Since its creation more than 200 years ago, the US patent system has played an important role in stimulating technological innovation by providing legal protection to inventions of every description and by disseminating useful technical information about them. With the growing importance of technology to the nation's well-being, patents are playing an even more prominent role in the economy. There are many indications that firms of all sizes as well as universities and public institutions are ascribing greater value to patents and are willing to pay higher costs to acquire, exercise, and defend them.

Continuing high rates of innovation suggest that the patent system is working well and does not require fundamental changes. We generally agree with that conclusion, but it is clear that both economic and legal changes are putting new strains on the system.