Eligibility reform increases investment and small and medium businesses

[Emily G. Blevins, 8-3-22, Congressional Research Service Science and Technology Policy Analyst, Congressional Research Service, “Patents and Innovation Policy,” , accessed: 7-9-24, ES]

One USPTO study demonstrated that limiting the scope of what is considered patent-eligible subject matter may increase uncertainty for innovators using the patent system. This could serve as an impediment to innovation given that economic research has shown that greater levels of uncertainty may reduce investments.47 Additionally, the study concluded

Higher levels of uncertainty may also negatively impact previously issued patents by lowering their expected value, reducing patent purchases and licensing transactions, and limiting opportunities to obtain entrepreneurial financing.48

Many argue that the uncertainty and unpredictability in how subject matter eligibility standards have been interpreted especially affect startups and small and medium-sized enterprises (SMEs). Without reliable patent rights, such entities are, according to the USPTO, increasingly unable to attract the outside investments on which they rely more than larger firms.49