US patents will be issued on 'first to file' basis after law change

The US will now issue patents based on who was first to register them, rather than who created an invention first.

The America Invents Act will bring the US into line with most other countries in moving from a 'first-to-invent' policy to a 'first-to-file' one.

"This much-needed reform will speed up the patent process so that innovators and entrepreneurs can turn a new invention into a business as quickly as possible,” said Obama when he signed the Act into law. “Here in America, our creativity has always set us apart, and in order to continue to grow our economy, we need to encourage that spirit wherever we find it.”

Advocates for smaller businesses have argued that a 'first to file' rule puts smaller companies at a disadvantage because larger firms have more resources that they can use to file a greater number of patents.

But proponents of the reforms argue that the clarity of the new system and the fact that it is more like systems used in most of the rest of the world make it an improvement.

"The new law will harmonize the American patent process with the rest of the world to make it more efficient and predictable, and make it easier for entrepreneurs to simultaneously market products in the U.S. and for exporting abroad," a statement from presidential office the White House said.

The new law will create a fast-track patent application process for start-ups to allow them to have patents reviewed within 12 months rather than the more usual three years, the White House statement said.

The law also gives the US Patents and Trademarks Office (USPTO) more resources with which to tackle a 700,000-application patent backlog, the White House said.