Bipartisan Pushback Builds Against New Patent Fees

Momentum is building in Congress against the Commerce Department’s rumored proposal to levy recurring, valuation-based fees on patents. The Bay Area Council has partnered with the U.S. Chamber of Commerce and other leaders in the innovation economy to oppose the plan from the outset. In addition to being an administrative nightmare, the reported plan would tax innovation, punish startups, and push investment overseas.

Lawmakers in both parties are now mobilizing to stop the idea. A recent bipartisan letter from six House members to Commerce Secretary Howard Lutnick underscores growing concern and urges the Department to focus on patent quality and backlogs, rather than introducing new charges. The letter comes just weeks after the Council convened top officials from the U.S. Chamber, UC Berkeley’s Innovation Lab, and SEMI — the global industry association for semiconductor companies — for a webinar to brief members on the issue.  

The Council will continue to monitor developments while supporting an IP  system that rewards risk-taking, supports job creation, and sustains U.S.  technology leadership. To share how this proposal would affect your company, please contact our federal policy leader Frank Holland.