IB 
Union Calendar No. 132
108TH CONGRESS 
1ST SESSION H. R. 1561
[Report No. 108–241] 
To amend title 35, United States Code, with respect to patent fees, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2003
Mr. SMITH of Texas (for himself and Mr. BERMAN) (both by request) intro-
duced the following bill; which was referred to the Committee on the Ju-
diciary 
JULY 25, 2003
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 2, 2003] 
A BILL 
To amend title 35, United States Code, with respect to 
patent fees, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘United States Patent 
and Trademark Fee Modernization Act of 2003’’. 
SEC. 2. FEES FOR PATENT SERVICES. 
(a) GENERAL PATENT FEES.—Section 41(a) of title 
35, United States Code, is amended to read as follows: 
‘‘(a) GENERAL FEES.—The Director shall charge the 
following fees: 
‘‘(1) FILING AND BASIC NATIONAL FEES.—
‘‘(A) On filing each application for an 
original patent, except for design, plant, or pro-
visional applications, $300. 
‘‘(B) On filing each application for an 
original design patent, $200. 
‘‘(C) On filing each application for an 
original plant patent, $200. 
‘‘(D) On filing each provisional application 
for an original patent, $200. 
‘‘(E) On filing each application for the re-
issue of a patent, $300. 
‘‘(F) The basic national fee for each inter-
national application filed under the treaty de-
fined in section 351(a) of this title entering the 
national stage under section 371 of this title, 
$300.
‘‘(G) In addition, excluding any sequence 
listing or computer program listing filed in an 
electronic medium as prescribed by the Director, 
for any application the specification and draw-
ings of which exceed 100 sheets of paper (or 
equivalent as prescribed by the Director if filed 
in an electronic medium), $250 for each addi-
tional 50 sheets of paper (or equivalent as pre-
scribed by the Director if filed in an electronic 
medium) or fraction thereof. 
‘‘(2) EXCESS CLAIMS FEES.—In addition to the 
fee specified in paragraph (1)—
‘‘(A) on filing or on presentation at any 
other time, $200 for each claim in independent 
form in excess of 3; 
‘‘(B) on filing or on presentation at any 
other time, $50 for each claim (whether depend-
ent or independent) in excess of 20; and 
‘‘(C) for each application containing a mul-
tiple dependent claim, $360. 
For the purpose of computing fees under this para-
graph, a multiple dependent claim referred to in sec-
tion 112 of this title or any claim depending there-
from shall be considered as separate dependent claims 
in accordance with the number of claims to which ref-
erence is made. The Director may by regulation pro-
vide for a refund of any part of the fee specified in 
this paragraph for any claim that is canceled before 
an examination on the merits, as prescribed by the 
Director, has been made of the application under sec-
tion 131 of this title. Errors in payment of the addi-
tional fees under this paragraph may be rectified in 
accordance with regulations prescribed by the Direc-
tor. 
‘‘(3) EXAMINATION FEES.—
‘‘(A) For examination of each application 
for an original patent, except for design, plant, 
provisional, or international applications, $200. 
‘‘(B) For examination of each application 
for an original design patent, $130. 
‘‘(C) For examination of each application 
for an original plant patent, $160. 
‘‘(D) For examination of the national stage 
of each international application, $200. 
‘‘(E) For examination of each application 
for the reissue of a patent, $600. 
The provisions of section 111(a)(3) of this title relat-
ing to the payment of the fee for filing the application 
shall apply to the payment of the fee specified in this 
paragraph with respect to an application filed under
section 111(a) of this title. The provisions of section 
371(d) of this title relating to the payment of the na-
tional fee shall apply to the payment of the fee speci-
fied in this paragraph with respect to an inter-
national application. The Director may by regulation 
provide for a refund of any part of the fee specified 
in this paragraph for any applicant who files a writ-
ten declaration of express abandonment as prescribed 
by the Director before an examination has been made 
of the application under section 131 of this title, and 
for any applicant who provides a search report that 
meets the conditions prescribed by the Director. 
‘‘(4) ISSUE FEES.—
‘‘(A) For issuing each original patent, ex-
cept for design or plant patents, $1,400. 
