COMMITTEE ON THE JUDICIARY

F. JAMES SENSENBRENNER, JR., Wisconsin, Chairman

PHILIP G. KIKO, General Counsel-Chief of Staff
PERRY H. APELBAUM, Minority Chief Counsel

SUBCOMMITTEE ON COURTS, THE INTERNET, AND INTELLECTUAL PROPERTY

LAMAR SMITH, Texas, Chairman

BLAINE MERRITT, Chief Counsel

DAVID WHITNEY, Counsel

JOE KEELEY, Counsel

RYAN VISCO, Counsel

SHANNA WINTERS, Minority Counsel

CONTENTS

JUNE 9, 2005

OPENING STATEMENT

The Honorable Lamar Smith, a Representative in Congress from the State
of Texas, and Chairman, Subcommittee on Courts, the Internet, and Intel-
lectual Property

The Honorable Howard L. Berman, a Representative in Congress from the
State of California, and Ranking Member, Subcommittee on Courts, the
Internet, and Intellectual Property

WITNESSES

Mr. Gary L. Griswold, President and Chief Intellectual Property Counsel, 3M Innovative Properties Company, on behalf of the American Intellectual Property Law Association

Oral Testimony

Prepared Statement

Mr. Carl E. Gulbrandsen, Managing Director, Wisconsin Alumni Research

Page

1

3

46

Foundation (WARF)

Oral Testimony

16

Prepared Statement

19

Mr. Josh Lerner, Jacob H. Schiff Professor of Investment Banking, Harvard
Business School

Oral Testimony

33

Prepared Statement

34

Mr. Daniel B. Ravicher, Executive Director, Public Patent Foundation (PUBPAT)

Prepared Statement of the Honorable Howard L. Berman, a Representative
in Congress from the State of California, and Ranking Member, Sub-
committee on Courts, the Internet, and Intellectual Property
Prepared Statement of the Honorable John Conyers, Jr., a Representative
in Congress from the State of Michigan

Prepared Statement of the Honorable Zoe Lofgren, a Representative in Con-
gress from the State of California

Memorandum of the Honorable Zoe Lofgren, a Representative in Congress from the State of California

Letter from Michael K. Kirk, Executive Director, American Intellectual Property Law Association (AIPLA), in response to questions to Gary Griswold, President and Chief Intellectual Property Counsel, 3M Innovative Properties Company, submitted by the Honorable Zoe Lofgren, a Representative in Congress from the State of California

Prepared Statement of the Computer & Communications Industry Associa

PATENT ACT OF 2005

THURSDAY, JUNE 9, 2005

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON COURTS, THE INTERNET,

AND INTELLECTUAL PROPERTY,
COMMITTEE ON THE JUDICIARY,
Washington, DC.

The Subcommittee met, pursuant to notice, at 9:20 a.m., in Room 2141, Rayburn House Office Building, the Honorable Lamar Smith (Chair of the Subcommittee) presiding.

Mr. SMITH. Good morning. The Subcommittee on Courts, the Internet, and Intellectual Property will come to order.

Let me say that I should have had more faith in our witnesses and in the audience. I had no idea you all would be here and be so prompt. When the building was closed this morning, I thought, "Well, we'll be lucky to start at 10:00;" then I backed it up to 9:30. Then I get a call that three of our witnesses have already showed up at 9:00, so I realized that we're going forward pretty much on time as expected. So thank you for your promptness, for your interest, and for your diligence in coming even though there was a delay, as you all know, getting into the building this morning.

I'm going to recognize myself for an opening statement, then the Ranking Member, and then we'll proceed.

Today marks our third hearing on patent reform in the 109th Congress. The first two focused on the contents of a Committee Print. I want to take a moment to commend the Members of this Subcommittee, all of the witnesses, and other interested parties who have contributed so much to this project over the past 6 months.

To arrive at this point is no small accomplishment, given the scope of the bill and its eventual application to so many lives and jobs. The bill in its current form is, without question, the most comprehensive change to U.S. patent law since Congress passed the 1952 Patent Act.

This Subcommittee has undertaken such responsibility because the changes are necessary to bolster the U.S. economy and improve the quality of living for all Americans. The bill will eliminate legal gamesmanship from the current system that rewards lawsuit abuses over creativity. It will enhance the quality of patents and increase public confidence in their legal integrity.

This will help individuals and companies to obtain seed money for research, commercialize their inventions, grow their businesses, create new jobs, and offer the American public a dazzling array of products and services that make our country the envy of the world.