Innovation drives Minnesota’s economy — Congress should support it
When it comes to discoveries and inventions, Minnesota ranks among the top ten American states — with over six patents for every 10,000 residents. It is also home to 17 Fortune 500 companies, the fourth most in the nation by population.
At the heart of the incentive to innovate is intellectual property protections. Patent rights ensure that inventors reap the rewards of their discoveries — the result of untold hours of toiling away, setbacks, and money.
The North Star State ranks in the top 10 states for patent activity across 17 sectors. Its status as an innovation hub spans many industries — from Medical Alley, the world’s leading health technology cluster, to industry giants like IBM and 3M, whose product lines and R&D support great jobs in and out of Minnesota. Nationwide, IP-driven industries contribute nearly $8 trillion in gross domestic product and support over 47 million jobs.
Firms are able to make investments of time, personnel, and money in new and unproven technologies because they have confidence that patents protect their products from copycats. But right now, patent protections are under attack on multiple fronts.
In 2011, Congress enacted a law that created a new tribunal at the U.S. Patent and Trademark Office to streamline patent challenges. The Patent Trial and Appeal Board was intended to provide a more efficient alternative to the federal court system for patent owners and patent challengers to resolve their disputes.
In practice, the PTAB has become a forum for large companies — particularly in the tech sector — to weaponize their financial and legal resources against smaller competitors. Under current rules, big corporations can file multiple challenges to a single patent at both the PTAB and in federal court. These duplicative challenges wear small businesses down and force them to divert valuable resources away from R&D.
Meanwhile, a series of misguided Supreme Court rulings decreed certain categories of high-tech inventions ineligible for patents. These decisions have stifled progress in industries crucial to Minnesota’s economy — such as medical technology and advanced computer software. In the five years following the rulings, eligibility concerns led to the abandonment of some 1,300 patent applications.
In response to these ongoing threats, state industry leaders, like 3M’s chief legal officer, Kevin Rhodes, have sounded the alarm, warning that “patent enforcement has become more costly, protracted and uncertain for patent holders.” If we allow the current confusion and abuse to continue, Minnesota’s standing as an international leader in innovation could erode.
Thankfully, Congress has the power to fix these problems and is now considering two bipartisan bills that would make a big difference. The Promoting and Respecting Economically Vital American Innovation Leadership (PREVAIL) Act would address the imbalances in the PTAB system, leveling the playing field so that smaller players have a fair chance to defend their patents against large, well-funded corporations.
The Patent Eligibility Restoration Act (PERA) would clarify that inventions are indeed eligible for patent in areas the Supreme Court closed down based on its narrow reading of existing law. PERA would assure researchers, entrepreneurs, investors, and the courts that transformational technologies like rapid blood tests and AI-integrated software are indeed eligible for patent protection and are once again safe to invest in.
Minnesota’s congressional delegation can help safeguard both Minnesota’s economy and America’s technological competitiveness by lending their support to these bipartisan bills.
— Gary Locke is the former U.S. ambassador to China, U.S. secretary of commerce, and governor of Washington.
