Statements
Statement of Ranking Member Velázquez on How Small Businesses in the Digital Technology Industry Use Intellectual Property
Washington, DC,
July 11, 2018
Digital technology has become a vital part of nearly every industry. Over the past three decades, the tech sector has created 23 percent more new businesses than the private sector, as a whole. Technology innovation bolsters our economy – making IP protections a vital part of the process.
Protecting the intellectual property rights for technology innovations can support long-term job growth, increase exports, and drive development. New business ventures rely on a system in which their ideas are protected.
Intellectual property is a $6.6 trillion dollar industry that accounts for over one-third of total U.S. gross domestic product. And, small firms make up the vast majority of firms in intellectual property-intensive industries. In fact, start-ups in high-tech hubs account for more than 40 percent of new jobs each year. These businesses have an enormous stake in ensuring the continued growth of intellectual property.
Patent protection helps innovators recoup the cost of research and development, capitalize on their inventions, create jobs, and grow the economy. It is also essential to ensuring the ability of a business to enforce their rights both at home and abroad.
Doing so is critical to protecting American economic interests. In 2016, Customs and Border Patrol seized $1.38 billion of intellectual property rights-infringed goods crossing our borders. This theft can have a deep impact on small businesses that may have limited time and resources.
This is especially true among women, minorities, and other underserved business owners who already face obstacles obtaining IP protections and funding. More than 80 percent of patents do not include women. This gap is likely because of their underrepresentation in the science, technology, engineering, and math fields.
GDP per capita could rise up to 3.3% with the inclusion of more women and African Americans in the initial stages of the process of innovation. Congress must address the inclusion of underrepresented groups to allow for additional small business growth.
This hearing will allow Committee members to hear from entrepreneurs on opportunities for growth in the digital technology industry and to understand what additional measures are needed to ensure their long-term success.
I thank our witnesses for being here and yield back the balance of my time.
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