000508	11-congress-and-reform_wmp_a_16.wma
000000	ERIK SCHMIDT: So the Democrat-controlled 110th Congress now has been making some overtures about patent reform.
000011	Berman is making some moves on that front.
000014	What do you think the odds are on any substantive patent reform coming out this year?
000019	JASON SCHULTZ: Well, the fundamental conflicts over the last couple of years has been between the software and IT companies and the biotech 
000028	and pharmaceutical companies because of the difference between the economics of the two industries.
000035	Biotech and pharmaceutical every single patent that they get that reads on an actual drug they sell is incredibly valuable.
000044	So they don't want any diminution of their rights or powers.
000050	Whereas, in the software and IT field there are millions of patents and, therefore, it's too hard to focus on any one or two.
000059	You've got to deal with the system as a whole.
000102	So that fundamental clash between these two powerful industries has kept patent reform from happening so far.
000111	I think with the Democrats now in power I think it will move forward a little faster.
000116	But fundamentally it's going to take a compromise on some level.
000122	Some people have proposed that software get a carve-out so that the reforms only apply to that.
000127	That of course raises the question of, well, what is a software patent?
000130	How do you define that patent versus something else?
000134	I think intuitively we understand that biotech and pharmaceutical products are different than software.
000141	But lawyers love to debate definitions and so therein lies the rub, the devil in the details.
000147	But I think you'll see some reforms get very close this year and if they don't pass this year I think they'll pass next year.
000154	These processes, every time a copyright or a patent law has been reformed in Congress on any substantive, serious level it usually takes four to five years 
000203	to really work out all the coalitions, all the details and so it's a multiyear process.
000210	And I think that we're about half way through right now and if we're fortunate we'll get it this year.
000215	If not, I think next year or possibly the year after.
000218	There's a lot of discussion about, like you said, about big Pharma and software, you know, the computer industry.
000225	ERIK SCHMIDT: So where does the general public stand?
000229	The way that the discussion often goes it sounds as if there's these two Goliaths duking it out and they're going to come to a compromise.
000235	So what about the rest of us?
000238	JASON SCHULTZ: Oh, the cynicism that is in my mind right now I have to suppress it a little bit.
000246	In Congress the big money is really what drives these initiatives.
000252	And what we try and do as a public interest organization is tweak the system where we can.
000300	But quite honestly the big lobbying firms write the legislation and work with the members of Congress and they are the people who drive it through.
000311	So I think the general public can help sort of push things a little bit one way or the other.
000319	They can sometimes catalyze a vote.
000321	They can put pressure on things at a flashpoint to happen.
000326	But the long-term process is run by the industries and the lobbyists.
000332	And the other thing is that I think that the members of Congress score points generally as opposed to specifically with their constituents.
000345	In other words, are you generally helping on certain issues as opposed to the details of the legislation you passed?
000352	And so I think in this area, patent reform, most Americans aren't going to care what the details of the patent reform bill look like.
000403	They're going to more want to know that generally their representatives are working towards a world that is better for them.
000411	So, for instance, a world where patents are less threatening to their Blackberry or to their online auctions on eBay 
000420	or to their ability to send e-mail or their ability to listen to MP3s on their iPod.
000428	And as long as that is the message that is carried I think the general public will be supportive.
000434	If the message that is carried is that you are standing in the way of this reform and that this reform would make technology cheaper, easier 
000442	and more available, I think that's a message that Congress doesn't want to hear.
000449	So I think that's how it needs to be played, are you helping innovation and technology flourish?
000454	Or are you standing in the way of people getting their iPods and what they want on their cell phones?
000500	And so I think it's going to be a battle of spin in some ways, as to say who is helping and who's hurting?