IP in the News

This is where you can come to find what is in the news on the topic of intellectual property. You will find media generated by the Trade Alliance to Promote Prosperity and from other organizations and media outlets.

What is IP protection?

Intellectual Property (IP) is the lifeblood of most organizations—whether it exists in the form of patents, trade secrets, trademarks and service marks, or employee know-how. Threats to IP come in the form of competitive intelligence researchers and spies hired by a company’s competitors or by foreign governments; they’ll stop at nothing, including bribes, thievery, or even bugs and wire taps hidden in a competitor’s C-suite. IP protection is a complex duty with aspects that fall under the purview of legal, IT, human resources and other departments, and there are important laws protecting IP that need to be upheld and enforced.

What are we trying to accomplish?

The International Trade Commission (ITC) and member of Congress must be made to understand that intellectual property protections are the foundation of economic growth and human progress. Companies and individuals who undermine intellectual property protections should be held accountable and should not be rewarded with public- or private-sector contracts.

How can you help?

The ITC needs to know that Americans care about the wellbeing of innovators and inventors and oppose any policies that would infringe on their abilities and incentives to continue inventing and innovating. We need your help to encourage the ITC and policymakers in Congress to be firm in their commitment to intellectual property protection. Please use our templates below to write a letter to the ITC and members of the ITC’s oversight committees in Congress and let them know how you feel about these proposed taxes.

WRITE THE ITC & CONGRESS

Check Out the Cases We’re Watching HERE

Check Out Past Cases HERE

TAPP Urges Biden to Protect IP Regarding Electric Vehicle Battery Production in Georgia

As TAPP wrote in an earlier blog post, in the quest to attract investment from foreign and domestic corporations, the State of Georgia has become a home for Electric Vehicle-related manufacturing. In 2019, SK Innovation (SKI), an Electric Vehicle (EV) battery manufacturer and subsidiary of a South Korean global conglomerate, broke ground in Jackson County, Georgia, on a $1.67 billion manufacturing plant to produce batteries for Ford and Volkswagen, with a promise of creating 2,000 jobs. Shortly after this initial investment, SKI announced an additional investment of approximately $940 million for expansion of the plant and the creation of an additional 600 jobs for local Georgians.

While seemingly well intentioned, promises of new jobs, economic benefits, and a new manufacturing hub came with a much darker side: Multiple revelations have cast a light upon SKI’s suspect and at times illegal business tactics. Regrettably, Georgia, Ford, and Volkswagen have found themselves entangled with a bad-faith actor.

The situation is this: Several years ago, LG Chem, now LG Energy Solution, a subsidiary of a rival South Korean global conglomerate, accused SKI of stealing trade secrets from LG’s lithium-ion battery technology and then leveraging them to secure lucrative contracts with Ford and Volkswagen. The United States International Trade Commission (ITC), home of the lawsuit, sided with LG, issuing a preliminary default judgement against SKI citing substantial intellectual property (IP) violations. Investigations into these accusations found that SKI would actively attempt to hire former LG engineers with the promise of employment should they provide trade secrets. Investigations also discovered SKI’s attempt to cover up evidence by destroying more than 34,000 files and emails.

Now, according to a recent news report, SKI is appealing to President Biden for special treatment: SKI is asking the President to set aside the ITC’s judgement. Indeed, even more than that, SKI is using strong-arm tactics and threatening to stop work on its promised factory in Jackson County and to leave the country unless President Biden sides with them. Biden has until April 11 to reverse the ITC’s decision.

For the good of the State of Georgia and innovators across the globe, TAPP is urging President Biden to send a clear message of upholding IP protections and ensuring that SKI suffers the consequences of doing business improperly and illegally.

Watch the FOX 5 Atlanta News Story About the Issue

“Georgia’s workforce, are paid higher than their counterparts in non-IP intensive companies, and help increase the state’s exports.”

– Global Innovation Policy Center

Letter to Georgia Assembly: Do Not Overlook or Condone IP Theft

Dear Members of the Georgia Assembly,

In the quest to attract investment from foreign and domestic corporations, the State of Georgia has become a home for Electric Vehicle-related manufacturing. In 2019, SK Innovation (SKI), an Electric Vehicle (EV) battery manufacturer and subsidiary of a South Korean global conglomerate, broke ground in the town of Commerce, Georgia, on a $1.67 billion manufacturing plant to produce batteries for Ford and Volkswagen, with a promise of creating 2,000 jobs. Shortly after this initial investment, SKI announced an additional investment of approximately $940 million for expansion of the plant and the creation of an additional 600 jobs for local Georgians.

