From the Alliance


Oct. 6, 2016

Innovation Alliance Statement on FTC’s Patent Assertion Entity Study

Innovation Alliance Executive Director Brian Pomper today issued the following statement in response to the Federal Trade Commission’s (FTC) release of its study on patent assertion entities (PAEs):

“While the Innovation Alliance welcomes research into the patent system and its impact on innovation, we are deeply disappointed that the Federal Trade Commission has made policy recommendations and drawn conclusions based on its unscientific case study of a limited number of so-called patent assertion entities. Due to methodological flaws in this study, it does little to shed light on this important issue and provides no basis on which to justify sweeping policy changes, such as the misguided customer stay provision in H.R. 9.

“In filings with the Office of Management and Budget, the FTC itself has admitted that the study’s findings are ‘not generalizable to the universe of all PAE activity’ and that the work should only be viewed as a ‘case study’ that could inform the development of future research.

“Leading patent law and economic experts have also highlighted the limited usefulness of FTC’s study due to its use of a small sample that is unrepresentative of the broader patent licensing community and inadequate survey questions that fail to solicit key information from licensing firms.  These experts have resoundingly concluded that the FTC study should not be used to determine patent policy or serve as a basis for making patent system changes.

“It is important to remember that patent licensing plays a vital role in bringing new technologies and medical breakthroughs to market.  It critically allows innovators to focus on inventing and research, instead of manufacturing, sales and marketing.

“The Innovation Alliance continues to urge policymakers to reject proposals, such as H.R. 9, and S. 1137, that would weaken patent rights for all U.S. patent holders and undermine U.S. innovation, competitiveness, and job creation.”

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ABOUT THE INNOVATION ALLIANCE
The Innovation Alliance represents innovators, patent owners and stakeholders from a diverse range of industries that believe in the critical importance of maintaining a strong patent system that supports innovative enterprises of all sizes. Innovation Alliance members can be found in large and small communities across the country, helping to fuel the innovation pipeline and drive the 21st century economy. Learn more at www.innovationalliance.net.

Contact: Kat Maramba, 202-740-3069, Kathrina@BlueEngineMedia.com