	Introduction

In an increase over prior terms, the Supreme Court of the United States issued six opinions involving patent law during its October 2016 Term. These decisions addressed issues ranging from patent exhaustion, multicomponent products, and biosimilar patents to procedural issues like venue and the statute of limitations for infringement claims. And the importance of intellectual property to the broader American economy has continued to grow, with an estimated 84% of the S&P 500 Market Value attributable to intangible assets in 2015." Stories about patent law, patent litigation, and even the Federal Circuit itself are regular fixtures of leading newspapers...." Accordingly, an understanding of patent law and the cases issued during the Supreme Court's recently concluded October 2016 Term will likely be of interest to Congress. Overview of Patent Law

The patent law regime in the United States is grounded in the U.S. Constitution itself; article I, section 8, clause 8 of the Constitution provides: "The Congress Shall Have Power ... To promote the Progress of Science and useful Arts, by securing for limited Times to ... Inventors the exclusive Right to their respective ... Discoveries." Nonetheless, the rights associated with patents do not arise automatically. Rather, to obtain patent protection, the Patent Act of 1952 requires inventors to file a patent application with the PTO. Requirements for Obtaining a Patent

A patent may be obtained by "[w]hoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof," subject to the requirements of the Patent Act. This right to exclude is enforceable under the Patent Act, which states that anyone who "makes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent ... infringes the patent" unless authority to do so is secured from the patent holder. Administrative Proceedings Before the PTO

As is evident, in addition to patent prosecution, the PTO conducts other administrative review proceedings, including those provided for in the AIA. Most of these proceedings involve challenges to the validity of issued patents and may result in the revocation of a previously issued patent. Such proceedings play a central role in the country's patent system as a popular, "less expensive and quicker alternative to litigation." While the High Court is playing a larger role in the development of patent law by issuing an increased number of patent law opinions, the nature and extent of the Court's influence on patent law is the subject of some debate. Patent Cases of the Supreme Court's October 2016 Term

		Cases Involving Procedural Issues

The Supreme Court issued two opinions involving procedural issues during its October 2016 Term that will affect when and where patent cases will be filed. Cases Involving Multicomponent Products

In another pair of cases heard during the Supreme Court's October 2016 Term, the Supreme Court dealt with issues related to patents on multicomponent inventions—one in the context of determining infringement and another in the context of calculating damages. Cases with Implications for the Health Care Industry

A final pair of patent cases decided by the Supreme Court during its October 2016 Term may have major implications for the pharmaceutical industry. This case will potentially affect the speed at which competition emerges for many pharmaceutical products. Emerging Issues in Patent Law

In addition to the effects of the patent decisions issued by the Supreme Court during its October 2016 Term, there are a number of patent-related issues on the horizon. Legislative and Executive Patent Law Activity

As noted, patent reform appears to be of perennial concern to Congress.
In an increase over prior terms, the Supreme Court of the United States issued six opinions involving patent law during its October 2016 Term. These decisions addressed issues ranging from patent exhaustion, multicomponent products, and biosimilar patents to procedural issues like venue and the statute of limitations for infringement claims. The growing number of Supreme Court opinions involving patent law over the past decade may also speak to the rising importance of intellectual property more broadly; a reported 84% of the S&P 500 Market Value in 2015 is ascribed to intangible assets. With this increased attention on patent law, an understanding of patent law and the cases issued during the High Court's recently concluded term will likely be of interest to Congress.
The patent law regime in the United States is grounded in the U.S. Constitution itself; article I, section 8, clause 8 of the Constitution provides: "The Congress Shall Have Power ... To promote the Progress of Science and useful Arts, by securing for limited Times to ... Inventors the exclusive Right to their respective ... Discoveries." Nonetheless, the rights associated with patents do not arise automatically. Rather, to obtain patent protection, the Patent Act of 1952 requires inventors to apply with the U.S. Patent and Trademark Office (PTO).
A patent may be obtained by "[w]hoever invents or discovers any new and useful process, machine, manufacture, or composition of matter," subject to the requirements of the Patent Act. A valid patent bestows upon its holder the right to take action against anyone who "makes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent," unless authority to do so is secured from the patent holder. In addition to examining patent applications, the PTO conducts other proceedings to determine the validity of issued patents, which can result in the revocation of previously issued patents. These proceedings play a central role in the country's patent system. Final decisions from the PTO are appealable to the U.S. Court of Appeals for the Federal Circuit, which has exclusive, nationwide jurisdiction over most patent appeals.
With the Supreme Court hearing an increasing number of cases involving patent law and other areas of intellectual property over the last decade, the Court is playing a larger role in the development of patent law. During its October 2016 Term, the Court issued two patent law opinions involving procedural issues that will affect when and where patent cases may be filed. In another pair of cases heard during the October 2016 Term, the High Court dealt with issues related to patents on multicomponent products—one in the context of determining infringement and another in the context of calculating damages. A final pair of patent cases decided during the Term may have major implications for the pharmaceutical industry—one addresses whether post-sale restrictions, commonly used in the pharmaceutical industry, are enforceable under patent law, and the other will likely affect the speed at which biosimilars come to market.
In addition to the effects of the Supreme Court's patent decisions issued during its October 2016 Term on patent law, there are a number of patent-related issues on the horizon. The constitutionality of one of the PTO's post-grant review proceedings has been called into question in a case that will be heard during the Court's upcoming October 2017 Term. In addition, with patent reform being of perennial concern to Congress, certain legislative proposals have the potential to alter various areas of patent law.