Coalition Updates
- On July 17, C4IP Executive Director Frank Cullen, C4IP Board Member Judge Kathleen O’Malley (ret.), and C4IP Chief Policy Officer and Counsel Jamie Simpson will participate in Inventing America’s event: “Separating Fact from Fiction: The Patent System in an Age of Geostrategic Competition.” Register to attend here.
- On June 27, C4IP announced the creation of a grant program for intellectual property research, scholarship, and writings. The program will advance C4IP’s mission to provide lawmakers data-driven recommendations to inform IP policy. More information about the application process is available here, and any questions about the program should be directed to C4IP Chief Policy Officer and Counsel Jamie Simpson at jamie@c4ip.org.
- On June 27, C4IP published a press release commending Representatives Ken Buck (R-CO) and Deborah Ross (D-NC) for introducing the Promoting and Respecting Economically Vital American Innovation Leadership Act (PREVAIL) in the House. This bipartisan, bicameral bill is vital to the future of U.S. innovation.
- On June 26, Law360 published an article featuring comments from C4IP Co-Chair Dave Kappos regarding the introduction of the Promoting and Respecting Economically Vital American Innovation Leadership Act (PREVAIL).
- On June 26, C4IP Board Member Judge Paul Michel (ret.) published an opinion essay in IPWatchdog highlighting how Senators Chris Coons (D-DE) and Thom Tillis’ (R-NC) patent reform bills offer a strong way forward for the U.S. patent system.
- “Not enough praise can be ascribed to the Senate leaders, who mastered complex areas of law, business, investment, and innovation economics. They studied the actual experience of deleterious impacts on innovation and investment from the High Court’s errant case law and PTAB excesses.”
- On June 25, C4IP released a side-by-side comparison of the USPTO’s ANPRM and the Promoting and Respecting Economically Vital American Innovation Leadership Act (PREVAIL).
- The graphic was featured by IPWatchdog.
- On June 22, IPWatchdog published an article featuring comments from C4IP Board Members Judge Kathleen O’Malley (ret.) and Judge Paul Michel (ret.) as well as C4IP Chief Policy Officer and Counsel Jamie Simpson regarding the introduction of the Promoting and Respecting Economically Vital American Innovation Leadership Act (PREVAIL).
- On June 22, C4IP published a press release announcing support for two complementary bills introduced by Senators Chris Coons (D-DE) and Thom Tillis (R-NC) — the Promoting and Respecting Economically Vital American Innovation Leadership Act (PREVAIL) and the Patent Eligibility Restoration Act of 2023 (PERA) — which would act to protect and advance Americans’ constitutionally enshrined IP rights.
- On June 20, C4IP submitted comments in response to the USPTO’s advance notice of proposed rulemaking (ANPRM) seeking public input regarding potential reforms to the PTAB.
- “C4IP is most supportive of proposed changes that codify existing Office practices, which have a record of how they operate … In contrast, other changes are a departure from existing practice and the statutory scheme. While C4IP supports several of these, their nature suggests they would be better pursued through the legislative process.”
- This submission was covered by Law360.
- On June 20, C4IP Executive Director Frank Cullen published an opinion essay in the Dallas Morning News arguing that there is no basis to expand the TRIPS waiver.
- “To ensure the scientific community can respond similarly quickly to future crises, we must recognize IP protections as part of the solution, not part of the problem.”
- On June 14, former USPTO General Counsel Nick Matich published an opinion essay in Bloomberg Law warning of new legislation that protects patent infringers over small inventors.
- “Indeed, eliminating the ability of some US patent holders to block infringing imports would only seem to encourage offshoring of US manufacturing and enable more Chinese intellectual property theft.”
- On June 14, former Texas Representative Lamar Smith published an opinion essay in the San Antonio Express-News on how Congress can curb “efficient infringement” by codifying the principles of Apple v. Fintiv.
- “The abusers of the PTAB are some of the most well-known businesses in the world. Just 10 companies, including the largest U.S. tech companies, account for one-quarter of all PTAB petitions. One tech company alone files hundreds every year.”
- On June 13, C4IP Co-Chair Andrei Iancu was presented with the 2023 Law360 Distinguished Legal Writing Award at the Burton Awards for an article arguing against the TRIPS waiver.
- On June 8, C4IP published a press release announcing Peter Krug as our Director of Outreach & Development, effective June 1.
