HB 2555 -- ENTREPRENEURIAL DEVELOPMENT COUNCIL

SPONSOR:  Pearce

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Small Business by a vote of 9 to 0.

This bill establishes the Entrepreneurial Development Council
within the Department of Economic Development consisting of seven
members from Missouri businesses and licensed attorneys
specializing in intellectual property law.  All members will be
appointed by the Governor with the advice and consent of the
Senate.  The department will establish the terms of membership,
which will be permanent and apply to all subsequent members.

The council will provide benefits to entrepreneurs who register
with it.  The council may impose a registration fee, as provided
by department rule, for Missouri entrepreneurs who wish to avail
themselves of the council's benefits.

The Entrepreneurial Development and Intellectual Property Right
Protection Fund is created to accept state and federal
appropriations, grants, bequests, gifts, fees, and awards to be
used by the council.

The council will evaluate allegations of intellectual property
rights infringement and may, based on need, award grants or
financial assistance to subsidize legal expenses incurred in
instituting legal action necessary to remedy the alleged
infringement.  The council may allocate money from the fund, as
provided by department rule, for low-interest loans and grants to
registered entrepreneurs to provide financial aid for product
development, manufacturing, and advertising of new products.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown -
could exceed $100,000 in FY 2009, FY 2010, and FY 2011.  No
impact on Other State Funds in FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that the bill will benefit businesses
that manufacture items from simple games to high technology
ideas.  The legal costs to fight a large corporation over a
patent infringement can be very expensive when developing a new
product.  The bill benefits small business, new business, and the
technology industry by building their business, protecting
intellectual property, and creating new jobs in Missouri.
Missouri is below the average of patents per 10,000 people and is
ranked thirty-sixth while Idaho is first.  The bill will enhance
creativity and innovation in Missouri.  Entrepreneurs are willing
to pay fees for this program.  When a patent has been stolen, law
enforcement does not look for the thief.  Intellectual property
needs protection and businesses will move to Missouri to get it.
The program could be self-funding and thereby limits the costs to
the state.  The bill helps protect small businesses that have
developed new products from having their ideas stolen by parties
who have a greater ability to afford litigation expenses.

Testifying for the bill were Representative Pearce and Senator
Barnitz; Mark Manley; Dr. Jerry Plunkett; Richard LaBrash;
Charles Matthew Cooper; Dr. Virgil Flanigan; Missouri Economic
Development Council; Associated Industries of Missouri; George
Sturmon; Benjamin Jones, America's Heartland Economic Partners;
Major General (Retired) John Haven; and Edie Krull, Greater
Ozarks Enterprise Center, LLC.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm