State of Innovation

Patents and Innovation Economics

America Invents Act H.R. 1249 Passes House

The America Invents Act passed the House with a vote of 304-117 Thursday, 6/23/11, night.  The House (H.R. 1249) version differs from the Senate version (S.23) so the passage of the Act is not a done deal.  The major difference was the House version stripped provisions stopping fee diversion.  Some people are optimistic that the Bill will die in conference because of these differences.  I hope they are correct, but I am not optimistic.

This Act is the greatest weakening of property rights in the history of the United States.  This Act will ensure that America will suffer declining levels of innovation, chronic high employment, falling wages, and anemic economic growth.  Increasing our level of technology is the only way to increase real per capita incomes.  This lack of growth will result in the United States going through a major financial crisis within the next four years, which will lead to a great depression.  Most economists will not predict this or understand it after the fact, because most economists confuse money with wealth.  They think that by manipulating the money supply and tinkering with tax rates you can create economic growth.  Those few economists who understand that increases in technology are the only way to sustained economic growth, often do not understand the importance of property rights.  Their lack of understanding will not save the United States from the consequences of its actions.

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June 24, 2011 - Posted by | Patents | , ,

8 Comments »

  1. Now the question arises from the dark shadowed corners: What hath God wrought?

    http://thomas.loc.gov/cgi-bin/query/r?r112:@OR+%28+@1%28H.R.+1249%29++@1%28H.+R.+1249%29++%29

    Comment by step back | June 24, 2011 | Reply

  2. My guess is that those economists who view technology as important to generating wealth but don’t understand the role of property rights in generating wealth see it in terms of creating jobs and the necesity for a highly trained workforce. Meaning they see education as job security. They are only thinking in terms of selling hours of service. A simple analogy I think they can learn from is renting a car. The property right of the car can be likened to intellectual property rights. The rent a car company must charge enough to pay for the wages of the employees including skilled mechanics plus pay for the property of the car. If the car is eliminated as property you are only left with the smaller economy of the wages. Take away IP and where are all those people going to work? There will be too many people looking for jobs and the economy will tank even further. The “America Invents NOT Act” is the wrong marketing approach to counter this bill. In today’s economy it must be sold as a jobs killer. More property equals more jobs. Less property equals less jobs. “Jobs” is the current buzzword of today. It’s already in people’s minds. You don’t have to teach them anything to make them understand that. No politician can afford to be known as the jobs killer. Gone will be the days of when a telagraph operator (Edison) invented broadband. Gone will be the days of when a bicycle mechanic invented controlled flight (Wright Brothers). Gone will be the days of when a teacher of deaf students invented teh phone (Bell). Don’t we want the same opportunities as Americans from the past? The economy should be managed in a manner that allows as many people as possible to afford to do research and experiments. The fewer the number of people doing this the slower job growth will be.

    Comment by Matthew Artero | June 24, 2011 | Reply

    • Interesting. Unfortunately, jobs is mixed issue since we would have full employment immediately if we just outlawed tractors and welfare. We want good high paying jobs, not just jobs.

      Comment by dbhalling | June 24, 2011 | Reply

  3. There is much in the way of Kabuki dancing by the politicians and buzz word noise making by economists (i.e. jobs, innovation, wealth creation), but how many out there have read the actual language of the Bill (1249) and figured out what it might mean after a judge gets his/her hands on it?

    SEC. 3. FIRST INVENTOR TO FILE.

    (a) Definitions- Section 100 of title 35, United States Code, is amended–
    `(i)(1) The term `effective filing date’ for a claimed invention in a patent or application for patent means–

    `(A) if subparagraph (B) does not apply, the actual filing date of the patent or the application for the patent containing a claim to the invention;

    `(j) The term `claimed invention’ means the subject matter defined by a claim in a patent or an application for a patent.’.

    `Sec. 103. Conditions for patentability; non-obvious subject matter

    `A patent for a claimed invention may not be obtained, notwithstanding that the claimed invention is not identically disclosed as set forth in section 102, if the differences between the claimed invention and the prior art are such that the claimed invention as a whole would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains. Patentability shall not be negated by the manner in which the invention was made.’.

    Comment by step back | June 25, 2011 | Reply

  4. The Patent Reform Bill is the sell out by the bribed politicians of the US economy . For years foriegners have come to the United States to patent their ideas , with this bill that is over , just for starters . We have a bunch of bribed as- hole politicians that have no brains and are listening to Chuck Shumer who recieved over $20 million to write this bill , not a politician but a crook who for his own pocket is selling out this counrty BIG TIME . The truth is if this bill passes your children will be making toys for the Chinese . Take a look at section 18 another bailout for the banks , what a farce. Datatreasury spent over 10 years in litigation and having their patents challenged twice pure bull shit to take away their patents and give the banks another opportunity to rob delay . THIS BILL IS ROTTEN , CHUCK SHUMER IS GARBAGE , nothing less than a paid off thief . The Government should ask the PATENT DEPARTMENT EXECUTIVES how to improve not assholes that are selling us out , UNFORTUNETLY IT IS NOT A JOKE .

    Comment by fred baum | July 3, 2011 | Reply

  5. The Patent Reform Bill is the sell out by the bribed politicians of the US economy . For years foriegners have come to the United States to patent their ideas , with this bill that is over , just for starters . We have a bunch of bribed as- hole politicians that have no brains and are listening to Chuck Shumer who recieved over $20 million to write this bill , not a politician but a crook who for his own pocket is selling out this counrty BIG TIME . The truth is if this bill passes your children will be making toys for the Chinese . Take a look at section 18 another bailout for the banks , what a farce. Datatreasury spent over 10 years in litigation and having their patents challenged twice pure bull shit to take away their patents and give the banks another opportunity to rob delay . THIS BILL IS ROTTEN , CHUCK SHUMER IS GARBAGE , nothing less than a paid off thief . The Government should ask the PATENT DEPARTMENT EXECUTIVES how to improve not assholes that are selling us out , UNFORTUNETLY IT IS NOT A JOKE .

    Comment by john smith | July 3, 2011 | Reply

  6. surrey…

    […]America Invents Act H.R. 1249 Passes House | Blog of Dale B. Halling, LLC – Intellectual Property & Patent Innovation, Attorney – Powered by Clvr.Tv[…]…

    Trackback by surrey | March 9, 2012 | Reply

  7. Larissa81…

    […]America Invents Act H.R. 1249 Passes House | Blog of Dale B. Halling, LLC – Intellectual Property & Patent Innovation, Attorney – Powered by Clvr.Tv[…]…

    Trackback by Larissa81 | November 25, 2012 | Reply


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