WASHINGTON, DC / ACCESSWIRE / September 30, 2024 / Today, the Sunwater Institute released a new policy report on patent quality in the United States. The report found that, while current policy dialogue often centers on an alleged epidemic of "low quality" patents, the quality of patents issued by the USPTO is actually quite high, comparing favorably to the quality of patents issued by other major patent offices. In fact, if there is an issue of quality to be discussed, it is that valid patents are improperly denied far more often than invalid patents are inappropriately granted.
"To make good decisions about our patent system, policymakers need to have an informed understanding of where the system is currently succeeding and where it falls short," said Andrei Iancu, former Director of the U.S. Patent and Trademark Office and Co-Chair of the Council for Innovation Promotion. "In recent years, activists have repeatedly and erroneously claimed that America's innovation system is plagued by 'bad patents.' Sunwater's rigorous analysis will help combat this harmful misinformation."
The report concluded that the U.S. Patent and Trademark Office grants invalid patent claims at an exceedingly low rate, even when compared to other patent offices around the world. The rate at which invalid patents are improperly granted is as low as 5%, depending on the measurement methodology used. But as many as 18% of valid patent claims are denied, according to the analysis.
"While no error is desirable, it's particularly concerning to see valid patent claims rejected at such high rates," said David Kappos, former Director of the U.S. Patent and Trademark Office and Co-Chair of the Council for Innovation Promotion. "When valid patent claims aren't issued, America's economy and innovation system suffers, and our inventors lose confidence in their ability to protect their novel ideas in the future."
The study also found that, due to selection bias, patent invalidation rates at the Patent Trial and Appeal Board (PTAB) or district courts are not accurate measures of overall patent quality. Still, some policymakers and activists have continued to rely on PTAB and court data to advance false arguments about the state of the U.S. patent system.
"This exceptionally detailed report should put to bed any claims that there is a patent quality crisis in the United States," said Judge Kathleen O'Malley (ret.) and Judge Paul Michel (ret.), former Judges of the Federal Circuit Court and Board Members of the Council for Innovation Promotion. "C4IP commends the Sunwater Institute for providing clarity on this important issue, and we encourage the U.S. Patent and Trademark Office to conduct similar analyses of its own data in the future."
To read the complete policy report from the Sunwater Institute, click here.
About Council for Innovation Promotion: The Council for Innovation Promotion is a bipartisan coalition dedicated to promoting strong and effective intellectual property rights that drive innovation, boost economic competitiveness, and improve lives everywhere.
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SOURCE: Council for Innovation Promotion
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