Coons Raises Reported “Patent Tax” at Appropriations Hearing; Lutnick Says Proposal Is Not Under Consideration

Coons Raises Reported “Patent Tax” at Appropriations Hearing; Lutnick Says Proposal Is Not Under Consideration

February 11, 2026

Coons Raises Reported “Patent Tax” at Appropriations Hearing; Lutnick Says Proposal Is Not Under Consideration

COONS RAISES REPORTED “PATENT TAX” AT APPROPRIATIONS HEARING; LUTNICK SAYS PROPOSAL IS NOT UNDER CONSIDERATION

During a Senate Appropriations Committee hearing yesterday titled A Review of Broadband Deployment Funding at the Department of Commerce,” Senator CHRIS COONS (D-DE) raised concerns about reports the Department was considering imposing a valuation-based fee on patent owners. He said assigning government valuations to patents for fee-setting purposes would be unworkable and harmful to innovation, noting that the idea has drawn rare consensus opposition across the intellectual property community. He asked whether the proposal remained under consideration and, if so, how the Department would avoid negative impacts on U.S. innovation.

In response, Secretary of Commerce HOWARD LUTNICK said the Department has no plans to pursue such fees, agreeing that attempting to assign values to individual patents would be unworkable. The exchange occurred as part of a broader discussion of patent policy, including ongoing discussions about the U.S. Patent and Trademark Office’s Patent Trial and Appeal Board procedures and ensuring stable long-term funding for the Office.

BOOK YOUR HOTEL ROOM FOR IPOWNERS SPRING SUMMIT™

IPO has reserved a block of rooms at the Westin Downtown Hotel in Washington, DC at a rate of $369 + taxes per night. The rate is available until February 27 or until rooms sell out, whichever comes first. Attendees can make their reservations online. IPOwners Spring Summit begins with a welcome reception on Wednesday, March 18 and ends with a closing reception on Thursday, March 19. For additional information about the Summit, visit www.ipo.org/spring2026.

PRESIDENT TRUMP NOMINATES TWO ITC COMMISSIONERS

President Donald Trump has nominated DAVID FOLEY and BRETT DOYLE to serve as commissioners of the U.S. International Trade Commission. The nominations were submitted to the Senate Finance Committee for consideration on January 29.

Foley currently serves as senior special counsel to the Republican majority on the House Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence, and the Internet, where he has worked on a range of IP-related issues. He would serve through 2032, replacing Commissioner AMY KARPEL once confirmed. His background stands out at an agency historically dominated by commissioners with international trade expertise. Doyle is an assistant U.S. trade representative with experience in international trade policy and enforcement. He would fill the seat vacated by RHONDA SCHMIDTLEIN, with a term running through 2030.

If confirmed, the nominees will fill vacant seats on the six-member commission, which plays a significant role in Section 337 investigations involving allegations of unfair trade practices, including patent infringement. The ITC currently has three vacancies, and the remaining three commissioners are serving on expired terms pending replacements.

HOUSE SUBCOMMITTEE ADVANCES REPAIR ACT

Yesterday the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade voted to advance H.R. 1566, the Right to Equitable and Professional Auto Industry Repair (REPAIR) Act, following a subcommittee markup. The bill now moves to the full House Energy and Commerce Committee for further consideration.

The REPAIR Act would require motor vehicle manufacturers to provide vehicle owners and independent repair facilities with access to vehicle repair and diagnostic data. Supporters argue the legislation promotes competition and consumer choice. Opponents have raised concerns related to vehicle safety, cybersecurity, data privacy, and the protection of proprietary technologies.

Intellectual Property Owners Association
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