Anti-Small Business Patent Reform Bill Goes into Effect Tomorrow

March 15, 2013

March 15, 2013

Molly Brogan

Washington, D.C. – Tomorrow, the NSBA-opposed America Invents Act goes into effect, turning the current system of first-to-invent on its head in favor of a first-to-file system. The impetus behind changing the system was to align with global patenting systems. Unfortunately, Congress failed to understand how important the existing system is in fostering America’s uniquely innovative and entrepreneurial business climate. Below is a statement from NSBA President and CEO Todd McCracken.

“This new system will irreversibly damage the ability of small-business owners and entrepreneurs to create, develop and commercialize their innovations, and it will create mountains of paperwork for the few small innovators who are able to continue patenting under the new system.

“Starting tomorrow, small firms will have to file applications early and often, even before they have had the opportunity to do any testing on the innovation. This will result in far greater costs and time for a small-business community that already is extremely time-stretched and financially-stressed.

“The key changes in the system, namely, switching from a first-to-invent to a first-to-file system and gutting the post-grant patent challenges puts a target on any new, young, upstart company and puts them at a severe disadvantage. This law will effectively turn protecting innovations into a David vs. Goliath scenario where the small guys stand little to no chance of winning.

“Small firms produce five times as many patents per revenue dollar as large firms and cover more original and broader technologies than large patenting firms. As we have warned repeatedly, tilting the scales against these small firms—which are responsible for a great deal of job growth—is the wrong idea at the wrong time.”

Please click here for more from NSBA on patent reform.

Celebrating more than 75 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA’s 65,000 members represent every state and every industry in the U.S., and we are proud to be the nation’s first small-business advocacy organization. Please visit