Chipmaking industry pushes back on U.S. Patent Office considering imposing annual fee based on assessed value — “tax on innovation” draws strong opposition from Semiconductor Industry Association

The Semiconductor Industry Association (SIA) is strongly opposing a proposal by the U.S. Patent and Trademark Office (USPTO) to implement annual patent fees based on assessed value, calling it a "tax on innovation." The current fixed-rate fee structure is being considered for a change to a 1% to 5% annual fee based on the government's valuation of the patent. The SIA argues that this move could hinder collaboration and transparency crucial for innovation and technology advancement, especially impacting smaller companies and individuals. Critics view this proposal as double taxation and fear it could stifle innovation in the U.S., potentially driving research and development to countries with more favorable patent policies.