Innovation Act Will Harm U.S. Innovation, Universities Warn

U.S. Defense Department officials repeatedly tout the virtues of innovation and emphasize that the United States must retain technological superiority over potential adversaries, but a group of 144 universities today warned the House and Senate Judiciary Committees that pending legislation to address patent litigation abuses is so broadly drawn that it would weaken the nation’s patent system and hinder the flow of groundbreaking advances from universities to the private sector.

Research laboratories across the Defense Department and other government agencies rely largely on innovation from universities to maintain that technological edge, but the universities said in a letter to committee leaders that proposed legislation would impede technology transfer by making it more difficult and expensive for all patent holders to defend their patent rights in good faith. The resulting uncertainty and increased financial risk surrounding university patents would discourage potential licensees and venture capitalists from investing in discoveries, thus disrupting the nation’s innovation ecosystem.   

“As Congress considers legislation related to the U.S. patent system,” they wrote, “American universities and associated technology transfer foundations and organizations stand ready to work with you to address the patent litigation abuses we all agree are a problem. We are deeply concerned, however, that much of the patent legislation currently being discussed in Congress, including the Innovation Act, H.R. 9, goes well beyond what is needed to address the bad actions of a small number of patent holders.” 

The universities offered support for patent legislation that would be “targeted, measured and carefully calibrated to safeguard this nation’s global leadership in innovation.”