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to determine the qualifications and procedures for
appointment; any compensation and award system
except gainsharing, including wages and compensa-
tion based on performance, and over any supplement
to contributions of the Organization to the retire-
ment and benefits programs; and
‘‘(2) to fix and adjust rates of pay without re-
gard to the provisions of chapter 53 of title 5, Unit-
ed States Code and abolish positions and layoff em-
ployees without regard to the provisions of chapter
35 of title 5, except that the principle of veteran’s
preference shall apply in any layoff system.
‘‘(g) SPECIFIC EXEMPTIONS FROM TITLE 5.—To ac-
complish the above, the following provisions of title 5,
United States Code, shall not apply to the Organization
and its employees:
‘‘(1) Chapter 31 (employment authorities) ex-
cept for the provision governing nepotism (5 U.S.C.
3110).
‘‘(2) Chapter 33 (examination, selection, and
placement); except that the provisions governing rec-
ommendations of Senators or Representatives (5
U.S.C. 3303), selective service registration (5 U.S.C.
3328), the oath of office (5 U.S.C. 3331), and em-
ployee affidavits (5 U.S.C. 3333) and the principle
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of veteran’s preference, shall apply to the Organiza-
tion and its employees.
‘‘(3) Chapter 35 (retention preference, restora-
tion, and reemployment), except the principle of vet-
eran’s preference shall apply to any layoff system.
‘‘(4) Chapter 43 (performance appraisal).
‘‘(5) Chapter 45 (incentive awards).
‘‘(6) Chapter 51 (classification).
‘‘(7) Chapter 53, subchapter 3 (general pay
rates).
‘‘(h) APPLICATION OF TITLE 5.—The provisions of
chapters 83 (Civil Service Retirement System), 84 (Fed-
eral Employees Retirement System), 87 (life insurance),
and 89 (health insurance) of title 5 shall apply to the offi-
cers and employees of the Organization. The Organization
may supplement the benefits provided under chapters 83
and 84 from time to time. The Organization also may sup-
plement the benefits provided under chapters 87 and 89
to its officers and employees.
‘‘(i) PAYMENTS FOR BENEFITS.—
‘‘(1) The Organization shall make such pay-
ments to the Employees’ Compensation Fund as are
required by section 8147 of title 5.
‘‘(2) The Organization shall pay to the Civil
Service Retirement and Disability Fund—
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‘‘(A) such employee deductions and agency
contributions as are required by sections 8334,
8422, and 8423 of title 5;
‘‘(B) such additional agency contributions
as are determined necessary by the Office of
Personnel Management to pay, in combination
with the sums under paragraph (1), the normal
cost (determined using dynamic assumptions) of
retirement benefits for the employees of the Or-
ganization who are subject to subchapter III of
chapter 83 of title 5; and
‘‘(C) such additional amounts, not to ex-
ceed two percent of the amounts under para-
graphs (1) and (2), as are determined necessary
by the Office of Personnel Management to pay
the cost of administering retirement benefits for
the Organization’s employees and retirees and
their survivors (which amounts shall be avail-
able to the Office as provided in section
8348(a)(1)(B) of title 5).
‘‘(3)(A) The Organization shall pay to the Em-
ployees’ Life Insurance Fund—
‘‘(i) such employee deductions and agency
contributions as are required by sections 8707
and 8708(a) of title 5; and
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‘‘(ii) such amounts as are determined nec-
essary by the Office of Personnel Management
under subparagraph (2)(C) of this subsection to
reimburse the Office for contributions under
section 8708(d) of title 5.
‘‘(B) The Organization shall pay to the Em-
ployees Health Benefits Fund—
‘‘(i) such employee payments and agency
contributions as are required by section 8906
(a) through (f) of title 5, and
‘‘(ii) such amounts as are determined nec-
essary by the Office of Personnel Management
under subparagraph (2)(C) of this subsection to
reimburse the Office for contributions under
section 8905(g)(1) of title 5.
‘‘(C) The amounts required under subpara-
graphs (A)(ii) and (B)(ii) of this paragraph shall
pay the Government contributions for retired em-
ployees who retire from the Organization after the
date of transfer, the survivors of such retired em-
ployees, and survivors of employees of the Organiza-
tion who die after the date of transfer, prorated to
reflect the portion of the total civilian service of such
employees and retired employees that was performed
for the Organization after the date of transfer.
