Bill aims to solve USPTO funding crisis

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Bill aims to solve USPTO funding crisis

A bill has been introduced in the House of Representatives that would finally end the diversion of USPTO fees away from the agency

HR3349 – To provide for the permanent funding of the USPTO, and for other purposes, was sponsored by Rep John Conyers and three other Representatives on October 28 and referred to the House Committee on the Judiciary.

Under the proposal, a revolving fund would be created in which USPTO fee revenues would be deposited. Revenues would be solely for use by the Office, and it would no longer be subject to the annual appropriations process.

Hopes that the America Invents Act would solve the USPTO’s funding problems have come to naught so far. Sequestration has led to hundreds of millions of dollars being diverted from the USPTO to other government work.

In an interview published in the AIPLA Daily Report last week, USPTO Deputy Director Teresa Stanek Rea said sequestration is “likely to have long-term negative implications across all parts” of the USPTO, meaning that patent backlog and pendency will increase.

Stanek Rea said the Agency planned to hire 750 new examiners in each of 2014 and 2015 to cope with the growing number of patent applications. Thanks to sequestration, it has halted most hiring, cut some outreach and education work and delayed moving into permanent space in the satellite offices in Dallas, Denver and Silicon Valley. It has also had to cut back on IT developments.

Welcoming the latest bill, AIPLA Executive Director Q Todd Dickinson said: “The time has come for Congress to provide the USPTO with the ability to do the work its customers pay for by ending the possibility of fee diversion, once and for all.”

During a Congressional hearing on the Innovation Act on Tuesday, former USPTO Director David Kappos also welcomed the Conyers bill.

more from across site and SHARED ros bottom lb

More from across our site

The four-partner addition includes A&O Shearman’s former co-head of global IP litigation
A settlement involving Disney and another ruling concerning a lawyer’s request for access to documents were also among the big developments
Merchant & Gould's managing partner explains why the firm launched a Boston office and why it brought on board a local boutique
The model covers court-guided settlements, submissions-led determination of infringement and validity issues, and provides leeway for the court to determine a FRAND rate during negotiations
Tie up between Belgium-based firms will create an outfit with almost 30 UPC representatives, and a tier one-ranked patent disputes team
Blank Rome’s launch in West Palm Beach, marked by the arrival of two IP partners, comes in response to rising demands from technology clients
Abion says it has brought on board Matt Serlin as its first US hire to meet client demand for ‘full circle’ trademark and domain name services
News of Health Hoglund joining Sisvel and the Delhi High Court staying a $2.2 million decree in favour of Philips were also among the top talking points
The firm is continuing its aggressive IP hiring streak with the addition of partner Matthew Rizzolo
Pantech counsel Shogo Matsunaga speaks exclusively to Managing IP about how his team proved Google’s unwillingness, and ultimately secured a landmark SEP settlement
Gift this article