Overview

• Commerce and USPTO officials are working on draft proposals and financial models for a 1–5% annual levy on assessed patent value to generate tens of billions for deficit reduction.
• Under consideration is adding the value-based fee to the existing three-tier flat maintenance structure, with high-value patents identified through public indicators and IRS filings.
• A spring pause on recruiting 800 examiners and an ongoing 30-month average pendency raise concerns about the agency’s ability to develop reliable valuation methods and collect new fees.
• The U.S. would stand alone among major economies in charging patent holders based on valuation, prompting debate over potential declines in filings and shifts toward trade secrets.
• Proponents like U.S. Chamber’s Brad Watts praise the overhaul as a paradigm shift in IP policy, while opponents such as Marylee Jenkins warn it could deter innovation incentives.