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Acacia Research Corporation CEO Paul Ryan on the impact of the ‘America Invents Act’ on innovation and the U.S. economy.
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I want to get to something that's important to every single one of you who have ever bought anything okay patents before your eyes glaze over.
Unita -- if you create anything like a computer mouse or even components in this ten.
If you want to gain from the creation of these products while our next guest says that the government.
Will kill his patent business and kill American innovation.
With the new patent reform bill heading for a vote in congress this is controversial because some high tech companies that issue would get a lot of patents.
Like get joining us now in this Fox Business exclusive from Irvine California is Paul Ryan chairman and CEO of a company called.
Acacia research and first of all mr.
Ryan -- explain to viewers what your company does as I understand it.
You you partner with patent holders and then you 5050 in the revenue that comes from those patents.
That's right where -- leading -- patent licensing company in the country we partner with patent owners both very large companies.
And individual bettors license the products and and split the revenues 5050.
And let me clarify your opening statement this new pending legislation.
Actually would -- a boon to our business because that would make.
Patents and much more complex business and as a outsource expert company.
It would drive even more companies to us so that's not the issue for us the issue for us as we think it's bad for the American economy.
Okay why because let's just clarify it's called the America invents act.
And it has bipartisan support and in essence -- folks need to understand how the patent office works for politics forever.
There's a backlog of about one point two million -- that's what my research showed me.
But a lot of times the patent process costs money you have to pay a fee congress has been taking the money that comes in from fees and re appropriating it.
We're talking about hundreds of millions of dollars.
This act would prevent congress from using that money to do so so where's the problem where do you foresee the issue for the American economy.
Precisely that's the only good thing about the legislation over the last ten years congress.
Has misappropriated 900 million dollars of user fees.
A patent applicants and patent holders.
This is caused a backlog of 800000.
Patents -- three and a half -- pendency.
It's probably cost the American economy the patent office director David -- those estimates -- cost the American economy millions of jobs.
By this artificial delay caused by congress misappropriating these funds.
That's the only positive aspect that I see of this law.
The other aspects actually could cause more problems.
They want to change the 240 -- president of the patent going to the actual and true and -- to the first person gets to the patent office.
Well groups like the national small business association on the -- triple B.
Which is the technology industry organization.
Think that this will cause a flood of applications in the race for the -- -- and double the amount of patent applications further leg again -- -- numerous.
Again we have to clarify what happens folks with a lot of these situations is people come up with the idea but they have absolutely no intention.
Of investing the human capital to actually created.
They just want to get the patent so called trolls right they're -- -- say they have no intention of ever making this but then when the people.
At that say for example Nvidia or Intel or any of the high tech companies in Silicon Valley then go -- and Bennett.
They have to pay patrol a lot of money right wouldn't that help this up talk a lot CEOs of high tech companies today and they said.
They actually think this is a good -- this is a good bill.
Although it has nothing to do with that issue Edison could have been considered neutral because he actually didn't manufacture the products.
If people go to our website LC there's over sixty young companies that tried to develop products and competitively that needed a licensed their technology out.
Really -- there's no requirement of anybody to practice about and to maintain their legal rights to the patent.
That's the trade off in society and the innovation in the publication of patents and Naples further technology innovation.
And the patent office's determined basically -- since World War II three quarters of the growth rate.
In the US economy has come from technology migration -- and that is from the currency about.
It sure would be great if we could speed up the process of these companies can start and start hiring people that's where -- -- -- real innovation Paul thank you very much.
We appreciate it.
Thank you for having me out of Paul Ryan is chairman and CEO of acacia research and I should tell you his stock AC TG is up a 152%.
Year over year he basically partners with people who get patents and then he shares --