While seemingly well intentioned, promises of new jobs, economic benefits, and a new manufacturing hub came with a much darker side: Multiple revelations have cast a light upon SKI’s suspect and at times illegal business tactics. Regrettably, Georgia, Ford, and Volkswagen have found themselves entangled with a bad-faith actor. Unless a solution is agreed upon, they will be left holding the bag pertaining to lost business and production capabilities.

The situation is this: Several years ago, LG Chem, now LG Energy Solution, a subsidiary of a rival South Korean global conglomerate, accused SKI of stealing trade secrets from LG’s lithium-ion battery technology and then leveraging them to secure lucrative contracts with Ford and Volkswagen. The United States International Trade Commission (ITC), home of the lawsuit, sided with LG, issuing a preliminary default judgement against SKI citing substantial intellectual property (IP) violations. Investigations into these accusations found that SKI would actively attempt to hire former LG engineers with the promise of employment should they provide trade secrets. Investigations also discovered SKI’s attempt to cover up evidence by destroying more than 34,000 files and emails.

State and local officials in Georgia agreed to approximately $300 million in grants, tax incentives, and free land for SKI to secure the company’s investment. The offer also included supplemental incentives such as a sales tax exemption for equipment and energy, as well as substantial tax credits for research and development that could prove to be lucrative for SKI in the years to come. While SKI was more than happy to accept these incentives, the company has failed to live up to its side of the bargain when it comes to investing in Georgia and providing quality jobs. As of this past September, the SKI plant employed only 60 U.S. workers—well short of what was initially promised.

On February 10, the ITC upheld its default judgement issuing a limited ten-year exclusion order prohibiting imports into the United States of SKI lithium-ion batteries while also restricting domestic production. To try and limit the impact on companies like Ford and Volkswagen, both of which are victims of SKI’s deceitful trade practices, SKI will be permitted to import production components for lithium-ion batteries for Ford Motor’s EV F-150 program for four years and for Volkswagen’s MEB electric vehicle line for two years to allow both companies to find new suppliers. However, to ensure that the State of Georgia does not suffer due to SKI’s deception, it is imperative that state, local, and federal officials along with the taxpayers whose hard-earned money, in turn, subsidized this now-failed venture, take the necessary steps to hold SKI accountable. This entails calling on SKI to find a financial and legal resolution to this dilemma in order to keep its commitments to Georgia, to its customers, and to its employees.

One thing is clear: SKI has abused the generosity and the business-friendly environment of Georgia. In a time where American workers are often under threat from the illicit practices of foreign competitors, the state of Georgia and America, cannot in any way support a company that is at the very crux of this problem.

Rather than trying to find a workable solution with LG, SKI is instead attempting to circumvent the courts and appeal to the whims of politicians. For the good of the State of Georgia, President Biden must send a clear message of upholding IP protections and ensure that SKI suffers the consequences of doing business improperly and illegally. Doing anything less would come at the expense of quality partners like LG that have acted as a vital source of investment in the United States and as an ally to the American worker.

If IP theft were to be overlooked and condoned, it would send a terrible signal to existing companies in Georgia and prospective companies looking to possibly relocate. If Georgia prides itself on being a great state to do business, lawmakers in the state must take this seriously.

Sincerely,

Kent Kaiser, Ph.D.

Executive Director

Georgia Should Not Be Entangled with Bad-Faith Actors on Intellectual Property

In the quest to attract investment from foreign and domestic corporations, the State of Georgia has become a home for Electric Vehicle-related manufacturing. In 2019, SK Innovation (SKI), an Electric Vehicle (EV) battery manufacturer and subsidiary of a South Korean global conglomerate, broke ground in the town of Commerce, Georgia, on a $1.67 billion manufacturing plant to produce batteries for Ford and Volkswagen, with a promise of creating 2,000 jobs. Shortly after this initial investment, SKI announced an additional investment of approximately $940 million for expansion of the plant and the creation of an additional 600 jobs for local Georgians.

While seemingly well intentioned, promises of new jobs, economic benefits, and a new manufacturing hub came with a much darker side: Multiple revelations have cast a light upon SKI’s suspect and at times illegal business tactics. Regrettably, Georgia, Ford, and Volkswagen have found themselves entangled with a bad-faith actor. Unless a solution is agreed upon, they will be left holding the bag pertaining to lost business and production capabilities.

