The surprising way Trump can unleash America’s economic comeback

In his code to a associated league of Congress, the president predicted that "our state is on the verge of a comeback the likes of which the satellite has ne'er witnessed." That prediction is backed up by his caller announcements of monolithic new private assemblage investments in AI infrastructure and new executive orders to guarantee that the U.S. leads the satellite successful the industries of the future.  

In bid to fulfill the committedness that those actions suggest, however, it’s indispensable that President Donald Trump enactment steps to enactment up America’s intelligence spot system, the cornerstone of our innovation economy, rooting retired malicious overseas interests and installing caller enactment to assistance usher the comeback.

To start, we request to code the information that ineligible damages for patent infringement are nary longer calculated reliably. U.S. courts person strayed from commonsense assessments to the detriment of American innovation.

President Donald Trump signs an enforcement bid successful the Oval Office of the White House, March 7, 2025. (Reuters/Evelyn Hockstein/File Photo/File Photo)

When a institution is sued for patent infringement, the imaginable damages should beryllium constricted to the circumstantial worth of the underlying technology. Unfortunately, this constrictive absorption has go much relaxed, and plaintiffs are present asserting damages calculations acold greater than their intelligence property’s value.

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Consider the precocious chips powering AI technologies. Each spot contains thousands of parts, galore of which are covered by abstracted patents. If a plaintiff accuses a chipmaker of patent infringement, it should beryllium capable to claim only damages constricted to the worth its patented invention adds to the chip’s value. Instead, courts are progressively awarding damages based on the full chip’s value.

The result is unreasonably ample damages awards. In 2024, verdicts greater than $10 million, $50 million, and $100 cardinal successful patent cases were up over anterior years. We are adjacent seeing cases wherever damages scope into the billions. Excessive damages are an unjust fiscal drain for high-tech manufacturers and an array of different innovative companies forced to wage much than they should owe.

Bloated damages are chum successful the ineligible waters. Chum attracts sharks. In this case, non-practicing entities (NPEs) – which bash not invent devices oregon techniques, oregon physique and merchantability products – but cod patents to bring, and nett from, lawsuits claiming infringement. More than half of each patent infringement lawsuits successful the U.S. are present initiated by NPEs, arsenic the patent suit concern has attracted a surge of extracurricular capital.

The anticipation of winning eye-popping damages has caught the attraction of litigation investors who money ineligible actions successful speech for a stock of immoderate fiscal return. Litigation concern is simply a large business, totaling much than $15 billion in the U.S. today; and patent cases person been the largest class for caller fiscal commitments successful caller years.

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NPEs pursuing ample damages awards are perfect concern vehicles, peculiarly due to the fact that successful galore jurisdictions the capitalist is allowed to stay anonymous. President Trump’s CIA Director John Ratcliffe referred to NPEs by their much acquainted colloquial sanction "patent trolls" erstwhile he explained the occupation with this arrangement, namely that "by backing patent trolls – ammunition companies whose sole intent is to record patent infringement lawsuits – nefarious 3rd parties, including overseas adversaries, tin usage intelligence spot to onslaught U.S. companies done lawsuits."

U.S. patent grants to planetary competitors are surging. In 2024, China-based companies saw a 32% increase successful U.S. patents granted and overseas companies are making plays for superiority crossed a scope of cutting-edge industries. Among them, a Chinese startup, DeepSeek, released an AI exemplary that challenges the champion that American companies person to offer. 

It is important that we fortify the rules governing our intelligence spot strategy truthful that American innovators are not further hampered by those who effort to crippled the system.

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Three reforms are indispensable to code basal causes of this abuse. First, national courts should reassert their relation arsenic evidentiary gatekeepers, ensuring that unreliable adept testimony, which inflates damages, is not presented to the jury. We can’t expect juries to marque close decisions if they are fed atrocious accusation by expected experts.

Second, Congress should walk Rep. Darrell Issa’s Litigation Transparency Act, a elemental transparency measurement mandating that litigation investors disclose their engagement successful cases.

And finally, the Trump administration indispensable bolster the U.S. Patent Office’s Patent Trial Appeal Board (PTAB) to springiness our innovators resources to deter and support against abuse. The PTAB, and the administrative patent judges (APJs) who service there, are tasked with invalidating atrocious patents, galore of which are being utilized by NPEs to extort productive companies. 

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APJs bash their jobs overmuch much efficiently than the national courts and the PTAB is funded by fees, not by taxpayers. The president’s caller nominee to pb the Patent Office, John Squires, would beryllium omniscient to guarantee the PTAB tin proceed this important work.

Right-sizing damages awards, expanding judicial transparency, and empowering the Patent Office’s patent quality review will region barriers to economic progress and forestall our competitors from undermining American industries. All should beryllium priorities for policymakers successful the days to come.

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