Innovation Alliance Applauds Introduction of RESTORE Patent Rights Act
Bipartisan, Bicameral Bill Would Restore the Right to Injunctions to Stop IP Theft and Promote U.S. Technological Leadership
WASHINGTON, D.C. – Innovation Alliance Executive Director Brian Pomper today issued the following statement on the introduction of the bipartisan, bicameral RESTORE Patent Rights Act:
“The Innovation Alliance applauds Senators Coons (D-DE) and Cotton (R-AR) and Representatives Moran (R-TX), Dean (D-PA), Roy (R-TX), Johnson (D-GA) and Ross (D-NC) for introducing the bipartisan, bicameral RESTORE Patent Rights Act. This bill will help stop IP theft, protect inventors’ right to determine who can use their patented inventions and encourage investments in innovation that support U.S. technological leadership.
“A patent grants its owner the right to prevent others from using their invention. For more than two centuries, a patent owner whose rights had been infringed could obtain a permanent injunction to enforce that right, stopping an infringer from making, using, selling, or importing their invention. But in 2006, the Supreme Court undermined this right in eBay v. MercExchange by altering the legal test for obtaining an injunction and holding that money damages for past infringement should be sufficient. If courts won’t enforce a patent by preventing others from using an invention, that calls into question what rights the patent bestows and seriously undermines the value of the patent.
“New research shows that since the eBay decision injunction rates in patent cases have plummeted by more than 91% for patent licensing entities, including universities, and more than 66% for manufacturing companies. The rapid decline in injunctive relief has allowed Big Tech and other large companies to steal the inventions of smaller competitors with impunity. Without injunctions as a remedy, it is cheaper for megacorporations to steal patented technologies and risk the possibility of paying a court-ordered royalty after months or years of expensive litigation than it is to follow the law and pay for a license up front.
“This has serious consequences for the U.S. innovation economy and U.S. global technology leadership. When inventors cannot enforce their patent rights, investors are reluctant to fund the risky and long-term R&D needed for continued U.S. leadership in foundational and emerging technologies. Moreover, courts in China continue to grant injunctions in 95% of patent infringement cases. Inventors in the United States deserve rights at least as strong as inventors in China.
“The RESTORE Act will address this problem by restoring the right to an injunction in cases where the patent is proved valid and infringed. We urge Congress to take up and pass this vital bill as soon as possible.”
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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.