Pending patent troll legislation (HR9)
I recently wrote to my Congressman to express my opposition to H.R. 9, the so–called Innovation Act, which I believe will harm the American economy by directly threatening the existence of innovative small businesses such as Cadenza Innovation. The H.R. 9 bill as currently drafted remains heavily anti–innovation and will impact both Connecticut’s and the nation’s ability to create jobs.In my opinion, the primary impact of H.R. 9, far from being “anti–troll”, will be anti–small business and innovation. Essentially, the bill makes it riskier and more expensive not only to obtain a patent, but also to assert a legitimate patent. The resulting costs and risks will severely impair the business models of small technology companies, making commercialization of innovations more expensive, riskier and ultimately less likely. The “loser pays” clause is particularly damaging to any small business that already faces a daunting and expensive process for redress through the courts against a large multinational company it believes to be infringing its patents. Under H.R. 9, were the small company to lose such a law suit, it would be expected to pay not only its own costs but also the large multinational company’s costs which would likely bankrupt any small business. The net effect would be reduced economic viability of small innovative technology companies and further concentration of America’s industry. While the “loser pays” clause may be “anti–troll”, its broad reach solves the wrong problem and runs the major risk of significantly deterring innovative small businesses such as Cadenza Innovation. I agree that there are abuses in the current patent system, but believe that Congress can work with the National Small Business Association (NSBA) along with other stakeholders to ensure that we do not curb abuse at the expense of our most innovative individuals and businesses. The key flaw of H.R. 9 is that it strikes at trolls and legitimate high tech small businesses at the same time.
Congressman Jim Himes (D-CT) visiting Cadenza Innovation
US Congressman Jim Himes, representing Connecticut’s 4th District – where both our Technical Center and Corporate Headquarters are based – accepted my invitation to visit our facilities in Oxford where Team Cadenza demonstrated the best–in–class innovation that is going on right here in Connecticut.