March 1, 2011 CONGRESSIONAL RECORD — SENATE S1053 beyond the jurisdiction of the Judici- permitted to speak therein for up to 10 the PTO as prior art and bad patents ary Committee and as a result was not minutes each. are issued. The holders of business considered previously, but I trust it The PRESIDING OFFICER. Without method patents then attempt to ex- will win the support of our colleagues objection, it is so ordered. tract settlements from the banks by on the floor. I am glad that this provi- Mr. MENENDEZ. Mr. President, I suing them in plaintiff-friendly courts sion has been included in the man- suggest the absence of a quorum. and tying them up in years of ex- agers’ amendment, of which I am a co- The PRESIDING OFFICER. The tremely costly litigation. sponsor. clerk will call the roll. This is not a small problem. Around My conversations with Rhode Island The assistant legislative clerk pro- 11,000 new applications for patents on inventors also made clear that the fear ceeded to call the roll. business methods are filed every year, of protracted litigation also dampens Mr. SCHUMER. Mr. President, I ask and financial patents are being liti- innovation. Unfortunately, numerous unanimous consent that the order for gated almost 30 times more than pat- poor-quality patents have issued in re- the quorum call be rescinded. ents as a whole. This is not right, it is cent years, resulting in seemingly end- The PRESIDING OFFICER. Without not fair, and it is taking desperately less litigation that casts a cloud over objection, it is so ordered. needed money and energy out of the patent ownership. Administrative proc- f economy and putting it into the hands esses that should serve as an alter- AMERICA INVENTS ACT of a few litigants. So I am very pleased native to litigation also have broken Congress is going to fight it. down, resulting in further delay, cost, Mr. SCHUMER. Mr. President, I rise The Schumer-Kyl amendment, which and confusion. to speak in support of the America In- was included in the managers’ package The America Invents Act will take vents Act generally and about the we just adopted, will allow companies on these problems by ensuring that managers’ amendment specifically. that are the target of one of these friv- higher quality patents issue in the fu- The America Invents Act, also known olous business method patent lawsuits ture. This will produce less litigation as the patent reform bill, has been to go back to the PTO and dem- and create greater incentives for pending for many years and has been onstrate, with the appropriate prior innovators to commit the effort and re- the subject of extensive debate, nego- art, that the patent shouldn’t have sources to create the next big idea. tiation, and revisions. In its current been issued in the first place. That way Similarly, the bill will improve admin- draft, it does much needed good to help bad patents can be knocked out in an istrative processes so that disputes protect the American innovation econ- efficient administrative proceeding, over patents can be resolved quickly omy by updating and modernizing our avoiding costly litigation. and cheaply without patents being tied patent system. One of the most critical elements of up for years in expensive litigation. The patent system in the United this amendment has to do with the This body must not pass up this States is designed to protect innova- stay of litigation while review of the chance to enhance innovation and en- tion and inventions and investment. patent is pending at the PTO. The ergize our economy. We must see this But over the last several decades, the amendment includes a four-factor test bill through the Senate, and we must Patent and Trademark Office has be- for the granting of a stay that places a work with the House to see it passed come bogged down and overburdened very heavy thumb on the scale in favor promptly into law. It is true that the by inefficient process and outdated of the stay. Indeed, the test requires bill is a compromise and may not re- law. The result is a heavy burden on the court to ask whether a stay would flect all of everyone’s priorities. Im- the innovative work that is the engine reduce the burden of the litigation on provements to the bill may still be pos- of our economy. the parties and the court. Since the en- sible. To that end, I expect a produc- I wish to commend Senator LEAHY. tire purpose of the transitional pro- tive debate on the floor and a construc- He has gone the extra mile for this bill gram at the PTO is to reduce the bur- tive dialog with the House. I look for- for many years. I am proud and glad he den of litigation, it is nearly impos- ward to continuing to work with the is seeing his work come to fruition as sible to imagine a scenario in which a chairman, my colleagues, and all inter- we finally debate the bill on the floor. district court would not issue a stay. ested parties to craft a bill that gen- Passage of the bill is in sight. I also In response to concerns that earlier erates the broadest consensus possible. wish to commend the ranking member versions of the amendment were too But we must not lose sight of the of the Judiciary Committee, Senator broad, we have modified it so it is nar- need for action. Our patent system has GRASSLEY, who worked with him, as rowly targeted. We want to make sure gone 60 years without improvements. It well as Senator KYL, who has taken a to capture the business method patents needs repair. Now is the time to ener- leading role on the Republican side, for which are at the heart of the problem gize our innovation economy, to create their hard work in crafting a bill that and avoid any collateral cir- jobs, and to secure continuing Amer- effectively modernizes the patent sys- cumstances. ican leadership in the fields of medi- tem, while