Core Viewpoint - The USPTO's proposal to charge semiconductor patent fees based on "value" rather than a fixed fee has raised significant concerns within the industry, particularly regarding its potential impact on innovation and competition [1][4][5]. Group 1: Proposal Details - The USPTO suggests that semiconductor patent application fees will be charged at 1% to 5% of the patent's "value," influenced by the current semiconductor market bubble and ongoing US-China trade tensions [1]. - This proposal aims to extract more funds from the semiconductor industry, highlighting a lack of understanding of the industry's cyclical nature within US bureaucratic institutions [1][4]. Group 2: Industry Reactions - Industry executives, such as Rupert Bains, criticize the proposal as absurd, arguing that valuing patents is inherently difficult and could stifle innovation [2]. - Sean Richmond emphasizes the necessity for startups to develop a comprehensive intellectual property strategy, as high patent costs could disadvantage early-stage semiconductor companies [2]. Group 3: Geopolitical and Economic Implications - The proposal may lead to double taxation issues, as companies would pay patent fees based on product value and also be taxed on the revenue generated from those products [3]. - The geopolitical context is underscored by the role of patents in the US-China trade war, with recent litigation among companies from different countries highlighting the stakes involved [3]. Group 4: Concerns Over Fairness and Transparency - The SIA has expressed strong opposition to the proposal, warning that it could undermine the fairness, predictability, and transparency of the US patent system [4][5]. - John Neuffer from SIA points out that semiconductor technology is interdependent, and a value-based fee structure could lead to more companies keeping innovations as trade secrets rather than seeking patent protection [4][5]. Group 5: Call to Action - Neuffer urges the USPTO to reject the proposal, stressing that maintaining a fair and predictable fee structure is crucial for fostering innovation in both the US and Europe [5]. - The proposal's selective application to the semiconductor industry raises questions about its broader implications for all patent sectors [5].