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‘‘(4) The Organization shall pay to the Thrift
Savings Fund such employee and agency contribu-
tions as are required by section 8432 of title 5.
‘‘(j) JOINT LABOR-MANAGEMENT COMMITTEE.—The
Organization shall establish a joint committee, which will
include an equal number of members appointed by the Or-
ganization and employees who are designated by its labor
organizations accorded exclusive recognition under chapter
71 of title 5 to assist the Chief Executive Officer by mak-
ing recommendations concerning the design and imple-
mentation of any position classification system, and any
system to determine qualifications and procedures for em-
ployment, any compensation and awards system, and con-
tributions of the Organization to retirement and benefits
programs.
‘‘(k) RESTRICTIONS ON FTE NOT APPLICABLE.—
The Organization shall not be subject to any restriction
or limitation on the number of full-time equivalent Federal
employees it may employ unless such restriction or limita-
tion is made applicable to the Organization through an
amendment to this subsection. Beginning with the first
full fiscal period following enactment of this bill, the num-
ber of full-time equivalent Federal employees available to
the Organization shall be adjusted annually by a percent-
age equivalent to the projected change as determined by
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the Secretary of Commerce in patent and trademark appli-
cation filings, respectively, for each fiscal year. The projec-
tion shall be based upon a linear regression model taking
into account productivity changes.
‘‘(l) INSPECTOR GENERAL.—The Inspector General
of the Department of Commerce shall carry out all respon-
sibilities and duties required of him or her, and shall have
all powers and authorities vested in him or her, by the
Inspector General Act of 1978 (5 U.S.C. App. 3) as
amended, with respect to the programs, operations, and
activities of the Organization.’’.
SEC. 104. DEFINITIONS.
Section 6 of title 35 of the United States Code is
amended to read as follows:
‘‘§ 6. Definitions
‘‘As used in this title, the following terms have the
meanings indicated:
‘‘(a) The term ‘Chief Executive Officer’ means
the chief executive officer of the United States Intel-
lectual Property Organization.
‘‘(b) The term ‘Commissioner’ means the Com-
missioner of Patent and Trademarks.
‘‘(c) The term ‘Department’ means the Depart-
ment of Commerce.
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‘‘(d) The term ‘intellectual property’ shall in-
clude rights in inventions; in trademarks, service
marks, and commercial names and designations; in
literary, artistic and scientific works; in perform-
ances of performing artists, phonograms and broad-
casts; in industrial designs; in trade secrets and sci-
entific discoveries; in semiconductor chip layout de-
signs; in geographical indications; and all other
rights resulting from intellectual activity in the in-
dustrial, scientific, literary, or artistic fields.
‘‘(e) The term ‘organic statues’ includes this
Act and the Federal statutes that confer authority
upon and refer specifically to the Office, the United
States Intellectual Property Organization, the Com-
missioner, or the Chief Executive Officer, including
the Patent Act (35 U.S.C. 1, et seq.) and the Trade-
mark Act (15 U.S.C. 1051 et seq.).
‘‘(f) The term ‘Organization’ means the United
States Intellectual Property Organization.
‘‘(g) The terms ‘Patent and Trademark Office’
and ‘‘Office’’ mean the Patent and Trademark Of-
fice of the Department of Commerce.
‘‘(h) The term ‘Secretary’ means the Secretary
of Commerce.’’.
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Subtitle B—Trademark Trial and Appeal
Board; Board of Patent Appeals and
Interferences; Suits By and Against the
Organization
SEC. 105. TRADEMARK TRIAL AND APPEAL BOARD.
Section 17 of the Act of July 5, 1946 (commonly
called the Trademark Act of 1946), as amended, is amend-
ed to read as follows:
‘‘(a) FUNCTION.—In every case of interference, oppo-
sition to registration, application to register as a lawful
concurrent user, or application to cancel the registration
of a mark, the Chief Executive Officer of the United
States Intellectual Property Organization shall give notice
to all parties and shall direct a Trademark Trial and Ap-
peal Board to determine and decide the respective rights
of registration.
‘‘(b) COMPOSITION.—The Trademark Trial and Ap-
peal Board shall include the Chief Executive Officer, the
officer of the Organization principally responsible for the
examination of trademarks, the officer of the Organization
principally responsible for the examination of patents, and
members competent in trademark law who are appointed
by the Secretary of Commerce. Each case shall be heard
by at least three members of the Board.’’.