‘‘(B) For issuing each original design pat-
ent, $800. 
‘‘(C) For issuing each original plant patent, 
$1,100. 
‘‘(D) For issuing each reissue patent, 
$1,400. 
‘‘(5) DISCLAIMER
FEE.—On filing each dis-
claimer, $130. 
‘‘(6) APPEAL FEES.—
‘‘(A) On filing an appeal from the examiner 
to the Board of Patent Appeals and Inter-
ferences, $500. 
‘‘(B) In addition, on filing a brief in sup-
port of the appeal, $500, and on requesting an 
oral hearing in the appeal before the Board of 
Patent Appeals and Interferences, $1,000. 
‘‘(7) REVIVAL FEES.—On filing each petition for 
the revival of an unintentionally abandoned applica-
tion for a patent, for the unintentionally delayed 
payment of the fee for issuing each patent, or for an 
unintentionally delayed response by the patent owner 
in any reexamination proceeding, $1,500, unless the 
petition is filed under section 133 or 151 of this title, 
in which case the fee shall be $500. 
‘‘(8) EXTENSION
FEES.—For petitions for 1-
month extensions of time to take actions required by 
the Director in an application—
‘‘(A) on filing a first petition, $120; 
‘‘(B) on filing a second petition, $330; and 
‘‘(C) on filing a third or subsequent peti-
tion, $570.’’. 
(b) PATENT MAINTENANCE FEES.—Section 41(b) of 
title 35, United States Code, is amended to read as follows:
‘‘(b) MAINTENANCE FEES.—The Director shall charge 
the following fees for maintaining in force all patents based 
on applications filed on or after December 12, 1980: 
‘‘(1) 3 years and 6 months after grant, $900. 
‘‘(2) 7 years and 6 months after grant, $2,300. 
‘‘(3) 11 years and 6 months after grant, $3,800. 
Unless payment of the applicable maintenance fee is re-
ceived in the United States Patent and Trademark Office 
on or before the date the fee is due or within a grace period 
of 6 months thereafter, the patent will expire as of the end 
of such grace period. The Director may require the payment 
of a surcharge as a condition of accepting within such 6-
month grace period the payment of an applicable mainte-
nance fee. No fee may be established for maintaining a de-
sign or plant patent in force.’’. 
(c) PATENT SEARCH FEES.—Section 41(d) of title 35, 
United States Code, is amended to read as follows: 
‘‘(d) PATENT SEARCH AND OTHER FEES.—
‘‘(1) PATENT SEARCH FEES.—(A) The Director 
shall charge a fee for the search of each application 
for a patent, except for provisional applications. The 
Director shall establish the fees charged under this 
paragraph to recover an amount not to exceed the es-
timated average cost to the Office of searching appli-
cations for patent either by acquiring a search report
from a qualified search authority, or by causing a 
search by Office personnel to be made, of each appli-
cation for patent. 
‘‘(B) For purposes of determining the fees to be 
established under this paragraph, the cost to the Of-
fice of causing a search of an application to be made 
by Office personnel shall be deemed to be—
‘‘(i) $500 for each application for an origi-
nal patent, except for design, plant, provisional, 
or international applications; 
‘‘(ii) $100 for each application for an origi-
nal design patent; 
‘‘(iii) $300 for each application for an 
original plant patent; 
‘‘(iv) $500 for the national stage of each 
international application; and 
‘‘(v) $500 for each application for the re-
issue of a patent. 
‘‘(C) The provisions of section 111(a)(3) of this 
title relating to the payment of the fee for filing the 
application shall apply to the payment of the fee 
specified in this paragraph with respect to an appli-
cation filed under section 111(a) of this title. The pro-
visions of section 371(d) of this title relating to the 
payment of the national fee shall apply to the pay-
ment of the fee specified in this paragraph with re-
spect to an international application. 
‘‘(D) The Director may by regulation provide for 
a refund of any part of the fee specified in this para-
graph for any applicant who files a written declara-
tion of express abandonment as prescribed by the Di-
rector before an examination has been made of the ap-
plication under section 131 of this title, and for any 
applicant who provides a search report that meets the 
conditions prescribed by the Director.
