The first section of the bill states that it can be officially called the "Promoting and Respecting Economically Vital American Innovation Leadership Act" or the "PREVAIL Act."

Congress finds that strong patent rights are crucial for innovation and economic success in the U.S., but reforms from 2011 have led to issues that hurt inventors and the economy, such as unnecessary legal challenges and reduced investment in innovation.

The section amends the United States Code regarding the Patent Trial and Appeal Board by: establishing a new code of conduct for its members; requiring appeals and reviews to be heard by at least three members with restrictions on changes to these panels; prohibiting communications that influence panel decisions; and stating that judges who decide to start a review cannot later hear that review. Additionally, it updates procedural language related to the appointment and duties of administrative patent judges following a new legislative act.

The section outlines updates to the U.S. Code regarding the inter partes review process, including who can petition for a review, the conditions for joining an existing review, the evidentiary standards, and timelines for various decisions. It also establishes requirements for handling multiple proceedings, settlements, and reviews by the Patent Trial and Appeal Board, aiming to streamline and clarify the patent review process.

The text outlines changes to the United States Code regarding post-grant patent reviews, specifying that financial contributors to such reviews must be considered as real parties of interest. It also addresses issues like decision timelines, repetitive proceedings, and outlines estoppel conditions, discovery rules, claim construction standards, and the timeline for decisions following a remand after an appeal.

The text describes changes to U.S. patent law concerning the reexamination process. It introduces requirements for a reexamination request, such as identifying all involved parties and confirming that the request is not barred, limits when a reexamination can be ordered if a year has passed since an infringement complaint was served, and details conditions under which requests can be rejected based on previously presented arguments or corrected deficiencies.

The text outlines changes to how the United States Patent and Trademark Office (USPTO) handles its finances, specifically focusing on the elimination of fee diversion. It establishes a new fund called the "United States Patent and Trademark Office Innovation Promotion Fund," where all patent and trademark fees will be deposited to support USPTO operations, ensuring that the fees are used exclusively for related expenses.

The section updates the definition of "institutions of higher education" in U.S. law and outlines situations where applicants can be considered a "micro entity." This includes if they work for or assign patents to a higher education institution or a nonprofit that holds patents for such institutions to help commercialize technologies.

This section of the bill focuses on helping small businesses navigate the U.S. patent system. It defines "small business concern" as stated in the Small Business Act, mandates a report by the Small Business Administration on patent ownership and infringement issues affecting small businesses, and requires making patent search tools and materials freely available online.

The first section of the act provides its short title, which is the "Promoting and Respecting Economically Vital American Innovation Leadership Act" or simply the "PREVAIL Act."

Congress acknowledges the vital role of patent rights in fostering innovation and economic success in the U.S., while also highlighting the challenges introduced by the 2011 patent reform, such as procedures that can discourage investment and hinder innovation. They stress the need for careful consideration in future patent system reforms to avoid negative impacts on inventors and the economy.

The text details changes to how the Patent Trial and Appeal Board operates, including setting up a code of conduct, requiring appeals to be heard by at least three members, and ensuring no external influence on panel decisions. It also clarifies that members involved in the decision to start a review cannot participate in hearing that review, and provides details regarding the appointment terms and roles of administrative patent judges.

The Inter partes review (IPR) process is being revised to include clearer roles for financial contributors as "real parties in interest," stricter conditions for nonprofit organizations to file petitions, strict timelines for rehearings, and guidelines to prevent repetitive proceedings by limiting when multiple reviews or court actions can occur on the same patent claims. Additionally, the new rules emphasize the need for evidence of exceptional circumstances for certain proceedings, set out procedures for discovery and claim amendments, and impose strict deadlines for decisions after appeals or remands.

The section outlines changes to the process of post-grant review for patents, specifying who is considered involved, how timing for decisions is managed, and efforts to prevent redundant proceedings. It also sets guidelines for evidence discovery, handling multiple challenges, and appeals, emphasizing the consistency of claim interpretations with court judgments.

The section amends the process for patent reexamination by requiring that the request identifies all real parties involved and certifies that it is not barred; it prevents an ex parte reexamination if requested over a year after a related patent infringement complaint is served, and outlines conditions under which the Director may reject reexamination requests based on previous filings or prior Office decisions.

The section outlines changes to the funding mechanism for the United States Patent and Trademark Office (USPTO), creating an "Innovation Promotion Fund" where collected fees will be used to support patent and trademark-related activities. It specifies how these fees can be used, establishes the fund as a revolving entity, and provides details on the transition of remaining balances from previous funds to this new fund, as well as the termination of older reserve funds.

The section updates the definition and criteria for a "micro entity" concerning institutions of higher education. It clarifies that a micro entity can be someone primarily employed by, affiliated with, or an institution of higher education, or a tax-exempt organization managing patents for such institutions.

The section discusses the support for small businesses in the U.S. patent system by defining "small business concern" as outlined in the Small Business Act. It requires a report on patent ownership and related civil actions involving these businesses and mandates free online access to patent and trademark information from the Public Search Facility.