Summary: The House version of the Patent Reform Act of 2007 would bar submission of search reports prepared by non-U.S. citizens.
H.R.1908, the Patent Reform Act of 2007, was introduced in the House of Representatives on April 18, 2007. As proposed, the Bill did not include Section 12, entitled "Additional Information," which made its way into the legislation when the House debated, and eventually passed, H.R.1908 on September 7, 2007. The table below, left column (after the jump), shows the original language of the provision, which would add a new Sec. 123 to Title 35 U.S.C. and grant the PTO authority to require prior art search reports. House Report 110-314 describes the measure as follows:
"The USPTO has discussed the need for some sort of examination support document [ESD] or applicant quality submission to improve the examination process. It may include a thorough search of the art in the field of the invention and in related fields in which one skilled in the art pertaining to the invention would expect to find information applicable to the invention. It is also expected that the information discovered by the search that is material to the patentability of the claimed invention be disclosed to the USPTO along with an analysis of how the information relates to the claimed invention and how the claimed invention is distinguished over the prior art information."

During the House debate over H.R.1908, Section 12 was apparently amended, as shown in the table above, right column, to include a new provision that would limit prior art searches requested by the PTO to those conducted by U.S. citizens.
Ostensibly, Section 12 could curtail the practice of outsourcing prior art search work to India, China, and other countries, a practice that seems to be gaining acceptance by U.S. law firms who are increasingly feeling pressure to reduce costs associated with patent legal services. However, it is not clear whether Section 12, if enacted, would be relied upon by the PTO to require that prior art searches, prepared in accordance with the PTO's new "Claims and Continuations Practice - Final Rule," effective November 1, 2007, be done by U.S. citizens. Currently, the PTO's "Guidelines For Examination Support Documents Under 37 C.F.R. § 1.265" does not mandate that prior art searches, conducted as part of ESD submissions, be performed only by U.S. citizens.
