Patent Reform Opponents Send a Letter to President Obama
Over 130 manufacturing companies in the United States endorsed a letter urging the Obama administration to stop patent reform. The manufacturing companies are concerned about the patent reform proposals and the consequences that they would have to the competitiveness of the market. Although it is unclear exactly what reforms the Obama administration is planning on taking, this letter may simply be used as a reminder to President Obama of the support he received from labor and manufacturing sectors as he makes his decisions. Surely Obama will also receive letters supporting patent reform from other anti-patent organizations.
Many of the concerns of the manufacturers are as follows. The letter states that the manufacturers “feel strongly that the prosperity of a few companies within two industries should not come at the expense of a larger group of stakeholders.” They also turned to a recent student that focused on the impact of apportionment legislation and stated that this change would “put at risk up to 298,000 manufacturing jobs and reduce R&D by up to $66 billion. This would be a negative outcome even when our economy is strong; at a time of economic crisis, it would be tragic.” The letter also addresses the issue of increased patent litigation by stating that in fact there has been no explosion in litigation. “In 1993, lawsuits were 1.45% of patents granted. In 2007, lawsuits were 1.48% of patents granted.” The manufacturers also stated that there is no explosion in patent damage awards. “In constant dollars, the median was $3.9 million from 1995 through 2000, and $3.8 million from 2001 through 2007.” In closing the letter stated that “we do not oppose all legislative efforts to improve the patent system, but we feel that any legislative changes should benefit the broad spectrum of patent stakeholders.”
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