paying attention to the In conclusion, I believe the amend- cine, science, and technology. Hard many and varied demands different ment takes an important step in the work and ingenuity long have been the sectors of the economy exert upon it. direction of eliminating the kinds of backbone of this country. Let’s not get I am particularly pleased the chair- frivolous lawsuits the jurisprudence on in their way. man has decided to adopt the Schumer- business method patents have allowed. Mr. President, I suggest the absence Kyl amendment on business method I am very grateful to the chairman and of a quorum. patents into the managers’ amend- the ranking member, Senator KYL, and The PRESIDING OFFICER. The ment. It is a critical change that this I support the managers’ amendment clerk will call the roll. bill finally begins to address the and the America Invents Act as a The assistant legislative clerk pro- scourge of business method patents whole. ceeded to call the roll. currently plaguing the financial sector. Finally, I would like to say a few Mr. MENENDEZ. Mr. President, I ask Business method patents are anathema words about Senator COBURN’s proposal unanimous consent that the order for to the protection the patent system on fee diversion. I think his idea, which the quorum call be rescinded. provides because they apply not to is incorporated in the managers’ The PRESIDING OFFICER (Mr. BEN- novel products or services but to ab- amendment, makes a lot of sense; that NET). Without objection, it is so or- stract and common concepts of how to is, to let the PTO keep the fees they dered. do business. charge so they are self-funded and we f Often, business method patents are don’t have to spend taxpayer money to issued for practices that have been in fund them every year. MORNING BUSINESS widespread use in the financial indus- Last year, when we were debating the Mr. MENENDEZ. Mr. President, I ask try for years, such as check imaging or Wall Street reform bill, Senator JACK unanimous consent that the Senate one-click checkout. Because of the na- REED and I made a similar proposal for proceed to a period for the transaction ture of the financial services industry, the SEC, which ultimately didn’t make of morning business, with Senators those practices aren’t identifiable by it into the final bill. I just wanted to

VerDate Mar 15 2010 01:26 Mar 02, 2011 Jkt 099060 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\CR\FM\G01MR6.021 S01MRPT1 pwalker on DSKD5P82C1PROD with SENATE S1054 CONGRESSIONAL RECORD — SENATE March 1, 2011 take this time to make a few points 3. Taking testimony. For the purpose of 2. ADDITIONAL MEETINGS.—The Chairman, about this commonsense proposal. taking testimony, other than sworn testi- after consultation with the Ranking Minor- First, for the last 15 years, the SEC mony, by the Committee or any sub- ity Member, may call such additional meet- hasn’t spent a dime of taxpayer money. committee, one member of the Committee or ings as he deems necessary. subcommittee shall constitute a quorum. 3. SPECIAL MEETINGS.—Special meetings of For 15 years, the SEC has had no im- For the purpose of taking sworn testimony the Committee may be called by a majority pact on the deficit. This is because by the Committee, three members shall con- of the members of the Committee in accord- Congress, in 1996, amended the securi- stitute a quorum, and for the taking of ance with paragraph 3 of Rule XXVI of the ties laws to provide that 100 percent of sworn testimony by any subcommittee, one Standing Rules of the Senate. the SEC’s funding comes from registra- member shall constitute a quorum. 4. OPEN MEETINGS.—Each meeting of the Committee, or any subcommittee thereof, tion and filing fees charged by the III. PROXIES including meetings to conduct hearings, Commission. Except for the reporting of a bill, votes shall be open to the public, except that a Second, even though the SEC collects may be cast by proxy when any member so meeting or series of meetings by the Com- more in fees every year than it spends, requests. mittee or a subcommittee thereof on the the amount of the SEC’s annual budget IV. ATTENDANCE OF STAFF MEMBERS AT CLOSED same subject for a period of no more than is determined by Congress, which has SESSIONS fourteen (14) calendar days may be closed to continually shortchanged the SEC. The Attendance of staff members at closed ses- the public on a motion made and seconded to go into closed session to discuss only wheth- SEC’s budget has been in the crosshairs sions of the Committee shall be limited to those members of the Committee staff who er the matters enumerated below in clauses for years, and their funding has been so (a) through (f) would require the meeting to inadequate that they have been com- have a responsibility associated with the matter being considered at such meeting. be closed, followed immediately by a record vote in open session by a majority of the promised in their ability to pursue This rule may be waived by unanimous con- members of the Committee or subcommittee their core mission. sent. Third, the budget proposal in the when it is determined that the matters to be V. BROADCASTING AND PHOTOGRAPHING OF House would continue the short- discussed or the testimony to be taken at COMMITTEE HEARINGS such meeting or meetings— changing of the SEC, cutting $40 mil- The Committee or any of its subcommit- (a) will disclose matters necessary to be lion from its existing budget at a time tees may permit the photographing and kept secret in the interests of national de- when it needs resources more than broadcast of open hearings by television and/ fense or the confidential conduct of the for- ever. or radio. However, if any member of a sub- eign relations of the United States; Finally, a word about the current de- committee objects