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SEC. 106. BOARD OF PATENT APPEALS AND INTER-
FERENCES.
Section 7 of title 35, United States Code is amended
to read as follows:
‘‘§ 7. Board of Patent Appeals and Interferences
‘‘(a) COMPOSITION.—There shall be in the United
States Intellectual Property Organization a Board of Pat-
ent Appeals and Interferences. The Chief Executive Offi-
cer, the officer of the Organization principally responsible
for the examination of patents, the officer of the Organiza-
tion principally responsible for the examination of trade-
marks, and the examiners-in-chief shall constitute the
Board. The examiners-in-chief shall be appointed by the
Secretary of Commerce and shall be persons of competent
legal knowledge and scientific ability.
‘‘(b) FUNCTION.—The Board of Patent Appeals and
Interferences shall, on written appeal of an applicant, re-
view adverse decisions of examiners upon applications for
patents and shall determine priority and patentability of
invention in interferences declared under section 135(a)
of this title. Each appeal and interference shall be heard
by at least three members of the Board. Only the Board
of 
Patent 
Appeals 
and 
Interferences 
may 
grant
rehearings.’’.
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SEC. 107. SUITS BY AND AGAINST THE ORGANIZATION.
(a) Sections 8 through 14 of this title (35 U.S.C. 8,
9, 10, 11, 12, 13, and 14) are renumbered 9, 10, 11, 12,
13, 14, and 15, respectively.
(b) The following new section is added to this title:
‘‘§ 8. Suits by and against the Organization
‘‘(a) ACTIONS UNDER UNITED STATES LAW.—Any
civil action, suit, or proceeding to which the Organization
is a party is deemed to arise under the laws of the United
States. Exclusive jurisdiction over all civil actions by or
against the Organization is in the Federal courts as pro-
vided by law. For purposes of filing suits, the Chief Execu-
tive Officer shall be the head of the agency.
‘‘(b) CONTRACT CLAIMS.—Any action, suit, or pro-
ceeding against the Organization founded upon contract
shall be subject to the limitations and exclusive remedy
provided in sections 1346(a)(2) and 1491 through 1509
of title 28, whether or not such contract claims are cog-
nizable under sections 507, 1346, 1402, 1491, 1496,
1497, 1501, 1503, 2071, 2072, 2411, 2501, and 2512 of
title 28. For purposes of the Contract Disputes Act of
1978 (41 U.S.C. 601), the Chief Executive Officer shall
be deemed to be the agency head with respect to contract
claims arising with respect to the Organization.
‘‘(c) TORT CLAIMS.—Any action, suit, or proceeding
against the Organization founded upon tort shall be sub-
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ject to the limitations and exclusive remedies provided in
subsection 1346(b) and sections 2671 through 2680 of
title 28, whether or not such tort claims are cognizable
under section 1346(b) of title 28.
‘‘(d) FEDERAL REMEDIES APPLY.—Any action, suit,
or proceeding against the Organization based upon civil
rights laws shall be subject to the limitations and exclusive
remedies provided for other Federal Government executive
agencies under 42 U.S.C. 2000e–16, 29 U.S.C. 633a, 29
U.S.C. 791 et seq., and 29 U.S.C. 206(d).
‘‘(e) 
PROHIBITION
ON
ATTACHMENTS, 
LIENS,
ETC.—No attachment, garnishment, lien, or similar proc-
ess, intermediate or final, in law or equity, may be issued
against property of the Organization.’’.
SEC. 108. ANNUAL MANAGEMENT REPORT.
Section 15 of title 35, United States Code, as redesig-
nated by section 107 of this Act, is amended to read as
follows:
‘‘§ 15. Reports to Congress
‘‘(a) ANNUAL REPORT
ON MONIES
AND STATIS-
TICS.—The Chief Executive Officer shall report to the
President and the Congress annually the monies received
and expended, statistics concerning the work of the Orga-
nization, and other information relating to the Organiza-
tion as may be useful to the Congress or the public.
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‘‘(b) MANAGEMENT REPORT.—The Chief Executive
Officer shall prepare and submit to the President and the
Congress an annual management report as required by
section 9106 of title 31.’’.
