Overview

• The Commerce Department and USPTO are evaluating a plan to charge patent holders 1%–5% of a patent’s assessed value each year.
• Billionaire investor Mark Cuban called the idea “one of the dumbest ideas in the history of business,” predicting it could deter inventors from filing new patents.
• Trade organizations and patent scholars, including the U.S. Chamber’s Global Innovation Policy Center and Patently-O, argue the levy would dramatically raise costs and make the U.S. an international outlier.
• Experts warn there is no existing framework for valuing patents, raising fears of bureaucratic backlogs and contentious disputes if the levy is enacted.
• While the measure aims to generate recurring revenue to help close budget deficits, critics say it risks chilling research and development in key technology and life-sciences sectors.