Patent and Trademark Office

Overview

Mission Statement

PTO’s mission is to promote industrial and technological progress in the United States andstrengthen the national economy by:

■ Administering the laws relating to patents and trademarks;

■ Advising the Secretary of Commerce, the President of the United States, and the

Administration on patent, trademark, and copyright protection; and

■ Advising the Secretary of Commerce, the President of the United States, and the

Administration on trade-related aspects of intellectual property. 

As the steward for the Nation’s patent and trademark systems, PTO has maintained its basic

role of granting patents and registering trademarks. In this role, PTO operates in a dual

management capacity: like a business, totally reliant on its own generated income and

accountable for the judicious use of revenue from its fee-paying customers; and as a Federal

agency, accountable for maintaining and strengthening the foundation and integrity of the

Nation’s patent grant and trademark registration systems.

PTO’s mission is carried out through two strategic goals. The performance goals and targets

directly support one of these two strategic goals as follows:

FY 1999 Annual Program Performance Report 95
g g() y

embraced performance-based management throughout its operations. Working closely with

various customer groups, the PTO has identified areas of concern and accordingly set high

standards for measuring the degree of customer satisfaction, as well as the overall efficiency

and effectiveness of its operations. PTO’s service standards reflect an unusual and aggressive

commitment that is often difficult to attain. At the same time, however, these service standards

attest to the PTO’s genuine commitment to its customers – a commitment that could serve as a

model in performance management in the Federal government. 

Strategies and Activities

In fiscal year 1999, the PTO received significantly more patent and trademark applications than

planned, due primarily to a robust domestic economy. Despite increased workloads, PTO made

significant progress toward meeting its fiscal year 1999 performance commitments. In patents,

we received 12 percent more applications than planned and 13 percent more than in 1998, we

increased the staff of the examining corps by 435 examiners, we disposed of 219,556

applications and we attained an average cycle time of 12.9 months. In trademarks, we received

7 percent more trademark applications than planned and 27 percent more than we received the

previous year, yet we decreased pendency time to first action to 4.6 months, a decrease of 36

percent from 7.2 months a year ago. We pursued electronic filing and received more than 20,600

trademark applications on-line. The current rate of filing electronically is approximately 2,000

applications per month. We also expanded the patent and trademark data available to our

customers via the Internet. Currently, more than 20 million pages in the databases comprise two

terabytes of science and technology information and more than 100 years of marketing creativity.

PTO is unable to meet its performance targets and customer expectations primarily because of

the unprecedented number of patent and trademark application filings. For example, the

number of patent and trademark application filings have a direct impact on our ability to reduce

patent cycle time and trademark pendency time. Despite our reengineering activities and

investments in technology, the examination of patent and trademark applications can only be

done by highly skilled experts.

The primary workloads that drive PTO operations are patent and trademark filings. Our

performance targets to reduce patent cycle time and trademark pendency time are directly

related to the number of applications that we receive each year. Both patent and trademark

application filings are related to domestic and global economies. We have experienced a

steady growth in application filings in the last decade of the 20th century. While patent

application filings in fiscal year 1989 were 151,331, they reached an unprecedented mark of

272,221 in fiscal year 1999. In trademarks, the annual growth rate from fiscal year 1992 to

1999 has averaged 12 percent. 

96 FY 1999 Annual Program Performance Report
Help protect, promote, and expand intellectual property rights

systems throughout the United States and abroad 

Rationale for Performance Goal:

Technical assistance is one method of promoting U.S. competitiveness in the global

marketplace. Assistance also strengthens and safeguards the Nation’s economic infrastructure

by indirectly promoting and shaping intellectual property throughout the world. PTO provides

seminars and technical training to officials in countries on reforming their intellectual property

structures. 

The PTO is working with the World Intellectual Property Organization (WIPO) to achieve

electronic filing of Patent Cooperation Treaty (PCT) applications. The PTO will electronically

receive and process PCT applications at the PTO in FY 2001.

FY 1999 Performance

Measure 1.a:

Number of technical assistance activities completed

PTO met its performance goal by enhancing its activities to include compliance with the

Agreement on Trade-Related Aspects of Intellectual Property’s (TRIPS) Article 67. Article 67

requires developed country members of the World Trade Organization to provide technical

assistance to developing and least-developed countries in preparing laws and regulations on the

protection and enforcement of intellectual property.

PTO continued working with WIPO to develop activities that would incorporate information

technology in the administration of intellectual property systems.

FY 1999 Annual Program Performance Report 97
Data Source: Records maintained by the PTO’s Office of Legislative and International Affairs (OLIA).

Frequency: Annual

Baseline: 59 (FY 1998)

Data storage: OLIA’s records

Verification: Completeness and existence of supporting data is verified during the annual financial statement

audit. Final test for reasonableness is performed internally.

FY 1999 Program Evaluation for PTO Performance Goal 1

Quality Management

PTO conducted a self-assessment using the Baldrige criteria to project key requirements for

delivering ever-improving value to customers while maximizing overall effectiveness and

productivity of the delivering organization.

