OP/ED
Texans know what it means to build something from nothing. From oilfield innovations to the booming tech corridor in Austin, our state is defined by grit, risktaking, and bold ideas.
But now, some in Washington want to stack the deck against that spirit of innovation - and the hardworking Texans behind it.
Senator Thom Tillis (RNC) is pushing a measure deceptively named the “Tackling Predatory Litigation Funding Act.” The bill would impose a crushing tax on thirdparty litigation funding the outside capital that small businesses and inventors rely on to level the playing field against corporate infringers and defend their patented ideas in court.
The “Tillis Tax” would all but wipe out this lifeline - handing even more power to the Big Tech monopolies that steal Texas innovators’ hardwon inventions and censor dissenting voices.
Here in the Lone Star State, small firms have faced down industry giants and fought to defend their ideas. Those fights show the little guys can win - but they require extraordinary persistence and financial backing. Most startups across Texas don’t have the millions it takes to survive years of litigation.
Silicon Valley firms like Google, Amazon, and Meta have perfected the strategy of “efficient infringement.” They steal patented technology, drag out lawsuits, and gamble that smaller rivals will run out of cash. They know success in the courtroom is more often about resources than merit.
That’s where thirdparty litigation funding makes the difference. Outside investors provide smaller inventors the staying power to defend their rights when the odds are stacked against them. Particularly in a state teeming with fastgrowing startups, the ability to protect homegrown ideas in court is essential to keeping Texas at the forefront of progress.
Senator Tillis claims his bill is about stopping “predatory” lawsuits. But investors don’t back weak cases - they support strong, legitimate claims, which is precisely what Big Tech fears. Make no mistake: the Tillis Tax is not about protecting fairness. It’s about protecting monopolies.
By punitively taxing any proceeds from lawsuits backed by external funding, the bill creates a powerful disincentive for investors to get involved. Without that support, small businesses won’t be able to bring costly patent cases, leaving inventors without the means to defend their rights.
Conservatives, especially, should see this for what it is: an assault on property rights. The Constitution enshrines the right of inventors to the fruits of their labor. Intellectual property is property, every bit as much as land or cattle. Undermining those rights through targeted taxes is a betrayal of the constitutional protections and of free-market principles.
And if that weren’t enough, these same Silicon Valley giants have spent years pushing the left-wing agenda. They’ve censored conservative speech, deplatformed any voices that dare to challenge them, and funneled money into ultra-progressive causes. Now, Big Tech, out of necessity, is switching sides to align with Washington politics.
Fortunately, Texas has leaders who know better.
Just two years ago, Senator John Cornyn introduced legislation to protect American businesses from IP theft. He rightly warned that small companies “often lack the resources to protect themselves.” That logic applies just as strongly against threats from trillion- dollar corporations operating here in Texas.
Senator Cornyn and the rest of our delegation should once again stand with smaller inventors.
The Tillis Tax would strangle small business litigation, shield Big Tech from consequences, and stifle the innovation that drives Texas forward. Texans have never shied away from a fight, but it’s not a fair fight if Washington rigs the rules to protect monopolies.
Our state’s future - and the principles of free enterprise and property rights - depend on its defeat.
Michelle Ray is an Austin- based writer and podcaster whose work focuses on science, technology and economic policy issues.
