Energy and Water Development and Related Agencies Appropriations Act,

Floor Speech

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Mr. GRASSLEY. Mr. President, the United States is one of the most dynamic and innovative countries in the world. Our Nation's success in areas such as agriculture, manufacturing, computer technology, and medicine can be traced in large measure to our respect for, and protection of, intellectual property.

Every year on this day, April 26, we have the opportunity to recognize the important role of intellectual property rights in the fabric of our society when we celebrate World Intellectual Property Day.

Nearly 230 years ago, our Founding Fathers recognized the importance of intellectual property and made provisions for its promotion and protection in the Constitution. Article I, section 8, clause 8 empowers Congress ``to promote the Progress of Science and Useful arts, by securing, for limited Times, to Authors and Inventors, the exclusive Right to their respective Writings and Discoveries.''

Since that time--and stemming from these values--intellectual property has played a vital role in our economy, supporting jobs and advancing creative and scientific industries.

In our modern, innovation economy, patents, trademarks, copyrights, trade secrets, and other forms of IP are more critical than ever. As the Global Intellectual Property Center recently pointed out in their broad survey of Intellectual Property in America, IP-intensive industries employ over 40 million Americans, accounting for 38 percent of total U.S. gross domestic product. Workers in IP-intensive industries are paid better than the national average, earning an average salary of over $50,000 compared to those in non-IP-intensive sectors where the average is roughly $39,000. In fact, intellectual property is so important to the American economy that the collective worth of all of the intellectual property in the United States is now above $5.8 trillion.

In Iowa, we have seen how intellectual property has become an integral part of our economy. Our system of strong intellectual property protection has led to $11.2 billion in annual IP-related exports from the State, a total of 667,557 IP-related jobs, and 19.9 percent higher wages for direct IP workers than non-IP workers. Just as Iowans utilized strong IP laws 75 years ago when they were discovering how to feed the world through cutting-edge science, today's Iowans benefit from our system of IP protection as they start companies and create new tech success stories.

The Judiciary Committee plays an important role in protecting intellectual property. The committee exercises jurisdiction over our Nation's intellectual property laws including those governing patents, trademarks, and copyrights. We consider legislation that helps to ensure that intellectual property rights continue to promote jobs and innovation. The committee also exercises important oversight of the Patent and Trademark Office, ICANN, the Office of the Intellectual Property Enforcement Coordinator, and various law enforcement entities charged with protecting IP.

Some recent examples of important legislation that helps promote intellectual property rights are the PATENT Act of 2015 and the Defend Trade Secrets Act of 2016. The PATENT Act, which passed the committee by a vote of 16 to 4 last June, takes important steps to stop abusive patent litigation practices. As bad actors are exploiting the high costs of litigation and using deceptive tactics to prey on businesses, it is important that this legislation be considered in the Senate.

Just 3 weeks ago, the Senate unanimously passed the Defend Trade Secrets Act of 2016, sponsored by Senators Hatch and Coons. Building upon the bipartisan consensus generated in the Judiciary Committee, the bill passed on the Senate floor by a vote of 87 to 0. It is estimated that the American economy loses 2.1 million jobs and over $300 billion in economic losses every year because of trade secret theft. The Defend Trade Secrets Act brings much-needed uniformity to trade secret litigation. This will allow the creators and owners of trade secrets to more effectively address the growing problem of trade secret theft. The House of Representatives is expected to pass our bill this week and I hope it will be immediately signed by the President.

Tomorrow, the Judiciary Committee will hold a hearing on counterfeits and their impact on consumer health and safety. We will hear from a panel of experts, including witnesses from the Patent and Trademark Office, U.S. Immigration and Customs Enforcement, and industry. These businesses include companies that provide home health care products and equipment to our troops. They will discuss how counterfeits can harm consumers and what their impact is on the economy. We will hear how law enforcement is addressing this problem as well as how stakeholders are educating consumers to protect themselves from counterfeits.

The focus of this year's World Intellectual Property Day is ``digital creativity.'' As the World Intellectual Property Organization notes, the current era of Internet connectivity is transforming how consumable culture such as films, TV, music, books, art, and other cultural works are created and distributed. This has led to radical changes in the way we access content and in how businesses operate. As challenges emerge as to how we protect intellectual property rights in these new economic models, we must continue to search for effective solutions that promote creativity across different mediums.

So on this World Intellectual Property Day, it is important to once again recognize the significance of our Nation's robust system of intellectual property protection and enforcement. This system has helped create the United States' enduring role as a leader in innovation and creativity. As the chairman of the Senate Judiciary Committee, I will continue to embrace my role as a promoter of intellectual property rights and American jobs.

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