John Manchester
Director, IP Policy, Global Innovation Policy Center (GIPC), U.S. Chamber of Commerce
Published
August 04, 2025
(Note: The U.S. Chamber recently led a coalition letter to the leadership of the House and Senate Judiciary Committees expressing strong opposition to the rumored proposal. You can read the full letter here.)
Recently, a proposal has emerged for fining patent owners—essentially charging inventors based on how much their ideas are “worth.” This proposal could have serious adverse consequences for the American economy and American jobs, including disrupting the system that has helped the U.S. become a world leader in innovation and economic growth.
America’s Innovation System is Working
The United States is the global leader in innovation, with a track record of groundbreaking advancements that have transformed industries and improved millions of lives. From life-saving medicines to next-generation semiconductors, American ingenuity has driven progress in medicine, technology, and energy. This success is no accident—it’s the result of a robust innovation ecosystem, based on strong and stable protections for property rights that rewards risk-taking.
Fining Patent Owners is Unfeasible
A proposal to fine patent owners based on a "valuation" of their patents threatens to upend this thriving ecosystem. A government attempt to determine the "value" of a patent is inherently subjective and fraught with complexity. Patents often represent potential rather than immediate profitability, making valuation a moving target. Many products are subject to multiple patents and it can be very hard to determine how any particular patent, considered in isolation, contributed to the value of a particular product.
Moreover, fining patent owners based on the assessed value of their patents appears to raise serious legal questions. As reported, the proposal at issue would impose a fine or penalty in the form of a “patent fee” charged by the U.S. Patent and Trademark Office (USPTO). However, in section 10 of the America Invents Act, Congress has given USPTO only a limited amount of authority to charge patent fees. As USPTO explains on its website, “the aggregate revenue from the patent fees may only recover the aggregate estimated cost of the patent operations….” Imposing fees for other purposes, therefore, does not appear to be authorized by statute.
The Consequences: Fewer Innovations, Less Economic Progress
If this policy idea is implemented, and if it were to survive judicial review, the repercussions for America’s innovation ecosystem would be severe. America’s most innovative companies would likely retreat from the U.S. patent system, opting to keep many inventions as trade secrets rather than roll the dice with an unpredictable “valuation” process. Over time, innovation would flow to countries with more stable and hospitable frameworks for protecting property rights. This would have far-reaching consequences, including undermining the innovation economy that supports millions of jobs and jeopardizing national security by giving global competitors a strategic advantage.
The Bottom Line
America’s innovation ecosystem is a cornerstone of our economic strength, global competitiveness, and national security. Policymakers should focus on strengthening, not undermining, the legal and regulatory frameworks that have made the United States the world’s innovation leader and should reject any attempts to implement this proposal.
About the authors
John Manchester
Brad Watts
Brad Watts is the Senior Vice President at the U.S. Chamber of Commerce's Global Innovation Policy Center (GIPC). He works with U.S. Chamber members to foster a political, legal, and economic environment where innovators and creators can invest in the next big thing for the benefit of Americans and the world.
