Microsoft: the patent system needs to be reformed

March 11, 2005     (Page one of three)

Software giant Microsoft, which spends hundreds of millions of dollars every year battling intellectual property rights, says the U.S. patent system greatly needs to be completely revamped.

Brad Smith, general counsel for the software maker, on Thursday called for reform in four areas: improving patent quality, reducing excessive litigation, improving the coordination of international patent law, and increasing the accessibility of patent laws for small companies and individuals. Smith was addressing an audience at the American Enterprise Institute for Public Policy Research in Washington.

"We have benefited substantially as an industry and a country from patent protection," Smith said. "But the combination of technological change and a globalizing economy are creating new challenges for the U.S. patent system."

European lawmakers thrash out software patents. Microsoft, typically faced with an average of 35 to 40 patent lawsuits at any given time, is particularly interested in reform as it hopes to pare down the $100 million it spends annually to defend itself against such suits. The software giant's interest in patent reform also comes at a time when the European Commission is exploring the introduction of U.S.-style software patents.

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