[Senate Report 114-419]
[From the U.S. Government Publishing Office]
Calendar No. 483
114th Congress } { Report
SENATE
2d Session } { 114-419
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SMALL BUSINESS INNOVATION PROTECTION ACT OF 2016
_______
December 20, 2016.--Ordered to be printed
Filed, under authority of the order of the Senate of December 10
(legislative day, December 9), 2016
_______
Mr. Vitter, from the Committee on Small Business and Entrepreneurship,
submitted the following
R E P O R T
[To accompany S. 2846]
The Committee on Small Business and Entrepreneurship, to
which was referred the bill (S. 2846) to amend the Small
Business Act to expand intellectual property education and
training for small businesses, and for other purposes, having
considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
I. INTRODUCTION
The Small Business Innovation Protection Act of 2016 (S.
2846) was introduced by Senator Gary Peters on April 25, 2016,
with Committee members David Vitter, James Risch, Christopher
Coons, and Mazie Hirono as cosponsors. The Act would provide
for expanded intellectual property education and training for
small businesses. During the markup of the bill, the bill was
approved by roll call vote without amendments.
II. HISTORY (PURPOSE & NEED FOR LEGISLATION)
In the United States, intellectual property enjoys strong
legal protections and rights through copyrights, patents, and
trademarks. Intellectual property rights are essential in
encouraging entrepreneurship. The United States Patent and
Trademark Office (USPTO) offers intellectual property training
through the Global Intellectual Property Academy. In 2012, the
Small Business Administration and USPTO released a joint report
on international patent protection for small businesses. The
report found that many small businesses may benefit from
extending patent rights outside the U.S., but few were aware of
the necessity or the mechanisms available to accurately and
effectively pursue an international patent. The report
determined that the USPTO and the SBA are well positioned to
build upon several successful current intellectual property
education and training programs in order to reach more small
businesses.
III. HEARINGS & ROUNDTABLES
In the 114th Congress, issues related to intellectual
property protections were addressed.
On February 25, 2016, the Senate Committee on Small
Business and Entrepreneurship held a hearing entitled ``An
Examination of Changes to the U.S. Patent System & Impacts on
America's Small Businesses.'' The hearing examined the abuse of
patent litigation and its effects on small businesses. At this
hearing, witnesses testified about the need to protect
intellectual property.
On March 19, 2015, the Committee held a hearing entitled
``Patent Reform: Protecting Innovation and Entrepreneurship.''
The purpose of this hearing was to examine the effects of
current patent rights laws for small businesses and
entrepreneurs.
IV. DESCRIPTION OF BILL
The Small Business Innovation Protection Act of 2016 bill
will address the aforementioned challenges small businesses
have in obtaining, maintaining, and enforcing foreign and
domestic patents. Specifically, the bill will require the SBA
and USPTO to enter partnerships to leverage existing outreach
programs in order to educate more small businesses on domestic
and international patent protection.
V. COMMITTEE VOTE
In compliance with rule XXVI(7)(b) of the Standing Rules of
the Senate, the following vote was recorded on May 11, 2015.
A motion to adopt the Small Business Innovation Protection
Act of 2016, a bill to amend the Small Business Act to expand
intellectual property education and training for small
businesses and for other purposes, was approved by roll call
vote with the following Senators present: Vitter, Risch, Scott,
Ernst, Ayotte, Shaheen, Cantwell, Cardin, Heitkamp, Markey,
Booker, Coons, Hirono, and Peters.
VI. COST ESTIMATE
In compliance with rule XXVI(11)(a)(1) of the Standing
Rules of the Senate, the Committee estimates the cost of the
legislation will be equal to the amounts discussed in the
following letter from the Congressional Budget Office:
June 30, 2016.
Hon. David Vitter,
Chairman, Committee on Small Business and Entrepreneurship,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2846, the Small
Business Innovation Protection Act of 2016.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Stephen
Rabent.
Sincerely,
Keith Hall.
Enclosure.
S. 2846--Small Business Innovation Protection Act of 2016
S. 2846 would require the Small Business Administration
(SBA) and United States Patent and Trademark Office (PTO) to
develop partnership agreements to provide training materials
and opportunities to small businesses on domestic and
international protection of intellectual property. It also
would require Small Business Development Centers, in
conjunction with PTO, to provide training to small businesses
on domestic and international protection of intellectual
property. The SBA funds a portion of the operations of Small
Business Development Centers, which provide counseling,
training, and technical assistance to small businesses.
On the basis of information from the SBA and PTO about the
resources needed to conduct such training, CBO estimates that
the costs to implement S. 2846 would not be significant.
Enacting S. 2846 would not affect direct spending or revenues;
therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting S. 2846 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
S. 2846 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act. The
SBA provides grants to Small Business Development Centers that
are hosted by universities, colleges, and state agencies for
economic development. Any costs those entities incur would
result from complying with conditions of assistance.
The CBO staff contacts for this estimate are Stephen Rabent
(for federal costs) and Rachel Austin (for state and local
effects). The estimate was approved by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
VIII. SECTION-BY-SECTION ANALYSIS
Section 1. Short title
This section designated the bill as the ``Small Business
Innovation Protection Act of 2016''.
Section 2. Definitions
This section defines the terms administrator, director,
SBA, small business concern, small business development center,
and USPTO.
Section 3. Findings
This section relates to findings of Congress regarding
USPTO and the SBA's ability to administer intellectual property
and training programs aimed at small business concerns.
Section 4. SBA and USPTO partnerships
This section dictates that the Small Business
Administration shall develop partnership agreements. These
agreements shall develop high-quality training for small
businesses related to intellectual property protection,
leverage training materials already developed, and include the
participation of a nongovernmental organization. These
partnership agreements must also make use of electronic
resources for training and the training of headquarters or
regional offices of the United States Patent and Trade Office.
Section 5. Small businesses development centers
This section amends the Small Business Act to require that
small business development centers provide training relating to
intellectual property protections and how these protections can
be applied to the business plans and growth of small
businesses.
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