it's amazing to me how often our government takes a perfectly good idea--for example, Startup America, designed to encourage innovation--and then screws it up big time. At the same time the
White House was announcing all the programs that Peter talked about in his recent post (Ready. Set. Startup America), it also announced a new way for business to fast-track the patent process. On the surface, this seems like a good thing, but look a little closer.
Anyone who has had to deal with the USPTO (U.S. Patent and Trademark Office) knows that it's a long, expensive, and excruciating process that takes about 35 months. Patents are handled on a first-come, first-served basis, which seems only fair. But now, our government has decided that to spur innovation, you can get a fast-tracked application by paying $4,000 in addition to processing fees of $430 instead of the $1,090 it currently costs to file. This is supposed to encourage businesses to prioritize their patent applications and get to market more quickly. According to the Wall Street Journal, Secretary of Commerce Gary Locke is quoted as saying that it's designed to "dramatically lower the time" to secure a patent, thereby making it easier for entrepreneurs seeking capital. Of course, what no one seems to recognize is that the unintended consequence of this new program is that large companies flush with cash can run to the head of the line, pay the extra costs, and leave the little independent inventors, who are cash-strapped, in the dust..
While it's true that small businesses produce 13 times more patents than large firms (SBA), those numbers have been declining because the overall cost of patenting is so high, generally around $25,000 when you get finished paying your attorney. So is this going to help "Startup America"? Only time will tell. According to some, nothing is going to change until the costs come down and the USPTO hires more examiners. For those who want to get into the race (they'll only fast track 10,000 applicants), the program launches in March.
