Recently the President’s Council on Jobs and Competitiveness, otherwise known as the Jobs Council, issued an interim report outlining a number of suggestions and recommendations. Some of the suggestions are quite good, although hardly revolutionary. Indeed, one obvious recommendation is for Congress and the Obama Administration to explore tax reforms that would increase the competitiveness of businesses locating in the United States. I guess it is that type of outside-the-box thinking that only a Presidential blue-ribbon panel could come up with!
Indeed, many of the ideas in the interim report are quite broad and vague, but on the tax issue there were at least a couple specific recommendations. The Jobs Council recommends eliminating capital gains taxes on investments of $25 million or less in privately held companies where the investment is held for 5 years or longer (see page 19). Also recommended is eliminating corporate taxes for the first year a company is in existence and reduce corporate taxes by 50% in the second and third year of existence (see page 19). The thinking here is that by reducing tax burden during the first three years companies will be able to invest in growth and expansion, which seems reasonable and also calculated to lead to job creation given that start-ups disproportionately are responsible for creating new jobs. Unfortunately, being reasonable and calculated to lead to job creation likely means that it has no realistic chance of being implemented.
Obviously, the universe enjoys irony. How else to explain the simultaneous issuance of the President’s Council on Jobs and Competitiveness interim report (see pages 21-22) with recommendations that would wreak havoc on university technology transfer, and an article in the Wall Street Journal crediting the same system as one of the Three Policies That Gave Us the Jobs Economy.
When asked how he felt about a blunder made by one of his politically appointed generals, President Lincoln said “It hurts too much to laugh, and I’m too big to cry.” When considering these recommendations of the report, it’s easy to feel the same way. If adopted, they undermine the Bayh-Dole Act, which allows universities and small companies to own and manage inventions they make with federal funds. There is considerable evidence of the harm such an action would do to the US economy, undercutting the very objectives of the Council.
On Friday, September 16, 2011, President Obama signed into law “The America Invents Act” (“AIA”) which passed the Senate on September 8, 2011, by a vote of 89-9. The AIA passed the House of Representatives on June 23rd by a vote of 304-117. The measure, which is the product of a seven-years-long legislative battle among patent policy stakeholders, changes how patents are obtained and enforced in the United States. Important reforms to patent law are incorporated into the AIA and, just as significantly, several controversial proposed changes were deleted from the AIA before final passage.
Starting with President Obama’s State of the Union Address in January, where he made innovation and job creation key elements of his speech and specifically embraced passage of patent reform as a means of addressing both issues, patent reform was well positioned to be enacted in 2011. Moreover, Congress was desperate for legislative accomplishments in an environment where partisan differences, a weak economy, and government fiscal concerns dominated. Longstanding pro-reform coalitions and associations continued to expend considerable resources on the bill. Passage was deemed virtually assured when the Chairmen of the Judiciary Committees – Sen. Patrick Leahy (D-VT) and Rep. Lamar Smith (R-TX) – essentially agreed this summer on a common piece of legislation. But, as explained below, nothing’s ever as simple as it seems in Washington.
Lechleiter, Foreman, Kullman, Mathews, Hyndman, Leahy, Smith, Goodlatte, Watt, Moran, Poppy, Kappos and Blank Smile while Obama signs the America Invents Act into Law.
Yesterday I had the pleasure of being present at the Thomas Jefferson High School for Science and Technology to witness President Obama sign into law the America Invents Act.
President Obama started by commending the students of what he called “One of the best high schools in the country.” He mentioned that; “We have an exhibit of some of the projects that you guys are doing, including the fist high school student satellite, a wheel chair controlled by brain waves, robotics and more.” He made the crowd smile when he jokingly said; “I am hoping that I will learn something just by being close to you; through osmosis. I already feel smart just standing here.”
The United States Senate passed the America Invents Act by a vote of 89-9 on September 8, 2011, which means that the much anticipated, discussed, reviled and acclaimed legislation (depending on your viewpoint) will become law very soon. According to Article I, Section 7 of the U.S. Constitution, the President has 10 days to sign the legislation or it would become law without his signature.
Article I, Section 7, in relevant part reads:
If any Bill shall not be returned by the President within ten Days (Sundays excepted) after it shall have been presented to him, the Same shall be a Law, in like Manner as if he had signed it, unless the Congress by their Adjournment prevent its Return, in which Case it shall not be a Law.
Thus, the question about when the America Invents Act will become the law of the land depends specifically on when it will be “presented to” President Obama. As of the writing of this articler there is nothing on the White House web page of pending legislation likely to be signed in the coming days. Since the Administration has been so vocally supportive of the bill an Obama signature seems virtually guaranteed in the coming days, and then the fun starts.
It looks like my prediction on Tuesday that the Senate would pass H.R. 1249, the America Invents Act, prior to President Obama’s much anticipated jobs and economy speech that begins at 7:00pm ET today, Thursday, September 8, 2011. The Senate voted to pass H.R. 1249 and send the House version of the America Invents Act to the White House for President Obama’s signature by a vote of 89 to 9. The Coburn Amendment, which would have once and for all put an end to fee diversion, was unsuccessful, being tabled by a vote of 50 to 48.
Beginning at 4:00pm ET the Senate started considering three separate amendments to H.R. 1249. The passage of any would have required the legislation to ping back to the House of Representatives, but that was not to happen.
What should you expect from President Obama’s jobs speech tomorrow? Sadly, not much.
The president says that’s the fault of recalcitrant Republicans in Congress. Republicans in Congress say it’s the fault of a president who is hostile to business.
But the real reason we are not putting people back to work three long years into the recession is that Washington is afflicted with a totally-bipartisan cluelessness about how to create jobs.
As I argued in my “Labor Day Message for President Obama” in the Wall Street Journal last weekend, there is a great deal that the president and congress can do to create millions of new jobs quickly, if only they would stop their ideological bickering and instead “focus on a few practical, low-cost measures that we know will create lots of jobs quickly.”
How to Write a Patent Application is a must own for patent attorneys, patent agents and law students alike. A crucial hands-on resource that walks you through every aspect of preparing and filing a patent application, from working with an inventor to patent searches, preparing the patent application, drafting claims and more.
Without hesitation I recommend One Simple Idea and think it should be required reading for any motivated inventor. There is so much to like about the book and so much that I think author Stephen Key nails dead on accurate. The book is educational, information and inspirational. For the $14 cover price it is essential reading.
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