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Multinational Patent Acquisition and Enforcement: Public Policy Challenges and Opportunities for Innovative Firms (CRS Report for Congress)

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Release Date Aug. 31, 2001
Report Number RL31132
Report Type Report
Authors John R. Thomas, Resources, Science, and Industry Division
Source Agency Congressional Research Service
Summary:

Globalization and technology have been viewed as increasingly prominent influences upon the U.S. economy. This perception has led to renewed attention towards the pragmatic aspects and policies of multinational patent acquisition and enforcement. Patent protection has long been understood to be a fundamental mechanism for encouraging the pursuit of technological knowledge, particularly for entrepreneurs and small, innovative firms. Recent trends reveal that U.S. industry has come to rely more heavily upon the world's patent systems, as compared to other intellectual property alternatives such as trade secrecy. Although patent protection in a single jurisdiction is often ineffective to protect the interests of inventors, no true global patent system exists. If inventors desire intellectual property protection in a particular country, they must specifically procure a patent within that jurisdiction. Patent rights do not arise automatically. Instead, inventors must submit applications to a national or regional patent office. Patent examiners then assess whether the application fully discloses and distinctly claims a new and nonobvious invention. If allowed to issue, a granted patent provides its proprietor with the right to exclude others from making, using or selling the patented invention. Patent rights are not self-enforcing, however, and those patent owners who wish to compel others to observe their intellectual property rights usually must commence civil litigation. The patent systems of the United States and its trading partners are linked through a handful of international agreements that, together, comprise the international patent regime. The oldest of these treaties, the Paris Convention, established an international priority system that facilitates the filing of patent applications in many jurisdictions. The Patent Cooperation Treaty built upon the Paris Convention by establishing a further procedural framework for expediting multinational patent acquisition. Finally, the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights, the so-called TRIPS Agreement, in part required all of its signatories to provide for minimum substantive standards of patent protection and enforcement. Acquiring and enforcing patent rights around the world is often a complex and expensive task. Entrepreneurs must additionally deal with considerable delays, difficulties in obtaining professional representation, differences in national patent laws, inconsistent results and the particular problems of the developing world. Should Congress decide to address this issue, legislative options for addressing the multinational patent system include offering financial support to inventors, assessing the impact of legal harmonization, reviewing patent office worksharing initiatives, providing technical assistance for foreign patent officials, and considering the propriety of an international agreement pertaining to patent enforcement.