The Tillis tax would harm Idaho startups’ ability to protect patents | Opinion

Idaho has long been a quiet leader in innovation and technology. From the massive new Micron semiconductor factories in Boise to the research facilities at Idaho National Laboratory in Idaho Falls, our state’s scientists, engineers and entrepreneurs are spearheading America’s technological and manufacturing renaissance.

These companies all started out as small businesses created when people had an idea and took a risk to create a brand new company. Now, this same breed of entrepreneurs needs a helping hand from Idaho Sen. Mike Crapo, who chairs the Senate’s powerful Finance Committee.

A handful of misguided congressional Republicans are trying to functionally ban a critical financial resource that entrepreneurs and startups use to protect their ideas and designs from theft. It’s up to Crapo to shoot down their proposal and ensure that businesses across our state and nation can continue to innovate.

The bill is misleadingly named the Tackling Predatory Litigation Funding Act — dubbed the “Tillis Tax” for its sponsor, Sen. Thom Tillis. Tillis created an indirect assault on property rights when he sponsored this bill. Tillis is no stranger to controversial action, especially given his recent cooperation with all Senate Democrats in opposing the “One Big Beautiful Bill Act.”

This bill will deprive startups of the financing they need to protect their patents in court. It would effectively enable giant companies to steal smaller rivals’ technology and then drag out the ensuing legal battles for years, betting that the smaller firms will run out of money and have to accept a paltry settlement. Big Tech companies like Apple and Google have perfected this tactic of “efficient infringement.”

“Third-party litigation funding” helps startups and small businesses to level the playing field and defend their property in court. Without it, Big Tech would win the vast majority of infringement cases simply by stalling for time and waiting for smaller firms to run out of cash.

The bill doesn’t outright ban small businesses from seeking third-party financing -- but it’d punitively tax the proceeds of any settlement or court-issued judgement. That’d discourage investors from partnering with small companies seeking to wage a David vs. Goliath legal battle over a stolen patent.

Conservatives should be especially alarmed. Intellectual property is private property, explicitly protected under Article I, Section 8 of the Constitution. Letting powerful companies violate those rights with impunity undermines the free market that drives American breakthroughs.

The stakes go beyond patents. These are the same Big Tech monopolies that censor conservative voices, deplatform dissent, and bankroll far-left causes. This tax would shut down funding for conservative voices, reward Big Tech’s behavior, and insulate them from accountability.

Idaho’s high-tech economy is booming. Micron is investing $15 billion in advanced chip factories, the first of their kind built in America in two decades. Startups from Boise to Twin Falls are commercializing technologies in agriculture, water conservation and energy.

But they’ll struggle to grow if it becomes increasingly obvious that their technology can be stolen at will and without repercussions. Patent litigation can cost millions. If Congress passes the Tillis Tax, the funding that helps Idaho inventors defend their IP could dry up overnight.

Idaho’s congressional delegation has long championed property rights, tax fairness, and American competitiveness. Our leaders, particularly Crapo, can and should stop this dangerous bill and protect inventors.

Thad Butterworth is a small business owner, consultant, author and chairman of the Ada County Republican Party.

This story was originally published September 19, 2025 at 4:00 AM.