‘‘(E) For purposes of subparagraph (A), a 
‘qualified search authority’ may not include a com-
mercial entity unless—
‘‘(i) the Director conducts a pilot program 
of limited scope, conducted over a period of not 
more than 18 months, which demonstrates that 
searches by commercial entities of the available 
prior art relating to the subject matter of inven-
tions claimed in patent applications—
‘‘(I) are accurate; and 
‘‘(II) meet or exceed the standards of 
searches conducted by and used by the Pat-
ent and Trademark Office during the patent 
examination process;
‘‘(ii) the Director submits a report on the 
results of the pilot program to the Congress and 
the Patent Public Advisory Committee that in-
cludes—
‘‘(I) a description of the scope and du-
ration of the pilot program; 
‘‘(II) the identity of each commercial 
entity participating in the pilot program; 
‘‘(III) an explanation of the method-
ology used to evaluate the accuracy and 
quality of the search reports; and 
‘‘(IV) an assessment of the effects that 
the pilot program, as compared to searches 
conducted by the Patent and Trademark Of-
fice, had and will have on—
‘‘(aa) 
patentability 
determina-
tions; 
‘‘(bb) productivity of the Patent 
and Trademark Office; 
‘‘(cc) costs to the Patent and 
Trademark Office; 
‘‘(dd) costs to patent applicants; 
and 
‘‘(ee) other relevant factors;
‘‘(iii) the Patent Public Advisory Com-
mittee reviews and analyzes the Director’s report 
under clause (ii) and the results of the pilot pro-
gram and submits a separate report on its anal-
ysis to the Director and the Congress that in-
cludes—
‘‘(I) an independent evaluation of the 
effects that the pilot program, as compared 
to searches conducted by the Patent and 
Trademark Office, had and will have on the 
factors set forth in clause (ii)(IV); and 
‘‘(II) an analysis of the reasonableness, 
appropriateness, and effectiveness of the 
methods used in the pilot program to make 
the 
evaluations 
required 
under 
clause 
(ii)(IV); and 
‘‘(iv) the Congress does not, during the 1-
year period beginning on the date on which the 
Patent Public Advisory Committee submits its 
report to the Congress under clause (iii), enact a 
law prohibiting searches by commercial entities 
of the available prior art relating to the subject 
matter of inventions claimed in patent applica-
tions.
‘‘(2) OTHER FEES.—The Director shall establish 
fees for all other processing, services, or materials re-
lating to patents not specified in this section to re-
cover the estimated average cost to the Office of such 
processing, services, or materials, except that the Di-
rector shall charge the following fees for the following 
services: 
‘‘(A) For recording a document affecting 
title, $40 per property. 
‘‘(B) For each photocopy, $.25 per page. 
‘‘(C) For each black and white copy of a 
patent, $3. 
The yearly fee for providing a library specified in sec-
tion 12 of this title with uncertified printed copies of 
the specifications and drawings for all patents in that 
year shall be $50.’’. 
(d) ADJUSTMENTS.—Section 41(f) of title 35, United 
States Code, shall apply to the fees established under the 
amendments made by this section, beginning in fiscal year 
2005. 
(e) CONFORMING AMENDMENTS.—
(1) Section 41 of title 35, United States Code, is 
amended—
(A) in subsection (c), by striking ‘‘(c)(1)’’ 
and inserting ‘‘(c) LATE PAYMENT OF FEES.—
(1)’’; 
(B) in subsection (e), by striking ‘‘(e)’’ and 
inserting ‘‘(e) WAIVERS OF CERTAIN FEES.—’’; 
(C) in subsection (f), by striking ‘‘(f)’’ and 
inserting ‘‘(f) ADJUSTMENTS IN FEES.—’’; 
(D) in subsection (g), by striking ‘‘(g)’’ and 
inserting ‘‘(g) EFFECTIVE DATES OF FEES.—’’; 
(E) in subsection (h), by striking ‘‘(h)(1)’’ 
and inserting ‘‘(h) REDUCTIONS IN FEES FOR 
CERTAIN ENTITIES.—(1)’’; and 
(F) in subsection (i), by striking ‘‘(i)(1)’’ 
and inserting ‘‘(i) SEARCH SYSTEMS.—(1)’’. 
