Statement of Net Cost
The Statement of Net Cost presents the USPTO’s
results of operations by the following responsibility segments –
Patent, Trademark, and Intellectual Property Protection. The following
table presents the total USPTO’s results of operations for the past
four fiscal years. From FY 2004 through FY 2005, the USPTO’s operations
resulted in a net cost. In FY 2006, the USPTO generated a net income due
to the increased maintenance fees received and revenue recognition of
previously deferred revenue collected subsequent to the fee increase on
December 8, 2004. During FY 2007, the USPTO’s operations resulted
in a net cost of $33.9 million.
Net (Cost)/Income (Dollars in Millions)
| Earned
Revenue |
$ 1,239.0 |
$ 1,372.8 |
$ 1,594.4 |
$ 1,735.7 |
| Program
Cost |
(1,289.2)
 |
(1,424.0)
|
(1,514.2)
|
(1,769.6)
|
| Net
(Cost)/Income |
$ (50.2)
 |
$ (51.2)
|
$ 80.2
|
$ (33.9)
|
|
The Statement of Net Cost compares fees earned to costs incurred during
a specific period of time. It is not necessarily an indicator of net income
or net cost over the life of a patent or trademark. Net income or net
cost for the fiscal year is dependent upon the groups of work that have
been completed over the various phases of the production life cycle. The
net income calculation is based on fees earned during the fiscal year
being reported, regardless of when those fees were collected. Maintenance
fees also play a large part in whether a total net income or net cost
is recognized. Maintenance fees collected in FY 2007 are a reflection
of patent issue levels 3.5, 7.5, and 11.5 years ago, rather than a reflection
of patents issued in FY 2007. Therefore, maintenance fees can have a significant
impact on matching costs and revenue.
While the backlog for patent applications continues to increase, increasing
deferred revenue and decreasing earned revenue, during FY 2007, the Patent
organization disposed of 8.9 percent more applications than were disposed
of during FY 2006.
During FY 2007, even though the number of trademark applications increased
11.2 percent over the prior year, the Trademark organization was able
to continue to reduce their backlog and register 2.9 percent more trademarks
over FY 2006. While additional costs were incurred in reducing the backlog,
the Trademark organization was able to recognize a significant increase
in revenue earned.
|
