Hearings to examine genes to machines, focusing on the patent eligibility debate

Health Care Costs and Drug PricingSenate Judiciary · 2026-07-14 · 119th Congress
The Senate Judiciary Committee convened this full-committee hearing on the Patent Eligibility Restoration Act (PERA), a bill governing what inventions — from gene diagnostics to artificial intelligence — qualify for U.S. Begins at 0:20:14
Transcript
Highlights

Title

Senate Judiciary examines patent eligibility restoration legislation

Purpose

The Senate Judiciary Committee convened this full-committee hearing on the Patent Eligibility Restoration Act (PERA), a bill governing what inventions — from gene diagnostics to artificial intelligence — qualify for U.S. patent protection0:22:08. Chair Grassley noted this was the first full-committee hearing on legislation developed over years by Sen. Tillis's Intellectual Property Subcommittee0:21:39, and the session opened with tributes to the late Sen. Lindsey Graham, who died over the weekend0:18:39. Four witnesses testified on whether courts' current Section 101 case law is a barrier to innovation or a needed safeguard for patients. Begins at0:20:14

Who spoke

Chair Chuck Grassley (R-IA)0:18:11: Opened by honoring the late Sen. Lindsey Graham0:18:39, then framed patent eligibility as a foundational constitutional issue0:20:14, noting the Supreme Court has denied nearly 100 petitions to revisit the issue0:34:54 and that AI, blockchain, diagnostics, and 5G are patentable in China and Europe but not in the U.S.0:35:17.

Sen. Dick Durbin (D-IL), Ranking Member0:23:54: Delivered an extended personal tribute to Sen. Graham0:23:54; later questioned Dr. Leonard and Mr. Lee on whether gene patents would restrict medical research, drawing an analogy to Jonas Salk's unpatented polio vaccine [0:09:50 / 1:09:21].

Sen. Thom Tillis (R-NC)0:28:46: Explained PERA's origin from the reconstituted IP Subcommittee0:28:46, argued the world has changed since the Constitution's framing and the U.S. risks losing its innovation edge0:30:27, and later chaired much of the hearing, pressing witnesses on whether courts turned Section 101 into a "fine filter"1:01:24 and noting other countries grant more than half of U.S. patents to foreign recipients2:18:46.

Mr. Andrei Iancu, former USPTO Director0:39:40: Testified Congress hasn't updated patent-eligibility categories since 17930:40:39, said courts have expanded judicial exceptions that exclude technologies like medical diagnostics and digital camera improvements0:41:42, argued PERA codifies rather than overturns the Myriad decision1:45:39, and said the U.S. issued about 50,000 AI patents last year, nearly double since Alice0:47:42.

Mr. John Lee, Computer & Communications Industry Association0:44:57: Argued current Section 101 law is consistent and predictable, citing a study finding district-court eligibility decisions affirmed over 85% of the time since 20120:46:26; warned PERA could allow patenting of fundamental research building blocks1:10:43 and flagged inconsistent "purified/enriched" language versus "isolated" language in the bill's text1:49:02.

Ms. Sue Peschin, Alliance for Aging Research0:50:49: Said 15 years of Supreme Court rulings have struck down thousands of diagnostic patents0:51:42, citing a study showing diagnostics investment fell more than $9 billion short of projections within four years of a key ruling0:52:40, and urged Congress to pass PERA before year's end0:55:45.

Dr. Debra Leonard, pathologist, University of Vermont (emerita)0:56:06: Described patent-enforcement letters that halted her lab's genetic testing in the late 1990s/2000s0:56:34, said gene-patent monopolies raise costs and limit access0:57:34, and testified that PERA's "purified or enriched" language could make isolated human genes patent-eligible again, harming patient care1:51:20.

Sen. Marsha Blackburn (R-TN)1:11:14: Cited a State Department finding that China leads the U.S. in 57 of 64 critical and emerging technologies1:11:35 and discussed her Critical Emerging Technologies Act to expedite patent exams for AI, semiconductors, and quantum computing1:12:54.

Sen. Chris Coons (D-DE)1:17:35: Noted PERA has been eagerly sought by every relevant federal circuit judge1:18:02, pressed Ms. Peschin on how patent protection spurs diagnostic breakthroughs1:19:02, and later argued the Iowa Law Review study shows courts "consistently bad," citing a judge's reluctant invalidation of a melanoma-detection patent2:13:29.

