SAN JOSE — The U.S. Commerce Department has announced plans to open a long-awaited patent office in Silicon Valley, the world's top region for patent filers.
Commerce officials said Tuesday the city of San Jose is donating two years of rent-free office space in San Jose City Hall, where more than 80 new patent judges and reviewers will help inventors and entrepreneurs cut through red tape. The California Assembly speaker's office is also donating $500,000 for the office.
"It's a great relief," said U.S. Rep. Mike Honda, D-Calif., who has pressed for years to bring the office to his constituents.
"This is going to really help our entrepreneurs protect intellectual property, help them attract capital, and bottom line, it's going to create jobs," Honda said.
San Jose is the nation's top patent-producing city, with more than 7,000 patents sought last year, and California is the nation's patent leader, with seven of the top 10 patent-producing cities. But for more than 200 years, patent seekers needed to visit offices in Alexandria, Va., if they wanted to meet with a patent judge.
"We should be able to make better use of the appeals process since we won't have to travel across the country, and it's going to be very convenient for inventors to walk into City Hall and ask their questions before they come to me," said Perkins Coie partner Michael Glenn, a longtime Silicon Valley patent attorney.
A 2011 law raised patent fees in exchange for promises from officials to use those new revenues to speed up the patent process and establish four satellite offices for the first time in the agency's 200-plus year history. The first opened in Detroit in July 2012, and permanent locations for others were selected in Denver and Dallas before sequestration; those are in the process of opening.
But in August, the General Services Administration — which owns and operates federal properties — said it was suspending its search for permanent patent office space in Silicon Valley, citing federal budget cuts known as sequestration. Technology leaders from industry heavyweights including Google Inc. objected on the grounds that patent offices are supported by the $2.8 billion in annual patent fees.
"Having a Silicon Valley office increases the communication between companies in this region and the patent office, and that communication works in a lot of different ways that are really important," said Suzanne Michel, senior patent counsel at Google, which has tens of thousands of applications pending.
While waiting, Silicon Valley Patent Office Director Michelle Lee, a former Google patent law division head, has been working since April out of a small, temporary space with just a handful of administrative judges in rooms borrowed from another government agency in Menlo Park.
During a teleconference with reporters Tuesday, Lee and acting Deputy U.S. Commerce Secretary Patrick Gallagher said the new, permanent office will be ready by the end of 2014 after renovations that include a robust, high speed Internet system and new hearing rooms.
"This is going to be of great importance to the vibrant Silicon Valley," Gallagher said.
The average rent in Santa Rosa has increased 37 percent in four years, according to RealFacts. Here’s a look at how the average rent for a two-bedroom apartment in the city has increased since 2011:
BY THE NUMBERS
13,386*: Total number of units rent control affects
$11.4 million: Estimated savings to renters by capping rent at CPI
$4.4 million: Estimated drop in business income: $4.4 million
$171,600: Estimated drop in property taxes: $171,600
*City of Santa Rosa estimate; Source: Rob Eyler, PhD.
The City Council will explore the issue 2 p.m. Tuesday, Santa Rosa City Hall