- This news was covered by POLITICO Playbook PM and IPWatchdog.
- On June 7, C4IP Co-Chair Andrei Iancu, Kirti Gupta, and Christopher Borges published an analysis for the Center for Strategic & International Studies on the dangers of the Federal Trade Commission’s proposed ban on all noncompete agreements.
- “While some NCAs in low technology areas, such as in the food services industry, can be dispensed with minimal risk, the scope of the proposed ban — particularly as it impacts high technology industries — threatens the broader innovation system and the competitive and national security advantages for the United States that come from a world-leading innovation system.”
- On June 5, C4IP submitted a response to the ITC’s request for comments on the issues of remedy, the public interest, and bonding in connection with Inv. No. 337-TA-1276.
- “For America’s patent system to fulfill its function as an engine of innovation and prosperity, it is essential that IP rights be enforced firmly and consistently. This means that no product or company — no matter how popular or ubiquitous — can be permitted to abridge these rights without facing substantial repercussions, including the trade exclusion under consideration in this case.”
- On June 4, former Georgia Representative Doug Collins published an opinion essay in the Albany Herald explaining why the United States needs injunctive relief.
- “While some payment is better than nothing, monetary damages frequently do not approximate the true value to a patent owner from commercializing, producing, and selling products that incorporate their hard-earned intellectual property.”
Government Events Rundown
- NIH Workshop, Transforming Discoveries into Products: Maximizing NIH’s Levers to Catalyze Technology Transfer: On July 31, the National Institutes of Health will host a virtual workshop to discuss various policies and practices pertaining to biomedical innovation, including the patenting and licensing of inventions. Additional details on the workshop can be found here. (NIH, 7/31)
- USPTO Event, Sustainable Innovation Dialogue: Exploring the Relationship Between IP and Climate Change Innovation: On June 13, the United States Patent and Trademark Office hosted an event discussing the relationship between intellectual property and climate-related innovations. The program featured presentations from five global IP leaders. (USPTO, 6/13)
- U.S. Copyright Office, Announcement of the Start of Ninth Triennial Rulemaking Proceeding Under Section 1201: On June 8, the United States Copyright Office announced a notice of inquiry and request for petitions that seek the Librarian of Congress to adopt or renew temporary exemptions to technological control measures for copyrighted works pursuant to the Digital Millennium Copyright Act (DMCA). (U.S. Copyright Office, 6/8)
- Senate Committee on the Judiciary, Subcommittee on Intellectual Property Hearing: Artificial Intelligence and Intellectual Property – Part I: Patents, Innovation, and Competition: On June 7, the Senate Committee on the Judiciary, Subcommittee on Intellectual Property held a hearing on artificial intelligence and intellectual property. Several IP experts, including Novartis’ Global Head of IP Affairs, Corey Salsberg, and UCLA Institute for Technology, Law, and Policy Founder and Faculty Co-Director, John Villasenor, attended as witnesses. (Senate Committee on the Judiciary, 6/7)
- USPTO, Release of the 2022-2026 Strategic Plan: On June 7, the United States Patent and Trademark Office released its 2022-2026 strategic plan, incorporating over 150 comments on the original version. The plan outlines goals to promote inclusivity, IP protection, and efficiency. (USPTO, 6/7)
Fact Check
Claim: On May 18, Representatives David Schweikert (AZ-01) and Don Beyer (VA-08) introduced the “Advancing America’s Interests Act,” which claims that the International Trade Commission’s (ITC) import process and bans are “unfair” and do not prioritize the public interest.
Correction: Supporters of the Advancing America’s Interests Act claim the bill will benefit Americans, but a closer examination reveals the opposite. It would undermine the ability of the International Trade Commission (ITC) to safeguard intellectual property rights for companies, including small American innovators who support their research and development by licensing their patents.
The ITC currently holds the authority to block the importation of products that infringe upon the IP rights of others. This power acts as a vital deterrent against imported products that profit from stolen U.S. intellectual property. Reps. Schweikert and Beyer’s bill would deny this critical protection to small innovators and others who license their patents, thereby diminishing the ITC’s effectiveness and risking a surge in IP theft.
