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May 12, 2008 6:05 AM PDT

Patent Reform Act stalls in the Senate

by Steve Tobak

After years of heated debate and lobbying, the Patent Reform Act of 2007, which passed in the U.S. House of Representatives and was scheduled for a Senate vote this session, has been taken off the Senate's calendar. It can be revived, but its momentum has effectively fizzled.

Apparently, the Senate has better things to do with its time.

At this point, I don't wish to rehash the issues of, or my viewpoint on, the Patent Reform Act. Besides, as I've said, both sides in the debate were after only their own self-interests. Such is life in a capitalist society. (I think that's a good thing.)

What does fascinate me, though, are the strange alliances the debate over patent reform created. The Coalition for Patent Fairness--a group of more than 150 high-tech and financial-services companies that included Adobe Systems, Apple, Cisco Systems, eBay, Google, Hewlett-Packard, Intel, Lenovo, Microsoft, News Corp., Oracle, SAP, Time Warner, and virtually all the big banks--supported and lobbied heavily for the bill.

In the other camp were the entire biotech and pharmaceutical industries, 3M, Caterpillar, General Electric, Procter & Gamble, Johnson & Johnson, Motorola, PepsiCo, Qualcomm, Texas Instruments, The National Venture Capital Association, The Institute of Electrical and Electronics Engineers (IEEE), The AFL-CIO, and a host of other labor unions and manufacturing associations.

"Greed is good," says Gordon Gekko (played by Michael Douglas), Wall Street

(Credit: Twentieth Century Fox Film)

Strange bedfellows, indeed.

In addition, support for the bill wasn't as partisan as one might expect. Sixty Republicans and 160 Democrats voted for the House bill, while 117 Republicans and 58 Democrats voted against it. Not exactly homogeneous, but surely not partisan, either.

I couldn't help but wonder why patent reform is a rare exception to our increasingly bifurcated nation.

Is it because the issues are complex, and we, as a nation, don't do "complex" very well? Or is it that, when it comes to money and business, ideals and politics go right out the window? Yup, that must be it.

That's the beauty of capitalism. It breeds pure, unadulterated self-interest and greed. And while that sounds really nasty, it isn't. It's one of the characteristics that made our nation the most powerful on Earth.

What's all that got to do with patent reform? Not a thing. And that's the point.

Steve Tobak is managing partner of Invisor Consulting LLC. He is a member of the CNET Blog Network, and is not an employee of CNET. Disclosure.
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Add a Comment (Log in or register)
by iplaw5685 May 12, 2008 12:02 PM PDT
It will be interesting to see how the "strange" pairings among corporate interests you reference in terms of the business and software coalitions develops once the US Court of Appeals rules in the pending Bilski case on the pantentability of business methods. The case has some potentially serious ramifications for a number of different corporate actors who have also had a stake in lobbying on both sides of the Patent Reform Act (http://www.cfo.com/article.cfm/11078594/c_11081639?f=magazine_featured).
Reply to this comment
by dinnertime August 27, 2008 8:07 AM PDT
see http://www.piausa.org for an opposing view on patent reform
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About Train Wreck

Steve Tobak is a marketing consultant and former chip industry executive. Train Wreck provides insight into dysfunctional corporate behavior, among other things. When he's not airing the industry's dirty laundry, Steve likes to hang around the house, make believe he's working, and drive his wife crazy. Find out more at www.invisor.net or email Steve at trainwreck@invisor.net. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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