Chairman Darrell showed how disputed he is in the subcommittee hearing on the effect of TC Heartland. He first state that patent is a property rights and they must strong and reliable. He ignores testimony regarding cleaning our clock on China patenting, venture capital, startups and job creation due to weak patent rights, he mocks again messenger. In spite of his initial statement, appreciating the property rights, he stopped the hearing saying that he was going to file an American short file against the rights of the property. There should be no meditation on this hypocrisy.
It’s all about Strong property right
“The rule of law is the key to preserving the property rights and it is not true in relation to intellectual property. Intellectual property has become the backbone of the last half of the 20th century and in the 21st century revenue generators will happen. Strong and reliable IP protection depend on Congress getting their rules right to both encourage the development and production of the next generation of innovation .
These are strong words that are coming from the power after the second half of the American Inventions Act (AIA), which have severely damaged the property rights by creating an administrative tribunal called the Patent Trial and Appeal Board (PTAB). These Administrative Tribunals are invalidating property rights at the rate of more than 90% without proper procedure and without a jury, which became the main question in the case of oil states raised by the Supreme Court this week.
PTAB effect on small entities
The effects of PTAB are exceptionally harmful for small entities. Inventors and startups can no longer protect their patent rights because the agreed fees have been left by the lawyers and investors patent market. It opens its property for indirect theft by large multinational corporations, which has now been stolen on a large scale.
Supreme Court decision
Low made by AIA in 2017, not so coincidentally, that same year China began to strengthen its own patent system. During the hearing, Professor Adam Mosoff of the Antonin Scalia School of Law at George Mason University explained the harmful effects of PTAB’s US economy and opposed the recent Supreme Court ruling for patents. He warned that if it continues, venture capital, startup and economic benefits will go to China.
U.S. Nearly twice the patents (1,101,864) were filed in China, compared to (58 9, 410). As a result, Venture Capital is running from China. U.S. “Number of nationwide, angel and seed stage funding rounds dropped 62 percent in the first quarter of 2017” Not surprisingly, the number of startups in China is growing at a very high rate. While the U.S. Startups are at the lowest of 40 years Chinese firms are getting control of new areas of technology. Clearly, venture. Startups technologies and jobs are moving to China and that movement directly maps to the destruction of the U.S. patent system and China’s response strengthening their patent system.
On Next Hearing
Professor Mosouf explained to the Committee how a weak American patent system is pushing patenting, technology, venture capital, startup and jobs in China. Darrell Issa respond to Proffessor Mossoff’s analysis by mocking the Professor and laughing at his comments: “I’ll now note that I’ve now heard that China is the country that we’re going to base the high mark of patent tolerance on.” Please take a minute to review this exchange. It fully illustrates the arrogance, and the extreme lack of knowledge and curiosity on the part of a very powerful lawmaker who is ultimately responsible for writing our patent laws.
Mossoff made the point that there is no statistically valid information that a patent troll problem exists, and that the term patent troll is so undefined and so broad that it encompasses even Thomas Edison. Issa again mocking Mossoff, laughingly said, “I’ve lived a long time. I never thought I’d hear Edison called a Troll in a hearing and before Congress.”
End of the discussion
Issa closed the hearing referring oil state ,oil state ask the question “Whether inter partes review, an adversarial process used by the Patent and Trademark Office (PTO) to analyze the validity of existing patents, violates the Constitution by extinguishing private property rights through a non-Article III forum without a jury.”
Issa’s closing statements show that he will continue to take action to weaken property rights. “Lastly, I’m very interested in the case they just took up. I’m a strong believer that for decades we have had ex parte PTO reexamination that invalidated all or some of the claims. So I will be submitting an amicus in that case without a doubt.
Property right IS or Not?
The Supreme Court’s answer will guide not only the patent system but potentially all property right disputes for generations. Issa’s definition is that patent is a property right, but that a property right can be invalidated in an administrative tribunal without a jury.
If the Supreme Court wanted to answer with the definition of ISA, there is no security left to the property. In the case of patent rights, the commercialization of the initial state of new technology will be seriously affected in the United States. The United States black legislation directly based on the United States Constitution and the first 220 years of precedent have patent rights, even the Republican Party Platform also states that the rights to the patent property are disagree with all of it.
Issa thinks that patents are some kind of public right in exchange for food stamps, as is clear in their bill, US Invention Act, and their continued work is also in the previous week. The hypocrisy is so blatant, so obvious and so up front that I’m not sure he even understands what he just said, which is a very dangerous problem.
As long as Darrell Isa remains in a position to make key laws in the Republican leadership in Congress, venture capital, patenting, new technologies, startup and jobs will continue to run from the US to China.