Clvr.Tv
Rss Feed
Linkedin button

Posts Tagged ‘patent fee diversion’


Paul Ryan: Good or Bad for Patents, Tech Startups and the Economy

Congressman Paul Ryan has been selected as the vice presidential running mate of Mitt Romney.  Many in the Republican Party have hailed him as true advocate of free market principles.  Unfortunately, his voting record is much more conventional than we have been led to believe.

Congressman Ryan voted for the America Invents Act (AIA).  This Act was laden with crony capitalist gifts for Wall Street, Big Pharma, and large corporations at the expense of startups and individual inventors.  The Act was widely criticized as being unconstitutional.  This was more than enough reason to vote against the AIA, but Paul Ryan led the charge to gut the only redeeming feature of the Act – namely ending fee diversion.  When I called Congressman Ryan’s office to ask why they were doing this, they responded that it was important to balancing the budget.  REALLY, in a $3 trillion federal budget the $100M or so you are stealing from inventors is going to make the difference?  This is less than 0.1% of the federal budget.  This is less than we give to Egypt or the UN or any number of other extra-Constitutional spending.

I pointed out that the PTO was a self funded agency, meaning no tax dollars are used to fund its operation.  Diverting the money of inventors and using it for another purpose is conversion (stealing).  Their response was how is this any different than putting the fee you pay to enter a National Park going into the general treasury?  There are a number of differences.  First, when I pay a fee to enter a National Park, I immediately get the service I paid for.  In the case of patents, inventors have to routinely wait from three to ten years to get the service they paid for.   Second, National Parks were created with federal funds, but inventions are created with private funds.  Even the Patent Office was created with private funds, since it is a self funded agency and always has been.  If a private company or an attorney did what the federal government does with patent fees it would charged with fraud and conversion.  This attitude that the federal government is above the law is exactly what is wrong with our country Mr. Ryan.

Ryan is bad for patents

Congressman Ryan voted for Sarbanes Oxley.  SOX has made it impossible for startups to go public, which has made it very difficult for startups to raise money.  Historically, most of the growth and job creation of startups occurs after they go public.  The Kaufman Foundation has shown that all net new jobs since 1972 have been created by startups.  To the best of my knowledge, Congressman Ryan has not said he is in favor of repealing SOX.  This means he is bad for technology startups and bad for job creation.

Ryan is bad for startup funding

Paul Ryan is widely praised for coming up with a plan to reduce our budget deficit.  Since government spending crowds out money that could be used to fund startups, this is good.  As part of this proposal he has a plan to rein in entitlements, such as medicare, medicaid and social security.  In spite of this, Congressman Ryan voted for medicare part D.  The question is which Paul Ryan will show up if he becomes VP.

Ryan also voted for TARP, for the bailout of GM and Chrysler, for the economic stimulus of 2008 and 2009, and for extending unemployment benefits to 59 weeks.

Ryan deserves credit for advancing a fairly realistic plan to reduce the budget deficit, but even this plan does too little to cut the deficit.  It’s goal is to reduce federal spending to 20% of GDP in about four years.  It is unlikely that we have four years before we are hit with massive inflation, which will more than double our interest payments on our debt and break our budget.  In addition, his voting record shows that he is unlikely to have the backbone to follow through with even this weak proposal.

Ryan is not a fiscal Conservative

Ryan has put forth a moderate plan to rationalize our tax system.  It does not go far enough, but it is his most pro-growth proposal.

The Problem with Supply Side Proponents

Supply side proponents (SSP) such as Larry Kudlow are ecstatic with the choice of Paul Ryan.  The problem with SSPs is that they do not understand that the only way to continually increase real per capita income is to continually increase our level of technology.  This means we need to eliminate the barriers to the capital markets for technology startups.  This means we need a well functioning system of property rights for inventions.  It also means we need to reduce the tax burden on startups, reduce their regulatory burden, legal risks, and accounting rules biased against them.  But Paul Ryan does not seem to understand this and neither do most supply siders.  As a result, it is unlikely that Paul Ryan and Mitt Romney will be able to put  the US on a sustainable path to growth.

Paul Ryan will be better than Obama or Biden

Unfortunately, this is damning him with faint praise.  Don’t be surprised if Paul Ryan turns into a Bush disappointment instead of a Ronald Reagan.   (Note I hope I am wrong and have to eat my words)

 
The Federal Government’s Contempt for Patent System and Constitution

The Solyndra scandal  demonstrates the Federal Government’s complete contempt for the Patent Office and the Constitution.  The bankruptcy of Solyndra means that the federal government will have to pay out $535 million in loan guarantees.  This means a single, politically connected company is going to absorb over half the shortfall in the Patent Office funding over the last two decades.  If that money had been spent on the Patent Office it would have benefited thousands of companies and creating millions of jobs.  Instead, this $535 million resulted in the employment of about 500 employees over a couple of years.

The right of inventors to their inventions, patents, is guaranteed in Article 1, Section 8, Clause 8 of the Constitution.  The only rights mentioned in the original Constitution are the rights of inventors and authors.  Congress has stolen over $1 billion in user fees from the patent office in the last two decades.  The Patent Office is the only self funded agency in the federal government.  This theft represents a tax on innovation and jobs.  It now takes 3 years on average to obtain a patent and in areas of more complex technology it is not unusual for it to take 5-10 years to obtain a patent.  If it took that long to obtain title to your house or car or stock you would think you were living in a third world country.  Justice delayed is Justice denied.

The federal government thought it was a lot more fun to play venture capitalist for a green energy company than fulfill its Constitutional duties.  Nowhere in the Constitution is the Federal Government given the power to play venture capitalist and this company is in no way is related to our national defense.  This is a stark case of how far our government has strayed from the Constitution.  They are funding companies without legal authority to do so and stealing user fees from the Patent Office which is their Constitutional responsibility.

The only way to increase our real per capita income is to increase our level of technology.  In the United States that means we have to invent.  Without a patent most technology startup companies cannot obtain funding.  Without funding they do not create the new technologies that create high quality jobs and increase our standard of living.

 

 
Patent Office Fees an Unconstitutional Tax

Congressman Paul Ryan[1] and Congressman Hal Rogers’ argument that ending Patent Office fee diversion is a sham.  The Congressmen point to Article 1, Section 9, Clause 7, which states:

 

According to the Milwaukee Journal Sentinel http://www.jsonline.com/business/120673029.html, Congress, has just decided to steal another $100 million from the Patent Office, which is really stealing from US inventors.  We don’t need financial reform or Sarbanes Oxley for the private sector we need if for Congress and the President.  All of them would be in jail if they pulled this stunt in the private sector.  The morality of the public sector has fallen to a new low.  One result appear that the USPTO will have to impose a hiring freeze.  This is just more evidence that Congress is not serious about its Constitutional duty of protecting the Rights of Inventors.

 

Subscriber Count

11

Advertise Here

Your Ad

could be right

HERE

find out how

Donations

Coming Soon
 

Subscribe