Trump Administration Considers Patent Fee Changes

The Trump Administration's plan to charge patent holders a percentage of patent value raises serious concerns.

Proposed Patent Fee Change Risks Stifling Innovation

The Wall Street Journal reports that the Trump Administration is considering a significant overhaul of patent fees. The proposal suggests charging patent holders 1% to 5% of the patent's overall value. This change could be implemented through increased maintenance fees, which must be paid to keep utility patents alive. Abandoning many patents could happen quickly if these fees become prohibitive. Industry experts warn that such a policy might deter companies from acquiring patents, particularly those who do so for defensive purposes. The proposed fee structure complicates existing patent valuation processes, raising questions about fairness and effectiveness.

Charging a percentage of a patent's value is fraught with issues that go beyond simple economics. It threatens to diminish growth in research and development by imposing financial burdens on companies that rely on patent protections. As firms like Apple and Intel may halt their patent acquisitions, the move could inadvertently lead to a decline in innovation across various sectors, particularly in technology and biotech. The complexity of patent valuation adds another layer of concern, as there are few guidelines on how these values will be established or challenged. This proposal, if implemented, may dismantle the fragile framework of the U.S. patent system rather than provide the financial solutions intended.

Highlights

The implications of this proposal could reshape the landscape of innovation and patent law in the U.S.