Subtitle C—Fees; Organization Moneys;
Borrowing; Audits
SEC. 109. FEES.
‘‘(a) ESTABLISHMENT OF FEE SCHEDULE.—Section
41 of title 35 of the United States Code is amended to
read as follows:
‘‘§ 41. Fees
‘‘Consistent with section 553 of title 5, the Organiza-
tion shall recommend a schedule to the Secretary of fees
to be levied for the services rendered and products pro-
vided in carrying out its activities. Any schedule of fees,
or revision thereof, before it is promulgated, must be ap-
proved by the Secretary.’’.
(b) PRINCIPLES
FOR DEVELOPING FEE SCHED-
ULES.—In the course of the deliberations to propose modi-
fications to the fee schedule, the Organization shall be
guided by the following principles:
(1) The fees shall be fair and equitable and
shall give due consideration to the objectives of the
patent and trademark systems.
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(2) Financial relief, in the form of a 50 percent
reduction of the major fees for filing a patent appli-
cation, and issuing and maintaining a patent, shall
be provided to individual inventors and non-profit
organizations. Such financial relief shall be provided
to small business concerns as defined in section 3 of
the Small Business Act (15 U.S.C. 632) and by reg-
ulations established by the Small Business Adminis-
tration.
(3) Fees shall be established, in the aggregate,
in such a manner that all costs of operating and
maintaining the Organization shall be recovered, in-
cluding depreciation, capital expenditures, and pay-
ments in lieu of taxes, if any, and to provide the
reimbursement under section 1503c(d) of title 15,
United States Code (15 U.S.C. 1503c(d)).
(4) Fees for the processing of trademark reg-
istrations and for other services and materials relat-
ed to trademarks shall be calculated based solely
upon the full cost of, and capital expenditures for,
such trademark operations. Furthermore, trademark
revenues shall be used exclusively for the processing
of trademark registrations and for other services and
materials related to trademarks, including a fair
share of allocated general and administrative sup-
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port costs and the reimbursement provided under
section 1503c(d) of title 15, United States Code (15
U.S.C. 1503c(d)).
(5) Fees for the processing of patent grants
and for other services and materials related to pat-
ents shall be calculated based solely upon the full
cost of, and capital expenditures for, such patent op-
erations. Furthermore, patent revenues shall be used
exclusively for the processing of patent grants and
for other services and materials related to patents,
including a fair share of allocated general and ad-
ministrative support costs and the reimbursement
provided under section 1503c(d) of title 15, United
States Code (15 U.S.C. 1503c(d)).
(c) TRANSITION PROVISION
FOR FEES.—The fee
schedule promulgated by the Patent and Trademark Of-
fice, which is in effect immediately prior to the enactment
of this legislation, shall remain in full force and effect until
such time as the Secretary of Commerce has established
and promulgated a schedule of fees.
(d) EXEMPTION FROM SEQUESTRATION ORDERS.—
Section 255(g)(1)(A) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (2 U.S.C. 905(g)(a)(A))
is amended by inserting after the ‘‘Tennessee Valley Au-
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thority fund . . .’’ the following, ‘‘United States Intellec-
tual Property Fund’’.
(e) CONFORMING AMENDMENTS TO OBRA.—Section
10101 of the Omnibus Reconciliation Act of 1990 (35
U.S.C. 41 note), as amended, is amended as follows:
(1) In subsection (a), by striking the phrase
‘‘by subsections (a) and (b)’’.
(2) In subsections (b)(1)(A) and (b)(2)(A), by
striking ‘‘Patent and Trademark activities in the
Department of Commerce’’ and inserting in lieu
thereof ‘‘United States Intellectual Property Organi-
zation’’.
(3) In subsections (b) and (c), by striking all
other references to ‘‘Patent and Trademark Office’’
and substituting therefor ‘‘United States Intellectual
Property Organization’’.
(4) In subsection (c), by striking ‘‘Commis-
sioner of Patents and Trademarks’’ and inserting in
lieu thereof ‘‘Chief Executive Officer of the United
States Intellectual Property Organization’’.
(5) Notwithstanding the provisions of any other
law, except insofar as such law amends this sen-
tence, on October 1, 1998, the provisions of section
10101, as they apply to the Organization, shall cease
to apply to the revenues of the Organization.
