Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Business and Economic Development, to which was referred H.B. No. 3261, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish an Ingenuity Corporation Charter that will be responsible for:

Your Committee heard testimony in support of this measure from the Hawaii Government Employees Association (HGEA), the Hawaii State Teachers Association, the American Federation of Television and Radio Artists, KMH LLP, the American Ingenuity Alliance, the Professional Inventors Alliance, and one individual. The Office of Information Practices submitted comments.

Intellectual property is one of the only remaining sources of competitive advantage in the global economy. Whether working independently or employed by corporations, the vast majority of inventors do not have the collective representation, institutional strength, or financial resources necessary to exercise and enforce their property rights. Hawaii has the opportunity to become a center for protecting the fruits of American ingenuity so inventors can fully exercise their intellectual property rights. In return, the exercise of these rights can be used to forge an anchor for good jobs in a manner that enhances labor and environmental practices nationally and internationally.

Your Committee finds that by establishing Hawaii as a domicile that provides enhanced protection of intellectual property rights, new capital and investments will be attracted to Hawaii, which will allow for a more diversified and sustainable economy. Your Committee further finds that establishing an Ingenuity Corporation will also help to support public education in Hawaii by generating needed additional funding and influencing future generations of inventors.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Business and Economic Development that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3261, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 3261, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.