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Mr. MCCLELLAN (for himself, Mr. BURDICK, Mr. PHILIP A. HART, and Mr. MÍ HUGH SCOTT) introduced the following bill; which was read twice and referred to the Committee on the Judiciary

FEBRUARY 24, 1976

Reported by Mr. MCCLELLAN, with amendments

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A BILL

For the general revision of the Patent Laws, title 85 of the United States
Code, and for other purposes.

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Be it enacted by the Senate and House of Representatives of the 2 United States of America in Congress assembled, That, in accordance

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with the authority granted by article 1, section 8, clause 8 of the
United States Constitution, title 85 of the United States Code entitled

5 "Patents", is hereby amended in its entirety to read as follows:

"PART

"TITLE 35-PATENTS

"I. PATENT AND TRADEMARK OFFICE_

Sec.

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"II. PATENTABILITY OF INVENTIONS AND GRANT OF PATENTS. “III. PATENTS AND INFRINGEMENT OF PATENTS....

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"8. Commissioner and other officers.

"4. Restrictions on officers and employees as to interest in patents.

"B. Board of Examiners-in-Chief.

"6. Library.

7. Classification of patents.

"8. Certified copies of records.

"9. Publications.

"10. Research and studies.

"11. Annual report.

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to three years, when an application for patent or patents has become

the property of the United States and the head of the appropriate 3 department or agency of the Government has certified to the Cominissioner that the subject matter disclosed therein is important to the armament or defense of the United States.

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"(a) Except as otherwise provided in this title, whoever without authority makes, uses, or sells any patented subject matter, within the United States after the issuance of the patent therefor and during its term, infringes the patent.

"(b) Whoever actively induces infringement of a patent shall be liable as an infringer.

"(c) Whoever sells a component of a patented machine, manufacture, combination or composition, or a material or apparatus for use in 16 practicing a patented process, constituting a material part of the

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patented subject matter, knowing the same to be especially made or 18 especially adapted for use in an infringement of such patent, and not a staple article or commodity of commerce suitable for substantial 20 noninfringing use, shall be liable as a contributory infringer.

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"(d) No patent owner otherwise entitled to relief for infringement or contributory infringement of a patent shall be denied relief or deemed guilty of misuse or illegal extension of the patent right by reason of his having done one or more of the following: (1) derived revenue from acts which if performed by another without his consent would constitute contributory infringement of the patent; (2) licensed or authorized another to perform acts which if performed without his consent would constitute contributory infringement of the patent; or (3) sought to enforce the patent against infringement or contribu30 tory infringement.

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"(e) (1) Subject to paragraph (3) of this subsection, whoever imports a product made in a foreign country into the United States shall be liable as an infringer, if--

"(A) he has entered into an exclusive or primary sales or distribution agreement for such product, with the person who made it in the foreign country, or one who purchased it from such perand

son,

"(B) such person made the product in the foreign country by a process patented in the United States.

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“(2) Subject to paragraph (3) of this subsection, any subsidiary, or other organization under the legal control, of the manufacturer or 8. vendor specified in paragraph (1)(A) of this subsection, that actively 4 induces conduct proscribed by paragraph (1) of this subsection shall Ď be liable as an infringer.

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"(3) Paragraphs (1) and (2) of this subsection shall not apply if 7 the patentee has authorized the persons identified in paragraphs (1) 8 and (2), or any of them, to engage in such conduct.

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“(f) Whoever, without authority, makes or sells, within the United 10 States, substantially all of the components of a patented machine, 11 manufacture, or composition of matter, uncombined, intending that 12 such components will be combined outside the United States to con18 stitute the patented subject matter, knowing that if such components 14 were combined within the United States, the combination would be an 18 infringement of the patent, shall be liable as an infringer.

