[Congressional Record Volume 161, Number 55 (Thursday, April 16, 2015)]
[Extensions of Remarks]
[Page E524]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


           INTRODUCTION OF THE ``INNOVATION PROTECTION ACT''

                                  _____
                                 

                         HON. JOHN CONYERS, JR.

                              of michigan

                    in the house of representatives

                        Thursday, April 16, 2015

  Mr. CONYERS. Mr. Speaker, the ``Innovation Protection Act'' responds 
to the single most important problem facing our patent system today--
the diversion of patent fees. One of the most effective steps we can 
take in responding to abusive patent litigation is making sure poor 
quality patents are not issued to begin with. To do that we need to 
give our examiners the resources they need to review and analyze the 
hundreds of thousands of complex and interrelated patent applications 
they receive every year.
  The current finding mechanism has failed the patent system. It did 
not prevent the diversion of nearly $150 million in collected user fees 
in fiscal year 2013 due to the sequester. And this loss is on top of 
the estimated $1 billion in fees diverted over the last two decades. In 
essence, there is a tax on innovation in this country, and this 
legislation would repeal it.
  That is why I along with Representatives Collins, Nadler, Franks, 
Lofgren, Sensenbrenner, Deutch, Rohrabacher, and Jeffries introduced 
today the ``Innovation Protection Act.'' This critical bill will ensure 
that the USPTO retains all of the user fees it collects.
  Significant patent stakeholders, including the American Intellectual 
Property Law Association, BSA--The Software Alliance, the Coalition for 
21st Century Patent Reform, the Intellectual Property Owners 
Association, and the Institute of Electrical and Electronics 
Engineers--USA, among others, support the legislation.
  This bill would create a permanent, reliable mechanism to protect the 
USPTO from the unpredictability of the annual appropriations cycle, 
which severely hinders USPTO's ability to engage in the kind of multi-
year, business-like planning that is needed to manage our patent 
system. It would eliminate the tax on innovation.
  Therefore, a permanent funding mechanism is essential to encourage 
innovation and to ensure that our patent system remains the envy of the 
world.

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