Particle.news
Download on the App Store
6 ARTICLES
·
23h ago

Commerce Department Weighs 1%–5% Annual Patent Value Tax in Draft Proposals

The levy would top up standard maintenance fees to raise tens of billions for deficit reduction, raising concerns over the complexity of patent valuation and potential dampening of innovation.

Image
Image
Image
Image

Overview

  • Commerce Department and USPTO officials are drafting 1%–5% annual levies on assessed patent values to supplement existing flat maintenance fees.
  • The value-based tax aims to generate tens of billions of dollars for federal deficit reduction while positioning the U.S. as the only major jurisdiction to tax patent value.
  • Business groups and legal experts warn that linking fees to patent valuations could discourage filings, encourage secrecy, and disrupt the USPTO’s self-funded model.
  • Draft proposals propose using public indicators such as regulatory filings, licensing activity, litigation history and SEC disclosures to assess patent worth.
  • Lawmakers face pressure to balance aggressive revenue targets against the operational demands of reliable valuation methods and the potential impact on innovation.