PTO Director Says US Might Need Law to Address Chinese Trademark App Influx

The U.S. might need legislation to combat the influx of frivolous Chinese trademark applications, Patent and Trademark Office Director Andrei Iancu told the Senate Intellectual Property Subcommittee Wednesday. Chinese trademark applications have increased 1,100 percent cumulatively in the past six years, he said. Iancu noted at the hearing, however, that Chinese applications have decreased to start 2019, possibly because of increased scrutiny.

Ranking member Chris Coons, D-Del., asked if PTO can expedite review processes. The office launched a pilot program for expedited cancellation, but the public hasn’t used it much, Iancu said. The agency also completed a “top-to-bottom” review of its information technology systems and last month hired Henry Holcombe as chief information officer (see Feb. 15 people on the move section of this publication). Modernizing IT is a top priority for Holcombe, Iancu said. This includes a task force studying artificial intelligence tools for patent and trademark review, which could help with frivolous applications, Iancu said.

Coons and Chairman Thom Tillis, R-N.C., are working on legislation to revise patent eligibility standards, Tillis said. The goal is to have a draft bill made public in early summer, Tillis said. He expects a broad bipartisan, bicameral outcome.

Tillis and Coons noted the U.S. is now second place on the U.S. Chamber of Commerce’s international rankings on patent protections, up from 12th last year, crediting Iancu’s leadership. Tillis is encouraged PTO modernization is a priority, saying every aspect of the economy relies on the internet. He also lauded guidance documents on how the agency will apply the Alice and Mayo (see 1901040051) court test to patent-eligible subject matter.

Sen. John Cornyn, R-Texas, asked Iancu if he had concerns about patent litigation abuse. Cornyn cited Apple’s announcement to close two stores near Plano, Texas. Apple no longer wanted to risk being stuck in burdensome litigation, Cornyn said. The closures meant Apple is no longer located in the area encompassed by the U.S. District Court for Eastern District of Texas, insulating it from patent infringement lawsuits. He called it a “drastic” move, considering one of the stores had more than $70 million in annual sales.

The PTO is concerned about any abuse, Iancu said. The office wants to make sure it identifies abuse and works on solutions, but it wants to avoid “pejorative” terms, which have counterproductive impacts and make the PTO steer away from real problems.

The Senate Judiciary Committee plans a hearing in April to consider female representation in intellectual property-related fields, Tillis said.