Posts Tagged: "election"

Donald Trump argued at the New Hampshire debate that our nation’s infrastructure would not happen without eminent domain. While economic development as a justification for eminent domain has been severely criticized, there does not seem to be a similar criticism associated with stripping property rights from patent owners in order to allow technology adopting infringers to distribute what they did not themselves innovate without paying the property owner for the privilege.

The U.S. cannot win a trade war based on raising tariffs. Rather than engage in a trade war that the U.S. can’t win, why not embrace smarter manufacturing policies? when we outsource manufacturing we are handing over the follow-on innovation that will take place on the factory floor. Therefore, by outsourcing manufacturing to the lowest bidder abroad not only have we destroyed the working middle class in America, but we are also increasingly turning over our last economic advantage – our intellectual property. How long will the United States be able to remain one of the world’s leading economies if we continue to outsource that follow-on innovation that takes place through the manufacturing processes?

Some states have decided that they can’t wait for a federal response on the collection of online sales tax, prompting them to enact their own measures. In Utah, where less than one percent of taxpayers actually pay the use tax they owe the state for Internet retail transactions, some state lawmakers have collaborated on crafting a bill that would give the state more power in collecting sales tax from online retailers, with or without a physical presence within the state. In South Carolina, January 1st of this year brought about the end of a tax break offered to Amazon for building a distribution center in that state. The collection of sales tax from Amazon sales to South Carolina consumers is expected to bring in about $13.8 million in additional tax revenue through 2016, according to projected revenues released by South Carolina’s tax department. The distribution centers built by Amazon serve as the physical in-state nexus which requires it to collect sales tax from South Carolina consumers.

Does the Democratic Presidential contest suggest that voters think that traditional views on patents or copyrights are on the way out and that collectivism is on the rise? The so-called “Napster generation” is now definitely 30 something and kissing 40. Millennials and how they are using the Internet for work, life and politics may show us a shift in compensation for creativity that is rewarding inclusiveness, building a community and a base of customers. This contrasts with the more traditional top down, broadcast marketing coupled with enforcement of longer term royalties. Silicon Valley and Wall Street at least have embraced the former, it seems, given how much people love to value unicorns these days. But in the past as unicorns grew up the market would demand adherence to traditional top down norms – think Twitter, for example, which had few patents of their own until they purchased 900 patents from IBM shortly after going public.

The Patent Act itself clearly and unambiguously states that patents are property. See 35 U.S.C. 261. Unfortunately, this property right of Constitutional significance has increasingly come under attack over the last decade. Without either substantial legislative fixes, or a new Administration that orders a new Director of the USPTO to rewrite post grant regulations, no single case could undue the significant damage that has been done to the U.S. patent system by the creation of the PTAB and post grant proceedings. That being said, Cuozzo does offer an excellent opportunity to say enough is enough and fight to protect a Constitutionally critical property right our most respected Founding Fathers thought to be absolutely critical.

At this point in the presidential cycle it is too early to expect a great deal of substance on issues like patents? The point where patents may come up in the debates will be in these application layer issues of drug pricing, taxes or maybe trade. But even then the discussion will be delicate and nuanced, unless we have a February 2008 situation. Sure litigation gamesmanship (generally and not just patents) remains important and perhaps for reasons not widely appreciated given the recent Supreme Court decisions on class action lawsuits and arbitration issues that have changed the balance of the force. Senator Ted Cruz, Carly Fiorina and Senator Rick Santorum have already publicly expressed specific views about the Constitution and the patent system. And certainly the Constitution gets referenced a lot at the debates. But are they going to use their finite time at a debate to discuss patents when there is broader interest in guns, terrorism, refugees, wars, and the powers of the president?

Much of the data security world has been abuzz since a blog post at the digital privacy website DataBreaches.net reported the disconcerting news that the personal information of 191 million voters participating in U.S. elections going back to the year 2000 was made available on the Internet by a party who is yet unknown. These records include voter information which is requested at the time of registration, which in many cases includes home addresses, date of birth, telephone number and state voter identification. Making these voter records available online violates confidentiality restrictions on accessing records put in place by California and other states.

The first meeting this week was in Grundy Center, IA, during which a question about patent reform was asked. Grassley answered that he was trying to stop patent trolls, which he described as a person who buys up patents but never intends to build a product, and then sends threatening letters to small businesses demanding thousands of dollars or they will get sued. Notably, he said that it costs our economy $83B per year.

Patents, intellectual property, innovation and technology policy may not decide who will become the next President of the United States, but the positions the candidates hold will greatly impact the industry, and a U.S. economy that is increasingly an innovation based digital economy.