The AIA mandated that the USPTO release a study on how to best help small businesses file patents internationally. The USPTO worked in consultation with the United States Small Business Administration in researching the benefits and costs of developing an international IP strategy when the business is small or a start-up. The report’s findings suggest that small businesses would benefit from early investment in foreign patent applications, but the USPTO was unable to conclude whether or not a loan program or federal grant program would best remedy the problem of filing fees being too burdensome on the often cash poor new small businesses.
Here are some excerpts from the USPTO report.
American firms compete and grow by supplying products and services that consumers demand, and by internationalizing their businesses through licensing, franchising, or exporting. For many small companies, patent protection prevents competitors from simply copying their innovations, and aids in attracting investor capital needed to grow, build market share, and create jobs. Yet small companies face significant financial challenges in acquiring, maintaining, and enforcing patents outside the United States. Therefore, supporting small firms and fostering job creation requires a thorough understanding of these challenges and an exploration of possible remedies.
Available information, including the comments and testimony that the USPTO received, indicates that while patenting appears relatively uncommon among U.S. small businesses, it tends to be concentrated in high technology companies and can aid in securing for them a competitive advantage.
Evidence also suggests that U.S. small businesses may be patenting less frequently than larger firms, and that they face high costs in pursuing international patent protection. These high patenting costs often occur early in the life of these companies, when funding and cash flows are generally limited. These international patenting costs are also often exacerbated for U.S. small companies because – unlike the USPTO, which gives discounts to eligible small businesses from all over the world – foreign patent offices do not generally provide discounts for small businesses.
Comments agreed overwhelmingly with the proposition that the U.S. Government should engage in diplomacy and patent-system harmonization to help reduce the costs associated with filing foreign patent applications. Moreover, there was general agreement that an aggressive program of small-business education could aid American companies to make informed decisions regarding the optimal international patent strategy.
Tags: foreign filing fees, International Patent Protection for Small Businesses, international patent strategy, USPTO
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