Kristen Smith
The Trump administration’s actions related to American intellectual property could completely restructure the U.S. innovation ecosystem, according to Keegan Caldwell, the founder and managing partner of global law firm Caldwell.
In an opinion piece published Friday, Caldwell described Trump’s nomination of John Squires, former chief IP counsel at Goldman Sachs, for director of the U.S. Patent and Trademark Office and the confirmation of Howard Lutnick, who Trump nominated as secretary of the Department of Commerce, as a pro-patent stance.
Such actions, made in the first 100 days of the administration, laid the groundwork for a potential “shift in US IP policy,” Caldwell said, noting that two Congressional bills could significantly contribute to major changes in the patent system if Trump gets behind them.
PERA and PREVAIL Act Promote U.S. Innovation
The Patent Eligibility Reform Act limits judicial exceptions and clarifies that useful processes, machines, manufactures or compositions of matter are presumptively eligible for protection, addressing the confusion resulting from 2012 and 2014 Supreme Court rulings that restricted patent eligibility for innovations in software and medical diagnostics, the executive explained.
The Promoting and Respecting Economically Vital American Innovation Leadership Act would reform how the public can challenge patents, including by preventing multiple actions against the same patent and ensuring different judges handle the Patent Trial and Appeal Board and final decision phases.
IP Policy Reforms’ Impact on Innovation Hubs, Startups
According to Caldwell, the IP system overhaul resulting in stronger patent protections could advance innovation hubs, including Massachusetts’ biopharma sector, and early-stage ventures seeking investment capital, noting that startups with strong patent positions have a high success rate in securing funding.
Despite the advantages, some oppose the proposed bills due to their potential to increase litigation and extend pharmaceutical monopolies that could delay generic competition and lead to higher drug prices.
The Role of Legal Community in U.S. Innovation
Caldwell urged the legal community to step up and help shape IP policies, noting how decisions about protecting innovation will “make or break America’s competitive edge.”
“When we speak up based on real-world experience, we can prevent unintended consequences that might look good on paper but hurt businesses in practice,” Caldwell said.
