The Association for Competitive Technology (ACT) applauds Chairman Goodlatte for holding a hearing today on the role of innovation and intellectual property in the U.S. economy. Consideration of this issue could not come at a more important time. Our economy grows, and creates jobs, when entrepreneurs bring exciting new products and services to the market without fear that someone will steal their idea.
“ACT has long been an advocate for intellectual property,” said ACT executive director Morgan Reed. “With policy discussion often bogged down by the minutiae of patent, copyright and trademark complexity, it is easy to overlook that IP remains the lifeblood of the innovation economy. Startups get off the ground and attract investors because people have confidence that, if they create an exciting new product, they can build a business around it. It is this commerce in ideas from which new industries emerge and jobs are created.
“Economic data suggests that protecting our innovation will be critical to the nation’s long-term success. Currently, 72% of our gross domestic product is domestic consumption. Meanwhile, China’s share is roughly half that. To lower our reliance on domestic consumption, we need to bring our goods to new markets. And since businesses will only sell in foreign markets where pirates and counterfeiters are kept at bay, we need strong intellectual property protections to do that.
“National Geographic recently produced a segment featuring the most typical person in the world. Apparently he is 28 years old, earns less than $12,000 per year, has no bank account, but has a mobile phone. This highlights where our export opportunities are. Most of the world is moving toward smartphones, attracted by the number of apps that we create in abundance. Our software developers have a world of opportunity before them but can only succeed if they can sell products without them being stolen, copied or counterfeited.
“Chairman Goodlatte’s attention to this issue today is welcomed by our country’s small business developers who only want a chance to succeed in a fair marketplace. As small business grows, so does our nation’s economy. Protecting our intellectual property is vital for our innovation economy to flourish.”