Two new patent bills have been introduced that will have major implications innovators developing cutting-edge technologies. The Patent Eligibility Restoration Act (PERA) of 2023 would eliminate all judicially created exceptions to US patent eligibility law. The Promoting and Respecting Economically Vital American Innovation Leadership (PREVAIL) Act would significantly overhaul current Patent Trial and Appeal Board (PTAB) practice. Patents are intended to serve as incentives for innovation, providing inventors with exclusive rights to what they create for a limited term. This encourages inventors to invest substantial resources, money, time, and creativity in developing cutting-edge technologies. For example, investment-heavy developments such as advanced artificial intelligence (AI) models and pharmaceutical development. Patents help to create an environment that rewards inventors of cutting-edge technologies and stimulates further research and development (R&D) by offering protection for this limited term.
The patent system requires inventors to fully disclose their inventions in exchange for the right to exclude others from making, using, selling, or importing these inventions. This knowledge sharing serves as a foundation for future innovations, allowing others to build upon existing ideas and drive further progress. A reasonable patent system allows U.S. companies to compete successfully in global markets. Patents protect products and technologies from unauthorized use, giving U.S. businesses an advantage in the global arena against copyists from other countries. This encourages a culture of entrepreneurship, enabling U.S. companies to maintain a competitive edge against foreign rivals. By encouraging technological advancement and protecting American inventions, this helps U.S. industries continue to lead in cutting-edge technologies such as biotechnology, pharmaceuticals, AI, data science, advanced computing, and other critical sectors. Here is an opinion piece we found of interest relating to the impact of patent reform on cutting-edge technologies.
Issue Brief: IP, Innovation, and American Universities
In an opinion piece “Issue Brief: IP, Innovation, and American Universities” for Bayh-Dole Coalition, the editors emphasize that patents and other IP rights enable universities to license out breakthroughs for further development by private companies. Those companies need secure IP in order to justify their investments. If patents can be voided based on misguided legal reasoning or political whim, investors will lose the incentive to license new discoveries. This will destroy a major source of revenue for universities and cut off funds for groundbreaking research. The editors argue that America’s R&D system runs on patents, and that patents depend on clear, predictable rules. They insist that passing the PERA will strengthen the U.S. economy and national security by encouraging new R&D in critical industries.
Recently, the U.S. Patent and Trade Office (USPTO) established the “Fintiv rule,” which allows the PTAB decline to review a patent case if it’s being litigated elsewhere which protects inventors from having to defend their IP in multiple courts. Named for a 2020 case between Apple and mobile commerce platform Fintiv,17 the rule helped to level the playing field in which Big Tech firms strategically mounted the same legal battle in more than one court at once, with the intent of beating smaller rivals by outspending them. As patent holders, university tech-transfer offices may face IP-related legal challenges in multiple forums. The Fintiv rule helps protect them from costly and frivolous lawsuits. Read more from Bayh-Dole Coalition.
Disclosure: Fatty Fish is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
The Fatty Fish Editorial Team includes a diverse group of industry analysts, researchers, and advisors who spend most of their days diving into the most important topics impacting the future of the technology sector. Our team focuses on the potential impact of tech-related IP policy, legislation, regulation, and litigation, along with critical global and geostrategic trends — and delivers content that makes it easier for journalists, lobbyists, and policy makers to understand these issues.
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