Protecting Intellectual Property

Both private inventors and federal agencies that fund research and development (and resulting inventions) must navigate a complex federal system that works to protect inventions with intellectual property. This system is critical in driving innovation in health care, energy, defense, and other industries, and ensuring the nation’s competitiveness on a global scale.

However, there are many opportunities to improve how the federal government protects intellectual property.

For instance:

• Trademarks. A trademark is a word, phrase, or symbol that identifies a product or service. Trademarks registered with the U.S. Patent and Trademark Office (USPTO) must be tied to goods or services that are being sold. In recent years, an influx of applications included many trademarks that aren't in use. Registrations for such trademarks may include false or inaccurate claims and could be fraudulent. In 2022, USPTO started allowing challenges to registrations, which led USPTO to remove thousands of trademarks that aren't in use from the register. But there could be up to 1 million more. 
• Licensing federal research. Billions of taxpayer dollars are invested in researching and developing inventions at universities and federal labs, including Department of Energy (DOE) labs. Federal agencies can license the patents on these federal inventions to private companies, which then work to bring them to market. But companies can face barriers, such as the “valley of death”—a gap between the end of public funding and the start of private funding. And DOE is concerned that foreign companies may obtain these technologies, to the detriment of U.S. companies and jobs.
• Drug development. Federal research and inventions often support public health, such as by contributing to the development of lifesaving drugs, vaccines, and medical devices. For instance, federally funded research into remdesivir, the first drug approved by the Food and Drug Administration to treat COVID-19, helped to quickly bring that drug to market. Federally funded research has supported thousands of patents. However, it can be hard to determine how specific agencies’ research funding has contributed to patents for new drugs and treatments. The National Institutes of Health and the Departments of Defense and Veterans Affairs could take steps to increase transparency related to their contributions to drug development.
• Patent disputes. Patents grant inventors certain rights related to their inventions, and sometimes disputes about patents arise. In 2012, USPTO’s Patent Trial and Appeal Board (PTAB) was formed as an alternative to federal courts for patent disputes. But USPTO could increase transparency related to PTAB decisions.

Examples of Intellectual Property Rights Contained in a Guitar

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• Counterfeits. Infringement of intellectual property rights through the illegal import and distribution of counterfeit goods harms the U.S. economy and can threaten the health and safety of consumers. U.S. agencies have undertaken various activities to enhance enforcement of intellectual property rights. For instance, U.S. Customs and Border Protection leads efforts to stop imported counterfeit goods at the border. However, the agency needs to do more to evaluate the results of its activities.
• Weapons systems. Securing intellectual property rights is important for the Department of Defense’s (DOD) ability to maintain its weapons systems. Purchasing intellectual property rights, rather than relying on contractors, gives DOD more options for keeping its aircraft, ships, submarines, and missiles running smoothly. However, buying these rights comes at a higher cost. It is crucial for DOD to weigh the tradeoffs of procuring intellectual property rights and to establish an intellectual property strategy. DOD has not developed an overall intellectual property strategy for its F-35 aircraft—a weapon system with an estimated life cycle cost of $1.7 trillion. DOD’s lack of access to intellectual property (e.g., software, drawings, and specifications) and thus heavy reliance on specific contractors has limited its ability to manage the F-35 program in a cost-effective manner. DOD also needs to consider intellectual property issues as they relate to F-35 aircraft maintenance challenges.