Customer/Stakeholder Input 

In conjunction with the National Academy for Public Administration, PTO conducted

customer/stakeholder focus sessions to gain a better understanding of their perspectives on end

outcomes of the patent and trademark systems. Through partnering efforts with our

customers/stakeholders PTO can measure the quality of our products and services for overall

customer/stakeholder satisfaction and expectations to ensure we are meeting our performance

goals and targets. For example, there was a strong emphasis on PTO’s international role in

representing U. S. interest on an international level with the goal of better harmonizing global

intellectual property protection regimes.

Technical Assistance/Training

Beginning in FY 2000, OLIA is tracking the opinions of the students regarding the effectiveness

of training sessions.

98 FY 1999 Annual Program Performance Report
Grant exclusive rights, for limited times, to inventors

for their discoveries

Rationale for Performance Goal:

This performance goal will be accomplished by processing all inventions in 12 months. A PTO

decision on patentability must be timely and of high quality, because it influences investment,

development and marketing strategies, and eventually, the financial viability of U.S. businesses.

In fiscal year 1999, patent applicants filed 272,221 applications. This was 12 percent more than

planned and 13 percent more than was filed in the previous year. 

In support of the E-Commerce initiative, the Patent Business is accelerating electronic

processing of patent applications.

The PTO is testing reengineered patent examination processes and automated systems;

deploying electronic processing of patent applications; maximizing the term of patent protection

for the inventor; and establishing a fee structure that encourages participation in the patent

system while reflecting costs. Finally, PTO is offering Patent employees innovative training

programs.

FY 1999 Performance

Measure 2.a:

Average cycle time of inventions processed

In order to meet its ultimate objective of processing all inventions in 12 months, PTO has

established intermediate average cycle time targets. PTO fell short of meeting the fiscal

year 1999 intermediate target of 10.9 months average cycle time (or processing 75 percent

of inventions in 12 months), primarily due to external factors of unprecedented growth. In

FY 1999, the PTO hired 800 new patent examiners in a very tight job market for high

technology recruits. We used creativity in employing recruitment bonuses, higher step

levels, and an aggressive recruitment campaign. Other management initiatives included

FY 1999 Annual Program Performance Report 99
g 

Data Validation and Verification

Data Source: Automated systems (Patent Application Locator and Monitoring – PALM)

Frequency: Input—Daily; Reporting—Monthly

Baseline: 14.6 months

Data storage: PALM, Automated systems, and reports. 

Verification: Completeness and existence of supporting data is verified during the annual financial statement

audit. Final test for reasonableness is performed internally.

100 FY 1999 Annual Program Performance Report

 
Percentage of customers satisfied

Data Validation and Verification

Data Source: Customer surveys

Frequency: Surveys are currently conducted and results reported annually.

Baseline: 50%

Data storage: Paper report, electronic file with contractor. 

Verification: Completeness and existence of supporting data is verified during the annual financial statement

audit. Final test for reasonableness is performed internally.

FY 1999 Annual Program Performance Report 101
Quality Management

PTO conducted a self-assessment using the Baldrige criteria to project key requirements for

delivering ever-improving value to customers while maximizing overall effectiveness and

productivity of the delivering organization. In addition, Patents makes use of input from the

Office of Quality Review, in-process reviews, and customer service efforts to improve value

to customers.

Customer/Stakeholder Input 

In conjunction with the National Academy for Public Administration, PTO conducted

customer/stakeholder focus sessions to gain a better understanding of their perspectives on end

outcomes of the patent and trademark systems. Through partnering efforts with our

customers/stakeholders PTO can measure the quality of our products and services for overall

customer/stakeholder satisfaction and expectations to ensure we are meeting our performance

goals and targets. We have also used survey instruments to validate our standards and to

obtain input on pendency/cycle time measures and targets, measuring our performance and

continually validating our customer/stakeholder service standards.

Patent Working Lab

The Patent Working lab to test reengineered processes opened in 1998 and ran for one year.

The goal of the lab was to improve patent application processing by training technical support

personnel to perform high-level administrative functions to enable examiners to focus their time

on legal and technical issues. Based on lessons learned, concepts tested in the Lab focusing

on balancing the distribution of work with the potential of delivering improvements in customer

and employee satisfaction and greater quality of work products will be piloted on a larger scale

in select Technology Centers in FY 2000 to determine if the results would continue to be as

encouraging when applied to a larger non-laboratory production environment.

102 FY 1999 Annual Program Performance Report
Enhance trademark protection 

Rationale for Performance Goal:

This performance goal will be accomplished by rendering a trademark first action in three

months. 

PTO is maximizing the business potential of trademarks and containing the cost of trademark

application processing.

In fiscal year 1999, trademark applicants filed 295,165 applications. This was 7 percent more

than planned and 27 percent more than was filed in the previous year. 

PTO is reducing trademark processing time, and providing trademark customers the option to

file applications and related papers electronically by placing an electronic trademark application

on the PTO web site. Finally, PTO is establishing a fee schedule that encourages participation

in the trademark system, and aligns with cost, and is offering employees innovative training

programs and work-at-home opportunities.