The situation is this: Several years ago, LG Chem, now LG Energy Solution, a subsidiary of a rival South Korean global conglomerate, accused SKI of stealing trade secrets from LG’s lithium-ion battery technology and then leveraging them to secure lucrative contracts with Ford and Volkswagen. The United States International Trade Commission (ITC), home of the lawsuit, sided with LG, issuing a preliminary default judgement against SKI citing substantial intellectual property (IP) violations. Investigations into these accusations found that SKI would actively attempt to hire former LG engineers with the promise of employment should they provide trade secrets. Investigations also discovered SKI’s attempt to cover up evidence by destroying more than 34,000 files and emails.

State and local officials in Georgia agreed to approximately $300 million in grants, tax incentives, and free land for SKI to secure the company’s investment. The offer also included supplemental incentives such as a sales tax exemption for equipment and energy, as well as substantial tax credits for research and development that could prove to be lucrative for SKI in the years to come. While SKI was more than happy to accept these incentives, the company has failed to live up to its side of the bargain when it comes to investing in Georgia and providing quality jobs. As of this past September, the SKI plant employed only 60 U.S. workers—well short of what was initially promised.

On February 10, the ITC upheld its default judgement issuing a limited ten-year exclusion order prohibiting imports into the United States of SKI lithium-ion batteries while also restricting domestic production. To try and limit the impact on companies like Ford and Volkswagen, both of which are victims of SKI’s deceitful trade practices, SKI will be permitted to import production components for lithium-ion batteries for Ford Motor’s EV F-150 program for four years and for Volkswagen’s MEB electric vehicle line for two years to allow both companies to find new suppliers. However, to ensure that the State of Georgia does not suffer due to SKI’s deception, it is imperative that state, local, and federal officials along with the taxpayers whose hard-earned money, in turn, subsidized this now-failed venture, take the necessary steps to hold SKI accountable. This entails calling on SKI to find a financial and legal resolution to this dilemma in order to keep its commitments to Georgia, to its customers, and to its employees.

One thing is clear: SKI has abused the generosity and the business-friendly environment of Georgia. In a time where American workers are often under threat from the illicit practices of foreign competitors, we cannot in any way support a company that is at the very crux of this problem.

Rather than trying to find a workable solution with LG, SKI is instead attempting to circumvent the courts and appeal to the whims of politicians. For the good of the State of Georgia, President Biden must send a clear message of upholding IP protections and ensure that SKI suffers the consequences of doing business improperly and illegally. Doing anything less would come at the expense of quality partners like LG that have acted as a vital source of investment in the United States and as an ally to the American worker.

American Innovation Thrives with Reliability, Certainty, and Rule of Law

The Trade Alliance to Promote Prosperity, along with 22 other free market groups, recently signed onto a letter to U.S. Senator Lindsey Graham, Chairman of the Senate Judiciary Committee, and U.S. Representative Jim Jordan, Ranking Member of the House Judiciary Committee, expressing our strong support for the important changes that the current leadership of the U.S. Patent & Trademark Office (USPTO) has made over the past three years to bolster patent reliability and to promote the rule of law. Read the full letter here.

We specifically commended USPTO Director Andrei Iancu for his demonstrated commitment to upholding the protections afforded to American inventors as enshrined in the Constitution.

In the letter, we wrote, “American innovation, just like the industries and economic growth it supports, cannot prosper in an environment of uncertainty. Fortunately, Director Iancu’s contributions over the past few years to reforming America’s patent system have begun to provide our innovation economy newfound certainty and predictability.”

Our coalition noted that Director Iancu has made important tailored improvements to the operations of the Patent Trial & Appeal Board (PTAB), an administrative adjudicatory body with the power to invalidate issued patents. We also applauded reforms that limit patent infringers’ and speculators’ ability to game the system, which renders patents more reliable.

It is important to protect America’s patent system, and Director Iancu’s reforms are integral to American investment in job creation and innovation. Thus, in the letter, we advocated for Congress to defend the many strides the Trump administration has taken to reform the patent system.

The Trade Alliance to Promote Prosperity and The American Edge Project

The American Edge Project (AEP) is a coalition of organizations and companies – both small and large – dedicated to protecting and promoting American innovation for the long term and economic recovery in the near term.

The Trade Alliance to Promote Prosperity (TAPP) has long advocated for innovation in the American economy, especially by protecting intellectual property rights. TAPP has joined AEP in a coalition to maintain “America’s edge” through smart regulatory and policy strategies to preserve an open and accessible digital environment.

