The John Marshall Review of Intellectual Property Law Blog
Assistance to Small Business Owners in Obtaining International Patent Protection
Posted in General, on February 15, 2012, 6:43 pm by Merritt J. Hasbrouck - Editor-in-Chief
Congress
recently directed the United States Patent and Trademark Office (“USPTO”) to
study international patent protection for small businesses in consultation with
the U.S. Department of Commerce and the Small Business Administration. The study examined how the USPTO and other
Federal agencies could help small businesses obtain international patent
protection. One of the major
considerations was to determine whether a loan or grant program should be
established to help small businesses cover the costs associated with obtaining
protection.
Since
1982, the U.S. government helped small entities obtain patent protection
through USPTO fee discounts of around 50%. The discount is applied to independent
inventors, small businesses, and non-profit organizations through a “small
entity” status designation. The America
Invents Act now includes a 75% discount for smaller “micro entities.”
In
one section of its report, the USPTO compares the U.S. policy of neutrally
applied fee discounts to China’s policy of direct subsidization. In 2006, China outlined a 14 year national
development plan to develop China into of the most innovative countries in the
world. China’s aggressive initiatives
included intent to invest 2.5% GDP in R&D, reduce dependence on foreign
technology by 30%, and increase the number of granted indigenous invention
patents. China goes so far as to award
of money to its citizens in exchange for filing patents in foreign
countries. Two examples include, for
each foreign patent: (a) 1000 CNY from
the Beijing municipal government; and (b) 5000 CNY from the Tianjin municipal
government.
More
time is needed, before similar support will begin in the U.S. The USPTO has stated that further study is
needed before instituting any sort of pilot program of support for
international patenting. Further study
will avoid any additional burden on taxpayers until more information is
gathered. The USPTO acknowledges that,
as a general matter, the U.S. is stronger when it invests in building the
analytical capacity necessary to study the innovation economy.
Some more immediate help, however, may be
available. Many respondents to the study
supported a plan to provide more education to small businesses, start-up firms,
and independent inventors on the importance of international patents and ways
to obtain them. One multinational U.S.
law firm with a significant intellectual property practice sent a letter to Mr.
Saurabh Vishnubhakat (RIPL Author) of
the USPTO Office of Chief Economist. The
law firm stated:
"[w]e
believe that the key to spurring competitiveness in small business is education
about the role international patent protection can play. Rather than fund
particular industries/companies, we believe that the [USPTO] should continue to
provide educational workshops/seminars in addition to information on its
website. Those should be held through regional small business organizations in
order to provide the most direct impact."
For now, small business owners will have
to be patient.
Additional information:
http://www.uspto.gov/aia_implementation/aia_studies_reports.jsp
http://www.uspto.gov/aia_implementation/20120113-ippr_report.pdf
http://www.uspto.gov/aia_implementation/ipp-2011nov07-seyfarth-shaw.pdf
