news

Today, House Small Business Committee Democrats held a hearing to discuss how Congress can help small business owners protect their intellectual property. For millions of entrepreneurs, securing a patent, trademark or copyright can open the doors to a successful venture. However, many women and minority inventors remain largely shut out of the patent process. For these reasons, Committee Democrats are spearheading efforts to prevent intellectual property theft and expand access to patents for underserved entrepreneurs.

“As entrepreneurs increasingly turn to the Internet to safeguard their creative ideas, it is imperative that Congress play a role in cracking down on bad actors who are looking to steal their intellectual property,” said Acting Ranking Member Rep. Dwight Evans (D-PA). “In addition to promoting cybersecurity, we must remedy the inequities that women and minority entrepreneurs face in securing intellectual property protections and funding.”

Small businesses have an outsized stake in the need to protect intellectual property, as they make up a vast majority of firms in intellectual property-intensive industries. A $6.6 trillion-dollar industry, intellectual property accounts for over one-third of total U.S. gross domestic product. By harnessing patents to protect creative ideas, entrepreneurs can fill the cost of research and development, create jobs and grow the economy.

“It is difficult and perilous to start any new company from scratch,” said Chris Israel, the Executive Director Alliance of U.S. Startups and Inventors For Jobs. “For companies built around a new invention or committed to solving a complex problem, it also requires investors with a strong appetite for risk. To incentivize risk from inventors and investors that results in true technological breakthroughs, we have the promise of patent protection to help ensure returns despite this risk.”

With the invention of the Internet, protecting intellectual property has become more difficult than ever. In 2016, Customs and Border Patrol seized $1.38 billion of intellectual property rights-infringed goods crossing the U.S. border.  As “patent trolls” and other bad actors seek to hack information from small firms and claim rights to their ideas for profit, Democrats are working to increase cybersecurity training for small firms.

Yesterday, the House passed Rep. Evans’ bill, H.R. 2655, the Small Business Innovation Protection Act of 2017. Evans’ bill directs the Small Business Administration (SBA) to partner with the U.S. Patent and Trade Office (USPTO) to expand cyber training for small firms. 

“As members of Congress we have a special duty to ensure that our small businesses have all the tools in the toolbox that they need to succeed.  We know that small businesses are critical to the economic strength of our country, especially in the new and growing tech-based economy.  Creating and supporting programs like this are essential to helping entrepreneurs prosper,” said Congressman Dwight Evans (D-PA).

During the hearing, Democrats 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.

“Leaving women and minority inventors behind threatens to stack the innovation pipeline against these talented and promising entrepreneurs,” said Evans. “To open the gates for greater participation in the patent market, we must expand opportunities in STEM fields for those who have been traditionally overlooked.” 

###