1)) for a person, in 
connection with the assertion of a United States patent, to engage in 
the widespread sending of written communications that state that the 
intended recipients or any affiliated persons are infringing or have 
infringed the patent and bear liability or owe compensation to another, 
if--
            ``(1) the communications falsely threaten that 
        administrative or judicial relief will be sought if 
        compensation is not paid or the infringement issue is not 
        otherwise resolved;
            ``(2) the assertions contained in the communications lack a 
        reasonable basis in fact or law, including, for example, 
        because--
                    ``(A) the person asserting the patent is not a 
                person, or does not represent a person, with the 
                current right to license the patent to, or to enforce 
                the patent against, the intended recipients or any 
                affiliated persons; or
                    ``(B) the communications seek compensation on 
                account of activities undertaken after the patent has 
                expired; or
            ``(3) the content of the written communications is likely 
        to materially mislead a reasonable recipient, including, for 
        example, because the content fails to include such facts 
        reasonably necessary to inform the recipient of--
                    ``(A) the identity of the person asserting a right 
                to license the patent to, or enforce the patent 
                against, the intended recipient or any affiliated 
                person;
                    ``(B) the patent issued by the United States Patent 
                and Trademark Office alleged to have been infringed; 
                and
                    ``(C) the reasons for the assertion that the patent 
                may be or may have been infringed.
    ``(c) Enforcement by Federal Trade Commission.--
            ``(1) Violation of rule.--The engaging of a person in an 
        act or practice described in subsection (b) shall be treated as 
        a violation of a rule defining an unfair or deceptive act or 
        practice described under section 18(a)(1)(B) of the Federal 
        Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
            ``(2) Powers of commission.--The Federal Trade Commission 
        shall enforce this section in the same manner, by the same 
        means, and with the same jurisdiction, powers, and duties as 
        though all applicable terms and provisions of the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
        and made a part of this section.
            ``(3) Privileges and immunities.--Any person who engages in 
        an act or practice described in subsection (b) shall be subject 
        to the penalties and entitled to the privileges and immunities 
        provided in the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 29 of title 35, United States Code, as amended by section 4 of 
this Act, is amended by adding at the end the following:

``Sec. 299B. Bad-faith demand letters.''.
    (c) Rule of Construction.--Nothing in any amendment made by this 
section shall be construed to limit the authority of the Federal Trade 
Commission under any other provision of law or to provide the Federal 
Trade Commission with any additional authority.

SEC. 6. SMALL BUSINESS EDUCATION, OUTREACH, AND INFORMATION ACCESS.

    (a) Small Business Education and Outreach.--
            (1) Resources for small business.--Using existing 
        resources, the Director shall develop educational resources for 
        small businesses to address concerns arising from patent 
        infringement.
            (2) Small business patent ombudsman.--The Patent Ombudsman 
        Program established under section 28 of the Leahy-Smith America 
        Invents Act (35 U.S.C. 2 note) shall coordinate with the 
        existing small business outreach programs of the Office to 
        provide education and awareness on abusive patent litigation 
        practices.
    (b) Improving Information Transparency for Small Business and the 
United States Patent and Trademark Office Users.--
            (1) Web site.--Using existing resources, the Director shall 
        create a user-friendly section on the official Web site of the 
        Office to notify the public when a patent case is brought in 
        Federal court and with respect to each patent at issue in such 
        case, the Director shall include--
                    (A) information disclosed pursuant to section 290 
                of title 35, United States Code, as amended by section 
                3(b) of this Act; and
                    (B) any information the Director determines to be 
                relevant.
            (2) Format.--In order to promote accessibility for the 
        public, the information described in paragraph (1) shall be 
        searchable by patent number, patent art area, and entity.

SEC. 7. IMPROVED POST-ISSUANCE PROCEDURES.

