BEIJING, Nov. 1 (Xinhuanet) -- American companies General Electric, IBM,, Microsoft and Hewlett-Packard have joined with the New York Law School and the U.S. Patent and Trademark Office (USPTO) to inaugarate a new system of peer review for software patents.

    The four companies, plus Red Hat, the world's biggest listed open source software business, are the lead sponsors behind the Community Patent Review project.

    The one-year pilot program will begin in early 2007 and focus on published but not-yet-granted patent applications relating to computer software. Scientists and engineers will be able to submit prior art to patent examiners at the USPTO using an online system. All Community Patent review project documents will be available on the internet for public comment.

    "High-quality patents increase certainty around intellectual property rights, reducing contention and freeing resources to focus on innovation," said David Kappos, vice president of IP law at IBM.

    Red Hat chief patent counsel Adam Avrunin said finding references that show the subject matter of a patent application is already known, especially in the software field, is often troublesome for examiners at the Patent Office who have a duty to grant patents only to inventive technologies.

    The Community Patent Review will "enable examiners to have access to the best technical information experts to enhance the quality of issued patents," said Kaz Kazenske, a senior director in Microsoft's IP team and former deputy commissioner of the USPTO.

    But some patent applicants are worried about the new system. They wonder if examiners will be overloaded with information that it makes it harder, not easier, for examiners to reach a decision. If so, this could actually increase patent pendency for software-related applications, which now stands at around four years.

    "These are all valid concerns," said Marc Ehrlich, group IP counsel in IBM's microelectronics division. But he said that many companies are backing the project.

    In addition to the five lead sponsors, Intel, International Characters, Out-of-the-Box Computing and Oracle have already agreed to allow some of their patent applications to be reviewed as a part of the initiative.

    John Doll, the USPTO's Commissioner of Patents, told MIP that the initiative had received strong backing from industry and academia.

    "It's been a tremendous help in being able to attract people who are so willing to work with us," he said.

    Ehrlich said that officials in other IP offices, including the EPO and JPO, will be watching the initiative closely.

    "There's concrete interest, which is good news for us because when they are ready the software will already be in place," he said.

    (Agencies)