Senator Schumer Explains It All on Covered Business Method Review

At today’s Senate Judiciary Committee Hearing, “Protecting Small Businesses and Promoting Innovation by Limiting Patent Troll Abuse,” Senator Schumer explained why we need to make the Covered Business Method Review program more widely available:

I couldn’t have said it better myself.

Transcript of video:

At the end of the day if we don’t address the fundamental problem of patent quality, trolls continue to abuse poor quality patents and we’ll be right back having the same debate. A patent reform bill that does not address patent quality is like treating the symptoms instead of the disease. I understand my proposal is not without detractors, but if anyone thinks they have valid patents, they shouldn’t be afraid of a preliminary proceeding. The only people who are afraid of this are who know their patents aren’t valid. And it’s really a shame that those who believe in valid patents. are so strongly defending the invalid patents as well. I find that appalling, frankly.

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We’ve seen in New York, many high tech businesses put out of business by illegitimate patent trolls; new startup businesses. We have also seen companies that won’t even start up because they know they’ll be pounced upon by these patent trolls. And a new business that is just starting up can’t afford to hire the lawyers. And I have to say, I have to say a lot of companies I work with in New York they are protecting their own patents. But it’s really wrong for them to say, “I want my protection to be so complete and so great that I’m going to allow the patent trolls to continue.”

I find it disgraceful. Disgraceful. Because this is hurting start up businesses, high tech businesses, this is the future of America. It’s the little people who can’t afford the suits. The future of America. So your words were very strong, Mr. Makin. I tend to think they were appropriate in this particular case. And I would urge those larger companies those large universities that have the ability and have counsel on their staff to look at this carefully for the good of the country. It doesn’t hurt you to go to court. It hurts small businesses that are represented here, and again, in New York, when you ask our high tech businesses, our booming high tech businesses, what is their number one problem? Probably getting good people. That’s why we need an immigration bill. Their number two problem are the patent trolls. Seriously.

Thank you, Mr. Chairman. Sorry I went on. I feel really strongly about this issue.