(2) Section 119(e)(2) of title 35, United States 
Code, is amended by striking ‘‘subparagraph (A) or 
(C) of’’. 
SEC. 3. ADJUSTMENT OF TRADEMARK FEES. 
(a) FEE FOR FILING APPLICATION.—The fee under sec-
tion 31(a) of the Trademark Act of 1946 (15 U.S.C. 
1113(a)) for filing an electronic application for the reg-
istration of a trademark shall be $325. If the trademark 
application is filed on paper, the fee shall be $375. The Di-
rector may reduce the fee for filing an electronic application 
for the registration of a trademark to $275 for any appli-
cant who prosecutes the application through electronic 
means under such conditions as may be prescribed by the 
Director. Beginning in fiscal year 2005, the provisions of 
the second and third sentences of section 31(a) of the Trade-
mark Act of 1946 shall apply to the fees established under 
this section. 
(b) REFERENCE TO TRADEMARK ACT OF 1946.—For 
purposes of this section, the ‘‘Trademark Act of 1946’’ refers 
to the Act entitled ‘‘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.’’, approved July 5, 1946 (15 U.S.C. 1051 
et seq.). 
SEC. 4. CORRECTION OF ERRONEOUS NAMING OF OFFICER. 
(a) CORRECTION.—Section 13203(a) of the 21st Cen-
tury Department of Justice Appropriations Authorization 
Act (Public Law 107–273; 116 Stat. 1902) is amended—
(1) in the subsection heading, by striking ‘‘COM-
MISSIONER’’ and inserting ‘‘DIRECTOR’’; and 
(2) in paragraphs (1) and (2), by striking 
‘‘Commissioner’’ each place it appears and inserting 
‘‘Director’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall be effective as of the date of the enactment 
of Public Law 107–273.
SEC. 5. PATENT AND TRADEMARK OFFICE FUNDING. 
Section 42 of title 35, United States Code, is amend-
ed—
(1) in subsection (b), by striking ‘‘Appropria-
tion’’; and 
(2) in subsection (c), in the first sentence—
(A) by striking ‘‘To the extent’’ and all that 
follows through ‘‘fees’’ and inserting ‘‘Fees’’; and 
(B) by striking ‘‘shall be collected by and 
shall be available to the Director’’ and inserting 
‘‘shall be collected by the Director and shall be 
available until expended’’. 
SEC. 6. EFFECTIVE DATE, APPLICABILITY, AND TRANSI-
TIONAL PROVISION. 
(a) EFFECTIVE DATE.—Except as provided in section 
4 and this section, this Act and the amendments made by 
this Act shall take effect on October 1, 2003, or the date 
of the enactment of this Act, whichever is later. 
(b) APPLICABILITY.—
(1)(A) Except as provided in subparagraphs (B) 
and (C), the amendments made by section 2 shall 
apply to all patents, whenever granted, and to all 
patent applications pending on or filed after the effec-
tive date set forth in subsection (a) of this section. 
(B)(i) Except as provided in clause (ii), sections 
41(a)(1), 41(a)(3), and 41(d)(1) of title 35, United
States Code, as amended by this Act, shall apply only 
to—
(I) applications for patents filed under sec-
tion 111(a) of title 35, United States Code, on or 
after the effective date set forth in subsection (a) 
of this section, and 
(II) international applications entering the 
national stage under section 371 of title 35, 
United States Code, for which the basic national 
fee specified in section 41 of title 35, United 
States Code, was not paid before the effective 
date set forth in subsection (a) of this section. 
(ii) Section 41(a)(1)(D) of title 35, United 
States Code as amended by this Act, shall apply only 
to applications for patent filed under section 111(b) 
of title 35, United States Code, before, on, or after the 
effective date set forth in subsection (a) of this section 
in which the filing fee specified in section 41 of title 
35, United States Code, was not paid before the effec-
tive date set forth in subsection (a) of this section. 
(C) Section 41(a)(2) of title 35, United States 
Code, as amended by this Act, shall apply only to the 
extent that the number of excess claims, after giving 
effect to any cancellation of claims, is in excess of the 
number of claims for which the excess claims fee spec-