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(f) RECOMMEND TRADEMARK FEE SCHEDULE.—
Subsection 31(a) of the Act of July 5, 1946 (commonly
referred to as the Trademark Act of 1946), as amended,
is amended to read as follows:
‘‘(a) Consistent with section 553 of title 5, the Orga-
nization shall recommend to the Secretary a schedule of
fees to be levied for the services rendered and products
provided in carrying out its activities. Any schedule of
fees, or revision therefore, before it is promulgated, must
be approved by the Secretary.’’.
(g) PCT FEES.—Section 371 of title 35, United
States Code, is amended to read as follows:
‘‘§ 376. Fees required
‘‘The required payment of the international fee and
the handling fee, which amounts are specified in the Regu-
lations, shall be paid in United States currency. The Orga-
nization shall charge national fees as provided in section
41 of this title and may also charge the following fees:
‘‘(a) A transmittal fee (see section 361(d)).
‘‘(b) A search fee (see section 361(d)).
‘‘(c) A supplemental search fee (to be paid
when required).
‘‘(d) A preliminary examination fee and any ad-
ditional fees (see section 362(b)).
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‘‘(e) Such other fees as established by the Sec-
retary.’’.
SEC. 110. ORGANIZATION MONIES.
Section 42 of title 35, United States Code, is amend-
ed to read as follows:
‘‘§ 42. United States Intellectual Property Organiza-
tion Funding
‘‘(a) ESTABLISHMENT OF A REVOLVING FUND.—
There is established with the Secretary of the Treasury
a revolving fund, which shall be known as the Patent and
Trademark Organization Fund (the ‘‘Fund’’). All fees for
services performed or furnished by the Organization, will
be payable to the Organization, and, except as otherwise
provided in section 10101 of the Omnibus Budget Rec-
onciliation Act of 1990, as amended (35 U.S.C. 41 note),
fees authorized under section 31 of the Act of July 5,
1946 (commonly called Trademark Act of 1946), as
amended, and sections 41 and 376 of title 35, and all
other revenues and monies accruing to the Organization
shall be deposited in the Fund. Amounts deposited in the
Fund shall be available to the Organization for obligation
without further appropriation and shall remain available
for obligation without time limitation. All monies in the
Fund shall remain available to the Organization for obli-
gation until expended.
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‘‘(b) AUTHORITY TO INVEST.—Upon the request of
the Organization, the Secretary of the Treasury shall in-
vest such portion of the Fund as is not, in the judgment
of the Organization, required to meet current withdrawals.
Such investments shall be in public debt securities with
maturities suitable to the needs of the Fund, as deter-
mined by the Organization, and bearing interest at rates
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding mar-
ketable obligations of the United States of comparable ma-
turities. The income on such investments shall be credited
to and form a part of the Fund.
‘‘(c) AUTHORITY TO ISSUE OBLIGATIONS.—To assist
in financing its activities, the Organization is authorized
after October 1, 1998 to issue obligations, to the Secretary
of the Treasury and the Secretary of the Treasury may,
at his or her discretion, purchase such obligations, pro-
vided that the amount of such obligations outstanding at
any one time does not exceed $2,000,000,000 and pro-
vided further that expenditures (including capital invest-
ment and interest on borrowing) are fully offset by the
Organization’s revenues in each fiscal year. For such pur-
pose, the Secretary of the Treasury is authorized to use
as a public debt transaction the proceeds of the sale of
any securities hereafter issued under chapter 31 of title
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31 of the United States Code and the purposes for which
securities may be issued under that chapter are extended
to include such purchases. Each purchase of obligations
by the Secretary of the Treasury shall be upon such terms
and conditions as to yield a return at a rate not less than
a rate determined by the Secretary of the Treasury, taking
into consideration the current yields on outstanding mar-
ketable obligations of the United States of comparable ma-
turity. The Secretary of the Treasury may sell, upon such
terms and conditions and at such price or prices as deter-
mined by the Secretary of the Treasury, any of the obliga-
tions acquired under this subsection. All purchases and
sales by the Secretary of the Treasury of such obligations
under this subsection shall be treated as public debt trans-
actions of the United States. Funds obtained by the Orga-
nization from the issuance of such obligations shall be
credited to and form part of the Fund.