In support of the E-Commerce initiative, the Trademark Business will enhance communication

with customers and employees by transforming trademark processing into a fully electronic

operation.

FY 1999 Performance

Measure 3.a:

Pendency time to first action

In order to meet its ultimate objective of rendering a trademark first action in three months, PTO

has established intermediate targets. PTO fell short of meeting the FY 1999 intermediate target

of 3.9 months first action pendency time, primarily due to external factors of unprecedented

growth. In FY 1999, the number of law offices was increased from 9 to 15, and the number of

FY 1999 Annual Program Performance Report 103
g g

more experienced examiners devoted much of their time training and mentoring the large

number of new hires. 

Data Validation and Verification

Data Source: Automated systems (Trademark Application Monitoring – TRAM)

Frequency: Input—Daily; Reported—Monthly

Baseline: 5.9 months

Data storage: TRAM/Trademark Information System 

Verification: Completeness and existence of supporting data is verified during the annual financial statement

audit. Final test for reasonableness is performed internally.

104 FY 1999 Annual Program Performance Report
Percentage of customers satisfied

Data Validation and Verification

Data Source: Customer surveys

Frequency: Surveys are currently conducted and results reported annually.

Baseline: 64%

Data storage: Paper report; electronic file with contractor. 

Verification: Completeness and existence of supporting data is verified during the annual financial statement

audit. Final test for reasonableness is performed internally.

FY 1999 Annual Program Performance Report 105
Quality Management

PTO conducted a self-assessment using the Baldrige criteria to project key requirements for

delivering ever-improving value to customers while maximizing overall effectiveness and

productivity of the delivering organization.

Customer/Stakeholder Input 

In conjunction with the National Academy for Public Administration, PTO conducted

customer/stakeholder focus sessions to gain a better understanding of their perspectives on end

outcomes of the patent and trademark systems. Through partnering efforts with our

customers/stakeholders PTO can measure the quality of our products and services for overall

customer/stakeholder satisfaction and expectations to ensure we are meeting our performance

goals and targets. We have also used survey instruments to validate our standards and to

obtain input on pendency/cycle time measures and targets, measuring our performance and

continually validating our customer/stakeholder service standards.

Trademark Work-At-Home

The Work-at-Home project was piloted for two years beginning in March 1997. The project

tested the technical feasibility of providing access to office equipment and access to information

databases to 18 examining attorneys working from their homes three days a week. The project

was concluded in March 1999, and the final evaluation report shows that the 18 examining

attorneys increased their productivity significantly. The Office plans to expand the program to up

to 80 examining attorneys in the next year and is considering further expansion as a way of

addressing ever increasing filings and limited office space.

106 FY 1999 Annual Program Performance Report
Promote awareness of, and provide effective access to,

patent and trademark information

Rationale for Performance Goal:

Timely availability of patent and trademark information is critical to the user community.

PTO is offering electronic accessibility to customers to check application status, place orders

and receive products via the Internet. The PTO is also offering employees innovative training

programs and establishing a fee schedule that encourages participation in the patent and

trademark systems and aligns with cost.

To support the E-Commerce initiative, the Information Dissemination Organization (IDO) is

enabling customers to use the Internet to request the status of their patent and trademark

applications, to place orders and receive products, and to access patent and trademark data.

FY 1999 Performance

Measure 4.a:

Percentage of key products and services meeting schedules or cycle time

of standards

Data Validation and Verification

Source: Internal IDO records; automated systems (the Order Entry Management System, and the Patent

and Trademark System); customer surveys.

Frequency: Quarterly

Baseline: 63%

Data storage: Program reports and automated systems.

Verification: Completeness and existence of supporting data is verified during the annual financial statement

audit. Final test for reasonableness is performed internally.

FY 1999 Annual Program Performance Report 107
Measure 4.b:

Percentage of customers satisfied

Data Validation and Verification

Source: Customer surveys

Frequency: Surveys are currently conducted and results reported every two years.

Data storage: Paper report; electronic file with contractor. 

Verification: Completeness and existence of supporting data is verified during the annual financial statement

audit. Final test for reasonableness is performed internally.

Note: Customer satisfaction surveys are conducted every two years.

108 FY 1999 Annual Program Performance Report

 
Quality Management

PTO conducted a self-assessment using the Baldrige criteria to project key requirements for

delivering ever-improving value to customers while maximizing overall effectiveness and

productivity of the delivering organization.

Customer/Stakeholder Input 

In conjunction with the National Academy for Public Administration, PTO conducted

customer/stakeholder focus sessions to gain a better understanding of their perspectives on end

outcomes of the patent and trademark systems. Through partnering efforts with our

customers/stakeholders PTO can measure the quality of our products and services for overall

customer/stakeholder satisfaction and expectations to ensure we are meeting our performance

goals and targets. We have also used survey instruments to validate our standards and to

obtain input on pendency/cycle time measures and targets, measuring our performance and

continually validating our customer/stakeholder service standards.

FY 1999 Annual Program Performance Report 109