The result has been spectacular for the United States and the world. Establishing the U.S. patent system did that, in spades. Indeed, the world's economy rides on the commercialization of patent-protected American ideas. Now there is a bipartisan effort in Congress and the Clinton administration to drastically change the patent law. The bill, S. 507, sponsored by Sen. Orrin Hatch, R-Utah, has been reported out of committee and awaits a Senate vote.
Groups representing inventors and venture capitalists oppose the legislation.
Significantly, so does a group of nearly 30 American Nobel laureates in science and economics, including renowned economists Milton Friedman and Paul A. Samuelson. The critics object to a number of provisions in the patent reform bill. Under the current law an inventor is due royalties from anyone who uses his invention during the 17-year patent term. After that the invention is in the public domain and anyone may use it without paying royalties. Reducing the real term of protection would lessen the incentive to spend time, effort and money needed to develop and test-market a new process or product.