Former Chief Judge Paul R. Michel’s Supplemental Testimony Before the House Judiciary Subcommittee on Courts, Intellectual Property and the Internet
This supplemental testimony on patent policy was delivered to the House Judiciary Committee on September 12, 2017.
The American economy’s success depends heavily on invention. Our “Innovation Economy” requires adequate incentives to invest in innovation because most invention is very risky and very expensive. A well-functioning patent system provides the necessary incentive for securing such investments, both of company revenues and outside funding from venture capitalists, private equity firms, pension funds, commercial banks, and other similar sources. Of course, investors have many alternative investment options, and if risks are lower and rewards higher in other countries or in other endeavors such as entertainment, that is where investment funds will flow. Without the proper incentives provided by the patent system, investment in innovation will falter, and the U.S. economy will suffer.