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Intellectual Property

Jul. 31, 2025

Experts warn patent tax plan may undermine innovation, investment

Legal and academic experts warn a mooted Trump administration proposal to tax patents based on their estimated value could stifle innovation, increase litigation risks, and deter investment in R&D.

Experts warn patent tax plan may undermine innovation, investment
Mark Lemley

Patent law experts needled a new patent fee scheme reportedly under consideration by the Trump administration. The proposal would assess patent holders 1% to 5% of their patents' value annually, potentially raising billions of dollars in government revenue.

"Catastrophically stupid," was the reaction of media commentator and patent attorney Gene Quinn. His IPWatchdog.com blog called the plan "fraught with peril and unintended consequences" partly because i...

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