Leahy, Tillis Push Patent Transparency Legislation

Lack of transparency on patent ownership is a threat to U.S. competitiveness and national security, said Senate Intellectual Property Subcommittee Chair Patrick Leahy, D-Vt., during a hearing Tuesday. Foreign companies can buy U.S. patents without the public knowing, said Leahy, who introduced legislation with ranking member Thom Tillis, R-N.C. The bill requires patent owners to record updated ownership information with the Patent and Trademark Office when a patent changes hands. Failure to record ownership information would mean entities aren’t allowed to recoup damages for IP ownership. China is an increasing threat on royalties involving 5G technology, laptops, connected cars and semiconductors, said Intel Senior Vice President Allon Stabinsky. He noted only one American company is on the list of top 10 patent holders. China has four, Europe has two and Japan one, he said: This has “profound implications” for American competitiveness, he said. The legislation proposes a reasonable and balanced remedy, said Engine IP Counsel Abby Rives: The patent owner can still seek reasonable royalties and lost profits but would give up the ability to push damages higher during the period the owner failed to disclose the required information.