    (a) Post-Grant Review Amendment.--Section 325(e)(2) of title 35, 
United States Code, is amended by striking ``or reasonably could have 
raised''.
    (b) Use of District-Court Claim Construction in Post-Grant and 
Inter Partes Reviews.--
            (1) Inter partes review.--Section 316(a) of title 35, 
        United States Code, is amended--
                    (A) in paragraph (12), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in paragraph (13), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(14) providing that for all purposes under this chapter--
                    ``(A) each claim of a patent shall be construed as 
                such claim would be in a civil action to invalidate a 
                patent under section 282(b), including construing each 
                claim of the patent in accordance with the ordinary and 
                customary meaning of such claim as understood by one of 
                ordinary skill in the art and the prosecution history 
                pertaining to the patent; and
                    ``(B) if a court has previously construed the claim 
                or a claim term in a civil action in which the patent 
                owner was a party, the Office shall consider such claim 
                construction.''.
            (2) Post-grant review.--Section 326(a) of title 35, United 
        States Code, is amended--
                    (A) in paragraph (11), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in paragraph (12), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(13) providing that for all purposes under this chapter--
                    ``(A) each claim of a patent shall be construed as 
                such claim would be in a civil action to invalidate a 
                patent under section 282(b), including construing each 
                claim of the patent in accordance with the ordinary and 
                customary meaning of such claim as understood by one of 
                ordinary skill in the art and the prosecution history 
                pertaining to the patent; and
                    ``(B) if a court has previously construed the claim 
                or a claim term in a civil action in which the patent 
                owner was a party, the Office shall consider such claim 
                construction.''.
            (3) Technical and conforming amendment.--Section 
        18(a)(1)(A) of the Leahy-Smith America Invents Act (Public Law 
        112-29; 126 Stat. 329) is amended by striking ``Section 
        321(c)'' and inserting ``Sections 321(c) and 326(a)(13)''.
            (4) Effective date.--The amendments made by this subsection 
        shall take effect upon the expiration of the 90-day period 
        beginning on the date of the enactment of this Act, and shall 
        apply to any proceeding under chapter 31 or 32 of title 35, 
        United States Code, for which the petition for review is filed 
        on or after such effective date.

SEC. 8. PROTECTION OF INTELLECTUAL-PROPERTY LICENSES IN BANKRUPTCY.

    (a) In General.--Section 1520(a) of title 11, United States Code, 
is amended--
            (1) in paragraph (3), by striking ``; and'' and inserting a 
        semicolon;
            (2) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting at the end the following new paragraph:
            ``(5) section 365(n) applies to intellectual property of 
        which the debtor is a licensor or which the debtor has 
        transferred.''.
    (b) Trademarks.--
            (1) In general.--Section 101(35A) of title 11, United 
        States Code, is amended--
                    (A) in subparagraph (E), by striking ``or'';
                    (B) in subparagraph (F), by striking ``title 17;'' 
                and inserting ``title 17; or''; and
                    (C) by adding after subparagraph (F) the following 
                new subparagraph: ``(G) trademark, service mark, or 
                trade name, as defined in section 1127 of title 15;''.
            (2) Conforming amendment.--Section 365(n)(2) of title 11, 
        United States Code, is amended--
                    (A) in subparagraph (B)--
                            (i) by striking ``royalty payments'' and 
                        inserting ``royalty or other payments''; and
                            (ii) by striking ``and'' where it appears 
                        after the semicolon;
                    (B) in subparagraph (C), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) in the case of a trademark, service mark, or 
                trade name, the trustee shall not be relieved of a 
                contractual obligation to monitor and control the 
                quality of a licensed product or service.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply to any 
case that is pending on, or for which a petition or complaint is filed 
on or after, such date of enactment.

SEC. 9. CODIFICATION OF THE DOUBLE-PATENTING DOCTRINE FOR FIRST-
              INVENTOR-TO-FILE PATENTS.

    (a) Amendment.--Chapter 10 of title 35, United States Code, is 
amended by adding at the end the following new section:
``Sec. 106. Prior art in cases of double patenting
    ``A claimed invention of a patent issued under section 151 
(referred to in this section as the `first patent') that is not prior 
art to a claimed invention of another patent (referred to in this 
section as the `second patent') shall be considered prior art to the 
claimed invention of the second patent for the purpose of determining 
the nonobviousness of the claimed invention of the second patent under 
section 103 if--
            ``(1) the claimed invention of the first patent was 
        effectively filed under section 102(d) on or before the 
        effective filing date of the claimed invention of the second 
        patent;
            ``(2) either--
                    ``(A) the first patent and the second patent name 
                the same inventor; or
                    ``(B) the claimed invention of the first patent 
                would constitute prior art to the claimed invention of 
                the second patent under section 102(a)(2) if an 
                exception under section 102(b)(2) were deemed to be 
                inapplicable and the claimed invention of the first 
                patent was, or were deemed to be, effectively filed 
                under section 102(d) before the effective filing date 
                of the claimed invention of the second patent; and
            ``(3) the patentee of the second patent has not disclaimed 
        the rights to enforce the second patent independently from, and 
        beyond the statutory term of, the first patent.''.
    (b) Regulations.--The Director shall promulgate regulations setting 
forth the form and content of any disclaimer required for a patent to 
be issued in compliance with section 106 of title 35, United States 
Code, as added by subsection (a). Such regulations shall apply to any 
disclaimer filed after a patent has issued. A disclaimer, when filed, 
shall be considered for the purpose of determining the validity of the 
patent under section 106 of title 35, United States Code.
    (c) Conforming Amendment.--The table of sections for chapter 10 of 
title 35, United States Code, is amended by adding at the end the 
following new item:

        ``106. Prior art in cases of double patenting.''.
    (d) Exclusive Rule.--A patent subject to section 106 of title 35, 
United States Code, as added by subsection (a), shall not be held 
invalid on any nonstatutory, double-patenting ground.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply to a 
patent or patent application only if both the first and second patents 
described in section 106 of title 35, United States Code, as added by 
subsection (a), are patents or patent applications that are described 
in section 3(n)(1) of the Leahy-Smith America Invents Act (35 U.S.C. 
100 note).

