Scientific Opinion Poll: Kentucky Small Businesses Support Legislation Reforming Nation's Patent System

Washington, DC̢??‰۝A scientific opinion poll released today shows Kentucky small business owners agree our nation̢??‰?s patent system needs to be reformed and support current legislation that would strengthen it, while protecting small business interests.

The poll, conducted April 7-23 by Lake Research Partners and Chesapeake Beach Consulting on behalf of Small Business Majority, found that Kentucky small employers support legislation that would change the rules and regulations surrounding patent infringement claims to reduce frivolous lawsuits brought by ̢???patent trolls,̢???? also known as patent assertion entities. Patent trolls are companies that don't make or sell anything; they just own patents, often vague or generalized ones covering commonly used technology such as Wi-Fi, then demand annual fees for use of that technology̢??‰۝or immediately file lawsuits against companies they claim have infringed on their intellectual property.

̢???It̢??‰?s crucial our patent system promote innovation and entrepreneurialism, while protecting small business owners from frivolous litigation,̢???? John Arensmeyer, Founder & CEO of Small Business Majority. ̢???Unfortunately, a few bad apples are jeopardizing the integrity of the entire system and it̢??‰?s time for smart reforms. We hope lawmakers give this issue the careful consideration it warrants and enact strong, comprehensive legislation that protects small businesses from unscrupulous actors.̢????

Seventy-nine percent of Kentucky entrepreneurs support requiring patent trolls to sue the party that is actually responsible for infringement, not the end users who had no input into the product (like the small coffee shop owner using WiFi). More than two-thirds (69 percent) of Kentucky small business owners believe patent trolls should be deterred from attacking small businesses in the first place by penalizing them for filing fraudulent patent assertions or sending abusive demand letters. Seventy-nine percent believe courts should impose financial sanctions against patent trolls that file baseless lawsuits.

In the case that a small business must go to court to fight a patent troll, 74 percent support a provision that would allow courts to require the loser in a frivolous patent case to pay the winning side̢??‰?s fees and costs, and 80 percent support a provision that would require more transparency in patent lawsuits by requiring plaintiffs to disclose who the owner of a patent is before litigation so it is clear who stands to benefit financially from the lawsuit. What̢??‰?s more, 85 percent of Kentucky entrepreneurs support the creation of new judicial rules to reduce the costs of discovery in patent litigation, so that high legal fees do not force small businesses and entrepreneurs to settle out of court when they don̢??‰?t need to.

Kentucky small employers also agree improvements should be made to the U.S. Patent Office in order to help prevent abuse of the system. Sixty-eight percent believe the U.S. Patent Office should be fully funded so there is closer scrutiny of patent applications. Nearly eight in 10 (79 percent) support expanding patent review opportunities to prevent patent trolls from threatening small businesses with patents that were questionable in the first place, and more than three-fourths (77 percent) support creating a system to trigger automatic reviews of patents that are commonly exploited by patent trolls.

It̢??‰?s important to note that this issue affects small business owners across a range of industries and political persuasions, showing small businesses do not view the issue through an ideological lens: 48 percent of small business owners identified as Republican, 21 percent as Democrat and 21 percent as independent.

The full poll report is available at: http://www.smallbusinessmajority.org/small-business-research/technology