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America Invents Act is a disaster


Guest Riley

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Guest Riley

Obama killed the most important source of new high value job creation by promoting the America Invents Act (AIA). He claims that it will create jobs but failed to mention that AIA allows big transnational corporations like GE to take independent and small business inventions with nearly complete impunity. As a result inventions which would have been the foundation of job creating small businesses are now creating jobs in China. So GE and like minded companies will prosper with others inventions and they will share a bit of that prosperity with China.

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Critics argue that the Act will prevent startup companies, a potent source of inventions, from raising capital and being able to commercialize their inventions. Typically, an inventor will have a sufficient conception of the invention and funding to file a patent application only after receiving investment capital. Before receiving investor funding, the inventor must have already conceived the invention, proven its functionality, and done sufficient market research to propose a detailed business plan. Investors will then scrutinize the business plan and evaluate competitive risk, which is inherently high for startup companies as new entrants into the market. Opponents of the Bill contend that, if the bill becomes law, venture funding will be diverted to less risky investments.

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