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| March 13th, 2008 |
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Media Contact(s): Mark Eddington or Jared Whitley, (202) 224-5251 |
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Printable Version |
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HATCH AMENDMENT CONDEMNS FUND DIVERSION FROM USPTO
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WASHINGTON – Speaking on the Senate floor today, Sen. Orrin Hatch introduced an amendment to the Fiscal Year 2009 Budget Resolution that condemns the diversion of funds from the U.S. Patent and Trademark Office (USPTO).
The full text of Sen. Hatch’s remarks follows:
Mr. President, I rise today to introduce an amendment to the Fiscal Year 2009 Budget Resolution (S. Con. Res. 70), which condemns the unwise practice of diversion of funds from the U.S. Patent and Trademark Office (USPTO).
By stopping the short-sighted practice of fee-diversion, Congress would ensure that all funds collected are available to modernize the USPTO and increase the number of examiners so that U.S. entrepreneurs receive swift, precise decisions to secure their intellectual property.
The patent system is the bedrock of innovation, especially in today’s global economy. The USPTO is the sole intellectual property policy office in the U.S. government and a leading agency for intellectual property protection and enforcement worldwide. The nature of the USPTO workload is constantly evolving and increasing year by year, and requires active, responsive management. Considering the value of our nation’s intellectual property and its contribution to building a strong and vibrant economy, it is incomprehensible to siphon these funds away from their intended use, especially during these trying economic times.
Patent applications reflect cutting-edge technology and are increasingly complex. More than ever, resources commensurate with the burdens placed on examiners are needed to efficiently and accurately prosecute patent applications. The backlog of unfinished applications for U.S. patents might reach well over 800,000 this year alone. It makes no sense to me why Congress would siphon off funds from the USPTO at this crucial time. Now is the time to act to protect this important agency, which is so vital to our nation’s economy.
Last year alone, more than 467,000 applications were filed at the USPTO. The sheer volume of patent applications reflects the vibrant, innovative spirit that has made America a world-wide leader in science, engineering, and technology. No doubt, the number of applications is hampering the Agency’s ability to keep pace with the innovative thought of applicants and to be flexible with the emergence of new technologies.
By prohibiting the practice of diverting fees to pay for other programs, the Agency will be able to ensure that fees paid by inventors are used solely for USPTO operations. The resource-starved agency is still trying to recover from the almost $750 million in patent and trademark application fees that were diverted away from the USPTO between 1992 and 2004. As a result, the Agency has been unable to hire, train, and retain the number of qualified examiners needed to handle the ever- increasing number of patent application filings. Moreover, the practice of fee diversion has inhibited the Agency from playing more of a key role in combating counterfeiting and piracy, both domestically and abroad.
I note that the Congress and the Administration have permitted the USPTO to keep almost all of its fees for the last three fiscal years. But, there is nothing to prevent this devastating practice of fee diversion from happening in the future. This senseless starving of the USPTO must end.
I believe this Sense of the Senate is the first step in acknowledging that Congress must act in short order to stop depriving the USPTO of funds it so desperately needs and give the paying applicants the quality and timeliness of service they are due.
For all of the above reasons, I encourage my colleagues to support this Sense of the Senate. I yield the floor.
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