H.R. 2655, Small Business Innovation Protection Act of 2017

Floor Situation

On Tuesday, July 10, 2018, the House will consider H.R. 2655, the Small Business Innovation Protection Act of 2017, under suspension of the rules. This bill was introduced on May 25, 2017 by Rep. Dwight Evans (D-PA) and was referred to the House Committee on Small Business, which ordered the bill reported by voice vote on March 14, 2018.

Summary

H.R. 2655 requires the Small Business Administration (SBA) and the United States Patent and Trademark Office (USPTO) to enter into partnerships to leverage existing outreach programs to educate more small businesses on domestic and international patent protections.

Background

In the United States, intellectual property (IP) enjoys strong legal protections and rights through copyrights, patents, and trademarks. Intellectual property rights are essential in encouraging entrepreneurship. Entrepreneurs and small business owners have generated more than 63 percent of new jobs over the last two decades, and small businesses represent about 96 percent of employer firms in high-patenting manufacturing industries. Small businesses in the United States are at a particular disadvantage, however, because they may lack the knowledge, expertise, or resources necessary to prevent the theft of their ideas and products. In fact, research conducted by the USPTO found that only 15 percent of small businesses that conduct business overseas know that they need to file for IP protection abroad. Many small businesses also may not have personnel and operations overseas, so they lack the “eyes and ears'' needed to be vigilant globally, and the theft of their IP can often go undetected. In addition, small businesses generally do not have the level of access or the resources, such as specialized legal counsel, that may be available to larger companies.[1]

In 2012, the SBA and USPTO released a joint report on international patent protection for small businesses. The report found that many small businesses may benefit from extending patent rights outside the United States, but few were aware of the necessity or the mechanisms available to accurately and effectively pursue an international patent. The report determined that the USPTO and the SBA are well positioned to build upon several successful current intellectual property education and training programs in order to reach more small businesses.[2]

This bill would provide training by both the SBA and USPTO for small businesses needing to learn about IP to protect themselves from both domestic and international harm. By leveraging existing intellectual property education and training programs, small businesses will have the network of small business development centers through the SBA and the critical programming at the USPTO available to start and grow their businesses.[3]

Cost

The Congressional Budget Office (CBO) estimates that the costs to implement H.R. 2655 would not be significant.

Staff Contact

For questions or further information please contact Ryan Hofmann with the House Republican Policy Committee by email or at 2-6674.