U.S. Faces Urgent Calls to Reinforce IP Protections Amid Intensifying Competition with China

The United States is facing increasing pressure to reform its innovation system and strengthen intellectual property (IP) laws, as experts warn that the country’s global competitiveness and national security are at risk. While the Trump Administration has prioritized countering China on multiple strategic fronts, critics argue that both the Administration and Congress have not adequately addressed the decline of America’s once world-class IP rights framework.

Over the past two decades, a series of policy decisions—both intentional and inadvertent—have gradually weakened IP protections in the United States. These changes have diminished the ability of American entrepreneurs to drive breakthroughs in artificial intelligence, biotechnology, and other emerging technologies that are vital for continued innovation and U.S. leadership on the world stage.

Patents, in particular, are seen as a fundamental catalyst for innovation. By granting inventors exclusive rights to their creations for a limited period, patents incentivize substantial investment in research and development and encourage risk-taking on unproven but promising ideas. This system is designed to reward ingenuity and foster the commercialization of new technologies.

However, recent court decisions have narrowed the scope of patent eligibility, especially in fields such as medical diagnostics and software. These rulings have discouraged investment in these areas by making it more difficult for inventors to secure and enforce patents. Additionally, courts have restricted access to injunctive relief—the only permanent remedy for patent infringement—making it easier for large companies to use patented inventions without authorization from smaller innovators.

Legislative changes have also played a role. The establishment of the Patent Trial and Appeal Board (PTAB) was intended to provide a faster, less expensive alternative to litigating patent challenges in district courts. In practice, however, the PTAB has given infringers a significant advantage when seeking to invalidate competitors’ patents, further undermining the position of innovators.

The Trump Administration has proposed policies such as “most favored nation” drug price controls and tariffs on medicines, which critics argue would weaken innovators’ ability to earn returns on their patented inventions. Meanwhile, the Biden Administration has been criticized for not taking stronger action against foreign policies that undermine U.S. companies’ IP rights, including international price controls and efforts to forcibly relicense patents.

These policy missteps have created an opening for China to seize the global lead in several high-tech fields. China now leads the world in generative AI patent applications and dominates patenting in key energy technologies, including batteries, solar, and wind power. The National Security Commission on Emerging Biotechnology has compared the race for biotech leadership to the arms races of the Cold War, warning that China may soon sponsor the world’s highest share of clinical trials and potentially surpass the United States in drug development.

If future AI models and cancer medicines are developed and produced in China, American patients and businesses could become dependent on a strategic adversary for access to critical medical and technological advances. This scenario raises significant concerns about both economic security and national defense.

In response, a collection of bipartisan bills in Congress aims to rejuvenate America’s IP system. The PREVAIL Act and the RESTORE Patent Rights Act are designed to protect small inventors and startups by curbing abuses of the PTAB and expanding access to injunctive relief, respectively. The Patent Eligibility Restoration Act (PERA) seeks to clarify and restore eligibility for patent protections, providing more certainty for crucial technologies such as AI. The IDEA Act, which has yet to be reintroduced, would further strengthen America’s innovative capacity by helping inventors from all backgrounds benefit from patent protection.

Advocates for reform also urge the withdrawal of policy proposals that could undermine IP protections, such as drug price controls, and call for making IP rights a strategic priority in the United States. They emphasize that respect for IP rights should be a central component of all trade negotiations. Ensuring that foreign countries do not bypass or override U.S. patents is seen as essential to bolstering companies’ confidence to invest in cutting-edge research at home.

Technological innovation remains the backbone of America’s economic strength and a cornerstone of national security. Many experts believe that the strength of the U.S. IP system will be a decisive factor in determining whether the country can maintain its leadership in the 21st century or risk ceding ground to China.