SEC. 10. TECHNICAL CORRECTIONS TO THE LEAHY-SMITH AMERICA INVENTS ACT.

    (a) Technical Corrections.--
            (1) Inventor's oath or declaration.--
                    (A) Amendment.--Section 115(g)(1) of title 35, 
                United States Code, is amended--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``claims the benefit'' and 
                        inserting ``is entitled, as to each invention 
                        claimed in the application, to the benefit''; 
                        and
                            (ii) in subparagraph (A), by striking 
                        ``meeting the requirements of subsection (a) 
                        was executed by the individual and was filed in 
                        connection with the earlier-filed application'' 
                        and inserting the following: ``executed by or 
                        on behalf of the individual was filed in 
                        connection with the earlier-filed application 
                        and meets the requirements of this section as 
                        effective on the date such oath or declaration 
                        was filed''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall be effective as if included in 
                the amendment made by section 4(a)(1) of the Leahy-
                Smith America Invents Act (Public Law 112-29; 125 Stat. 
                293).
            (2) Novelty.--
                    (A) Amendment.--Section 102(b)(1)(A) of title 35, 
                United States Code, is amended by striking ``the 
                inventor or joint inventor or by another'' and 
                inserting ``the inventor or a joint inventor or 
                another''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall be effective as if included in 
                the amendment made by section 3(b)(1) of the Leahy-
                Smith America Invents Act (Public Law 112-29; 125 Stat. 
                285).
            (3) Assignee filers.--
                    (A) Benefit of earlier filing date; right of 
                priority.--Section 119(e)(1) of title 35, United States 
                Code, is amended, in the first sentence, by striking 
                ``by an inventor or inventors named'' and inserting 
                ``that names the inventor or a joint inventor''.
                    (B) Benefit of earlier filing date in the united 
                states.--Section 120 of title 35, United States Code, 
                is amended, in the first sentence, by striking ``names 
                an inventor or joint inventor'' and inserting ``names 
                the inventor or a joint inventor''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall take effect on the date of the 
                enactment of this Act and shall apply to any patent 
                application, and any patent issuing from such 
                application, that is filed on or after September 16, 
                2012.
            (4) Derived patents.--
                    (A) Amendment.--Section 291(b) of title 35, United 
                States Code, is amended by striking ``or joint 
                inventor'' and inserting ``or a joint inventor''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall be effective as if included in 
                the amendment made by section 3(h)(1) of the Leahy-
                Smith America Invents Act (Public Law 112-29; 125 Stat. 
                288).
            (5) Specification.--Notwithstanding section 4(e) of the 
        Leahy-Smith America Invents Act (Public Law 112-29; 125 Stat. 
        297), the amendments made by subsections (c) and (d) of section 
        4 of such Act shall apply to any proceeding or matter, that is 
        pending on, or filed on or after, the date of the enactment of 
        this Act.
            (6) Patent owner response.--
                    (A) Conduct of inter partes review.--Section 
                316(a)(8) of title 35, United States Code, is amended 
                by striking ``the petition under section 313'' and 
                inserting ``the petition under section 311''.
                    (B) Conduct of post-grant review.--Section 
                326(a)(8) of title 35, United States Code, is amended 
                by striking ``the petition under section 323'' and 
                inserting ``the petition under section 321''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall take effect on the date of the 
                enactment of this Act.
            (7) Time limit for commencing misconduct proceedings.--
                    (A) Amendment.--The fourth sentence of section 32 
                of title 35, United States Code, is amended by striking 
                ``1 year'' and inserting ``2 years''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to any action in which the Office 
                files a complaint on or after the date of enactment of 
                this Act.

SEC. 11. REPORTS.