When large corporations are allowed to willingly infringe the IP of small U.S. innovators without consequences, the entire innovation ecosystem is put in jeopardy. It undermines the trust of venture capitalists, who play a pivotal role in funding and supporting new ideas and startups. The decline in venture capital investment, currently spanning multiple quarters and amounting to nearly $100 billion less in Q1 2023 compared to the same period in 2022, is a worrisome trend that could worsen if IP theft remains unchecked.
Stolen IP exacts a staggering cost on the United States, at least between $225 billion and $600 billion annually, and this likely does not account for most patent infringement. The reality of foreign governments, particularly the Chinese Communist Party, stealing IP and sensitive information significantly contributed to Congress establishing a select committee to investigate this matter. The potential for IP theft not only poses economic risks but also disincentivizes investments in new breakthroughs. It is inexplicable that some lawmakers fail to recognize the urgency of addressing this theft and, in fact, act to aid the theft of American IP by foreign entities.
To ensure a fair and prosperous American innovative ecosystem, it is imperative that all innovators — including small inventors and those who license their patents — are able to sue at the ITC to block patent-infringing imports.
Bottom Line: This claim is false.
What’s Happening in Congress
As Democratic and Republican members of Congress continue to weigh legislative priorities during the 118th session, top of mind for those who follow intellectual property policy are:
- Patent Eligibility Restoration Act of 2023: Senators Thom Tillis (R-NC) and Chris Coons (D-DE) just reintroduced legislation aimed at restoring patent eligibility for important categories of inventions — including life sciences diagnostics, gene therapies, and artificial intelligence — as well as resolving questions regarding the scope of patent eligibility. In so doing, the Patent Eligibility Restoration Act will foster the development of next-generation technologies across innovative industries.
- The Promoting and Respecting Economically Vital American Innovation Leadership (PREVAIL) Act: Senators Chris Coons (D-DE), Thom Tillis (R-NC), Dick Durbin (D-IL), and Mazie Hirono (D-HI) just introduced legislation that will eliminate redundant patent invalidity challenges and safeguard Americans’ right to participate in a fair and accessible patent system. The PREVAIL Act contains important reforms to the Patent Trial and Appeal Board, which will return the body to its original purpose of providing an efficient alternative to district court litigation, and will curtail the practice by patent infringers of forcing inventors to defend their patents repeatedly and in multiple fora.
- The Interagency Patent Coordination and Improvement Act of 2023: In January 2023, Senators Dick Durbin (D-IL), Chris Coons (D-DE), Thom Tillis (R-NC), Chuck Grassley (R-IA) introduced the Interagency Patent Coordination and Improvement Act of 2023. The bill would create an interagency task force to share patent filing information and technical assistance between USPTO and FDA officials. IP experts warn that interagency entanglement could weaken the patent system by inserting officials from multiple federal agencies — without patent law expertise — into the examination process. They submit that it is premature to implement such substantial changes without conducting a thorough evidence-based study.
Celebrating American Innovation
Inventor Spotlight
This month, C4IP recognizes American businessman and inventor Henry Ford (1863-1947), who modernized the manufacturing and automobile industries.
Henry Ford was born on July 30, 1863. Growing up the eldest of six children, Ford showed an interest in innovation early on, developing his first steam engine at 15. His love for machines grew exponentially, inspiring him to look for work in the industry.
In 1888, Ford married Clara Bryant, with whom he had his only child, Edsel Ford. After becoming a machinist’s apprentice in his home state of Michigan, Ford eventually worked as chief engineer at the Edison Illuminating Company in 1891. There, Thomas Edison mentored Ford, beginning a lifelong friendship between the two inventors.
Through his work with machinery, Ford developed a knack for inventing. Over the course of his career, Ford received patents for various inventions, including the plastic automobile with panels made from soybean and hemp and his famous “Model-T” automobile. At the end of his life, Ford had received a staggering 161 patents for his inventions.
In 1903 he founded the company that would change the lives of car owners worldwide: the Ford Motor Company. It was there that Ford developed the Model T car in 1908, garnering wide acclaim for the company across the United States. Shortly thereafter, in 1913, he further revolutionized the automobile industry with the introduction of the moving assembly line, which created an efficient process for manufacturing cars.
Today, the Ford Motor Company is worth over $56 billion and employs approximately 88,000 workers in the United States. In 2022 alone, the company sold over 4 million Ford vehicles worldwide and continues to be a force in the automobile industry — even claiming the title of “America’s best-selling truck” for almost five decades in a row.