Innovation Protection Act

To provide for the permanent funding of the United States Patent and Trademark Office, and for other purposes. 1. Short title This Act may be cited as the Innovation Protection Act 2. Patent and Trademark Office funding (a) Definitions In this section: (1) Director The term Director (2) Fund The term Fund (3) Office The term Office (4) Trademark Act of 1946 The term Trademark Act of 1946 An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes 15 U.S.C. 1051 et seq. Trademark Act of 1946 Lanham Act (b) Funding (1) In general Section 42 (A) in subsection (b), by striking Patent and Trademark Office Appropriation Account United States Patent and Trademark Office Public Enterprise Fund (B) in subsection (c)— (i) in paragraph (1)— (I) in the first sentence, by striking To the extent fees Fees (II) by striking shall be collected by and shall, subject to paragraph (3), be available to the Director shall be collected by, and shall be available to, the Director until expended (ii) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2). (2) Effective date The amendments made by paragraph (1) shall take effect on the first day of the first fiscal year that begins on or after the date of the enactment of this Act. (c) USPTO revolving fund (1) Establishment There is established in the Treasury of the United States a revolving fund to be known as the United States Patent and Trademark Office Public Enterprise Fund (2) Derivation of resources (A) In general There shall be deposited into the Fund on and after the effective date set forth in subsection (b)(2)— (i) any fees collected under title 35, United States Code; and (ii) any fees collected under the Trademark Act of 1946 ( 15 U.S.C. 1051 et seq. (B) Remaining balances There shall be deposited in the Fund, on the effective date set forth in subsection (b)(2), any unobligated balances remaining in the Patent and Trademark Office Appropriation Account, and in the Patent and Trademark Fee Reserve Fund established under section 42(b)(2) (3) Expenses Amounts deposited into the Fund under paragraph (2) shall be available, without fiscal year limitation, to cover— (A) all expenses, to the extent consistent with the limitation on the use of fees set forth in section 42(c) (i) title 35, United States Code; and (ii) the Trademark Act of 1946; and (B) all expenses incurred pursuant to any obligation, representation, or other commitment of the Office. (d) Annual report and operation plan Not later than 60 days after the end of each fiscal year, the Director shall submit to Congress a report that— (1) summarizes the operations of the Office for the preceding fiscal year, including financial details and staff levels broken down by each major activity of the Office; (2) describes the long term modernization plans of the Office; (3) sets forth details of any progress towards such modernization plans made in the preceding fiscal year; and (4) includes the results of the most recent audit carried out under subsection (f). (e) Annual spending plan (1) In general Not later than 30 days after the beginning of each fiscal year, the Director shall notify the Committee on Appropriations of the House of Representatives and the Committee on Appropriations of the Senate of the plan for the obligation and expenditure by the Office of the total amount of the funds for that fiscal year in accordance with section 605 of the Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006 ( Public Law 109–108 (2) Contents Each plan under paragraph (1) shall— (A) summarize the operations of the Office for the current fiscal year, including financial details and staff levels with respect to major activities; and (B) detail the operating plan of the Office, including specific expense and staff needs, for the current fiscal year. (f) Audit The Director shall, on an annual basis, provide for an independent audit of the financial statements of the Office. Such audit shall be conducted in accordance with generally accepted accounting principles. (g) Budget The Fund shall prepare and submit each year to the President a business-type budget in such manner, and before such date, as the President prescribes by regulation.

Summary: Innovation Protection Act - Establishes in the Treasury the United States Patent and Trademark Office Public Enterprise Fund (Public Enterprise Fund) to be used as a revolving fund by the Director of the U.S. Patent and Trademark Office (USPTO) without fiscal year limitation. Requires to be credited to or deposited in the Public Enterprise Fund: (1) appropriations for defraying the costs of USPTO activities; (2) fees collected under federal patent and trademark laws; and (3) any unobligated balances remaining in the Patent and Trademark Office Appropriation Account and in the Patent and Trademark Fee Reserve Fund. (Thus, replaces the Patent and Trademark Office Appropriation Account, eliminates the Patent and Trademark Fee Reserve Fund, and provides a source of permanent funding for the USPTO.) Requires fees collected by the Director to remain available to the Director until expended. Makes the Public Enterprise Fund available to cover: (1) ordinary and reasonable administrative, operating, and other expenses incurred by the Director for the continued operation of USPTO services, programs, activities, and duties relating to patents and trademarks; and (2) expenses incurred pursuant to obligations, representations, or other commitments of the USPTO. Requires the Director, on an annual basis, to: (1) report to Congress with operation and spending plans, including financial details and staff levels broken down by each major activity; (2) provide for an independent audit of USPTO financial statements; and (3) submit a budget to the President.