Today, Congresswoman Deborah Ross (NC-02) and Congressman Kevin Kiley (CA-06), members of the House Judiciary Committee, led their colleagues in expressing their serious concerns about the Department of Commerce’s reported plans to impose valuation-based fees on patent holders. From the Research Triangle to California, the American patent system has been a key driver of economic success and the nation’s global competitiveness. Taxes on patents would limit growth and disproportionately harm startups and small businesses.

The lawmakers argued that this new fee proposal would deter participation in the patent system and potentially drive innovators towards our global competitors.

They wrote, “This move would further hinder collaboration and slow technological progress. At a time when global competitors are enhancing their intellectual property frameworks to attract talent and investment, the United States must not adopt policies that weaken its own. A valuation-based patent fee model would increase the cost of innovation, undermine efforts to reshore manufacturing, and conflict with the administration’s stated goals of strengthening American industry and technological leadership.”

Additionally, the lawmakers argued that this policy will harm newer and smaller American innovators, who frequently rely on patents as their primary assets to attract investment and drive research and development.

They wrote, “In fields like semiconductors and biotech, early-stage companies often operate without revenue for years, focusing instead on advancing groundbreaking technologies. Furthermore, there is significant federal revenue garnered through the income tax system that will much more accurately reflect the true value of patents after they are commercialized. Imposing unpredictable and potentially prohibitive fees would stifle innovation, deter investment, and slow the commercialization of critical advancements.”

In addition to Representatives Ross and Kiley, the letter was co-signed by Representatives Sydney Kamlager-Dove (CA-37), Thomas Massie (KY-04), Lou Correa (CA-46), and Nathaniel Moran (TX-01).

Full text of the letter is available here.