Baldwin Seeks Patent Protections for Small Businesses & Entrepreneurs

Press Release

Congresswoman Tammy Baldwin today sought to strengthen patent protections for small businesses and entrepreneurs.

During House debate of the America Invents Act (H.R. 1249), Baldwin offered an amendment opposing the expansion of "prior user rights" in patent law with her colleague, F. James Sensenbrenner (R-WI).

Under current law, businesses may claim prior user rights as a limited defense against patent infringement when the patent in question involves a method of doing business and another party has invented the new method, but not yet filed a patent application for it.

Expanding prior user rights beyond business method patents would give new rights to those who have previously developed and used the same process or product, even if they never publicly divulged their innovation and never applied for a patent. It would transform our patent system from one that values transparency to one that rewards secrecy.

"Expanding prior user rights could be disastrous for entrepreneurs, innovators and university researchers in Wisconsin and around the country," said Congresswoman Baldwin. "It rewards secrecy and creates a significant burden for small businesses and start-ups that seek to protect investments in innovation. Ultimately it would slow job creation," she added.

Under the system proposed in H.R. 1249, inventors would have no way of determining whether anyone had previously developed and used the process or product they were seeking to patent. In such a scenario, a patent might be valuable or relatively worthless--the inventor and potential investors would have no means of determining which was true.

Baldwin cited the many small but fiercely innovative small businesses in her district run by top researchers at the University of Wisconsin. "Would these small businesses have been able to drive such phenomenal innovation right here in Wisconsin with a patent that provides only conditional exclusivity?" Baldwin asked. "Would investors feel as secure advancing life-saving technology in a system shrouded in secrecy?" she continued.

"Tammy Baldwin has been fighting for a strong patent system since she was elected to Congress," said Dr. Carl Gulbrandsen, Managing Director, Wisconsin Alumni Research Foundation. "She has demonstrated her support for technology transfer, small business and university innovation that has led to over 60 university based companies in the Madison area. I deeply appreciate her amendment to remove prior user rights in H.R. 1249.," Gulbrandsen said.

"I support sound patent reforms that will provide innovators and investors with greater confidence," Baldwin said. "I also support fully funding the patent office to address the inexcusable backlog of patent applications, and expand opportunities for our brightest minds and most innovative businesses to transform ideas into new products and create jobs," she concluded.

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