Senator Thom Tillis (R-NC) and a handful of lawmakers are advancing the Tackling Predatory Litigation Funding Act. The measure would impose a tax of up to 40.8% on third-party litigation funding -- a devastating hit to small innovators. Ohio’s congressional delegation should reject this misguided plan and stand with the inventors who drive our state’s economy.
For many entrepreneurs, outside funding is the only way to afford a patent lawsuit. It allows outside partners to shoulder legal costs in exchange for a share of any award. Without it, many inventors wouldn’t be able to withstand the cost of defending their ideas in court.
Big Tech knows this. Companies like Google, Apple, Amazon, and Meta often use a tactic called “efficient infringement.” They copy patented ideas, drag out litigation for years, and count on smaller rivals running out of money.
Third-party funding helps level the fight. It gives independent inventors and small businesses the resources to press their cases in court and demand accountability.
Senator Tillis’ plan doesn’t ban third-party financial partnerships outright, but the steep tax would no doubt drive investors away. That means fewer cases, more stolen ideas, and even more unchecked power for predatory corporate goliaths.
Proponents of the bill claim it would bring “transparency” and “fairness” to the courts. In reality, it would tilt the playing field further in favor of the largest corporations, the very entities that already exploit their size and legal budgets to crush smaller rivals.
Ohio has too much at stake to let this pass. Our state ranks among the top in the country for new patents, with nearly 50,000 filed in the last seven years. Breakthroughs in health care, aerospace, and advanced manufacturing are happening right here. Small businesses, university spinoffs, and independent entrepreneurs depend on strong intellectual property protections to compete. If they lose the ability to enforce those rights, Ohio’s innovation economy will suffer.
The Constitution guarantees inventors the exclusive right to their discoveries. That principle is not conditional, and it should not be eroded by targeted tax schemes that make justice unaffordable.
Ohio has always stood for hard work and original ideas. From the Wright brothers to today’s tech startups, our state has shown what’s possible when inventors are free to build and protect their creations. Now, our congressional delegation -- including Senators Jon Husted and Bernie Moreno -- should stand with Ohio’s inventors and reject Sen. Tillis’ misguided proposal. The future of Ohio’s innovation economy depends on their leadership and resolve.
Scott Pullins is an Ohio attorney, public affairs counselor, and the founder of the Ohio Taxpayers Association.
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