I 

114TH CONGRESS 

1ST SESSION H. R. 1832 

To provide for the permanent funding of the United States Patent and 

Trademark Office, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 16, 2015 

Mr. CONYERS (for himself, Mr. SENSENBRENNER, Mr. NADLER, Mr. FRANKS

of Arizona, Ms. LOFGREN, Mr. COLLINS of Georgia, Mr. DEUTCH, Mr. 

ROHRABACHER, and Mr. JEFFRIES) introduced the following bill; which 

was referred to the Committee on the Judiciary 

A BILL 

To provide for the permanent funding of the United States 

Patent and Trademark Office, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Innovation Protection 

5 Act’’. 

6 SEC. 2. PATENT AND TRADEMARK OFFICE FUNDING. 

7 (a) DEFINITIONS.—In this section: 

8 (1) DIRECTOR.—The term ‘‘Director’’ means 

9 the Under Secretary of Commerce for Intellectual 


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1 Property and Director of the United States Patent 

2 and Trademark Office. 

3 (2) FUND.—The term ‘‘Fund’’ means the 

4 United States Patent and Trademark Office Public 

5 Enterprise Revolving fund established under sub6 section (c). 

7 (3) OFFICE.—The term ‘‘Office’’ means the 

8 United States Patent and Trademark Office. 

9 (4) TRADEMARK ACT OF 1946.—The term 

10 ‘‘Trademark Act of 1946’’ means the Act entitled 

11 ‘‘An Act to provide for the registration and protec12 tion of trademarks used in commerce, to carry out 

13 the provisions of certain international conventions, 

14 and for other purposes’’, approved July 5, 1946 (15 

15 U.S.C. 1051 et seq.) (commonly referred to as the 

16 ‘‘Trademark Act of 1946’’ or the ‘‘Lanham Act’’). 

17 (b) FUNDING.— 

18 (1) IN GENERAL.—Section 42 of title 35, 

19 United States Code, is amended— 

20 (A) in subsection (b), by striking ‘‘Patent 

21 and Trademark Office Appropriation Account’’ 

22 and inserting ‘‘United States Patent and 

23 Trademark Office Public Enterprise Fund’’; 

24 and 

25 (B) in subsection (c)— 


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1 (i) in paragraph (1)— 

2 (I) in the first sentence, by strik3 ing ‘‘To the extent’’ and all that fol4 lows through ‘‘fees’’ and inserting 

5 ‘‘Fees’’; and 

6 (II) by striking ‘‘shall be col7 lected by and shall, subject to para8 graph (3), be available to the Direc9 tor’’ and inserting ‘‘shall be collected 

10 by, and shall be available to, the Di11 rector until expended’’; and 

12 (ii) by striking paragraph (2) and re13 designating paragraph (3) as paragraph 

14 (2). 

15 (2) EFFECTIVE DATE.—The amendments made 

16 by paragraph (1) shall take effect on the first day 

17 of the first fiscal year that begins on or after the 

18 date of the enactment of this Act. 

19 (c) USPTO REVOLVING FUND.— 

20 (1) ESTABLISHMENT.—There is established in 

21 the Treasury of the United States a revolving fund 

22 to be known as the ‘‘United States Patent and 

23 Trademark Office Public Enterprise Fund’’. Any 

24 amounts in the Fund shall be available for use by 

25 the Director without fiscal year limitation. 


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1 (2) DERIVATION OF RESOURCES.— 

2 (A) IN GENERAL.—There shall be depos3 ited into the Fund on and after the effective 

4 date set forth in subsection (b)(2)— 

5 (i) any fees collected under title 35, 

6 United States Code; and 

7 (ii) any fees collected under the 

8 Trademark Act of 1946 (15 U.S.C. 1051 

9 et seq.). 

10 (B) REMAINING BALANCES.—There shall 

11 be deposited in the Fund, on the effective date 

12 set forth in subsection (b)(2), any unobligated 

13 balances remaining in the Patent and Trade14 mark Office Appropriation Account, and in the 

15 Patent and Trademark Fee Reserve Fund es16 tablished under section 42(c)(2) of title 31, 

17 United States Code, as in effect on the day be18 fore such effective date. Upon the payment of 

19 all obligated amounts in the Patent and Trade20 mark Fee Reserve Fund, the Patent and Trade21 mark Fee Reserve Fund shall be terminated. 

22 (3) EXPENSES.—Amounts deposited into the 

23 Fund under paragraph (2) shall be available, with24 out fiscal year limitation, to cover— 


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1 (A) all expenses, to the extent consistent 

2 with the limitation on the use of fees set forth 

3 in section 42(c) of title 35, United States Code, 

4 including all administrative and operating ex5 penses, determined in the discretion of the Di6 rector to be ordinary and reasonable, incurred 

7 by the Director for the continued operation of 

8 all services, programs, activities, and duties of 

9 the Office relating to patents and trademarks, 

10 as such services, programs, activities, and du11 ties are described under— 

12 (i) title 35, United States Code; and 

13 (ii) the Trademark Act of 1946; and 

14 (B) all expenses incurred pursuant to any 

15 obligation, representation, or other commitment 

16 of the Office. 

17 (d) ANNUAL REPORT AND OPERATION PLAN.—Not 

18 later than 60 days after the end of each fiscal year, the 

19 Director shall submit to Congress a report that— 

20 (1) summarizes the operations of the Office for 

21 the preceding fiscal year, including financial details 

22 and staff levels broken down by each major activity 

23 of the Office; 

24 (2) describes the long term modernization plans 

25 of the Office; 


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1 (3) sets forth details of any progress towards 

2 such modernization plans made in the preceding fis3 cal year; and 

4 (4) includes the results of the most recent audit 

5 carried out under subsection (f). 

6 (e) ANNUAL SPENDING PLAN.— 

7 (1) IN GENERAL.—Not later than 30 days after 

8 the beginning of each fiscal year, the Director shall 

9 notify the Committee on Appropriations of the 

10 House of Representatives and the Committee on Ap11 propriations of the Senate of the plan for the obliga12 tion and expenditure by the Office of the total 

13 amount of the funds for that fiscal year in accord14 ance with section 605 of the Science, State, Justice, 

15 Commerce, and Related Agencies Appropriations 

16 Act, 2006 (Public Law 109–108; 119 Stat. 2334). 

17 (2) CONTENTS.—Each plan under paragraph 

18 (1) shall— 

19 (A) summarize the operations of the Office 

20 for the current fiscal year, including financial 

21 details and staff levels with respect to major ac22 tivities; and 

23 (B) detail the operating plan of the Office, 

24 including specific expense and staff needs, for 

25 the current fiscal year. 


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1 (f) AUDIT.—The Director shall, on an annual basis, 

2 provide for an independent audit of the financial state3 ments of the Office. Such audit shall be conducted in ac4 cordance with generally accepted accounting principles. 

5 (g) BUDGET.—The Fund shall prepare and submit 

6 each year to the President a business-type budget in such 

7 manner, and before such date, as the President prescribes 

8 by regulation. 

Æ 


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