news

Today, House Small Business Committee Democrats convened to discuss Congress’ role in safeguarding one of the most crucial tools for small business success—the protection of intellectual property. For millions of entrepreneurs, securing a patent, trademark or copyright can jumpstart a business and create well-paying jobs along the way. However, for others, including many women and minority entrepreneurs, the path to protecting intellectual property remains plagued by roadblocks. In today’s hearing, Democrats pressed entrepreneurs and experts on how Congress can play a greater role in helping small firms protect their creative and innovative ideas. 

“Many of our most successful ventures in America started as a note on a napkin, a schematic on a white board or a dream by an entrepreneur,” said Ranking Member Rep. Nydia M. Velázquez (D-NY). “When these ideas blossom into new products and services, they create jobs and become a critical component of a healthy economy.”  

The ability to protect intellectual property has helped the United States become a global leader in innovation, and has fueled nearly 45 million jobs. However, with the invention of the Internet, protecting intellectual property has become more difficult than ever. As “patent trolls” seek to hack information from small firms and claim rights to their ideas for profit, Democrats stressed the importance of increasing access to cybersecurity. 

“For small, innovative firms, many of which already face challenges accessing capital, it is vital their investments be protected from counterfeits and piracy,” said Velázquez. “Without such protections, these entrepreneurs would be unwilling to assume the risks necessary to produce the next market disrupting invention, thereby hampering growth.” 

During the hearing, Democrats also drew attention to the underrepresentation of women and minority entrepreneurs in securing patents. As of 2010, nearly 19 percent of patents listed at least one female inventor, while over 81 percent listed none. Furthermore, U.S. born minorities make up just 8 percent of innovators. Democrats argued that such a dominance by one group in the field stacks the “innovation pipeline” against women, minority and other underrepresented groups. 

“We cannot have this conversation without acknowledging the reality that women and minorities are less likely to be patent holders,” said Velázquez “Congress must work to open more doors for these entrepreneurs, including expanding opportunities in STEM fields.” 

During the hearing, Democrats heard from a diverse array of entrepreneurs and intellectual property experts. 

“Whether that business starts as a small grocery store in Cincinnati and becomes the largest supermarket chain in the U.S., or builds a computer in a garage in California and then becomes the world’s largest technology company, the potential of small businesses is vast,” said Michal Rosenn, General Counsel at Expa, a startup studio. “And as startups and technology-based companies make up an ever-growing part of the small business landscape, it is incumbent on all of us to protect true innovation, and to allow these businesses to flourish free from the threat of predatory litigation.”

“Because franchisees are individual owners, ensuring brand protection is key to ensuring the customer’s experience with the brand is of a consistent quality,” said David Graham, CEO of Code Ninjas and testifying on behalf of the International Franchise Association (IFA). “The only way to give legal effect to brand protection is through intellectual property protection, specifically trademarks, service marks, trade dress, patents, copyrights, and trade secrets.” 

“The 21st Century’s digital age has brought forth new challenges, and exposed serious flaws in what has today become an antiquated copyright system badly in need to revision to protect us against piracy and to guarantee fair remuneration for the marketplace use of our music,” said Rick Carnes, President

Songwriters Guild of America, Inc. “It is up to us to make sure that our laws keep pace, or we will most certainly fall behind as a nation and a culture.”

“Curemark, like almost all other startups has transitioned through a process of discovery, validation, and scale,” said Joan Fallon Founder and CEO of Curemark. “We would not exist as a company, we would not have the opportunity to work on this drug treatment if it were not for our intellectual property protection.”

To help more firms learn how to protect their intellectual property, Committee Democrat, Rep. Dwight Evans (D-PA) has introduced H.R. 2655, the Small Business Innovation Protection Act of 2017. This bill requires the Small Business Administration (SBA) to partner with the U.S. Patent and Trade Office (USPTO) to offer more education to help small businesses protect their intellectual property.

“I commend Rep. Evans for his leadership in helping to utilize existing SBA and USPTO resources to help more entrepreneurs protect their intellectual property,” said Velázquez. “This bill would both help more firms secure patents and protect their intellectual property against theft.”  

###