Utility models solve better, avoid thickets, and help SMEs.

Even in today's modern US economy, large enterprises play a much smaller role than often expected. [xxxvii] For example, according to the U.S. Small Business Administration (SBA), ninety nine percent of all independent enterprises in the US have fewer than 500 employees, and these small enterprises employ fifty two percent of all US workers. In fact, about 19.6 million Americans work for businesses having fewer than twenty employees, 18.4 million Americans work for companies employing between twenty and ninety nine workers, and 14.6 million work for businesses employing between 100 and 499 people. In contrast, 47.7 million Americans work for larger firms employing 500 or more people. In addition, small businesses provided seventy five percent of new job growth in the period between 1990 and 1995, an even larger contribution than in the 1980's. It is evident that small businesses are a critical part of the US economy and a major contributor to its growth. Unfortunately, US intellectual property law and its practice can be financially challenging to small businesses. For example, it is estimated that the typical cost for a small US business to obtain a patent might be $20,000 to $30,000--not including the necessary attorney's fees and associated legal services. [xxxviii] In fact, due to these rapidly increasing costs, some small businesses question whether filing a patent is a worthwhile practice. [xxxix] Similar comments have been made by small business leaders in Congressional testimony; for example, Mitchell Gross, Chairman and CEO of Mobius Management Systems, has stated that the process of issuing US patents is too costly and takes too much time. [xl] Therefore it appears that there is clearly a need for a more rapid and less expensive form of intellectual property protection for inventions in the US, particularly one that would be affordable and useful to small businesses. Of course, the reduced costs associated with utility models would benefit not only small businesses, but also larger technology firms. Those businesses that are characterized by rapid innovation and short product cycles would benefit from the inexpensive and rapid protection of intellectual property rights, as discussed above. In particular, start-up firms would more quickly obtain enforceable IP protection for their developments, which could aid them in seeking capital and investors. In addition, US firms face increasingly stiff competition from abroad, and some of the rapidly developing countries still have weaker IP protection and enforcement, which has in some cases fostered the development of companies that are quite effective at rapidly bringing copying or imitating products to the marketplace. Therefore a number of firms in various industries might also potentially benefit by being able to quickly obtain an enforceable IP right in the US to help in dealing with the potential importation of any such copied or imitated products.