US Semiconductor Industry Higher Fees on US Semiconductor Patents?

From Kristin Rinortner | Translated by AI 2 min Reading Time

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The US Patent and Trademark Office is considering a change in the patent fee structure, including for developments in semiconductor technology. Accordingly, the costs would be determined by the authority based on the estimated financial value of the respective patent.

New "tariffs" on US patents in the semiconductor ecosystem are looming in the States.(Image: Pete Linforth on Pixabay /  Pixabay)
New "tariffs" on US patents in the semiconductor ecosystem are looming in the States.
(Image: Pete Linforth on Pixabay / Pixabay)

US companies in the semiconductor industry invest an average of nearly 20% of their revenue in research and development—according to the SIA, this amounted to $70 billion in 2024. The investments include processes for manufacturing the next generations of chips, new architectures and designs to improve the functionality or performance of semiconductor components, as well as novel materials.

For patent applications in these areas, the US Patent and Trademark Office (USPTO) is reportedly considering a fee increase based on the potential financial value of the submitted patent. The Semiconductor Industry Association (SIA), the voice of the US semiconductor industry, has now expressed significant concerns about this intention.

John Neuffer, President & CEO of the SIA, complains in a letter to the USPTO that the potential estimation of fees based on a government-assigned "valuation" of a patent poses risks to the fairness, predictability, transparency, and functionality of the U.S. patent system. Attempts to quantify the value of an individual semiconductor patent are inherently subjective and arbitrary.

He further explains that developments in the semiconductor process chain are typically interconnected, and practically no single patent in the semiconductor industry operates independently or in isolation from other patents. All segments of the semiconductor ecosystem— from semiconductor fabs and manufacturing equipment to chip design and materials, chemicals, and gases—consist of interconnected innovations at various levels, some of which are protected by patents while others are trade secrets.

"The multitude of inventions and patents that contribute to a single product is unique to the semiconductor industry and differs from many other industries that use the patent system. Under these circumstances, it would be difficult or impossible to isolate the contribution of a single patent and quantify an exact value for that patent," said Neuffer.

He warns that the fee concept contradicts the government’s goal of revitalizing and securing U.S. leadership in the semiconductor sector. Such a fee system would weaken competitiveness and make the U.S. a less attractive location for developing new technologies. As all economic sectors benefit from technological advancements in the semiconductor industry, the consequences of this measure could extend to the entire economy. (kr)

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