Prepared Statement of Senator Chuck Grassley of Iowa
Ranking Member, Senate Committee on the Judiciary
Hearing Regarding the Nominations of:  
Michelle K. Lee, to be Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office
Daniel Henry Marti, to be Intellectual Property Enforcement Coordinator, Executive Office of the President
Wednesday, December 10, 2014

Thank you, Mr. Chairman.  

Before I turn to the nominees who are appearing before us today, I’d like to say just a few words about the process we’re following with today’s hearing.  Everyone in the room today, including the nominees themselves, understands that there isn’t enough time for these nominations to be confirmed before we adjourn for the year.  We also know, of course, that when the new Congress is sworn in next year, this Committee will have new Members.  And those Members should have an opportunity to participate in a hearing.  And I expect that next year, those new Members will have that opportunity. So, I wanted to make sure the nominees are on notice and don’t have any false expectations.

With that said, let me turn to the nominees.  Thank you, Ms. Lee and Mr. Marti, for being here today.  Congratulations on your nominations to serve as the Director of the United States Patent and Trademark Office and as the Intellectual Property Enforcement Coordinator, respectively.  You both have strong qualifications and years of experience.  You have a proven track record in the field of intellectual property law and are well respected by the intellectual property community.  Both the Patent and Trademark Office and the Office of the IPEC need strong and accountable leadership, so I’m pleased that the President has submitted your nominations for the Senate’s consideration.

The United States is at the forefront for innovating, creating and developing new technologies and products.  Intellectual property supports technological advances and spurs innovation.  Intellectual property also plays a critical role in job creation, economic growth and the balance of trade.  In fact, the entire U.S. economy relies on some form or another of intellectual property because virtually every industry either produces or uses it.
We need to ensure that intellectual property rights are protected here in the United States and abroad.  Improved coordination between U.S. government agencies will strengthen enforcement of our intellectual property laws.  Enhanced cooperation by the various different industry stakeholders will also help protect our intellectual property rights.  In addition, we need to be doing our best to utilize limited resources in the most efficient way possible and to reduce duplication and waste.

The bottom line is that if we want the United State to remain a world leader in innovation and creativity, we must have a system in place that respects and enforces intellectual property laws, including a strong and vibrant patent system.  Consequently, now more than ever, both the USPTO and the IPEC need strong, capable leadership.  These offices play a crucial role in promoting American innovation and economic prosperity, so there’s simply too much at stake for us to settle for anything less.  
Ms. Lee, you’ve been nominated to a tough position.  The continued implementation of the America Invents Act, clearing out the backlog of patent and trademark applications, and putting a stop to abusive patent litigation are just a few of the many challenges facing the agency.  Further, we’ve learned about time and attendance fraud, preferential hiring practices and other mismanagement issues at the PTO.  These are very concerning findings, and they must be corrected.

Mr. Marti, you also are nominated to a position that will require a lot of smarts to bring together differing agendas and priorities.  Your predecessor did a good job at working with the private sector to reach voluntarily agreements on how to protect intellectual property against bad actors.  But there’s still much to be done, and you have your work cut out for you.

So I look forward to hearing more about how you both intend to lead these two important offices and enhance their missions, as well as how your plans will strengthen our intellectual property system and keep America on the cutting edge.
 

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