Posts Tagged: "House of Representatives"

As of the date of this publication, the US House of Representatives and the Senate have passed the “Tax Cuts and Jobs Act” as reconciled by the conference committee. Now that the President has signed the Republican tax bill into law, IP owners may find the tax bill will impact sales of certain intellectual property… Given that the Committee Bill directly contradicts itself with respect to the tax treatment of the sale of patents by taxpayers whose personal efforts created such property, it is unclear how this Bill will be implemented. It is unclear how gains or losses on a sale of self-created assets by a taxpayer who created a patent will be treated.

This week US Inventor, an inventor organization working in Washington DC and around the US to advocate for strong patent protection for inventors and startups, rolled out the U.S. Inventor Act in the House of Representatives… Early stage funding for U.S. startups has dropped 62%. We are at a 40 year low in new business formation. What used to be approximately 85% of all venture capital invested in U.S. startups is now about half invested in China’s startups. Not surprisingly, in communist China, the startup market is booming, growing by 23%. As a result, China has taken the lead in swaths of new technologies, including technologies critical to our national security like artificial intelligence (AI). AI runs not only our power grids, but our tanks and ships. We will soon be mired in the swamp of a national security disaster as China moves even further ahead and we are forced to purchase these products from them.

More disturbing than the harmful effects the proposed changes would have – this signals a continuing approach toward patent rights as not being a property right, which contradicts the Patent Act and centuries of precedent. Indeed, the government’s destruction of the once great U.S. patent system is built upon a simple, yet scary philosophy: Where it matters, no one in government actually considers a patent to be a property right. If a patent is not a property right, a patent can be treated however the political winds blow (or political money flows). And that is exactly what has happened. So why not tax it more?

Earlier today Congressman Bob Goodlatte (R-VA), who has been Chair of the House Judiciary Committee and a strong proponent for patent reform, announced that he would be leaving Congress at the end of his current term and not standing for reelection in 2018… With Goodlatte exiting the fate of further patent reform efforts in the House will largely depend upon who ultimately is tapped to wield the Chair’s gavel. Congressman Darrell Issa (R-CA) can be expected to make an internal push for the gavel.

The rule treating the transfer of a patent prior to its commercial exploitation as being available for long-term capital gains treatment would be repealed… Obviously, it is disheartening to see Republican leadership move to treat patents in this way, which suggests they do not view patents as a private property right. Not viewing patents as a private property right has become a growing and disturbing trend.

This afternoon the House Budget Committee released a non-binding budget blueprint titled Building a Better America: A Plan for Fiscal Responsibility. As a part of this proposed fiscal year 2018 budget the House Budget Committee is proposing that the United States Patent and Trademark Office (USPTO) be made an independent agency.

“Wrongdoing should be punished more severely so that IP infringers will pay a heavy price,” Xi said. At a time when President Xi is actively moving China’s IP policy to a place where infringers are met with harsher penalties, U.S. leadership in Congress, especially in the House of Representatives, seems to be opening their arms yet again to the efficient infringer lobby. Congressman Bob Goodlatte (R-VA), chairman of the House Judiciary Committee, and Congressman Darrell Issa (R-CA), chairman of the House IP subcommittee, support legislation and poor narratives that continue attempts to further gut the U.S. patent system, allowing infringers a free holiday and the ability to infringe without consequence or penalty.

H.R. 1695 would amend 17 U.S.C. 701. Currently, the Register of Copyrights is appointed by the Librarian of Congress, and acts under the Librarian’s direction and supervision. That would change if and when H.R. 1695 becomes the law of the land. The substantive change would add the following sentence: “The Register of Copyrights shall be a citizen of the United States with a professional background and experience in copyright law and shall be appointed by the President from the individuals recommended under paragraph (6), by and with the advice and consent of the Senate.”

