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