How President Trump Could Reshape Intellectual Property And Small Business In The US
With Donald Trump returning to the White House this week, the implications for intellectual property law and small business are wide-ranging. Known for his strong stance on IP enforcement, especially against international threats, President Trump’s policies could bring opportunities and challenges for small businesses across America.
Here’s a look at what a Trump-led IP landscape might mean and how small businesses can position themselves for potential changes.
Enhanced IP protection but higher costs?
During Trump’s previous term, IP enforcement became a priority, particularly in response to China and online counterfeiting. This second term may see an even more robust push for IP protections, leading to new tariffs, stricter import controls, and more rigorous penalties for IP violations. While such measures might protect American businesses, they could also increase costs for small businesses that rely on international suppliers or global manufacturing.
Action step for small businesses: Since Trump has promised tariffs on imports, especially high tariffs on Chinese goods, now is the time to begin planning. He has hinted at exceptions for specific industries, but the likelihood of tariffs is very high.
For businesses sourcing from abroad, consider diversifying suppliers or exploring domestic manufacturing options to avoid potential cost increases and supply chain slowdowns.
Patent reform focused on American inventors
Small businesses and inventors often find themselves in uphill battles in the patent space, sometimes facing legal threats from larger companies or “patent trolls.” While Trump’s first term didn’t lead to significant patent reforms, his pro-business stance might bring patent policies designed to protect American inventors, creating a fairer environment for small innovators.
The director of the United States Patent and Trademark Office under President Joe Biden, Kathi Vidal, announced she was leaving the office and rejoining her former firm in December, and on Monday Trump named Coke Stewart as the acting director of the USPTO.
Traditionally, the director plays a key role in patent policy. Trump’s appointment will likely move quickly to strengthen America’s patent policy to protect innovation. The new director may also take a new direction regarding AI patent protection.
Action step for small businesses: Entrepreneurs with patented innovations should stay tuned for changes in patent laws that might reduce litigation costs or improve protections. Aligning with any new policies could open new avenues for growth and innovation.
Deregulation and lower IP costs
Trump has consistently promoted deregulation to support America’s businesses, which may extend to IP filings. If registration costs or administrative requirements are reduced, more businesses might find IP protections accessible. One main area for potential change is the review process for issued patents under the America Invents Act. Congress revised the Patent Act to provide an additional forum to address patentability/validity disputes. Small businesses and independent inventors have criticized the process as adversely affecting them.
Action step for small businesses: This could be an opportunity for entrepreneurs to expand their IP portfolios and obtain stronger protections. Lower fees could help small businesses protect more of their assets. Pushing patent disputes back into the courts and before juries will help small businesses and independent inventors.
Greater focus on digital IP enforcement
As e-commerce and digital media continue to dominate, IP policies around online content and branding are critical. Trump’s approach to tech regulation may lead to stricter IP policies for online platforms, which could improve or complicate digital IP protection for small businesses.
Action step for small businesses: With digital assets more valuable than ever, small businesses should bolster their digital IP strategy. This includes registering trademarks for online brands, copyrights for digital content, and taking proactive steps to monitor and prevent IP infringement on e-commerce sites.
Final thoughts: Embrace change with an eye on opportunity
For small businesses, Trump’s approach to IP might bring both protections and challenges. By staying informed and flexible, entrepreneurs can make the most of opportunities, such as potentially lower IP costs and stronger patent protections, while preparing for shifts in international trade and enforcement. With a solid IP strategy and a watchful eye on policy developments, small businesses can navigate the Trump administration’s IP landscape and, ideally, find new growth avenues amidst the change.
