Intellectual Property

Protecting intellectual property (IP) is critical to ensuring future success for the high tech industry in an increasingly global environment. While the US has consistently led the global innovation economy, inadequate IP enforcement and protection threatens our economy. Without adequately addressing issues like counterfeting and piracy, companies lose incentives to promote high quality innovation.

Maintaining U.S. competitiveness and an innovative edge depends on strict IP enforcement. Currently, it is estimated that our economy loses $250 billion a year to IP theft worldwide. For this reason it is important to support national and international efforts to adopt robust IP enforcement and protection laws.

As the high tech industry continues to be a leader in research and development spending, it is essential to provide the necessary IP platform in which to lead the innovation economy.

ITI will continue to advocate for expanded IP enforcement and protection within the U.S. Congress, federal agencies and worldwide regulating agencies.

Patent Reform

The U.S. patent system has not kept pace with the tremendous changes in the global innovation economy. Companies are faced with mounting legal costs as the number of patent applications has skyrocketed. As a result, U.S. companies spend valuable time and resources defending frivolous patent claims rather than innovating new technologies. The status quo is negatively impacting the US high tech industry and ultimately consumers.

There is widespread agreement the current patent system is broken. The National Academy of Sciences has said the current patent system shows “areas of strain, inefficiency, excessive cost on one hand and inadequate resources on the other hand that need to be addressed now.” The Federal Trade Commission noted, “A questionable patent can raise costs and prevent competition and innovation that would otherwise benefit consumers.”

The technology industry leads the innovation economy: ITI’s membership includes six of the top 10 U.S. patent recipients in 2008. Patents are intended to encourage and protect innovation, but problems with low quality patents and rising legal costs are stifling the ability of companies to compete globally, which harms the U.S. economy and job growth. Without a modernized patent system, U.S. companies are at a competitive disadvantage and consumers pay the price.

An effective U.S. patent system will 1) have a much improved patent examination process to ensure high quality, valuable patents and 2) will cut down on frivolous, disruptive patent lawsuits that discourage growth and innovation.