Patent Eligibility and Investment

98 Pages Posted: 3 Apr 2019 Last revised: 21 Apr 2021

See all articles by David O. Taylor

David O. Taylor

Southern Methodist University - Dedman School of Law

Date Written: February 24, 2019

Abstract

Have the Supreme Court’s recent patent eligibility cases changed the behavior of venture capital and private equity investment firms, and if so how? This Article provides empirical data about investors’ answers to those important questions. Analyzing responses to a survey of 475 investors at firms investing in various industries and at various stages of funding, this Article explores how the Court’s recent cases have influenced these firms’ decisions to invest in companies developing technology. The survey results reveal investors’ overwhelming belief that patent eligibility is an important consideration in investment decisionmaking, and that reduced patent eligibility makes it less likely their firms will invest in companies developing technology. According to investors, however, the impact differs between industries. For example, investors predominantly indicated no impact or only slightly decreased investments in the software and Internet industry, but somewhat or strongly decreased investments in the biotechnology, medical device, and pharmaceutical industries. The data and these findings (as well as others described in the Article) provide critical insight, enabling evidence-based evaluation of competing arguments in the ongoing debate about the need for congressional intervention in the law of patent eligibility. And, in particular, they indicate reform is most crucial to ensure continued robust investment in the development of life science technologies.

Keywords: patent law, patents, intellectual property, patentable subject matter, eligible subject matter, eligibility, Mayo, Alice, survey

Suggested Citation

Taylor, David O., Patent Eligibility and Investment (February 24, 2019). 41 Cardozo Law Review 2019 (2020), SMU Dedman School of Law Legal Studies Research Paper No. 414, Available at SSRN: https://ssrn.com/abstract=3340937 or http://dx.doi.org/10.2139/ssrn.3340937

David O. Taylor (Contact Author)

Southern Methodist University - Dedman School of Law ( email )

P.O. Box 750116
Dallas, TX 75275
United States

HOME PAGE: http://www.smu.edu/Law/Faculty/Profiles/Taylor-David-O

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