Providing policies with respect to approval of bills providing for patent term extensions, and to extend certain patents.

Prohibits the approval by the Congress of any bill providing for the extension of the term of a patent unless the following requirements are met: (1) any delay in the approval process constituting the basis for the extension must have been beyond the control of the patentee and directly caused by governmental misconduct established by presentation of adequate proof of dishonest or deceitful conduct; vindictive or retaliatory action; arbitrary, capricious, or grossly negligent performance of governmental duties; or serious failure to perform such duties (unusual or expected delay along does not constitute governmental misconduct); (2) governmental misconduct must have caused a substantial inequity to the patentee who, without the extension of the patent, will suffer material harm directly attributable to the delay in the approval process or the Government's action or inaction (requires such harm if relief is not granted to outweigh any harm to the public such as through higher prices or to competitors that will result from extension of the patent); (3) expired patents shall not be revived or extended except under the most extraordinary and compelling circumstances (prohibits such extension if the patentee fails to exercise due diligence to prevent the invention from entering the public domain); (4) if a patent is revised or extended, extension of intervening rights shall be provided to persons using the subject matter of the patent after its expiration, except that such rights shall not be provided in the case of statutory extension of unexpired patents with specified exception; or (5) action or inaction by the Federal Government must be of such a nature as to create a moral or ethical obligation on the part of the Government to provide relief to a patentee whose rights have been substantially injured by such action or inaction; and (6) any delay in the patent was not attributable to a lack of due diligence by the patentee.

Provides that the Government's action or inaction may include altering, by statute or rule, the regulatory approval procedures, standards, or requirements in a case in which there has been material reliance by an applicant on the prior procedures, standards, or requirements.

Extends the terms of certain patents for: (1) nonsteroidal anti-inflammatory drugs; (2) olestra; (3) the insignia of the United Daughters of the Confederacy; and (4) badges of the American Legion, the American Legion Women's Auxiliary, and the Sons of the American Legion. Limits the rights derived from the extension of any patent by this Act to use for which the subject matter of the patent was approved by the Food and Drug Administration.