STATEMENT
of the
Honorable Nydia M. Velázquez, Chair
House Committee on Small Business
Full Committee Hearing: “The Impact of Intellectual Property on Entrepreneurship and Job Creation”
July 21, 2010, 1 p.m.

Many of our most successful ventures in America started as a note on a napkin or a dream by an entrepreneur.  When these ideas blossom into new products and services, they create jobs – a critical component of any economic recovery. 

The success of these new ventures requires a system that effectively protects entrepreneurs’ ideas from being unfairly copied and stolen.  Businesses that develop new products need assurances that the economic value of their innovations will be maintained.  

At the same time, we must ensure the rules are workable.  If they are overly restrictive, companies that help entrepreneurs reach global markets will see their growth curtailed.  Technological entrepreneurs want to know that innovations like TiVo and Slingbox are not hindered, as we seek to protect content creators’ rights.   

Because of our entrepreneurs’ creativity, the United States is an unparalleled global leader when it comes to new ideas.  In fact, more than 18 million Americans work in industries with an Intellectual Property focus.  This includes industries where small firms are independent television and movie producers, video game designers, songwriters and manufacturers. Collectively, these and other industries make U.S. intellectual property worth $5.5 trillion – operating in hundreds of thousands of small businesses. 

Just as the concept of intellectual property touches many economic sectors, preserving it requires diverse approaches.   The Administration recently announced plans to bolster protection of American business interests. The private sector has played and will continue to play an equally important role in protecting intellectual property.   Those efforts will be highlighted today as we look at the proactive efforts to meet small business needs.

As the Internet continues to evolve, we see a cross-section of businesses who can help preserve US ideas.  The advent of e-commerce has been a boon to many small businesses. It has also allowed artists and small producers to rapidly disseminate music and video content, while reaching new audiences. But, the Internet has also created opportunities for piracy. 

To assist U.S. companies in the Internet age, content owners are taking several steps.  They are engaging in consumer outreach and education and, where necessary, taking legal action against infringers. Others are collaborating with video and social-networking portals to distribute their product.

In the end, the innovation of entrepreneurs is directly tied with the confidence that their ideas will not be stolen. Today’s hearing will examine how the system for protecting intellectual property can spur job growth and foster innovation.  During every previous recession, the creativity of America’s entrepreneurs has led us back to prosperity.  That will be the same again, today

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