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The Profession Inventors Alliance Viewpoint

PIAUSA's position is that this legislation is nothing more than pork for the benefit of companies whose business model is to steal others' inventions. These companies have used patent office problems as cover to advocate gutting America's patent system.

The legislation is not addressing the real problem. It is our patent office which is broken, not the patent system. The essence of the problem in the patent office is incompetent, self serving & corrupt management which is harming examiners, inventors, and the country collectively.

The solution is to either kill the bill outright or to replace the bill in its entirety with a managers' amendment which addresses fixing the USPTO.

Independent Inventors and small businesses make a disproportionate contribution to society and the advancement of the arts. To many of these smaller entities, the patent system can be problematic relative to larger companies ("The big guy"). The Small Business Association has compiled data relative to the contributions made by "the small guy".  Read More...

Small Business Association Study  PDF 107.35 kB

CHI Research is pleased to present to the Office of Advocacy of the Small Business Administration the results of our study of small patenting firms. Our research examined all 1,071 U.S. firms with 15 or more patents between 1996 and 2000. We have found that:

  • The small firm share of U.S. patenting is simila r to their share of manufacturing employment – 41%
  • Small firms produce more highly cited patents than large firms on average. Small firm patents are twice as likely as large firm patents to be among the 1% most cited patents. That is, small firm patents are on average more technically important than large firm patents.
  • Small patenting firms produce 13-14 times more patents per employee as large patenting firms.
  • The small firms are younger than the large firms, but are not new startups. Persistence distinguishes these patenting small firms from innovative small firms in general. We think of these small firms the "serial innovators," a term suggested by Leigh Buchanan at Inc magazine.
  • Small firm patenting is very strong in health technologies and gaming, and there are a large number of small firm innovators in parts of information technology.
  • Small firm innovation is twice as closely linked to scientific research as large firm innovation on average, and so substantially more high-tech or leading edge.
  • Small firm innovation is more extensively linked to outside technology while large firms build more their own technology.
  • Small firm innovators are more dependent on local technology. Small firms are effective innovators. Small firms may well be most important to our economy as agents of change (Audretsch, 1995) signaled by the fact that the small firm contribution to innovation is most intense in new technologies. Small firms often pursue leading-edge technical niches. Any barriers to their participation in new technologies or exclusion from policy development concerning those technologies would be most unfortunate.

Complete CHI Research Study  PDF 913.37 kB