Legislation to reform the patent system, notably "patent trolls," in the United States was given the curb courtesy of Sen. Patrick Leahy, D-Vt..

Leahy, who serves as chairman of the Senate Judiciary Committee, put "off" the patent bill despite bipartisan compromises. According to The Washington Post, Leahy's decision to shelve the bill came after Senate Majority Leader Harry Reid, D-Nev., "intervened at the last minute," per multiple people "close" to negotiations.

In a prepared statement, Leahy addressed his reasons for removing the patent bill.

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"I have said all along that we needed broad bipartisan support to get a bill through the Senate. Regrettably, competing companies on both sides of this issue refused to come to agreement on how to achieve that goal," said Leahy.

The Senate Judiciary Committee's chairman added that there was "not sufficient support" behind the "comprehensive" deal. In addition, Leahy stated the bill did not help secure the patent system for companies and universities who "rely...everyday to protect their inventions."

The issue of "patent trolls," a secondary term used for Patent Assertion Entities (PAEs), has been a topic of concern for politicians in Congress and the White House.

The White House recognizes an "explosion of abusive litigation" has taken place by PAEs in recent years with the intent to not reward innovation and extract settlements based on debatable statements. The White House report, titled "Patent Assertion and U.S. Innovation," stated patent trolls could sue "thousands of companies at once" despite not having "specific evidence" of an alleged infringed patent. As a result, tech companies have difficulties in defending their own patents.

A 2013 report by the U.S. President's Council of Economic Advisers, the National Economic Council, and the Office of Science and Technology Policy noted patent trolls have threatened more than 100,000 companies with patent infringement claims during 2012.

According to National Economic Council Director and Assistant to the President for Economic Policy Gene Sperling, the number of lawsuits by patent trolls tripled in the last couple years and attributed to 62 percent of all patent lawsuits in the U.S.

"All told, the victims of patent trolls paid $29 billion in 2011, a 400 [percent] increase from 2005 -- not to mention tens of billions dollars more in lost shareholder value," said Sperling.

The future of the patent bill might not be over as Leahy stated a "path for passage" is possible this year if stakeholders reach a "more targeted agreement" that focuses on patent trolls.

He stated, "We can all agree that patent trolls abuse the current patent system. I hope we are able to return to this issue this year."

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For the latest updates, follow Latin Post's Michael Oleaga on Twitter: @EditorMikeO or contact via email: m.oleaga@latinpost.com.

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