Trump Administration Reports Plans Patent Value Fee Overhaul

The Trump administration is considering a significant overhaul of the U.S. patent system that would impose a new fee on patent holders amounting to 1% to 5% of the overall value of their patents. This proposed change, championed by Commerce Secretary Howard Lutnick and the Commerce Department, aims to generate tens of billions of dollars in revenue to help reduce the $37 trillion national deficit. Unlike the current system, which charges flat maintenance fees at set intervals, the new model would act like a property tax on patent value, potentially increasing costs substantially for businesses, especially large tech firms and pharmaceutical companies. The proposal could be implemented as an addition to existing fees and might target high-value patents linked to revenue-generating products, litigation, or licensing. Critics argue that such a tax could discourage innovation by raising the cost of holding patents, while supporters see it as a necessary paradigm shift to address federal budget challenges. The plan has generated concern among businesses and investors, given its potential to make U.S. patent fees unique globally and impact various industries.