PAE Intellectual Ventures Forms Its Own PAC Ahead of Senate Patent Legislation Consideration
Patent assertion entity Intellectual Ventures (IV) filed with the Federal Elections Commission last week to organize its own political action committee, Intellectual Ventures PAC, according to documents the FEC released Friday (http://1.usa.gov/Nj8CiR). IV has not commented on what Intellectual Ventures PAC’s political agenda will be, but the company has been highly critical of many provisions in legislation under consideration on Capitol Hill that would curb abusive patent litigation. The House passed the Innovation Act (HR-3309) in December, and the Senate is considering the Patent Transparency and Improvements Act (S-1720) and several other bills. Advocates of that legislation told us it isn’t surprising that IV has formed its own PAC, citing IV’s history of lobbying on patent legislation.
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IV Chief Policy Counsel Russ Merbeth is the PAC’s treasurer and IV Government Relations Manager Kyle Mahoney is the PAC’s assistant treasurer, according to the FEC filing. Merbeth told us the paperwork the FEC posted was accurate, but said he had no further comment on the PAC or its plans. Critics have labeled IV as a “patent troll,” though the company’s leadership has countered that it’s acting as an “innovation capitalist” by investing in inventions to increase innovation (WID Sept 13 p4).
IV employees have spent more than $2 million on campaign contributions since 2000, according to data from the Center for Responsive Politics. IV has maintained a lobbying presence in Washington since 2005. It hired Merbeth as its in-house lobbyist last year, but also continues to use outside firms The Nickles Group and Ricchetti Inc., according to House and Senate lobbying data.
Intellectual Ventures PAC’s formation is “absolutely no surprise,” said Michael Petricone, CEA senior vice president-government and regulatory affairs. “Patent trolling is a multi-billion-dollar, very successful industry -- and they perceive that this business model is under threat. I expect they'll be throwing immense resources into the fight to maintain the current loopholes that allow them to very profitably exploit the patent system.” Computer & Communications Industry Association Patent Counsel Matt Levy told us he views IV’s forming its own PAC as “kind of like potholes forming a PAC to lobby against road maintenance. It’s their money and they're welcome to spend it how they'd like, but I don’t know how effective it will be.” Both CEA and CCIA have strongly advocated for patent revamp legislation, including HR-3309.
Intellectual Ventures PAC’s efforts are likely to focus on members of the Senate given that the House has already passed HR-3309, Levy and Petricone told us in separate interviews. “I think they see the Senate as their last chance to preserve their business model,” Petricone said. IV is “actively trying to improve their image and separate themselves from the other patent trolls as best they can and try to make sure whatever gets passed affects them as little as possible,” Levy said.