On Monday May 2, the National Academies of Science officially released its long-awaited study of “copyright in the digital age.” The paper spends considerable time discussing and praising the important role that empirical data from various patent studies played in consideration and passage of the American Invents Act. We could not agree more. The data from these studies demonstrated the need for patent reform to address the significant problems caused by patent trolls. The AIA was an essential step in addressing these problems but the problems have gotten worse and have morphed– and the data has backed this up. In a 2011 study, James Bessen and Mike Meurer concluded that that lawsuits by patent trolls are associated with half a trillion dollars of lost wealth to defendants from 1990 through 2010. In a study in 2012, they estimate the direct costs to defendants arising from patent troll litigation at $29 billion in 2011. The GAO study on the economic effects of patent trolls – mandated by Congress in the AIA will be released soon. It is likely that this study will also demonstrate that additional patent reforms are needed to address the troll problem.
There does not appear to be any “silver bullet” solution to this problem. SIIA and its members are looking at a variety of different approaches to address the problem. But the need for such reforms is solidly supported by neutral empirical economic research.
The NAS paper is not about patent reform. It’s about the need for empirical data on copyright. We support the conclusions of the NAS paper – that more empirical data on import at copyright issues is needed. It is imperative that such data be generated by unbiased neutral parties. Empirical data on such issues as licensing efficiencies, enforcement problems and data and text mining, to name just a few, would go a long way to providing a better understanding of the role that copyright plays in these issues and whether and what type of copyright reforms might be necessary or appropriate. As House Judiciary Committee Chairman Bob Goodlatte considers a series of hearings to explore the extent of possible reforms, SIIA urges that comprehensive changes be based to the greatest extent possible an empirical foundation.
Keith Kupferschmid is General Counsel and SVP, Intellectual Property Policy & Enforcement at SIIA.
Ken Wasch is President of SIIA. Follow the SIIA Software team on twitter at