    (a) Study on Secondary Market Oversight for Patent Transactions To 
Promote Transparency and Ethical Business Practices.--
            (1) Study required.--The Director, in consultation with the 
        Secretary of Commerce, the Secretary of the Treasury, the 
        Chairman of the Securities and Exchange Commission, the heads 
        of other relevant agencies, and interested parties, shall, 
        using existing resources of the Office, conduct a study--
                    (A) to develop legislative recommendations to 
                ensure greater transparency and accountability in 
                patent transactions occurring on the secondary market;
                    (B) to examine the economic impact that the patent 
                secondary market has on the United States;
                    (C) to examine licensing and other oversight 
                requirements that may be placed on the patent secondary 
                market, including on the participants in such markets, 
                to ensure that the market is a level playing field and 
                that brokers in the market have the requisite expertise 
                and adhere to ethical business practices; and
                    (D) to examine the requirements placed on other 
                markets.
            (2) Submission of study.--Not later than 1 year after the 
        date of the enactment of this Act, the Director shall submit a 
        report to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of the 
        Senate on the findings and recommendations of the Director from 
        the study required under paragraph (1).
    (b) Study on Patents Owned by the United States Government.--
            (1) Study required.--The Director, in consultation with the 
        heads of relevant agencies and interested parties, shall, using 
        existing resources of the Office, conduct a study on patents 
        owned by the United States Government that--
                    (A) examines how such patents are licensed and 
                sold, with reference to any litigation relating to the 
                licensing or sale of such patents;
                    (B) provides legislative and administrative 
                recommendations on whether there should be restrictions 
                placed on patents acquired from the United States 
                Government;
                    (C) examines whether or not each relevant agency 
                maintains adequate records on the patents owned by such 
                agency, specifically whether such agency addresses 
                licensing, assignment, and Government grants for 
                technology related to such patents; and
                    (D) provides recommendations to ensure that each 
                relevant agency has an adequate point of contact that 
                is responsible for managing the patent portfolio of the 
                agency.
            (2) Report on study.--Not later than 6 months after the 
        date of the enactment of this Act, the Director shall submit to 
        the Committee on the Judiciary of the House of Representatives 
        and the Committee on the Judiciary of the Senate a report on 
        the findings and recommendations of the Director from the study 
        required under paragraph (1).
    (c) Study on Patent Quality and Access to the Best Information 
During Examination.--
            (1) GAO study.--The Comptroller General of the United 
        States shall conduct a study on patent examination at the 
        Office and the technologies available to improve examination 
        and improve patent quality.
            (2) Contents of the study.--The study required under 
        paragraph (1) shall include the following:
                    (A) An examination of patent quality at the Office.
                    (B) An examination of ways to improve quality, 
                specifically through technology, that shall include 
                examining best practices at foreign patent offices and 
                the use of existing off-the-shelf technologies to 
                improve patent examination.
                    (C) A description of how patents are classified.
                    (D) An examination of procedures in place to 
                prevent double patenting through filing by applicants 
                in multiple art areas.
                    (E) An examination of the types of off-the-shelf 
                prior art databases and search software used by foreign 
                patent offices and governments, particularly in Europe 
                and Asia, and whether those databases and search tools 
                could be used by the Office to improve patent 
                examination.
                    (F) An examination of any other areas the 
                Comptroller General determines to be relevant.
            (3) Report to congress.--Not later than 6 months after the 
        date of the enactment of this Act, the Comptroller General 
        shall submit to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of the 
        Senate a report on the findings and recommendations from the 
        study required by this subsection, including recommendations 
        for any changes to laws and regulations that will improve the 
        examination of patent applications and patent quality.
    (d) Study on Patent Small Claims Court.--
            (1) Study required.--
                    (A) In general.--The Director of the Administrative 
                Office of the United States Courts, in consultation 
                with the Director of the Federal Judicial Center, 
                shall, using existing resources, conduct a study to 
                examine the idea of developing a pilot program for 
                patent small claims courts in certain judicial 
                districts within the existing patent pilot program 
                mandated by Public Law 111-349 (28 U.S.C. 137 note).
                    (B) Contents of study.--The study conducted under 
                subparagraph (A) shall examine--
                            (i) the number and qualifications for 
                        judges that could serve on the courts described 
                        in subparagraph (A);
                            (ii) how the courts described in 
                        subparagraph (A) would be designated and the 
                        necessary criteria;
                            (iii) the costs that would be incurred for 
                        establishing, maintaining and operating the 
                        pilot program described in subparagraph (A); 
                        and
                            (iv) the steps that would be taken to 
                        ensure that the pilot small claims courts are 
                        not misused for abusive patent litigation.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Director of the Administrative 
        Office of the United States Courts shall submit a report to the 
        Committee on the Judiciary of the House of Representatives and 
        the Committee on the Judiciary of the Senate on the findings 
        and recommendations from the study required under paragraph 
        (1).

SEC. 12. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the provisions of this 
Act shall take effect on the date of the enactment of this Act, and 
shall apply to any patent issued, or any action filed, on or after that 
date.
                                 <all>
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