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16 ❝8 272. Temporary presence in the United States

17 "The use of any patented subject matter in any vessel, aircraft, or 18 vehicle entering the United States temporarily or accidentally shall 18 not constitute infringement of any patent, if such subject matter is 20 used oxclusively for the needs of the vessel, aircraft, or vehicle, and is 21 not sold in or used for the manufacture of anything to be sold in or 22 exported from the United States, and if the country of registration of 28 such vessel, aircraft or vehicle affords similar privileges to vessels, 24 aircraft or vehicles of the United States.

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"Bec.

"Chapter 29.-REMEDIES FOR INFRINGEMENT OF

PATENT, AND OTHER ACTIONS

"281. Remedy for infringement of patent.

"282. Presumption of validity; defenses.

"288. Injunction.

"284. Damages.

"285. Attorney fees.

"286. Time limitation on damages.

"287. Limitation on damages, marking and notice.

"288. Action for infringement of a patent containing an invalid claim. "280. Additional remedy for infringement of design patent.

"290. Notice of patent suits.

201. Priority of invention between patentees.

"202. False marking.

"203. Nonresident patentee; service and notice.

“291. Voluntary arbitration.

"203. Challenge to validity by assignor.

"290. Challenge to validity by licensee.

"297. Removal in validity challenge cases.

4208 Challenge to validity by the United States:

27 "8 281. Remedy for infringement of patent

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"A patentee shall have remedy by civil action for infringement of 29 his patent.

94TH CONGRESS 18T SESSION

S. 23

IN THE SENATE OF THE UNITED STATES

January 15, 1975

Mr. MCCLELLAN introduced the following bill; which was read twice and referred to the Committee on the Judiciary

A BILL

For the general revision of the Patent Laws, title 85 of the United States Code, and for other purposes.

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Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, in accordance

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with the authority granted by article 1, section 8, clause 8 of the United 4 States Constitution, title 85 of the United States Code entitled "Patents", is hereby amended in its entirety to read as follows:

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"II. PATENTABILITY OF INVENTIONS AND GRANT OF PATENTS_
"III. PATENTS AND INFRINGEMENT OF PATENTS.........

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"3. Commissioner und other officers.

"4. Restrictions on officers and employees as to interest in patents.

"5. Board of Examiners-in-Chief.

"6. Library.

"7. Classification of patents.

"8. Certified copies of records.

"9. Publications.

"10. Research and studies.

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patent, or patents, to the whole or any specified part of the United States.

"(c) A certificate of acknowledgment under the hand and official seal of a person authorized to administer oaths within the United States, or, in a foreign country, of a diplomatic or consular officer of the United States or an oflicer authorized to administer oaths whose authority is proved by a certificate of a diplomatic or consular officer of the United States, shall be prima facie evidence of the execution of an assignment, grant or conveyance of a patent or application for patent.

"(d) An assignment, grant or conveyance shall be void as against any subsequent purchaser or mortgagee for a valuable consideration, without notice, unless it is recorded in the Office within three months from its date or prior to the date of such subsequent purchase or mortgage.

"8 262. Joint owners

“In the absence of any agreement to the contrary, each of the joint owners of a patent may make, use, or sell the patented subject matter 10 without the consent of and without accounting to the other owners. "Chapter 27.-GOVERNMENT INTERESTS IN PATENTS

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"267. Time for taking action in Government applications.

"Notwithstanding the provisions of sections 41, 188, and 151 of this 22 title, the Commissioner may extend the time for taking any action to three years, when an application for patent or patent has become the property of the United States and the head of the appropriate 25 department or agency of the Government has certified to the Commissioner that the subject matter disclosed therein is important to the armament or defense of the United States.

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"Sec.

"Chapter 28.-INFRINGEMENT OF PATENTS

"271. Infringement of patent.

"272. Temporary presence in the United States.

"8 271. Infringement of patents

"(a) Except as otherwise provided in this title, whoever without authority makes, uses, or sells any patented subject matter, within the United States after the issuance of the patent therefor and during its term, infringes the patent.

"(b) Whoever actively induces infringement of a patent shall be

liable as an infringer.

"(c) Whoever sells a component of a patented machine, manufacture, combination or composition, or a material or apparatus for use in

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