Why Patent Reforms Are Needed: Intellectual Property Abuses Threaten Innovation and Cost Consumers Billions
Patent abuse is harming the U.S. economy. It interferes with market competition, stymies entrepreneurs and innovators, and ultimately costs consumers in higher prices and decreased availability of products. Much of the debate over patent reform centers on how to make patent defense easier for defendants without undermining legitimate patent claimants. The solution must not unfairly classify certain patent holders as trolls because they hold patents without manufacturing goods. Properly enforced, sound patent policy protects individual innovators and the overall economy. It gives businesses incentives to create, and provides consumers with more choices and better value. But the potential for financial spoils can motivate individuals, corporations, and foreign governments to use their resources and regulatory clout to levy baseless or frivolous claims against would-be competitors. The economic consequences of these actions can be catastrophic for small businesses and inflict significant damage on economies of all sizes.