to the photographing or (b) will relate solely to matters of Com- mands on the SEC. We gave that agen- broadcasting of an open hearing, the ques- mittee staff personnel or internal staff man- agement or procedure; cy significant new responsibilities tion shall be referred to the full Committee for its decision. (c) will tend to charge an individual with a under the Dodd-Frank Act, in par- crime or misconduct, to disgrace or injure ticular to oversee the previously un- VI. AVAILABILITY OF SUBCOMMITTEE REPORTS the professional standing of an individual, or regulated derivative markets. That is To the extent possible, when the bill and otherwise to expose an individual to public an enormous undertaking that every- report of any subcommittee are available, contempt or obloquy or will represent a they shall be furnished to each member of body agrees is necessary after seeing clearly unwarranted invasion of the privacy the Committee thirty-six hours prior to the of an individual; the role that unregulated derivatives Committee’s consideration of said bill and (d) will disclose the identity of any in- played in the financial crisis. report. former or law enforcement agent or will dis- In closing, I would strongly suggest VII. AMENDMENTS AND REPORT LANGUAGE close any information relating to the inves- to my colleagues that if self-funding To the extent possible, amendments and tigation or prosecution of a criminal offense makes sense for the PTO, it makes report language intended to be proposed by that is required to be kept secret in the in- sense for the SEC. I am not going to Senators at full Committee markups shall be terests of effective law enforcement; (e) will disclose information relating to the call up my amendment now or my bill provided in writing to the Chairman and trade secrets or financial or commercial in- Ranking Minority Member and the appro- now, but I urge my colleagues to sup- formation pertaining specifically to a given port this commonsense proposal Sen- priate Subcommittee Chairman and Ranking person if— ator REED and I are pushing and ensure Minority Member twenty-four hours prior to (1) an Act of Congress requires the infor- it gets a full hearing in the Senate. such markups. mation to be kept confidential by Govern- I thank the Chair for his time and at- VIII. POINTS OF ORDER ment officers and employees; or tention. Any member of the Committee who is floor (2) the information has been obtained by manager of an appropriations bill, is hereby the Government on a confidential basis, f authorized to make points of order against other than through an application by such COMMITTEE ON APPROPRIATIONS any amendment offered in violation of the person for a specific Government financial or RULES OF PROCEDURE Senate Rules on the floor of the Senate to other benefit, and is required to be kept se- such appropriations bill. cret in order to prevent undue injury to the Mr. INOUYE. Mr. President, the Sen- competitive position of such person; or IX. EX OFFICIO MEMBERSHIP ate Appropriations Committee has (f) may divulge matters required to be kept adopted rules governing its procedures The Chairman and Ranking Minority Mem- confidential under other provisions of law or ber of the full Committee are ex officio mem- for the 112th Congress. Pursuant to Government regulations. bers of all subcommittees of which they are 5. PRESIDING OFFICER.—The Chairman shall rule XXVI, paragraph 2, of the Stand- not regular members but shall have no vote preside at all meetings and hearings of the ing Rules of the Senate, on behalf of in the subcommittee and shall not be count- Committee except that in his absence the myself and Senator COCHRAN, I ask ed for purposes of determining a quorum. Ranking Majority Member present at the unanimous consent that a copy of the f meeting or hearing shall preside unless by committee rules be printed in the majority vote the Committee provides other- COMMITTEE ON ARMED SERVICES RECORD. wise. There being no objection, the mate- RULES OF PROCEDURE 6. QUORUM.—(a) A majority of the members Mr. LEVIN. Mr. President, I ask of the Committee are required to be actually rial was ordered to be printed in the present to report a matter or measure from RECORD, as follows: unanimous consent that the rules of the Committee. (See Standing Rules of the SENATE APPROPRIATIONS COMMITTEE RULES— procedure of the Committee on Armed Senate 26.7(a)(1)). 112TH CONGRESS Services be printed in the RECORD. (b) Except as provided in subsections (a) I. MEETINGS There being no objection, the mate- and (c), and other than for the conduct of hearings, nine members of the Committee, The Committee will meet at the call of the rial was ordered to be printed in the including one member of the minority party; Chairman. RECORD, as follows: or a majority of the members of the Com- II. QUORUMS RULES OF PROCEDURE OF THE mittee, shall constitute a quorum for the 1. Reporting a bill. A majority of the mem- COMMITTEE ON ARMED SERVICES transaction of such business as may be con- bers must be present for the reporting of a 1. REGULAR MEETING DAY.—The Committee sidered by the Committee. bill. shall meet at least once a month when Con- (c) Three members of the Committee, one 2. Other business. For the purpose of gress is in session. The regular meeting days of whom shall be a member of the minority transacting business other than reporting a of the Committee shall be Tuesday and party, shall constitute a quorum for the pur- bill or taking testimony, one-third of the Thursday, unless the Chairman, after con- pose of taking sworn testimony, unless oth- members of the Committee shall constitute sultation with the Ranking Minority Mem- erwise ordered by a majority of the full Com- a quorum. ber, directs otherwise. mittee.

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