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                                                      Calendar No. 483
114th Congress      }                                   {       Report
                                 SENATE
 2d Session         }                                   {      114-419

======================================================================



 
            SMALL BUSINESS INNOVATION PROTECTION ACT OF 2016

                                _______
                                

               December 20, 2016.--Ordered to be printed

   Filed, under authority of the order of the Senate of December 10 
                  (legislative day, December 9), 2016

                                _______
                                

Mr. Vitter, from the Committee on Small Business and Entrepreneurship, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2846]

    The Committee on Small Business and Entrepreneurship, to 
which was referred the bill (S. 2846) to amend the Small 
Business Act to expand intellectual property education and 
training for small businesses, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                            I. INTRODUCTION

    The Small Business Innovation Protection Act of 2016 (S. 
2846) was introduced by Senator Gary Peters on April 25, 2016, 
with Committee members David Vitter, James Risch, Christopher 
Coons, and Mazie Hirono as cosponsors. The Act would provide 
for expanded intellectual property education and training for 
small businesses. During the markup of the bill, the bill was 
approved by roll call vote without amendments.

              II. HISTORY (PURPOSE & NEED FOR LEGISLATION)

    In the United States, intellectual property enjoys strong 
legal protections and rights through copyrights, patents, and 
trademarks. Intellectual property rights are essential in 
encouraging entrepreneurship. The United States Patent and 
Trademark Office (USPTO) offers intellectual property training 
through the Global Intellectual Property Academy. In 2012, the 
Small Business Administration and USPTO released a joint report 
on international patent protection for small businesses. The 
report found that many small businesses may benefit from 
extending patent rights outside the U.S., but few were aware of 
the necessity or the mechanisms available to accurately and 
effectively pursue an international patent. The report 
determined that the USPTO and the SBA are well positioned to 
build upon several successful current intellectual property 
education and training programs in order to reach more small 
businesses.

                      III. HEARINGS & ROUNDTABLES

    In the 114th Congress, issues related to intellectual 
property protections were addressed.
    On February 25, 2016, the Senate Committee on Small 
Business and Entrepreneurship held a hearing entitled ``An 
Examination of Changes to the U.S. Patent System & Impacts on 
America's Small Businesses.'' The hearing examined the abuse of 
patent litigation and its effects on small businesses. At this 
hearing, witnesses testified about the need to protect 
intellectual property.
    On March 19, 2015, the Committee held a hearing entitled 
``Patent Reform: Protecting Innovation and Entrepreneurship.'' 
The purpose of this hearing was to examine the effects of 
current patent rights laws for small businesses and 
entrepreneurs.

                        IV. DESCRIPTION OF BILL

    The Small Business Innovation Protection Act of 2016 bill 
will address the aforementioned challenges small businesses 
have in obtaining, maintaining, and enforcing foreign and 
domestic patents. Specifically, the bill will require the SBA 
and USPTO to enter partnerships to leverage existing outreach 
programs in order to educate more small businesses on domestic 
and international patent protection.

                           V. COMMITTEE VOTE

    In compliance with rule XXVI(7)(b) of the Standing Rules of 
the Senate, the following vote was recorded on May 11, 2015.
    A motion to adopt the Small Business Innovation Protection 
Act of 2016, a bill to amend the Small Business Act to expand 
intellectual property education and training for small 
businesses and for other purposes, was approved by roll call 
vote with the following Senators present: Vitter, Risch, Scott, 
Ernst, Ayotte, Shaheen, Cantwell, Cardin, Heitkamp, Markey, 
Booker, Coons, Hirono, and Peters.

                           VI. COST ESTIMATE

    In compliance with rule XXVI(11)(a)(1) of the Standing 
Rules of the Senate, the Committee estimates the cost of the 
legislation will be equal to the amounts discussed in the 
following letter from the Congressional Budget Office:

                                                     June 30, 2016.
Hon. David Vitter,
Chairman, Committee on Small Business and Entrepreneurship,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2846, the Small 
Business Innovation Protection Act of 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Stephen 
Rabent.
            Sincerely,
                                                Keith Hall.
    Enclosure.

S. 2846--Small Business Innovation Protection Act of 2016

    S. 2846 would require the Small Business Administration 
(SBA) and United States Patent and Trademark Office (PTO) to 
develop partnership agreements to provide training materials 
and opportunities to small businesses on domestic and 
international protection of intellectual property. It also 
would require Small Business Development Centers, in 
conjunction with PTO, to provide training to small businesses 
on domestic and international protection of intellectual 
property. The SBA funds a portion of the operations of Small 
Business Development Centers, which provide counseling, 
training, and technical assistance to small businesses.
    On the basis of information from the SBA and PTO about the 
resources needed to conduct such training, CBO estimates that 
the costs to implement S. 2846 would not be significant. 
Enacting S. 2846 would not affect direct spending or revenues; 
therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting S. 2846 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    S. 2846 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act. The 
SBA provides grants to Small Business Development Centers that 
are hosted by universities, colleges, and state agencies for 
economic development. Any costs those entities incur would 
result from complying with conditions of assistance.
    The CBO staff contacts for this estimate are Stephen Rabent 
(for federal costs) and Rachel Austin (for state and local 
effects). The estimate was approved by H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

                   VIII. SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    This section designated the bill as the ``Small Business 
Innovation Protection Act of 2016''.

Section 2. Definitions

    This section defines the terms administrator, director, 
SBA, small business concern, small business development center, 
and USPTO.

Section 3. Findings

    This section relates to findings of Congress regarding 
USPTO and the SBA's ability to administer intellectual property 
and training programs aimed at small business concerns.

Section 4. SBA and USPTO partnerships

    This section dictates that the Small Business 
Administration shall develop partnership agreements. These 
agreements shall develop high-quality training for small 
businesses related to intellectual property protection, 
leverage training materials already developed, and include the 
participation of a nongovernmental organization. These 
partnership agreements must also make use of electronic 
resources for training and the training of headquarters or 
regional offices of the United States Patent and Trade Office.

Section 5. Small businesses development centers

    This section amends the Small Business Act to require that 
small business development centers provide training relating to 
intellectual property protections and how these protections can 
be applied to the business plans and growth of small 
businesses.

                                  [all]