The U.S. Senate has approved legislation to overhaul the federal patent system. The legislation has been debated and refined over the past six years. The bill has now been sent to the House of Representatives for consideration.  

Under current U.S. law, patents are granted to individuals who can prove that they were the “first to invent.” The Senate bill would switch the United States to a “first-inventor-to-file” (FITF) system, a method used by most other nations. One major drawback to the current system is that it provides an incentive for individuals to claim credit for a patent and demand royalties and damage awards years after a product has been on the market. On the other hand, it has been considered advantageous to small businesses without the resources to get to the patent office first.  

The bill includes changes intended to improve patent quality. It would allow third parties to submit prior art for consideration and inclusion in the patent application record after it has been published but before the patent examiner has made a decision on patentability. The Senate bill would also create a new “post-grant review” (PGR) procedure, allowing third parties to lodge objections on any grounds during the first nine months after a patent has been issued. The U.S. Patent and Trademark Office (PTO) would resolve these disputes, potentially reducing litigation costs associated with court challenges.

The bill would make a number of administrative changes as well. For example, it would make it easier for an assignee to file a patent application instead of the individual inventor. The bill would also allow the PTO to set patent fees and provide discounts to solo inventors and small companies. 

For more information, contact Stuart Gosswein at stuartg@sema.org.

A SEMA-supported bill to ease the burden on hobbyists by providing an exemption from bonded title requirements has been signed into law by Governor Matt Mead. By allowing enthusiasts to title vehicles being restored for personal use without posting bond, the exemption reduces costs associated with titling hobby vehicles when an original title was never issued or can no longer be located. The new law allows restorers to title their completed works by submitting an affidavit of vehicle ownership, a notarized bill of sale, a written statement of the value of the vehicle (based on a national appraisal guide or appraisal performed by a dealer) and a VIN inspection. To prevent abuse of the new procedure, titles issued under this procedure will not be transferable for the first 180 days after issuance.

For details, contact Steve McDonald at stevem@sema.org.

A SEMA-supported bill to ease the burden on hobbyists by providing an exemption from bonded title requirements has been signed into law by Governor Matt Mead. By allowing enthusiasts to title vehicles being restored for personal use without posting bond, the exemption reduces costs associated with titling hobby vehicles when an original title was never issued or can no longer be located. The new law allows restorers to title their completed works by submitting an affidavit of vehicle ownership, a notarized bill of sale, a written statement of the value of the vehicle (based on a national appraisal guide or appraisal performed by a dealer) and a VIN inspection. To prevent abuse of the new procedure, titles issued under this procedure will not be transferable for the first 180 days after issuance.

For details, contact Steve McDonald at stevem@sema.org.

SEMA-model legislation to create a vehicle titling and registration classification for street rods and custom vehicles was approved unanimously by the Washington State Senate. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 30 years old and manufactured after 1948. Under the bill, kit cars and replica vehicles will be assigned a certificate of title bearing the same model-year designation as the production vehicle they most closely resemble. Among other things, the measure exempts street rods and customs from a range of standard-equipment requirements (only that equipment required in the model year that the vehicle resembles) and emissions inspections, provides that vehicles titled and registered as street rods and custom vehicles may only be used for occasional transportation, exhibitions, club activities, parades, tours, etc., and not for general daily transportation and permits the use of blue-dot taillights. The bill will now be considered by the House Committee on Transportation. 

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.

SEMA-model legislation to create a vehicle titling and registration classification for street rods and custom vehicles was approved unanimously by the Washington State Senate. The bill defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 30 years old and manufactured after 1948. Under the bill, kit cars and replica vehicles will be assigned a certificate of title bearing the same model-year designation as the production vehicle they most closely resemble. Among other things, the measure exempts street rods and customs from a range of standard-equipment requirements (only that equipment required in the model year that the vehicle resembles) and emissions inspections, provides that vehicles titled and registered as street rods and custom vehicles may only be used for occasional transportation, exhibitions, club activities, parades, tours, etc., and not for general daily transportation and permits the use of blue-dot taillights. The bill will now be considered by the House Committee on Transportation. 

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.

SEMA-supported legislation to allow vehicles 30 years old and older to be classified as “vintage vehicles” was approved by the Utah Senate, having already been ratified by the House. Currently, Utah reserves the vintage vehicle class only to vehicles 40 years old and older. Under the bill, vintage vehicles 30–40 years old would now be included in the class and be charged a $45 annual registration fee. When the vehicle reaches 40 years old, the registrant would pay a one-time $40 fee. Vintage vehicles are exempted from annual emissions and safety inspections. The bill now moves to Governor Gary Herbert for his signature and enactment into law. 

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.

SEMA-supported legislation to allow vehicles 30 years old and older to be classified as “vintage vehicles” was approved by the Utah Senate, having already been ratified by the House. Currently, Utah reserves the vintage vehicle class only to vehicles 40 years old and older. Under the bill, vintage vehicles 30–40 years old would now be included in the class and be charged a $45 annual registration fee. When the vehicle reaches 40 years old, the registrant would pay a one-time $40 fee. Vintage vehicles are exempted from annual emissions and safety inspections. The bill now moves to Governor Gary Herbert for his signature and enactment into law. 

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.

SEMA is supporting identical legislation in the Tennessee House of Representatives and Senate to exempt vehicles more than 25 years old from the state’s annual emissions inspection and maintenance program, where applicable. To qualify for the exemption, these vehicles must be registered as “antique motor vehicles.” Existing law defines an antique vehicle as a motor vehicle more than 25 years old with a non-modified engine and body that is used for club activities, exhibits, tours, parades and similar uses as a collector's item; on the highways for the purpose of selling, testing the operation of, or obtaining repairs or maintenance; and for general transportation on Saturday and Sunday. 

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.

SEMA is supporting identical legislation in the Tennessee House of Representatives and Senate to exempt vehicles more than 25 years old from the state’s annual emissions inspection and maintenance program, where applicable. To qualify for the exemption, these vehicles must be registered as “antique motor vehicles.” Existing law defines an antique vehicle as a motor vehicle more than 25 years old with a non-modified engine and body that is used for club activities, exhibits, tours, parades and similar uses as a collector's item; on the highways for the purpose of selling, testing the operation of, or obtaining repairs or maintenance; and for general transportation on Saturday and Sunday. 

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.

A SEMA-opposed bill to ban the sale of certain new motor-vehicle exhaust systems or exhaust system components that cause motor vehicles to produce noise that exceeds noise limits has been introduced in Oregon and assigned to the House Transportation and Economic Development Committee. Under the bill, noise limits would be specified in rules adopted by the Environmental Quality Commission (EQC). However, in 1991, the EQC terminated its noise-control program. Among other things, the bill would prohibit the sale of these exhaust systems in Oregon and the sale of these systems by an Oregon-based business to an out-of-state customer; provides no clear standard to enforce, and refers to EQC noise standards that are not currently in use; and makes no accommodation for SEMA-model legislation to allow vehicle hobbyists to buy and install aftermarket modified exhaust systems that meet a 95-decibel limit under a fair and predictable test. 

For more information, click here. For details, contact Steve McDonald at stevem@sema.org.