The new intellectual property race

Purpose - The purpose of this paper is to investigate how entrepreneurs are reacting to the recent change in patent priority rules under the America Invents Act (AIA). The authors sought to examine the relationship between a significant change in policy concerning a class of intellectual property (IP), patents in this case, and resulting perceptions and attitudes among entrepreneurs. Design/methodology/approach - The authors designed a survey and collected data from 36 practicing entrepreneurs in the upper Midwest. The survey respondents completed either a paper hard-copy survey that was available at a regional entrepreneurship and innovation conference, or an electronic version of the survey (administered through QuestionPro.com). The survey included questions about entrepreneurship experience, area of expertise, IP use history and knowledge, risk tolerance, and demographics. Findings - The empirical findings suggest that entrepreneur practitioners have not thoroughly reviewed FTF, but they are seeking legal advice. Also, entrepreneurs disagree with the notion that they are more likely to innovate under FTF. With regard to entrepreneurial knowledge, speaking with an attorney had a significant impact on entrepreneurs’ attitudes toward FTF, leading them to worry more about how they might compete with larger firms and about sharing their ideas. Finally, after controlling for demographics, the authors find that attitudes toward FTF have already significantly impacted recent past and future intended entrepreneurial behavior. Originality/value - While the literature is rich with information about the AIA, the history of IP and patenting in the USA, and the merits and challenges of first-to-file vs first-to-invent patenting policy, little has been done to study entrepreneur attitudes and perceptions regarding the implementation of AIA and its policy provisions. Understanding entrepreneur perspectives concerning AIA is a critical component in assessing impacts regarding the critical area of innovation and new venture creation.