Posts Tagged: "patent office fees"

In a shocking revelation, Frank Murphy, Acting Chief Financial Officer, explained that the USPTO has been and will continue to make payments to the Department of Commerce under the shared services initiative, which is now known as “enterprise services.” Not only are these payments to Commerce potentially (or perhaps likely) in violation of the America Invents Act (AIA), but they are being made at a time when the USPTO is suffering revenue shortfalls and is preparing to increase user fees. According to Murphy, the final fees rule will be submitted to the Administration soon, with fee increases likely by September.

But why is the USPTO in such a fee crisis? Because they have strayed from their mission, which is to issue patents. Far too many Art Units have allowance rates under 5%, and some as low as 1% (and those are in Art Units dominated by Fortune 500 companies). For an agency that derives the majority of its fees from patent owners paying maintenance fees it is downright idiotic for the Office to allow examiners to bury applicants and refuse patents at every turn. Worse, the solution isn’t to ease up and allow patents, instead it is to double and triple down on instituting more post grant challenges and raising fees.

The U.S. Department of Commerce’s United States Patent and Trademark Office (USPTO) today issued a notice of proposed rulemaking (NPRM) proposing to set or adjust certain patent fees, as authorized by the Leahy-Smith America Invents Act (AIA). The proposed fees are projected to recover the aggregate estimated cost of the USPTO’s patent operations, Patent Trial and Appeal Board (PTAB) operations, and administrative services. The Office welcomes comments on both the individual patent fee proposals and the rulemaking goals and objectives. The Office will consider and respond to all comments received, during the public comment period, in the final rule, which the Office expects to publish in 2017.

User fees fund our patent system. The patent system turns ideas into assets. Those assets are used to secure financing and gain access to markets. Financing and market access fuel the rise of new industries, businesses, and jobs. Regrettably, however, those user fees are frequently diverted to fund other, unrelated government agencies and programs, which amounts to a tax on innovation.

The United States Patent and Trademark Office current fee schedule went into effect on January 1, 2014, and was last revised on April 1, 2015… The lesson here is that fees can add up quickly. It is true, however, that once you file an application it will likely be many months (or perhaps years) before the Patent Office will get back to you so you can usually stagger these additional fees.

Estimating US patent costs is a difficult matter because so much depends on the technology involved, but answering “it depends” is not particularly insightful or helpful. What follows are some general ballpark estimates, which should give at least some guidance when trying to budget for the filing of a patent application at the United States Patent and Trademark Office.

This latest budget increases the amount of money that will be available to the United States Patent and Trademark Office, although the amount specifically appropriated is less in FY 2016 than it was in FY 2015. This has lead some to incorrectly claim that the USPTO will have access to less funding in FY 2016 compared with FY 2015. According to the IPO, the FY “2016 budget proposes that the agency will draw from its operating reserves and other income to fund its total estimated obligations of $3.499 billion, including enhanced investment in its IT infrastructure.”