Montana Lawyer February/March 2025

PRESIDENT’S MESSAGE The Rule of Law Is Good for Business

It is no coincidence that the United States has the largest economy in the world and also the most robust intellectual property system. Our patent system is proof that the rule of law is good for business. The quid pro quo for obtaining a patent is the obligation placed upon the inventor to fully “teach” his invention to the public so that society can build upon that knowledge when the patent expires. In this respect, our patent laws are a reflection of the uniquely American tension be tween individualism and collectivism. In a healthy democracy, this tension plays itself out in innu merable ways, with the push and pull resulting in conflict and compromise. “To varying degrees over the course of our history…, we tended to view our individual and collective well-being as powerfully entwined.” 4 Our patent system is but one example of the rule of law at work. Generally speaking, the rule of law creates the stability and predictability busi nesses need to foster investment, drive economic growth, and succeed in today’s competitive global markets. Research shows that stronger rule of law correlates with higher GDP per capita, reduced corruption, and better socioeconomic outcomes— key indicators of a thriving business environment. For businesses, the rule of law translates into minimized risks, effective dispute resolution, and the protection of contracts and property rights. Tools like the World Justice Project’s Rule of Law Index 5 empower companies to assess potential markets, navigate regulatory landscapes, and make data-driven investment decisions. Awareness of the rule of law in global markets helps to mitigate exposure to unstable or poorly governed environ ments. Beyond risk management, supporting the rule of law promotes transparency, accountabil ity, and equality, fostering trust and stability in markets.

I have devoted my career to helping entre preneurs and inventors protect their ideas. Our patent system was first conceptualized in Article I, Section 8 of the U.S. Constitution, which states in part that “Congress shall have the Power… To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respec tive Writings and Discoveries….” At the time these words were written, the framers of the Constitution were both cautious of the dangers of monopolies and desirous of incentivizing inno vation in a fledgling country with vast expanses of geography that called for resourcefulness and ingenuity. Their solution was to circumscribe government-sanctioned monopolies in three respects. First, the monopoly (patent) must be for an invention that is useful. Second, it must be granted for a limited time only. Third, the patent must be awarded to the actual inventor. According to the U.S. Patent and Trademark Office (USPTO), Gallatin County led the rest of the state in numbers of issued patents from 2000 2015. The runners-up are Flathead, Missoula, Ravalli and Yellowstone Counties. A USPTO report published in 2022 states that in the mid 1990s, companies began spending more on intangible property than on tangible property and “started investing more in research, develop ment and the commercialization of intangible assets …. ” 1 This shift in the emphasis from tangible to intangible assets reflects a broader shift toward a knowledge-based economy. Citing USPTO statistics, the U.S. Chamber of Commerce touts that intellectual property contributes $7.8 trillion to the economy and constitutes about 40% of the nation’s gross domestic product (GDP). 2 The 2024 International IP Index, published by the U.S. Chamber of Commerce, ranks the United States No. 1 for its commitment to intellectual property protection. 3

Toni Tease is a registered patent attorney and a solo practitioner who special izes in intellectual property law. Her office is located in Billings, Montana, and her website is at www.tease law.com.

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