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CUTS FROM H.R.400 DEBATE ON HOUSE FLOOR
April 17, 1997

The following excerpts from the Debate over the Rohrabacher Substitute Bill reflect the comments of the speakers against the HR400 Bill. These are the exact quotes, (except for my comments which are surrounded by parentheses.) They come directly from The Congressional Record of April 17, 1997 (House) and are from Pages H1629-H1643.

(The following comments by Mr. Goss were a surprise to the Proponents of HR400 since they thought he was one of theirs. His comments about "First, do no harm," reflect my views exactly, because HR400 would do immeasurable harm to our patent system and country.)

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Mr. Goss -- Mr. Speaker, I am not certain that the promised benefits in H.R. 400 are not outweighed by the potential setbacks. I am waiting to be convinced by the debate. Whenever we consider sweeping reform we would be wise, in my view, to follow the model of the medical profession. First, do no harm.

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Mrs. Kaptur - Mr. Chairman, I rise in obvious strong opposition to H.R. 400. If this bill were so wonderful, then why are America's preeminent inventors opposed to it? Dr. Raymond Damadian, inventor of magnetic resonance scanning, Dr. Wilson Greatbatch, inventor of the cardiac pacemaker, Dr. Stephanie Kwolick, inventor of Kevlar, Dr. Jay Forrester, inventor of core memory, the first practical RAM. If this is such a great idea, then why are the people who have created America's future opposing it?
I have to say this bill is about a whole lot more than just arcane patent law. It is about what our Constitution guaranteed, and that is the property rights of our inventors. I hear all this concern about foreign countries and putting us on an equal footing with foreign countries. The facts are, we are the leader in the world.
Why should we want to dumb down our system or make it easier for others to tap into the inventions that our people produce? Why should we ask our inventors to have a greater burden of
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proof? Why should we make them be forced to get into this reexamination system? Why should we do this to the people who have built the greatest industrial and agricultural power on the face of the Earth?
I say to the membership, how many complaints have my colleagues received from their small inventors except on this bill? The system works for them. The only complaint one might get is about the maintenance fees, how much they have to pay to maintain a patent, and truly that needs to be improved. But we have a wonderful system that says if you have an idea, you file it at our patent office, that that idea is yours, it is secret until that patent is issued. Why would we want to change that system?

Mr. HUNTER. Mr. Chairman, will the gentlewoman yield?
Ms. KAPTUR. I yield to the gentleman from California. Mr. HUNTER. Mr.
Speaker, I thank my friend for yielding.
The theme has been that we should be like Europe and Japan, but the fact is that high technology startups are something that is uniquely American. There are very few high technology startup companies in Europe and Japan. That is because they lose the one thing which is central to their success, and that is secrecy, because once they publish in 18 months, the big companies come in and sweep them off the map by patenting around them, which is called patent flooding. The gentlewoman is absolutely right.

Ms. KAPTUR. Mr. Speaker, reclaiming my time, I thank the gentleman for that comment. This whole question of submarine patents and so forth, there is less than \13/1000\ percent of those that even affect this entire system, and even then we have to be about the task of protecting American inventors' rights. To the extent we can get other nations to conform their systems to ours, terrific, but why should we try to conform our system to theirs? Why should we make it more difficult for our inventors to pay the fees?
This office I am told has been changed as we are sitting here today. With this corporatization of the patent office, that now apparently is not going to be allowed to accept gifts and real estate, because of pressure from Members of Congress like myself, as it is in the base bill, when I read the amendment, and I really do not have a copy of it here, but it basically says you are going to require gift rules be drafted to ensure that gifts to this new office are not only legal but avoid any appearance of impropriety. Why should they be given those gifts in the first place? Why should that be happening under this bill? And why should we take away the objectivity of our patent examiners who are completely insulated from any kind of economic coercion by the current system?
I have to say that patents are the trade routes for the 21st century. America under H.R. 400 is throwing away our technological lead by publishing patent applications much earlier and taking away the secrecy that is inherent in our system to our inventors and making other radical changes which, by the way, to the membership, if anybody has a final copy of this bill I hope they will give it to me because somebody who has been as involved in this issue as any other Member, I cannot give my colleagues a bill that we will be asked to vote on here today that is accurate in terms of legislative language.
We have the choice here today to create prosperity for our Nation, to provide opportunities to our children, but if we change the patent system as H.R. 400 proposes, we will be throwing away the American dream of opportunity embedded in the Constitution of the United States. I guarantee my colleagues if this bill passes, there is going to be decades of litigation as the American people fight for the rights they were granted under our Constitution.
Our patent system is the heart of our economic strength because it creates new money, jobs, and new industries. I ask the membership to vote no on H.R. 400.

