Republican Senator Jim Banks of Indiana has formally urged the US Commerce Department to strengthen patent protections against what he described as Chinese companies deploying artificial intelligence to systematically mine American patent applications. In a letter addressed to Commerce Secretary Howard Lutnick, Banks warned that the practice — which he termed 'AI-enabled duplication' — threatens US innovation, erodes pharmaceutical R&D incentives, and risks deepening America's dependence on China's biotechnology sector.

What Banks Alleges

According to the senator's letter, Chinese firms are increasingly using AI tools to analyse US biotechnology patent applications, identify commercially promising discoveries, and file derivative patents before American innovators can bring their products to market. Banks described the practice as 'patent scraping' — a process that allows competitors to appropriate an invention, make minor modifications, and obtain regulatory approval ahead of the original inventor.

'Patent scraping is intensifying the Chinese IP threat and risks undercutting American R&D investment, particularly given China's rapid drug approval process,' Banks wrote. 'When competitors can appropriate an invention, make minor modifications, and obtain regulatory approval before the original innovator, the incentives for investing in R&D are fundamentally weakened.'

The Pharmaceutical Supply Chain Concern

Banks argued that the challenge extends well beyond intellectual property theft. He noted that since the 1980s, the Chinese Communist Party has designated biotechnology a strategic national priority, investing heavily in research infrastructure and streamlining regulations to accelerate product development. This environment, he contended, has made China an increasingly attractive — and now strategically risky — manufacturing hub for the US pharmaceutical industry.

Citing a 2024 survey by the Biotechnology Innovation Organisation, Banks noted that 79 per cent of American biotechnology companies reported at least one contract or product agreement with a China-based or Chinese-owned manufacturer. He argued that such reliance 'not only creates vulnerabilities in our domestic supply chains but further exposes America's biotech sector to a country that actively seeks to undercut and exploit our industries.'

AI at Machine Scale: The USPTO Burden

Banks further warned that the combination of traditional patent analysis with AI tools enables competitors to file derivative patents 'at machine speed', without bearing original R&D costs. He cautioned that low-quality, AI-generated filings could overwhelm the US Patent and Trademark Office (USPTO), worsening examination backlogs and complicating prior-art analysis.

'Low-quality, AI-generated filings can burden patent systems. Machine-scale applications with little or no meaningful human contribution may further strain USPTO by worsening examination backlogs and complicating prior-art analysis,' he wrote.

Call to Action for USPTO

In his letter, Banks urged both Lutnick and USPTO Under Secretary Squires to prioritise reforms that protect innovations vulnerable to AI-assisted copying. He acknowledged existing USPTO engagement on the issue while pressing for continued and accelerated action.

This comes amid a broader US-China strategic contest over advanced technologies including biotechnology, semiconductors, artificial intelligence, and quantum computing. Washington has repeatedly accused Beijing of using state-backed industrial policies and cyber-enabled methods to acquire foreign technology — allegations that China has consistently denied. The patent scraping concern represents a newer, AI-accelerated dimension of that long-running dispute.