‘‘(d) FORM OF PAYMENT.—All fees for services per-
formed by or materials furnished by the United States In-
tellectual Property Organization will be payable to the Or-
ganization.’’.
SEC. 111. AUDITS.
Chapter 4 of part I of title 35, United States Code,
is amended by adding at the end the following new section:
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‘‘§ 43. Audits
‘‘The Organization shall reimburse the Inspector
General for the full cost of any audit conducted by the
Inspector General or an external auditor under section
9105 of title 31 as determined by the Inspector General.’’.
Subtitle D—Transfers; Use of Organization
Name; Transition Provisions; Technical
and Conforming Amendments
SEC. 112. TRANSFERS.
(a) TRANSFER OF FUNCTIONS, POWERS, AND DU-
TIES.—Except as otherwise provided in this Act, on the
effective date of this Act, there are hereby transferred to,
and vested in, the United States Intellectual Property Or-
ganization all functions, powers and duties vested by law
in the Secretary of Commerce or the Department of Com-
mence or in officers or components in the Department
with respect to the authority to examine patent and trade-
mark applications, and in the Patent and Trademark Of-
fice, and in the officers and components of such Office.
(b) TRANSFER OF ASSETS, LIABILITIES, ETC.—The
Secretary of Commerce is authorized and directed, without
need of further appropriation, to transfer to the United
States Intellectual Property Organization, on the effective
date of this Act, those assets, liabilities, contracts, prop-
erty, records, and unexpended and unobligated balances
of appropriations, authorizations, allocations and other
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funds employed, held, used, arising from, available or to
be made available to the Department of Commerce (inclu-
sive of funds set aside for accounts receivable which are
related to functions, powers and duties which are vested
in the Organization by this Act).
(c) TRANSFER OF INVESTED CAPITAL.—From time
to time, and at least at the close of each fiscal year, the
United States Intellectual Property Organization shall pay
into the Treasury as miscellaneous receipts interest on the
invested capital transferred to the Organization under
subsection (b) less the cumulative total of invested capital
repaid to the general fund. The rate of interest shall be
determined by the Secretary of the Treasury taking into
consideration the average market yield on outstanding
marketable obligations of the United States with remain-
ing periods to maturity of approximately one year during
the month preceding each fiscal year. Interest payments
may be deferred, but any interest payments so deferred
shall themselves bear interest.
SEC. 113. USE OF ORGANIZATION NAME.
Chapter 1 of part I of title 35, United States Code,
is amended by adding at the end the following new section:
‘‘§ 16. Use of Organization name
‘‘No individual, association, partnership, or corpora-
tion, except the Organization, shall hereafter use words
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‘United States Intellectual Property Organization,’ ‘Pat-
ent and Trademark Office,’ or any combination of such
words, as the name or part thereof under which such indi-
vidual or entity shall do business. Violations of the fore-
going may be enjoined by any Federal court at the suit
of the Organization. In any such suit, the Organization
shall be entitled to statutory damages of $1,000 for each
day during which such violation continues or is repeated
and, in addition, may recover actual damages flowing from
such violation.’’.
SEC. 114. TRANSITION PROVISIONS.
(a) CONTINUATION OF CONTRACTS, ETC.—Except as
provided elsewhere in this Act, all contracts, agreements,
leases and other business instruments, and licenses, per-
mits and privileges that have been afforded to the Patent
and Trademark Office prior to the effective date of this
Act, shall continue in effect as if the United States Intel-
lectual Property Organization had executed such con-
tracts, agreements, leases or other business instruments
which have been made in the exercise of functions which
are transferred to the Organization by this Act.
(b) CONTINUATION OF RULES.—Until changed by
the United States Intellectual Property Organization, any
procedural and administrative rules applicable to particu-
lar functions over which the Organization acquires juris-
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diction on the effective date of this Act shall continue in
effect with respect to such particular functions.
(c) CESSATION OF CERTAIN ORDERS, ETC.—Unless
otherwise provided by this Act, as related to the functions
vested in the United States Intellectual Property Organi-
zation by this Act, all orders, determinations, rules, regu-
lations, and privileges of the Department of Commerce
shall cease to apply to the Organization on the effective
date of this Act, except for those which the Organization
determines shall continue to be applicable.
