New Cases Before the International Trade Commission Could Harm US Entrepreneurs
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Whether it’s President Biden or the US Congress, our administration’s promise to our citizens is that it will help US businesses and entrepreneurs, boost demand for domestic products, and fuel US innovation. But to succeed in this mission, our government must do more to address a problem that threatens to jeopardize the innovative and entrepreneurial spirit that underpins the American dream.
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A recent series of cases brought before the International Trade Commission (ITC), a quasi-judicial organization with the power to exclude products from US markets, has transformed the Commission from an organization dedicated to protecting US companies into an agency that protects foreign trying to arm entities and patent trolls against American entrepreneurs and corporations.
One of the Commission’s key principles is that companies must be located in the United States to file a complaint with the ITC. It’s a rule central to the ITC’s mission to protect U.S. companies from unfair trade practices. However, some foreign companies have found loopholes that allow them to file frivolous lawsuits targeting American-made products and services, which in turn target all entrepreneurs who rely on those services.
Related: More patent trolls are targeting startups. Here’s what you can do.
Arignanfor example, a foreign company whose name is rooted in an Old English word for “loot“, has filed dozens of lawsuits with the ITC for alleged patent infringement against some of the most successful companies in the US – without actually making a single product. One of these cases threatened block the import of a semiconductor that is essential in the manufacturing process of the new EV models from Ford and GM. Another would have excluded 93% of all smartphones from the US market.
While the companies subject to these baseless ITC cases – Google, GM, Apple and Ford – are among the most well-known and innovative companies in the country, and entrepreneurs and businesses of all sizes would be seriously harmed by this lack of access to critical technology. After all, each of these companies started out as scrappy entrepreneurial ventures.
Google has reinvented the way we think about the web by introducing a whole new way for people to quickly and easily search and access information. Apple has disrupted the tech industry by offering new products like the iPhone, Mac, and Apple Watch that hundreds of millions of Americans use every day. And American automakers like Ford and GM are at the forefront of research and development in electrical technology.
With a single statement, however, the ITC could cause irreparable harm to these leading companies in America’s major industries and all entrepreneurs who depend on their products and services – from smartphone app developers to startups that rely on Google products to find customers.
In the US, we are expected to reward bright business leaders and successful companies that disrupt their industries with bold new products, and we should encourage other companies to follow suit. The idea that the ITC has been transformed into an institution used by international companies seeking to gain an unfair advantage or for the sole purpose of achieving a lucrative settlement is un-American, and we need to change that.
Related: 5 Strategies to Protect Trade Secrets and Intellectual Property
The good news is that Congress has a chance to make that change. Senators like Mike Crapo and Ron Wyden and congressmen like Kevin Brady and Richard Neal, who lead committees overseeing the ITC, can more clearly define the role of the Commission. In addition, leaders in Washington could pass legislation such as the Advancing US Interests Lawthat would curb the ITC’s power.
Abuse of the ITC, however, is a deep-seated problem and requires more action and serious commitment from Congress to reinstate the Commission. Right now, the ITC poses a serious threat to innovation and entrepreneurship, and we need our leaders to take action.