Intellectual Property

The semiconductor industry is research intensive—members invest, on average, about one-fifth of revenues to research and development. Much of this research results in inventions that receive patent protection or are protected as trade secrets, demonstrating the importance of intellectual property to semiconductor innovation. Semiconductor companies, including several SIA members, are regularly among the top recipients of U.S. patents each year.

SIA member companies are increasingly concerned about abusive patent litigation that needlessly raise litigation costs and seriously undermine innovation by redirecting research expenditures and other resources to litigation expenses. Unfortunately, existing procedures to combat abusive litigation practices are currently applied by the courts in such a manner that they fail to achieve their objective in curbing such abusive behaviors.

To address this issue, we encourage the judiciary to take steps to address this problem through modifications to the practices under their control. At the same time, we believe there is merit in Congress taking action to reduce abusive patent litigation.

SIA supports reforms to prevent abusive patent litigation behavior, and believes that such reforms should be applied in a balanced manner to all litigants.  Adopting appropriate and balanced disincentives for abusive patent litigation will help advance innovation and improve the overall patent system.

Much of the IP developed by the semiconductor industry, such as process technology and know-how, is valuable information protected as trade secrets. SIA supported enactment of the Defend Trade Secrets Act, legislation to strengthen the protection of trade secrets, including the establishment of a federal civil cause of action for the misappropriation of trade secrets.