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/analysis/four-actions-strengthen-us-intellectual-property-system

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2023/8/29FourActionstoStrengthentheU.S.IntellectualPropertySystem

FourActionstoStrengthentheU.S.

IntellectualPropertySystem

Photo:photon_photo/AdobeStock

Commentaryby

HidekiTomoshige

and

SujaiShivakumar

PublishedAugust28,2023

Areliableandrobustintellectualproperty(IP)systemisapillarofthenation’sinnovationsystem.Inanerawheneconomicgrowth,globalcompetitiveness,andnationalsecurityareallpredicatedonrelativestrengthsofnationalinnovationsystems,theUnitedStatesneedstotakedeliberatestepstoclarifyandstrengthenitsIPframework.

Indeed,whilepatentshavebecomemoreandmoredifficulttoobtain,maintain,andenforceintheUnitedStates,ChinaandEuropehavemovedtomaketheirpatentsystemsmorecompetitive.Notably,Chinahastaken

deliberateactions

tospeeduptheadjudicationofcertainIPcases.Itisgroomingjudgeswhoaretechnicallytrainedprofessionals,clarifyingrulesonpatenteligibility,andloweringcourtcosts.Thereare,ofcourse,lotsofproblemsstillwiththeChinesepatentsystem,butChinaisaffirmativelyworkingtoimproveittoitsnationalbenefit.The

2023/8/29FourActionstoStrengthentheU.S.IntellectualPropertySystem

UnitedStatesneedstodothesame.AstronginnovationeconomycannotexistwithoutastrongIPsystem.

Tomaintainacompetitiveinnovationsysteminthiscompetitiveglobalenvironment,theUnitedStatesneedstotacklefourmajorinitiativestobuildastrong,reliable,andpredictableIPecosystem,asidentifiedbyaroundtableofexperts

convened

bytheRenewingAmericanInnovationProjectatCSIS.

Action1:PromoteBroaderAccessthroughBetterData

WomenandminorityinventorshavemadesomeofthemostsignificantinventionsinthehistoryoftheUnitedStates.However,accordingtoa

report

bytheU.S.PatentandTrademarkOffice(USPTO)'sOfficeoftheChiefEconomist,only21.9percentofallU.S.patentsin2019listedwomenasinventors,andwomenrepresentedonly12.8percentofallinventor-patenteesintheUnitedStates.

BipartisanandbicamerallawmakersintroducedtheInventorDiversityfor

EconomicDevelopment(IDEA)Actof2019and

theIDEAActof2021

whichaimed

tohelptheUSPTObetterunderstandthepersonalchallengesfacedbywomenandminoritiesapplyingforpatents.Hadthesepiecesofproposedlegislationbeenpassed,theywouldhavedirectedtheUSPTOtovoluntarilycollectdemographicdatafrompatentapplicants,includinggender,race,militaryservice,andveteranstatus.ThelawswouldalsohaverequiredtheUSPTOtoissuereportsonthedataitcollectsandmakethedataavailabletothepublicsothatoutsideresearcherswouldbeabletoconducttheirownanalysesandprovideinsightintothevariouspatentdisparitiesthatexistintheUnitedStates.Thislegislationisstillagoodidea.

Action2:ClarifyPatentEligibilityRequirements

InordertoobtainapatentintheUnitedStates,theinventionforwhichanapplicationisfiledmustsatisfycertainstatutoryrequirementsinTitle35ofthe

UnitedStatesCode,suchasnovelty(

Section102

)andnon-obviousness(Section

103).Subjectmattereligibility(

Section101

)isanotherstatutoryrequirementthat

mustbesatisfied,andthisoneonparticularhasbeendebatedformanyyearsintheUnitedStates.TheU.S.SupremeCourt's2014decisionin

A

licev.CLSBankcreatedatwo-partpatenttesttodeterminewhetherapatentapplicationrecites

patentablesubjectmatter.However,thistwo-partpatenteligibilitytesthasbeen

difficulttoapply.Thishasledtouncertaintyforinnovatorsandinvestors,along

withunpredictablebusinessresults.In2022,SenatorThomTillisintroducedthe

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/analysis/four-actions-strengthen-us-intellectual-property-system

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2023/8/29FourActionstoStrengthentheU.S.IntellectualPropertySystem

PatentEligibilityRestorationActof2022withthegoalofresolvingtheconfusion

surroundingSection101,butthelegislationhasnotyetpassed.

Action3:StrengthenPatentEnforceability

Evenifacourtfindsthatapatenthasbeeninfringed,itisverydifficultforthepatentholdertoobtainaninjunctionintheUnitedStates.Thisisbecausethe

SupremeCourt

,inits2006decisionin

eBa

yInc.v.MercExchange,L.L.C.,decidedthatinjunctionsarenolongerthedefaultresponseofthelegalsystemwhenpatenttheftisproven.Inotherwords,ifacompanystealsanothercompany'sintellectualpropertyandusesthatintellectualpropertytodevelopacompetingbusiness,theinfringingcompanyisbetteroffpayingthedamagesawardedincourtovertheyears.Thepatenteecannotexercisetheirrighttoexcludetheinfringerfromthemarket.Congressshouldconsiderrestoringthepresumptionthataninjunctionisanappropriateremedywhenapatentisfoundtobeinfringed.

Action4:ClarifyPatentValidity

TheLeahy-SmithAmericaInventsActof2011

establishedadministrativeprocedures,including"

interpartesreview

"and"

postgrantreview

,"toallowthird-partychallengestopatentvaliditybeforetheU.S.PatentTrialandAppealBoard(PTAB).ThehurdlesforraisingchallengesatthePTAB

are

lowerthanindistrictcourtlitigation,whichhasledtonumerouspetitionsagainstpatentees.Inaddition,repeatedattacksonthesamepatentarepossiblebetweencourtsandthePTAB,preventingthepatentownerfromachievingquiettitle.Asaresult,concernshavearisenthatthisinstitutionaldesignisunderminingtheU.S.patentsystem.In2017andagainin2019,SenatorsChrisCoons(D-DE)andTomCotton(R-AR)introduced

theSupportTechnology&ResearchforOurNation'sGrowthandEconomic

Resilience(STRONGER)PatentsActtotrytoremedytheseandrelatedconcerns

withrespecttothePTAB.Anewversionofthisbillisexpectedtobeintroduced

soon.

AstrongintellectualpropertyregimeisapillarofU.S.economicandtechnologicalcompetitivenessandhasprovidedincentivesfortheinventionandcommercializationofcountlessessentialtechnologiesenjoyedaroundtheworld.AddressingthesefourissueswillhelptheUnitedStatessecureandstrengthenitsintellectualpropertyrightsandreinforceitsinnovationsystem.

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2023/8/29FourActionstoStrengthentheU.S.IntellectualPropertySystem

HidekiTomoshigeisaresearchassociatewiththeRenewingAmericanInnovationProjectattheCenterforStrategicandInternationalStudies(CSIS)inWashington,D.C.SujaiShivakumarisdirectorandseniorfelowwiththeCSISRenewingAmericanInnovationProject.

CommentaryisproducedbytheCenterforStrategicandInternationalStudies(CSIS),aprivate,tax-exemptins

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