Coalition for 21st Century Patent Reform
Statement on Introduction of Senate and House Patent Legislation

Washington, D.C. – The Coalition for 21st Century Patent Reform released the following statement after the introduction of the “Patent Reform Act of 2007” in the U.S. Senate and U.S. House of Representatives.

Coalition members include many of the nation’s most successful creators and manufacturers of innovative products. Its members come from diverse industry sectors and include 3M, Caterpillar Inc., General Electric, Johnson & Johnson, Eli Lilly and Procter & Gamble. The coalition formed to promote
innovation and American competitiveness by improving patent quality and reducing the cost and complexity of patent lawsuits. It has announced legislative priorities that are based upon the 2004 recommendations of the National Academies of Science and believes implementing these
recommendations is vital to the nation’s future economic growth.

Steven Miller, Procter & Gamble Vice President and General Counsel–Intellectual Property and a member of the coalition steering committee, offered the following statement on the Patent Reform Act of 2007:

“The 40-plus companies in our coalition are seeking fair, balanced and comprehensive patent reforms. Patents are central to American economic growth and global competitiveness. There should be no doubt that the patent system has served our nation well, but there is a need today to secure the
future of innovation with reforms that will improve the examination of patent applications and address issues of cost and uncertainty in patent lawsuits. We are encouraged that the bills that Chairman Leahy and Chairman Berman have introduced will allow the legislative process on needed reforms
to advance. However, we are concerned the bills as introduced do not adequately address several critical reforms.

We look forward to working with the Chairmen, members of the Judiciary Committees and representatives of a broad cross sector of industry to fashion a patent reform initiative that will enhance innovation and American competitiveness in a global economy. Our coalition is pleased to see
provisions recommended by the 2004 National Academies of Science Report, including those that would implement a first-inventor-to-file system of priority, have been included in these bills. We remain committed to seeking the fullest possible implementation of the National Academies’
recommendations for improving the operation of the U.S. patent system.

The legislative effort to adopt meaningful patent reform is a vital process that will affect all companies and sectors; it is not a battle between a few companies. Given the diversity of our coalition, we look forward to working with the Judiciary Committees and other members of Congress and interested
stakeholders to refine this legislation that impacts all Americans.”

For a complete listing of member companies and additional information on patent reform, visit the Coalition for 21st Century Patent Reform Web site at: www.patentsmatter.com.