Tech Firms Back Obama Patent Move

Technology companies welcomed the Obama Administration's decision to wade into the debate over patent litigation, seeing a chance to stem a flood of lawsuits they say is hurting innovation.

The Administration rolled out a package of executive orders and recommendations for legislation that takes aim at patent-holding firms, or what critics derisively call "patent trolls"—companies that buy up patents solely to press for licensing deals or payouts in court. Some observers cautioned that the measures won't do much to stop excess litigation without action by Congress and that they could have unintended consequences, such as making it harder for universities to protect their inventions. Congress is already considering proposals that are similar to those made by the White House. "The core of the initiative is the legislative proposals," said Ed Reines, a patent lawyer at Weil, Gotshal & Manges LLP. "The executive orders alone just aren't going to move the needle." But it was an unusual move by the White House, which rarely takes high-profile steps over perceived problems with the US legal system, regardless of the party in power. The Administration was swayed by a vigorous lobbying effort involving a number of industries, including the technology, financial and retail sectors.