U.S. Chamber Announces Framework Aimed at Reshaping National IP Narrative

“IP policies in recent years have too often defied market-based principles, the signatories argue, which has given a foothold to America’s foreign rivals.”

Chamber of CommerceOn September 13, the U.S. Chamber of Commerce’s Global Innovation Policy Center (GIPC) announced that it had joined with 30 other signatories to publish a framework of intellectual property principles designed to maintain America’s global lead in innovation. Supported by a coalition of well-recognized individuals and trade organizations long supporting greater certainty in patent rights, the framework of IP principles is intended to serve as a guidebook for policymakers who want to address genuine issues currently facing the nation’s IP system.

U.S. Must Lead in AI and Diagnostics While Recognizing the Importance of IP Rights

The signatories affirm and contend that IP is vital to America’s lead in critical and emerging technology, and that strong IP protections benefit society by catalyzing innovation and facilitating commercialization of creative ideas. IP policies in recent years have too often defied market-based principles, the signatories argue, which has given a foothold for America’s foreign rivals who recognize the importance of building competitive innovation economies. A blog post from the U.S. Chamber notes that while IP rights support industries contributing nearly $8 trillion in U.S. gross domestic product, the predictability of the IP system has suffered devastating consequences from ambiguous U.S. court rulings, IP waivers on medical innovations and congressionally-approved price controls defeating IP rights.

The IP principles promulgated by the U.S. Chamber feature five primary goals to be achieved by American lawmakers and policymakers. First, protecting America’s global innovation leadership is crucial from a national security perspective as nations that take leading positions in developing critical technologies will play a major role in setting global agendas, the signatories contend. To protect this leadership, it’s necessary for policymakers to craft an accurate narrative recognizing the relationship of strong legal protections for IP rights to global technological leadership.

Advancing policies that promote America’s leading role in certain areas of critical and emerging technology is another major pillar of the U.S. Chamber’s framework of IP principles. The framework specifically identifies artificial intelligence and medical diagnostics as two technology sectors for which policymakers should ensure greater certainty in IP rights and protections. This portion of the framework also calls upon Congress to increase investment into the U.S. Patent and Trademark Office to streamline examination processes while improving their effectiveness.

U.S. Chamber: Enhance Penalties for IP Theft and Include Entrepreneurs in Policy Discussions

Fostering creativity in America and abroad is another way that policymakers can ensure our nation’s position as a leader in both entertainment and science. Along with demonstrating the value of America’s creative industries to communities around the globe, the signatories advocate for the federal government to take action against cultural and legal barriers restricting creative expression in foreign countries. U.S. copyright law and creativity could also be supported by earmarking additional resources for the U.S. Copyright Office to upgrade its legacy IT systems and provide for a modernized recordation system.

IP protections are meaningless without effective enforcement, and the U.S. Chamber’s framework of IP principles seeks stronger responses to IP theft. Leveraging partnerships between law enforcement and private entities, as well as utilizing existing mechanisms for prosecuting IP crime, are steps identified by the framework to effectively address criminal violations. Enhancing civil and criminal penalties for digital piracy would be another useful step toward addressing IP theft costing American businesses hundreds of millions of dollars each year.

Finally, the signatories advocate for a whole-of-government approach unleashing the full potential of American entrepreneurial ingenuity to support the backbone of our nation’s economic growth. Particularly, small businesses and entrepreneurs should be provided with more resources to navigate bureaucracies at the local and state level and obtain intellectual property rights from the federal government. Educating businesses on the importance of IP rights and ensuring that entrepreneurs have an important seat in IP policy discussions are other steps policymakers should take to support American entrepreneurship. Further, better support for science, technology, engineering, arts and math (STEAM) education would increase engagement with America’s Lost Einsteins to realize tens of millions’ worth of economic growth.

“It is time to prioritize IP protections, said Patrick Kilbride, Senior Vice President of the Global Innovation Policy Center at the U.S. Chamber of Commerce. “A failure to do so will endanger future investment in innovation.”

Thirty signatories expressed their support for the principles, including IPWatchdog’s CEO and Founder, Gene Quinn, the Council for Innovation Promotion, US Startups and Inventors for Jobs, Bayh-Dole Coalition, Copyright Alliance, Recording Industry Association of America, Innovation Alliance and Association of American Publishers, Retired Federal Circuit Chief Judge Paul Michel, Retired Court of Federal Claims Chief Judge Susan Braden, Professor Adam Mossoff and Association of University Technology Managers CEO Stephen Susalka.

 

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One comment so far.

  • [Avatar for Julie Burke]
    Julie Burke
    September 15, 2023 11:46 am

    Members of Congress and the US Chamber of Commerce would be wise to carefully consider unintended consequences of further streamlining the US patent examination process.

    The Examiner’s Performance and Appraisal Plan already incentivizes speedy review of patent applications expedited under the Climate Change Mitigation Pilot and the Patent Prosecution Highway, resulting in hefty cash awards for examiners who meet their pendency and docket management goals. See May and June 2023 LAW360 articles posted here

    https://petition.ai/blog

    Meanwhile the Beijing government gives Chinese entities $150 for each domestic patent obtained from the CNIPA and a whopping $7,500 for each foreign patent obtained from the USPTO. See the USPTO’s report January 2021, linked below.

    So, for every fast-tracked China-originating patent, the US examiner gets points towards their docket management cash awards, the USPTO creates a steady flow of potential maintenance fees and the Chinese company gets a sizable “foreign patent subsidy” from Beijing.

    Maybe these awards and subsidies are part of the reason why China has become the world leader in 37 out of 44 key technologies?

    Isn’t it time to cut off this gravy train and level the playing field for US inventors, US businesses, US workers and the American people?

    https://www.uspto.gov/sites/default/files/documents/USPTO-TrademarkPatentsInChina.pdf