Wednesday, June 24, 2009

Leahy Offers Patent Office Bailout Bill

Senate Judiciary Chairman Patrick Leahy and ranking member Jeff Sessions came to the rescue of the Patent and Trademark Office on Wednesday night when they introduced a bill that will allow the agency to use funds designated for its trademark portfolio to be used to address its growing backlog of patent applications. The trademark budget, which is statutorily untouchable, has a $60 million-$70 million surplus. CongressDaily reported this week that Commerce Department and PTO officials had been making the rounds on Capitol Hill to let key lawmakers know how the office was struggling in the recession and offering up legislative ideas like the loan plan.

The PTO, which is funded through fees collected from its users, suspended overtime pay for patent examiners effective Sunday and earlier this year instituted a hiring freeze amid a slump in the number of patent applications filed. Under the bill, the PTO can make use of the money "to support the processing of patents and other activities, services, and materials relating to patents" if the office's director certifies to Congress the use of funds "is reasonably necessary to avoid furloughs or a reduction-in-force." The borrowed money would have to be put back in the trademark basket no later than Sept. 30, 2011.

If the agency and lawmakers deem the situation urgent enough, the bill could advance without a new PTO director in place. IBM executive David Kappos, President Obama's pick for the job, was only named last week and has to trudge through the confirmation process presumably after Supreme Court nominee Sonia Sotomayor is considered. John Doll is acting director. Meanwhile, the Senate Appropriations Commerce-Justice-Science Subcommittee on Wednesday approved its FY10 spending bill, giving the PTO full funding at $1.9 billion. Chairwoman Barbara Mikulski, D-Md., said the allotment could help attack the backlog in patent applications.

Update: A Leahy aide on Thursday said the bill did not get introduced Wednesday night but could move soon.