How American innovation has fostered a large and rapidly growing digital economy that has provided tangible benefits to the overall economy

The American Economy Is Going Digital

The digital economy is now larger than wholesale trade and retail, and just smaller than professional, scientific and technical services.As a relatively new industry, growth in the digital economy is inherently connected to innovation. Protecting this industry’s ability to innovate must be a top priority in trade agreements in order for it to continue to grow at this pace.

How the success of American small businesses relies on digital products and services and is vital to the American economy as a whole

SMALL BUSINESSES IN THE DIGITAL ECONOMY

Small businesses are a driving force of the American economy but are also the most likely to fail. The digital economy has provided small business with tools to serve and engage with a broader customer base in ways that they can’t do traditionally. A strong digital economy that is accessible to small businesses will strengthen the foundations of the American economy and stabilize its future.

How the American digital environment has fostered free speech while many other nations have done the opposite

Innovation Protects Americans’ First Amendment Rights

American innovators underpin an internet that is open, accessible, and welcoming of free expression. Not everyone around the world experiences those qualities. Many countries across the globe restrict access and content and violate user rights at their discretion. As the global community becomes more digital, it is critical to allow for the same freedoms online as Americans are afforded in-person.

References

“Digital Economy Accounted for 6.9 Percent of GDP in 2017 | U.S. Bureau of Economic Analysis (BEA).” The BEA Wire, 4 Apr. 2019, https://www.bea.gov/news/blog/2019-04-04/digital-economy-accounted-69-percent-gdp-2017
Barefoot, Kevin, et al. Defining and Measuring the Digital Economy. p. 25. https://www.bea.gov/system/files/papers/WP2018-4.pdf
John O’Mahony, and Sara Ma. “2017 Connected Small Businesses US.” Deloitte, p. 38. https://www2.deloitte.com/content/dam/ Deloitte/us/Documents/technology-media-telecommunications/us-tmt-connected-small-businesses-Dec2017.pdf
“Small Business & Entrepreneurship Council.” SBE Council, 12 Sept. 2019. sbecouncil.org, https://sbecouncil.org/2019/09/12/small-business-and-the-digital-economy-online-advertising-fuels-startups-and-boosts-small-business-growth/
Tan, Anjelica. “Technology Is Essential to Future of Small Businesses across America.” TheHill, 9 Nov. 2017. thehill.com, https:// thehill.com/opinion/technology/359616-technology-is-essential-to-future-of-small-businesses-across-america

Especially Now, We Cannot Weaken Our Strong IP Protections for Medical Innovation

One thing the coronavirus crisis has demonstrated is our need to have a robust, nimble, innovative biopharmaceutical industry in the United States—which is exactly what we have.

The medical advancements and new medicines originating outmatch those of any other country because of the regulatory system we have put in place. A key facet of that system is strong intellectual property (IP) protection.

Biopharmaceutical IP protections, such as patents and data protection, provide the incentives that spur research and development. They help ensure that the innovative biopharmaceutical companies that have invested in lifesaving medicines have an opportunity to recoup their investments. Without such protections, biopharmaceutical companies would not be willing to take the risks that result in the discovery of miracle cures and palliative treatments to improve patients’ quality of life.

Recently, critics of the biopharmaceutical industry have advanced misleading and inaccurate narratives that mischaracterize the role of IP protections and the value of new treatment advances. Yet a quick look at how the United States compares to other countries when it comes to life saving innovations reveals that American patients are far better off than are the patients in all other countries.

Here’s just one example. For a 50-year-old diagnosed with non-small cell lung cancer, the life expectancy in Australia is about 57; in the United Kingdom, Korea, and Canada, it is about 63; in France, it is about 74; in the United States, it is about 78, applying findings compiled in a report by IHS Markit.

We cannot predict where the palliative therapies or the cure for COVID-19 will originate, but we know that the United States biopharmaceutical industry is well-positioned to help in their discovery because our country has aligned incentives to achieve the objective of providing the most innovative environment—including strong IP protections.

Why, especially now, would we want to give that up?

IP RESOURCES

World Intellectual Property Organization: “What is Intellectual Property?”
Global Innovation Policy Center: “Why is IP Important?”
United States Patent and Trademark Office: “Protecting Intellectual Property in the United States”
Federal Bureau of Investigation: “Intellectual Property Theft/Piracy News”
United States Department of Justice: “Reporting Intellectual Property Crime”