Sen. Peter Welch (D-VT)1:24:24: Raised concerns about patent-system abuse via patent trolls1:25:00 and pressed Dr. Leonard on how licensing fees—up to $120,000 per license—affected her lab's ability to run newborn genetic tests1:29:18.

Sen. Mazie Hirono (D-HI)1:30:24: A PERA cosponsor, asked Mr. Iancu to explain the "inconsistent framework" created by Supreme Court rulings1:31:16 and raised concern the current law pushes innovators toward trade secrecy instead of disclosure1:34:07.

Sen. Richard Blumenthal (D-CT)1:36:08: Asked how patent eligibility reform would affect drug prices and patient access1:37:00; Dr. Leonard responded that BRCA testing dropped from $4,000 to a few hundred dollars once patent enforcement ended1:37:14.

Sen. Adam Schiff (D-CA)1:43:07: Focused questioning on the Myriad decision, asking witnesses whether PERA properly codifies it1:44:30; elicited Mr. Lee's observation of inconsistent statutory language between "isolated" and "purified or enriched"1:48:40.

Sen. Josh Hawley (R-MO)1:53:33: Presented RAND Corporation data showing U.S. brand-name drugs cost up to 464% more than in peer countries and insulin priced at $98.70/unit vs. $6.94 in Australia1:54:03; pressed witnesses on his Fair Drug Prices bill with Sen. Welch, prompting a testy exchange with Chair Tillis over relevance to PERA2:03:20.

Key moments

Dr. Leonard testified that patent-enforcement letters forced her University of Pennsylvania lab to stop performing four genetic tests and pay license fees of up to $120,000, exceeding what Medicare reimbursed for the test1:29:181:29:46.

Mr. Iancu and Ms. Peschin cited a Washington and Lee Law Review study finding diagnostics investment fell more than $9 billion short of projections within four years of the Mayo decision0:52:402:07:56.

Sharp disagreement over Myriad codification: Mr. Iancu said PERA codifies the decision that isolated human DNA is unpatentable while modified DNA (cDNA) remains eligible1:45:39, but Mr. Lee identified inconsistent statutory language ("purified or enriched" vs. "isolated") that Dr. Leonard said would make her clinical testing patent-infringing1:49:021:51:20.

Mr. Lee cited an Iowa Law Review study finding district court Section 101 decisions affirmed over 85% of the time since 2012, and USPTO decisions affirmed over 95%0:46:26; Sen. Coons countered courts may be "consistently bad," citing a judge who reluctantly invalidated a melanoma brain-metastasis test and urged Congress to act2:13:29.

Sen. Hawley displayed RAND data showing U.S. drug prices average 422% higher than a 32-country peer index, and insulin at $98.70/unit versus $6.94 in Australia, sparking a heated exchange with Chair Tillis over whether the topic was germane to PERA1:54:252:03:20.

Dr. Leonard said BRCA1/2 testing cost $4,000 per gene before Myriad-related enforcement ended but now over 80 cancer genes can be tested for a few hundred dollars1:37:14.

Mr. Iancu said the U.S. issued about 50,000 AI patents last year, nearly double since the Alice decision, and that the U.S. received 75% of global AI venture capital funding ($200 billion) last year — 12 times the EU and 15 times China0:47:420:48:040:48:21.

Dr. Leonard and Mr. Iancu clashed over whether diagnostics are being harmed: Leonard cited 175,000 genetic tests now on the market with 10–14 more added daily1:21:24, while Iancu cited studies showing the U.S. diagnostic market shrank $9 billion and is moving overseas, particularly to China2:07:56.

Sen. Blackburn cited a State Department study finding China leads the U.S. in 57 of 64 critical and emerging technologies, which Mr. Iancu affirmed1:11:351:12:07.

Ms. Peschin cited a study by Professor David Taylor finding 74% of venture investors consider patent eligibility important to investment decisions and 62% said their firms are less likely to invest given current patent unavailability1:41:36.

Metadata

CommitteeSenate Judiciary
Chamber / CongressSenate · 119th Congress
Date2026-07-14
TypeOpen Hearing
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript344 caption blocks · 16,230 words · 2:21:42 runtime
EventCongress.gov 338644