The recent topic targeted by popular media concerning the drastic decline in patent filings for the fiscal years of 2008 and 2009, has lead many individuals to a belief that the U.S. is rapidly beginning to trail behind many other countries in the field of technological development, innovation, and over all advancement of society.
The ability to send information around the world in mere seconds combined with the ability to access this information as fast as it can be posted has in turn expedited the processes such as research and persuasion. It is easy for one to blame the decrease in patent filings on the current economic recession as it has been the issue in the forefront of popular media. However, this is largely, even outrageously, misleading.
The low number of patent filings consequently is not a result of economic recession, rather a direct outcome of a neglected and failing patent office during George Bush’s second term in presidential office. In fact, more patent filings were made in the 2009 fiscal year than any other year in American history. If we attempt to link patent filings and the recession, we must consider the time at which the recession actually began, December 2007, as this has been deemed the climax of the United States’ economic rise, beginning in 2001. Because fiscal years begin in October and end in September, the start of the recession technically falls under fiscal year 2008. This fact undermines the claim that economic decline has had a direct impact on patent filings.
In a typical recession, many people are either laid off or even lose their jobs. The short term effect of this causes an economic downfall, but the eventual response comes around when the creative, inspired, motivated, and resourceful individuals begin their own businesses. The issue now is that the allowance rate of patents has dropped as low as 42% between 2005 and the first quarter of the 2009 calendar year. The abrupt decline that started in 2005 was intentionally initiated by John Doll, who had thought that the rate had been too high.
As pendency began to rise, company and small business owners began choosing to not file for a patent as they did not want to wait 3-6 or more years to obtain a patent that they stood little chance getting, thus the decrease of filing in fiscal year 2009. On the other hand, the Patent Office has made a few changes once again and things have begun to turn around since March of 2009 as David Kappos has taken the controls at the Director's chair.
Although some innovators have been negatively affected by the economic recession, the point is this: Even during the latest recession, which also happens to be one of the worst in the US, the number of patent applications filed in fiscal year 2009 nearly reached a record high. Therefore, innovation is not lacking in the United States, it is merely being rendered ineffective by patent policies. The solution lies in Kappos and those surrounding him, given Congress remains in the background without interfering.
