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

Cookies Settings

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

McDermott Will & Schulte lawyers explore why the UPC is seeing rapid adoption by medtech for fast-moving disputes, while pharma and biotech take a cautious, selective approach over revocation risks
IP firms may be growing more comfortable with external capital, but uncertainty over who could ultimately own the business is complicating the investment pitch
The former Western District of Texas judge addresses perceptions of his courtroom, reveals what comes next as he returns to practice at A&O Shearman and explains why marathon running is ‘cathartic’
International Anti-Counterfeiting Coalition says it has been blocked from hosting its annual event in the city, ending a long tradition of holding the gathering in the days leading up to INTA’s flagship event
The ITC is a powerful tool for litigators, practitioners say, as the threat of an exclusion order on a critical tech component could mean disrupting the entire data centre's operations
Anna Toh plans to expand Rajah & Tann’s soft IP capabilities, leveraging its Southeast Asia network to support clients on cross-border portfolio management and commercial strategy
The Canadian boutique’s new IP lead says he wants to build a tech-enabled IP practice aimed at giving startups senior expertise away from the traditional ‘big law’ set-up
Qantm IP’s acquisition of Henry Goh & Co shows shifting attitudes towards private equity, with firms increasingly viewing external backing as a normal route to expansion rather than a source of concern
The firm’s involvement in prominent AI cases drew litigator Christian Mammen to join from Womble Bond Dickinson, as US firms continue to bolster AI-focused practices
Two judicial appointments confirmed in Paris and Mannheim, while cross-border injunctions and high-profile procedural rulings keep major patent practices occupied
Gift this article