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Advocacy Reports on the Potential Impacts of the AIA on Small Business

Tuesday, June 16, 2015  
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cid:image002.jpg@01D0A80B.9AC0AF10

For Release: June 16, 2016                                                                                                                           

SBA Number: 15-03 ADV                                                                               

 

Contact: Elle Patout

Elle.Patout@sba.gov

 

Advocacy Reports on the Potential Impacts of the AIA on Small Business

 

WASHINGTON – Today, the Office of Advocacy, an independent office within the U.S. Small Business Administration, released a report entitled The Leahy-Smith America Invents Act: A Preliminary Examination of Its Impact on Small Business by the Bella Research Group.  The Leahy-Smith America Invents Act of 2011 (AIA) instructed the Office of Advocacy to study the economic outcomes of the shift from a first-to-invent system (FTI) to a first-inventor-to-file (FITF) system.  In the absence of robust patent licensing data, the study strives to report the outcomes by looking into stock market prices at different times during the legislative process, analyzing changes in venture capital funding, and using Canada’s experience post-change to an FITF system as a case study.

 

            “It is always tough to get conclusive results before fully representative data can be collected,” said Christine Kymn, Chief Economist and Director of Economic Research.  “While today’s report does show a relative drop in patents for small businesses in Canada, we cannot conclusively state the outcome for small businesses in the United States.  In fact, we would recommend researchers pursue this topic in a minimum of five years in order to have the necessary data.”

 

Conclusions of the report include:

·         The available data did not shows signs of growth or decline in patent sector post-AIA;

·         This report found that after a policy change similar to the AIA in Canada, there was a greater disparity in patent ownership between large and small firms;

·         This report found no statistically significant differences between small and larger businesses in the stock market’s reaction to the AIA; and

·         This report found no statistically significant differences in venture capital funding in terms of patent intensity of industry subsectors.

 

The magnitude of these outcomes is particularly important to small businesses as some rely on patents to raise capital and may utilize intellectual property as a source for revenue and growth. 

 

For the detailed report and report summary, click here

 

Background:  The Leahy-Smith America Invents Act of 2011 is considered by some to be the largest change in patent policy in over a half a century. Part of the AIA shifts US patenting from a first-to-invent (FTI) to a first-inventor-to-file (FITF) system eliminating the use of dates of invention in determining who receives a patent. This policy change has the potential to have widespread impacts on how patents are acquired, utilized, and protected. The intricacies of the AIA and the way that patents contribute to the broader economy means that this change would yield different economic impacts to businesses of different sizes and industries. While the FITF shift was made effective in 2013, natural delays in the patenting process and likely forthcoming legal challenges meant that only a small amount of post-AIA patenting data is available to analyze.

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The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. For more information, visit www.sba.gov/advocacy, call (202) 205-6533 or get updates on Twitter (@AdvocacySBA) or Facebook atwww.facebook.com/AdvocacySBA

 

 

cid:image002.jpg@01D0A80B.9AC0AF10

For Release: June 16, 2016                                                                                                                           

SBA Number: 15-03 ADV                                                                               

 

Contact: Elle Patout

Elle.Patout@sba.gov

 

Advocacy Reports on the Potential Impacts of the AIA on Small Business

 

WASHINGTON – Today, the Office of Advocacy, an independent office within the U.S. Small Business Administration, released a report entitled The Leahy-Smith America Invents Act: A Preliminary Examination of Its Impact on Small Business by the Bella Research Group.  The Leahy-Smith America Invents Act of 2011 (AIA) instructed the Office of Advocacy to study the economic outcomes of the shift from a first-to-invent system (FTI) to a first-inventor-to-file (FITF) system.  In the absence of robust patent licensing data, the study strives to report the outcomes by looking into stock market prices at different times during the legislative process, analyzing changes in venture capital funding, and using Canada’s experience post-change to an FITF system as a case study.

 

            “It is always tough to get conclusive results before fully representative data can be collected,” said Christine Kymn, Chief Economist and Director of Economic Research.  “While today’s report does show a relative drop in patents for small businesses in Canada, we cannot conclusively state the outcome for small businesses in the United States.  In fact, we would recommend researchers pursue this topic in a minimum of five years in order to have the necessary data.”

 

Conclusions of the report include:

·         The available data did not shows signs of growth or decline in patent sector post-AIA;

·         This report found that after a policy change similar to the AIA in Canada, there was a greater disparity in patent ownership between large and small firms;

·         This report found no statistically significant differences between small and larger businesses in the stock market’s reaction to the AIA; and

·         This report found no statistically significant differences in venture capital funding in terms of patent intensity of industry subsectors.

 

The magnitude of these outcomes is particularly important to small businesses as some rely on patents to raise capital and may utilize intellectual property as a source for revenue and growth. 

 

For the detailed report and report summary, click here

 

Background:  The Leahy-Smith America Invents Act of 2011 is considered by some to be the largest change in patent policy in over a half a century. Part of the AIA shifts US patenting from a first-to-invent (FTI) to a first-inventor-to-file (FITF) system eliminating the use of dates of invention in determining who receives a patent. This policy change has the potential to have widespread impacts on how patents are acquired, utilized, and protected. The intricacies of the AIA and the way that patents contribute to the broader economy means that this change would yield different economic impacts to businesses of different sizes and industries. While the FITF shift was made effective in 2013, natural delays in the patenting process and likely forthcoming legal challenges meant that only a small amount of post-AIA patenting data is available to analyze.

-###-

 

The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. For more information, visit www.sba.gov/advocacy, call (202) 205-6533 or get updates on Twitter (@AdvocacySBA) or Facebook atwww.facebook.com/AdvocacySBA

 


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