The Innovation Alliance announced the release of a new study that details what it says is the negative impact on the U.S. economy that would result from enactment of currently considered patent legislation.

The new study: “Problems to be Expected from Expanded Administrative Challenges to U.S. Patents,” is authored by Scott Shane, Ph.D., Professor of Economics at Case Western Reserve University and was commissioned by the Manufacturing Alliance on Patent Policy.

According to Dr. Shane’s analysis, expanding the ability for administrative challenges by adopting a “litigation-like mechanism for third party-initiated post grant review and expand the existing inter partes reexamination process,” would likely have several adverse effects, including:

  1. Increasing the length of patent pendency
  2. Creating uncertainty about patent validity
  3. Decreasing the disclosure of knowledge necessary for innovation
  4. Increasing the costs of achieving patent validation
  5. Reducing investment in R&D
  6. Hindering efforts of U.S. universities to transfer their inventions to the private sector
  7. Increasing strategic patenting behavior by large, established firms

Moreover, the proposed legislation will not have many of the beneficial effects the proponents of the “Patent Reform Act” claim it will have. In particular, the proposed legislation:

  • Will not improve patent quality
  • Will not reduce the cost of patent litigation
  • Will not speed the determination of patent validity

To draw your own conclusions, get a copy of the study here.  But, maybe it’s time to just start acting.

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