Posts Tagged: "patent backlog"

Earlier today, Acting U.S. Patent and Trademark Office (USPTO) Director Coke Morgan Stewart addressed the Intellectual Property Business Congress (IPBC) Global 2025, telling those in attendance that the Office is already making headway by chipping away at the record backlog inherited from the Biden Administration. Not surprisingly, however, much of Stewart’s remarks focused on new Patent Trial and Appeal Board (PTAB) initiatives and a desire on the part of the Office to see patent challengers migrate away from filing inter partes review (IPR) challenges and toward filing third-party submissions of prior art during examination so examiners can be presented with the best prior art, which will lead to better examination and fewer mistakes.

The Trump Administration is making major changes to reduce the size of government to address the $37 trillion federal debt, including withdrawing employment offers to patent examiners and firing patent examiners still within their probationary period. Meanwhile, as the number of examiners is being cut, the backlog of unexamined patent applications is at an all-time high, with some sources saying there are now at least 1.2 million unexamined patent applications pending. And against this backdrop the Federal Circuit has developed an unhealthy obsession with the doctrine of prosecution laches, which creates a presumption that patents are unenforceable if it took longer than six years to obtain.

The Brazilian PTO has officially introduced its longed-for strategy to solve the enduring patent backlog problem in Brazil.  The plan is to reduce the patent backlog by at least 80% in the course of the next two years with the use of “standardized office actions” – that is, machine-made technical opinions that will simply point out prior art documents to be addressed by the applicant.  Once the backlog is finally dealt with — likely by 2021— the PTO estimates it will to be able to examine future patent applications within twenty-four (24) months. If the goals of the program are achieved, the Brazilian PTO will be finally able to stand on equal footing with its foreign counterparts in the developed world with regard to the average patent examination time.

The Brazilian Government is considering the adoption of an emergency measure to eliminate the Patent Office chronic backlog problem by automatically granting, without examination, 230,000 pending applications until 2020. The emergency measure has been labelled by the Government as an “extraordinary solution” and a draft of the plan was introduced for public discussion. Companies may soon need to deploy a strategy within a time-frame as short as 90 days to take full advantage of the new system while minimizing potential risks… For the past 15 years, Brazil has been enduring one of the world’s most severe patent backlogs. The problem has grown considerably after the enactment of the 1996 Patent Statute, which was adopted to make the country TRIPS compliant.

The fundamental patent bargain has been perilously breached by forcing publication on every application. Sound policy would have avoided upsetting the core patent bargain – disclosure upon grant of exclusive rights – and would have provided an equitable incremental quid-pro-quo: applicants can reap the additional optional benefit of deferral of examination for several years in exchange for early disclosure of their application. That way, applicants who do not wish to defer examination would then be unaffected and their core patent bargain would have been undisturbed – disclosure only upon grant of exclusive rights… Those who push for 18-month publication of all applications have it all backwards. Non-publication is not the problem – it is the solution.

Patent offices are failing to keep up with the growth of the innovation economy and the resulting increase in patent applications. Unfortunately, the problem could easily get worse in coming years. Many patent offices apparently have yet to process applications from recent years, when huge increases in applications have occurred. It’s a problem that threatens to undermine the global patent system, but what’s both encouraging and discouraging by turns is that it’s largely a basic problem of good governance. Many of the solutions to the problem are relatively straightforward. They require the application of sufficient resources and a willingness to hire an appropriate number of examiners and share work between patent offices. These solutions are a matter of political will and effective management, rather than complex policy. Some countries have shown the will to turn things around, and we hope others will follow.

Unfortunately, Mr. President, after five years I cannot report back that the AIA has yet ”improve[d] patent quality and help[ed] give entrepreneurs the protection and the confidence they need to attract investment, to grow their businesses, and to hire more workers.” The current implementation of PTO post issuance proceedings is undermining confidence in our patent system, chilling innovation at its roots, and, in eyes of some, giving the AIA a bad name.

What Kasich doesn’t explain, however, is how he achieved a balanced budget. As part of the Kasich-Clinton deal the budget of the United States Patent and Trademark Office (USPTO) was raided for additional money to help plug shortfalls elsewhere. The appropriations cap placed on the USPTO for fiscal year 1998 was $691 million, and according to the IPO $199 million was collected but diverted, which means 22.4% of fee collections were taken from the USPTO in FY 1998 and used for other purposes… Republicans, including Kasich, love to lay claim to the Reagan legacy. But President Reagan was a supporter of the patent system. He never would have tolerated raiding the USPTO budget for any reason. We know that because it was President Reagan that demanded a build up of the USPTO as part of his overall strategy to make America great again and compete with the Japanese for technology dominance.