Be sure new patent rules don’t threaten America’s inventors

I recently attended a screening of the newly-released documentary Inventing to Nowhere. This film discusses the significance of America's patent system and some of the challenges facing our nation's inventors, including those in Iowa.

As a small-business owner, new patent holder, member of the Iowa Inventor's Group and committee member for the Iowa Association of Business and Industry, I have developed a unique perspective on this important issue. My experience has shown me how patent reforms could harm inventors and small businesses, and has revealed to me the importance of preserving a system that continues to support our nation's innovators.

America has long been an innovation hub thanks to a system that encourages and rewards those willing to take risks for their great ideas. Our country's patent system has helped inventors succeed for almost 200 years by affording them crucial rights and protections under federal law. The groundbreaking inventions brought to market by patent holders also enrich the lives of many throughout the country. This simply would not be possible without a system that secures the property of hardworking patent holders.

Our strong patent system also promotes economic growth and stimulates job creation here in the Hawkeye State and across the country. In fact, the start-ups that account for much of America's patent activity generate 10 percent of all new U.S. jobs every year. This not only provides meaningful work for a wide range of people, it keeps America globally competitive.

However, our inventors are now facing an increasingly difficult environment in which to operate as lawmakers consider sweeping reforms to our proven patent system. These proposed modifications have the potential to inhibit economic growth, slow job creation, hurt small businesses and ultimately stifle innovation.

Prior legislation has rightly addressed malicious patent activity with targeted measures that would not weaken our patent system or the rights of patent holders. These proposals would specifically target abusive demand letters, an otherwise legitimate form of communication used by patent holders to protect their property. The proposed measures would require those issuing demand letters to be forthcoming about who owns the patent and the ways in which the patent is being infringed upon, and provide valid contact information should there be any follow-up questions on their assertions.

Such legislation would set federal guidelines to replace piecemeal state-based legislation regulating demand letters, providing consistency and clarity among all stakeholders. These are common-sense reforms that genuine patent holders would undoubtedly welcome, and would be effective in combating harmful patent practices.

With the new Congress already hard at work, I ask Iowa's delegation to consider the implications of overly broad changes to our patent system before casting votes on the issue. Inventing to Nowhere shines a light on the devastating impact such reforms could deliver to our innovative culture, and illustrates the overwhelming need to protect the American inventor.

' Sam McCord is founder and CEO of MCG BioComposites & MCG BioMarkers in Cedar Rapids. Comments: mccord@mcgbiocomposites.com