The subcommittee convened a hearing to discuss issues of judicial transparency and ethics which affect the system of U.S. federal courts. Republican members of the subcommittee mainly focused on ways of making the Public Access to Court Electronic Records (PACER) system and a wide array of court proceedings more available to the public… Perhaps the most contentious was Osterreicher’s support for increased electronic communications, especially where it involved cameras in the courtroom… Aside from privacy, some Members were concerned that introducing cameras into the courtroom would encourage grandstanding and playing to the camera.

Congressman Bob Goodlatte (R-VA) holds the Chairmanship of the House Judiciary Committee, and as such will wield a great deal of power over any intellectual property related legislative reforms that will occur during the 115th Congress. Earlier today Goodlatte unveiled his agenda for the 115th Congress. Not surprisingly, a portion of his agenda includes additional patent litigation reform in order to address what he characterizes as “truly frivolous lawsuits,” as well as reforms to keep America’s patent laws up to date and copyright reforms to help ensure “America’s global leadership in creativity and innovation continues.”

The House Judiciary Committee will set the agenda for any intellectual property legislative reforms that will arise over the next two years during the 115th Congress, and the Subcommittee on Courts, Intellectual Property, and the Internet will take the lead for the full House Judiciary Committee. Congressman Bob Goodlatte (R-VA) is once again Chair of the House Judiciary Committee, and in that role will continue to have tremendous influence on any intellectual property related matters… At the start of the 114th Congress, Congressman Darrell Issa was made Chair of the Subcommittee on Courts, Intellectual Property, and the Internet. Despite being an inventor himself, the bombastic Issa has aligned himself with Google and other Silicon Valley elites. Issa is not viewed as a friend of independent inventors, and instead lambasts patents trolls as often as he can. While no one likes a patent troll, Issa has taken the unusual step to equate patent trolls with all patent owners who enforce their patents.

One of the effects of this bill, were it enacted by Congress as currently written, would be to modify the enforcement activities of the U.S. Securities and Exchange Commission (SEC). Recent coverage of the bill by Bloomberg BNA notes that the proposed legislation would allow parties involved in a legal action to move the action out of SEC tribunal and into U.S. district court… As Bloomberg BNA’s coverage notes, SEC’s in-house tribunals have been criticized in recent months… While the Financial CHOICE Act itself doesn’t pose any direct impact to the U.S. patent system, it does highlight a similar issue playing out at the USPTO in recent years.

The 21st Century Cures Act has broad bipartisan support having been passed in the U.S. House by an overwhelming 344-77 roll call vote. It also has the backing of the White House; a statement release from the White House’s Office of the Press Secretary on November 30th calls the 21st Century Cures Act “critically important legislation” which increases funding to combat the American heroin epidemic, supports the “Cancer Moonshot” led by Vice President Joe Biden and takes meaningful steps towards improving mental health and Alzheimer’s disease outcomes.

The Review the Rule Act of 2016 was introduced into the U.S. Senate by Sen. Chris Coons (D-DE), which would delay amendments to Federal Rule of Criminal Procedure 41 set to go into effect on December 1st… The proposed changes to Federal Rule of Criminal Procedure 41, which governs the process for legal searches and seizures of criminal evidence, contraband and criminal suspects, were proposed to both houses of Congress this April by the U.S. Supreme Court in a letter to both houses of Congress from Chief Justice John Roberts. The changes to Rule 41 would give a magistrate judge in a district where activities related to a crime may have occurred the authority to issue a warrant to remotely access electronic storage media to copy electronic records even if the electronic storage media may be outside of the judge’s district.

Corrosive changes in patent law are undermining research university commercialization of patented, federally-funded basic research, endangering our nation’s innovation ecosystem. Mounting uncertainty repels private investment needed to convert new discoveries into innovative public benefits. Prominent investment destabilizers include: post development invalidation, big-tech’s efficient infringement, increased costs of patent enforcement, looming congressional patent reform, and foreign IP theft and price/access manipulation. Collectively these uncertainties can crumble our country’s world-class innovation ecosystem. We must use the limited time left to reverse that catastrophic outcome by seizing every opportunity to do so.