Mr. Bartlett -- Mr. ROHRABACHER. Mr. Chairman, I yield 1 minute to the gentleman from Maryland [Mr. Rosco Bartlett], one Member of Congress who has 20 patents to his name and who can speak with expertise on the issue of patents.
Mr. BARTLETT of Maryland. Mr. Chairman, as the holder of 20 patents
myself, I feel compelled to rise today in support of the Rohrabacher substitute. For over 200 years, the American patent system has empowered inventors to make this country the most innovative in the world.
If H.R. 400 becomes law, small businesses and inventors will be forced to publish their patents before receiving a patent. This opens the door for every copycat in the world to steal this information and begin manufacturing and marketing before the inventor has patent protection.
Ladies and gentlemen, our Founding Fathers had the wisdom to recognize the need for a patent system unlike anywhere else in the world that promoted the concept of entrepreneurship and protected ingenuity.
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Their foresight has resulted in the greatest industrial power this world has ever seen. Let us not weaken this protection in the name of international harmonization.
Next week I will hold hearings in the Subcommittee on Government Programs of the Committee on Small Business on this issue. I look forward to continuing this dialog.

Ms. KAPTUR. Mr. Chairman, I yield 1\1/4\ minutes to the gentleman from Cleveland, OH [Mr. Kucinich], our esteemed colleague.
Mr. KUCINICH. Mr. Chairman, I rise in opposition to H.R. 400.
The essence of this bill is a hostile takeover of the American patent system by private interests. The American patent system is a public trust. It is operated by a responsible government organization for the benefit of the American people and individual inventors. It exists to enhance the capacity of our economy to cultivate and commercialize new technologies.
If H.R. 400 becomes law, the integrity and independence of the patent system will be undermined. H.R. 400 would convert the Patent and Trademark Office, now part of the Department of Commerce, into a ``corporate body not subject to direction or supervision by any department of the United States.''
Another disturbing aspect of H.R. 400 is the establishment of a management advisory committee composed of corporate and management executives who will oversee the policies, goals and performance, budget, and user fees of this new government corporation. Even though the director of the Patent and Trademark Office would be appointed by the President of the United States, the director would be compelled to consult with a private sector board on all major decisions. The transformation of the PTO into a corporate body combined with the influence of the management advisory committee places our Nation on a slippery slope to corporate domination of the patent system and the destructive undermining of the democratic tradition which has produced some of the greatest inventions in the world from the American people.

Mr. Kucinich -- Ms. KAPTUR. Mr. Chairman, I yield 1\1/4\ minutes to the gentleman from Cleveland, OH [Mr. Kucinich], our esteemed colleague.
Mr. KUCINICH. Mr. Chairman, I rise in opposition to H.R. 400.
The essence of this bill is a hostile takeover of the American patent system by private interests. The American patent system is a public trust. It is operated by a responsible government organization for the benefit of the American people and individual inventors. It exists to enhance the capacity of our economy to cultivate and commercialize new technologies.
If H.R. 400 becomes law, the integrity and independence of the patent system will be undermined. H.R. 400 would convert the Patent and Trademark Office, now part of the Department of Commerce, into a ``corporate body not subject to direction or supervision by any department of the United States.''
Another disturbing aspect of H.R. 400 is the establishment of a management advisory committee composed of corporate and management executives who will oversee the policies, goals and performance, budget, and user fees of this new government corporation. Even though the director of the Patent and Trademark Office would be appointed by the President of the United States, the director would be compelled to consult with a private sector board on all major decisions. The transformation of the PTO into a corporate body combined with the influence of the management advisory committee places our Nation on a slippery slope to corporate domination of the patent system and the destructive undermining of the democratic tradition which has produced some of the greatest inventions in the world from the American people.

Mr. ROHRABACHER. Mr. Chairman, I yield 1 minute to the gentleman from California [Mr. Campbell] who represents the Silicon Valley area.

(Mr. CAMPBELL asked and was given permission to revise and extend his remarks.)

Mr. CAMPBELL. Mr. Chairman, I wish to speak on the question of who is on which side. I think that is a useful way to analyze the factors in these bills. The inventors want to keep the rights that they have when they invent and do not want to be forced to disclose. The commercializers want to have as much disclosure as possible so that they can make use of those inventions. I am not condemning either side, but by identifying them, I think we see that if we can achieve the commercializers' legitimate interests without undercutting the inventors, then we have achieved something. That is what is in the Rohrabacher bill.

Some of my colleagues on the other side have spoken about the hightech companies who support H.R. 400, and I agree they do. But it is very interesting to me that the university community has been silent and has not rushed to support H.R. 400. In fact, I have had extensive dealings with the university community and they are staying off, because they are worried about what this might do to the inventive process.
Mr. Chairman, I would conclude with one last observation, and that is that people speak of a level playing field with Europe. I say to my colleagues, I do not want a level playing field. We are better.

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