EXCLUSIVE — A collection of 28 conservative groups is urging Republican Congress members to pass the PERA, PREVAIL, and RESTORE acts — all aimed at patent protection — as Chinese influence permeates U.S. intellectual property.
The groups include Heritage Action for America, the Taxpayers Protection Alliance, and the U.S. Business and Industry Council.
“These three bills would bolster the reliability, certainty, and strength of American patents,” the groups said. “They would clarify and refine elements of the patenting process, making it easier for legitimate patent claims to reach fruition and withstand what would become fairer, more consistent, impartial scrutiny once granted.”
“We strongly urge your support by cosponsoring the bipartisan, bicameral PREVAIL, PERA, and the RESTORE Patent Rights Acts. We look forward to working with you to advance this legislation to enactment,” they added.
The PREVAIL Act, or Promoting and Respecting Economically Vital American Innovation Leadership, was introduced by Sen. Chris Coons (D-DE) in the last Congress and aims to “invest in inventors in the United States, maintain the United States as the leading innovation economy in the world, and protect the property rights of the inventors that grow the economy of the United States.”
The PERA Act, or the Patent Eligibility Restoration, was introduced by Sen. Thom Tillis (R-NC) also in the last Congress and aims to restore patent eligibility to several fields. Lastly, the RESTORE Act, or Realizing Engineering, Science, and Technology Opportunities by Restoring Exclusive Patent Rights, works to give patent owners the right to a “rebuttable presumption that the court should grant a permanent injunction with respect to that infringing conduct” if a court finds that there was an infringement of a right secured by patent.
All three acts could work as pro-patent freedom legislation, possibly helping U.S. intellectual property owners fight back against Big Tech and China.
“The weakening of intellectual property protections over the last 20 years has greatly reduced the reliability and strength of American patents. This allows hostile actors like China and Big Tech to benefit, enriching themselves and stealing intellectual property from American small businesses and individual inventors. The passage of PERA, PREVAIL, and the RESTORE Acts is imperative to reversing the decline of IP rights,” signatory James Edwards, executive director of Conservatives for Property Rights, told the Washington Examiner.
A May 2024 Center for Strategic & International Studies analysis found that weakening rights surrounding intellectual property have put the U.S. back in the innovation race against China.
“Given the benefits of a robust, market-based IP system, the United States would seem to have the long-term advantage in any innovation competition with China,” it said. “Yet, a series of court decisions and pieces of legislation over the last two decades have weakened IP rights in the United States, potentially undermining the competitiveness of the U.S. innovation ecosystem. China, in contrast, has spent decades strengthening IP protections to encourage innovation and attract private investment.”
Big Tech has taken advantage of the patent system to overcome smaller technology companies in their own innovation races.
“When a startup or independent inventor creates a groundbreaking product, they rely on their patents to protect their intellectual property,” the Ramey law firm said in an analysis.
“Unfortunately, the sheer size and influence of tech giants can often lead to scenarios where these smaller entities are pressured into submission, either through intimidation, litigation, or unfair business practices,” it added.
Edwards wants the legislation because it “would repair the worst damage inflicted on our patent system over the past two decades.”
“Pro-property rights conservatives support PERA, the PREVAIL Act, and the RESTORE Patent Rights Act because these three bills together would repair the worst damage inflicted on our patent system over the past two decades: tremendous uncertainty over what is eligible for a patent, the lack of quiet title in one’s patent because of a rigged process to perpetually challenge issued patents and likely invalidate them, and the inability to stop ongoing infringement with an injunction,” Edwards said.
Jenny Beth Martin, honorary chairman of Tea Party Patriots Action, sounded the alarm about how China is “exploiting U.S. patent law to displace us as the world’s premier economic power” in a statement to the Washington Examiner.
“When I was the executive producer for Innovation Race, a documentary about how China is exploiting U.S. patent law to displace us as the world’s premier economic power, we put a microphone in front of patent experts, business experts, Members of Congress, and others on the severity of this crisis and how to fix it,” she said. “Congress’s role is vital, and we finally have three common-sense bills to address the weaknesses in current patent law. Today, Tea Party Patriots Action is joining nearly three dozen organizations in pushing Congress to pass all three bills, secure our economic future, and win the innovation race of the 21st century.”
Kevin L. Kearns, president of the U.S. Business and Industry Council, also warned about China’s threat in a statement to the Washington Examiner.
“America’s weakening of our patent rights unilaterally disarms U.S. innovation leadership and hands China a critical advantage,” Kearns said. “This legislation would help ensure that American inventors can outcompete China and hold the technological advantage.”
The U.S. Patent and Trademark Office under the Trump administration froze hiring for the first few months of the administration, as many other government entities underwent Department of Government Efficiency scrutiny, before restarting hiring last week.
Under acting Director Coke Morgan Stewart, the office recently said it is working to cut down a backlog of over 838,000 patent applications to under 500,000 with the help of artificial intelligence on certain rejections. As of earlier this month, the office was down to 806,000 unexamined applications.
