Posts in Capitol Hill

The U.S. Senate Committee on Commerce, Science, & Transportation addressed whether unmanned aerial systems (UAS), also known as drones, could be further incorporated into American airspace for commercial purposes. Drones have enjoyed a growing profile in our collective consciousness thanks in large part to both the incredible array of applications for this technology as well as the concerns over public safety and privacy. Drones can take much of the danger out of work such as utility line inspection or search and rescue missions but their ability to capture images with high-definition cameras has led many to worry about a growth in unwanted snooping by drones.

In 2014 there were 1,070 fewer patent lawsuits filed than during 2013. Furthermore, the number of patent cases filed in 2014 was lower than the number of cases filed in 2012 by some 433 cases. Therefore, the stories of continued run away litigation seem to be greatly exaggerated. Given the dramatic decrease in patent litigation it seems entirely premature for Congress to be considering additional patent reform at this early stage.

This patenting step is absolutely crucial for the commercialization of inventions. In the absence of a strong intellectual property system – specifically patents – most of those inventions will never see the light of day. Why is that? The answer is quite simple – the cost to develop those inventions to a marketable product are significant and in the absence of intellectual property protections that the patent system provides, no one will ever invest in the promise of an invention. Said another way, how many of you would invest in a company that will spend tens to hundreds of millions of dollars on a product knowing that a competitor will be free to offer the same product at a fraction of the cost since they invested substantially less in R&D?

On one road, legislation such as The Innovation Act poses threats to our patent system. This type of legislation tries to alleviate concerns about litigation costs and frivolous lawsuits. The problem is that such concerns are based on inaccurate data and flawed economic analysis. On the other road, legislation such as the ‘STRONG Patents Act may help to strengthen our patent system. The road we choose will “make all the difference” to future generations.

Incredibly, despite widespread damage to inventors, most staffers still do not understand how the patent system works to create innovation, jobs, and economic growth. They do not understand how patents drive capital to small patent-based businesses thus delivering the vast majority of our new technologies to American consumers. How can it be that they have not heard this perspective? Why aren’t the patent lobbyists in Washington like IPO and AIPLA protecting the patent system? Are the views of inventors so far apart from corporate patent owners? Or are the companies so caught up in other Washington issues that pushing hard for strong patent rights conflicts with other agendas and political asks? Too many Congressional staffers don’t understand the patent system, but staffers are not the ones at fault here.

Significant consensus was reached between representatives of small business and universities at a hearing of the U.S. Senate Committee on Small Business and Entrepreneurship on March 19, 2015. The hearing was held to take testimony relating to proposed reforms to the U.S. patent system. The day’s discussion prompted Sen. Chris Coons (D-DE) to make the comment that the argument over…

Universities are dependent upon the U.S. patent system and the capacity of that system to protect the legitimate intellectual property rights of individual university inventors and large companies alike. This system drives U.S. innovation and our economic competitiveness in the world. Patents provide universities with the means to ensure that many discoveries resulting from research are transferred to the private sector where those discoveries can be turned into innovative products and processes that power our economy, create jobs, and improve quality of life.

Earlier today the Senate Judiciary Committee held a hearing on patent reform. The hearing was titled The Impact of Abusive Patent Litigation Practices on the American Economy. There was a variety of diverse views presented by the witnesses, including one witness, Krish Gupta, who continued to cite the bogus and thoroughly debunked Bessen-Meurer “study” that erroneously claims that patent trolls…

Fortunately, a new study showing that academic patent licensing contributed more than $1 trillion to the U.S. economy over eighteen years blows the stuffing right out of that straw man. We can only hope Congress gets the message before it turns the patent system into a weapon to squash inventors.

There is no credible evidence behind proposals to make the drastic changes embodied in the Innovation Act, the removal of discretion from judges to judge each case on an individual basis with mandatory stays and fee shifting, and new rules for pleading and discovery that would undermine the ability of legitimate inventors and patent holders from enforcing their rights against infringers.

Earlier today 40 economists and law professors wrote to Senate and House Judiciary leaders explaining that the data it that keeps being cited to justify HR 9, otherwise known as the Innovation Act, is “flawed, unreliable and incomplete.” The professors caution Congress to proceed cautiously, particularly given the numerous misleading and flawed studies that “highly exaggerated claims regarding patent trolls.”

Earlier today the United States Senate confirmed Michelle Lee to head the United States Patent and Trademark Office, a position that has been vacant since the resignation of David Kappos at the end of January 2013. Lee’s official title will be Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office.

According to Congressman Collins, who I spoke with via telephone on Friday, March 6, 2015, there was a great deal of treatment of the SEA at the subcommittee level during the 113th Congress, but now during the 114th Congress consideration will move to the full Committee level, which suggests a seriousness about getting something done. ”Music licensing will be an area where something bubbles up this Congress,” Collins explained. ”I’m hoping the industry will come together.”

Carly Fiorina: ‘[W]atch carefully who is supporting that [the Innovation Act]. It’s not the small it’s the big. It’s the big companies whose ongoing economic benefit depends upon their ability to acquire innovations and patents at a lower cost.”

Senator Coons: ”[P]atents are not just foundational. Patents are really about the American Dream. They are about what it means to come to this country or be from this country and believe in the possibility that you and a team of folks that you work with can invent and develop and then protect a groundbreaking innovation. Patents are about constantly laying a stronger foundation upon which future generations can continue to innovate and about insuring we will find solutions to the challenges that face us, not just here but around the world… So here is the truth. We need to both strengthen patents and target real abuse. They are not mutually exclusive…”