At the 14th National People’s Congress held in Beijing earlier this month, China put forth a number of proposals aimed at giving them strategic advantages in key advanced technology areas like semiconductor manufacturing. China’s increasing prioritization of intellectual property (IP) protections poses potential challenges. As the top patent filer globally, China is amassing substantial IP claims which could enable it to control key parts of America’s innovation ecosystem. This demands the attention from US policymakers. IP has not been a top public policy priority in the US recently, but experts believe the US risks losing advantage in advanced technologies. However, China’s IP focus suggests the US should reevaluate its own IP policies to ensure American interests are protected.
The Patent Eligibility Restoration Act of 2023 is a bipartisan legislation that will restore patent eligibility to important inventions across many fields. The bill also aims to resolve legitimate concerns over the patenting of mere ideas, the mere discovery of what already exists in nature, and social and cultural content that everyone agrees is beyond the scope of the patent system. This bill affirms the basic principle that the patent system is central to promoting advanced technologies innovation.
There is now widespread bipartisan agreement in Congress and across all recent Administrations that reforms are necessary to restore the United States to a position of global strength and leadership in key areas of technology and innovation, such as medical diagnostics, biotechnology, personalized medicine, artificial intelligence, 5G, and blockchain. Here is an opinion piece we found of interest relating to the need for patent reform to protect US and ensure the US doesn’t lose its competitive advanced technology edge over China.
Why is the US patent system working against US interests?
In an opinion piece “Why is the US patent system working against US interests?” for The Hill, Julie Burke, opinion contributor, discusses how the failure to address weaknesses in the US patent system is giving China a advanced technology advantage. An annual Pentagon report revealed a rapidly expanding Chinese military. And according to a recent study that received funding from the US State Department, China now outperforms the US in 37 of 44 critical technology areas. Those include AI, defense, space, robotics, advanced materials, energy, biotechnology and critical quantum tech areas. The study also cited a high risk for a Chinese monopoly in advanced optical communications, drones, swarming, collaborative robots and synthetic biology, among others.
In 2011, China joined the US Patent Prosecution Highway (PPH), a fast-track examination path whose motto is “faster IP rights, reduced costs.” It shortens the average examination period from 17 months to three. To become eligible, an applicant must have substantially similar claims approved by a PPH member institution or country. She adds that since then Chinese entities have been awarded increasing numbers of US patents in the very same technological areas Biden’s executive order targets.
Burke indicates that once a Chinese entity is issued a patent by the US Patent and Trademark Office (USPTO), it can legally stop American companies from making and using the patented technology in the US. Some Chinese entities have even gone so far as to invalidate existing American patents in related technologies. According to Burke, the USPTO continues to grant patents to Chinese companies that are on national security watchlists. She believes this reveals a troubling gap between the administration’s national security objectives and the patent office’s practices. Imposing further limitations would bolster US national security, prevent China from dominating extremely sensitive technological fields, and help the U.S. regain its competitive advantage as a pioneer in military technology. Read more from The Hill.
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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