From the Alliance


Sep. 6, 2024

Innovation Alliance Statement on House Introduction of Patent Eligibility Restoration Act

Bipartisan Bill Would Help Restore Certainty and Predictability to Subject Matter Eligibility; Reforms Needed to Ensure U.S. Can Compete With China on AI and Other Key Technologies


WASHINGTON, D.C. – Innovation Alliance Executive Director Brian Pomper issued the following statement on the introduction of the bipartisan, bicameral Patent Eligibility Restoration Act (PERA) in the U.S. House of Representatives:

“The Innovation Alliance commends Representatives Kevin Kiley (R-CA) and Scott Peters (D-CA) for introducing the bipartisan Patent Eligibility Restoration Act (PERA) in the U.S. House of Representatives. PERA, which was introduced in the Senate last year by Senate Judiciary IP Subcommittee Chair Chris Coons (D-DE) and Ranking Member Thom Tillis (R-NC), was drafted following years of study and deliberation with key stakeholders and makes critical reforms to patent eligibility law that will help restore certainty and predictability to the U.S. patent system.

“For nearly 150 years, Section 101 of the Patent Act was interpreted to allow inventions to be patented across broad categories of discovery. This approach supercharged American innovation and led to countless technological and medical breakthroughs in areas that could not have been imagined when Section 101 was first enacted.

“Starting in 2010, however, the Supreme Court issued a series of decisions that have upended longstanding settled law, narrowed the scope of patent-eligible subject matter, and created unworkable and unpredictable exceptions to an otherwise clear statute. These decisions have created chaos in the patent world and left inventors and lower court judges uncertain about what is patentable. Meanwhile, our foreign competitors, including China, are granting patents on many inventions that are now unpatentable here. As a result, innovation and venture capital are being driven overseas.

“The disparity in patent eligibility between the United States and our foreign competitors is particularly problematic in critical and emerging technology areas such as artificial intelligence (AI), 5G/6G, advanced computing and biotechnology, as well as medical diagnostics. This not only undermines U.S. competitiveness and the ability of the United States to remain the global leader in innovation, but it harms U.S. national security as other countries challenge U.S. leadership in developing these key technologies.

“PERA would clarify categories of inventions that are eligible to receive patents, restoring needed certainty and predictability for American innovators and investors, and ensuring the United States avoids ceding leadership in key technologies to our foreign adversaries and competitors. We urge Congress to take up and pass this important legislation as soon as possible.”

For more information on PERA, click here.

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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.