(d) TRANSFER NOT AFFECTING OTHER PROCEED-
INGS.—Except as provided elsewhere in this Act, the
transfer of functions related to and vested in the United
States Intellectual Property Organization by this Act shall
not affect judicial, administrative, or other proceedings
which are pending at the time this Act takes effect, and
such proceedings shall be continued by the Organization.
(e) TRANSITION PROVISIONS FOR EMPLOYEES.—
(1) REASSIGNMENT.—On the effective date of
this Act and without a break in service, all officers
and employees of the Office on the day before the
effective date of this Act will become officers and
employees of the Organization or will be reassigned
to the Office of the Under Secretary for Intellectual
Property within the Department.
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(2) NO SEPARATIONS OR REDUCTIONS IN COM-
PENSATION.—No officer or employee of the Office
who becomes an officer or employee of the Organiza-
tion shall, for a period of one year after the effective
date of this Act, be subject to separation or to any
reduction in compensation as a consequence of the
establishment of the Organization.
(f) TRANSITION PROVISIONS
FOR LABOR AGREE-
MENTS.—All orders, determinations, rules, and regula-
tions regarding compensation and benefits and other
terms and conditions of employment in effect for the Of-
fice and its officers and employees on the day before the
effective date of this Act shall continue in effect with re-
spect to the Organization and its officers and employees
until modified, superseded, or set aside by the Organiza-
tion. The collective bargaining agreements between the
Patent and Trademark Office and National Treasury Em-
ployees Union 243, dated March 13, 1993, the Patent and
Trademark Office and the National Treasury Employees
Union 245, dated July 20, 1993, and the Patent and
Trademark Office and the Patent Office Professional As-
sociation, dated October 6, 1986, as well as the recogni-
tion of the three units, shall remain in effect until modi-
fied, superseded, or set aside by the parties.
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SEC. 115. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 5314 of title 5, United States Code is
amended by adding at the end ‘‘Under Secretary of Com-
merce for Intellectual Property.’’.
(b) Section 9101(3) of title 31, United States Code,
is amended by adding at the end the following:
‘‘(O) the United States Intellectual Prop-
erty Organization.’’.
(c) Section 602(d) of the Federal Property and Ad-
ministrative Services Act of 1949 (40 U.S.C. 474), is
amended—
(1) in paragraph (20) by striking ‘‘or’’ after the
semicolon;
(2) in paragraph (21) by striking the period
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(22) the United States Intellectual Property
Organization.’’.
(d) Title 35, United States Code is amended—
(1) in section 13 by striking ‘‘at the rate for
each year’s issue established for this purpose in sec-
tion 41(d) of this title’’;
(2) in section 111 by striking ‘‘required by law’’
and inserting ‘‘established by the Chief Executive
Officer’’;
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(3) in section 131 by striking the second occur-
rence of ‘‘Commissioner’’ and inserting ‘‘Under Sec-
retary for Intellectual Property’’;
(4) in the third sentence of subsection 135(2)
by striking ‘‘Commissioner’’ and inserting ‘‘Under
Secretary for Intellectual Property’’;
(5) in subsection 153—
(A) by striking ‘‘Commissioner’’ and in-
serting ‘‘Under Secretary for Intellectual Prop-
erty’’; and
(B) by striking ‘‘under the seal of the Pat-
ent and Trademark Office,’’
(6) in section 251 by striking ‘‘Commissioner’’
in all occurrences and insert ‘‘Under Secretary for
Intellectual Property’’;
(7) in section 254 by striking the second occur-
rence of ‘‘Commissioner’’ and inserting ‘‘Under Sec-
retary for Intellectual Property’’;
(8) in section 302 by inserting ‘‘established’’
before the word ‘‘pursuant’’;
(9) in subsection 307(a) by striking ‘‘Commis-
sioner’’ and inserting ‘‘Under Secretary for Intellec-
tual Property’’;
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(10) in section 371(c)(1) by striking ‘‘provided
in section 41(a)’’ and inserting ‘‘established under
section 41’’;
(11) in all other occurrences by striking the
words ‘‘Commissioner of Patents and Trademarks’’
and ‘‘Commissioner’’ (insofar as the word refers to
the Commissioner of Patents and Trademarks) and
inserting ‘‘Chief Executive Officer’’; and
(12) by striking the words ‘‘Patent and Trade-
mark Office’’ whenever they appear and inserting
‘‘United States Intellectual Property Organization’’.
(e) The Act of July 5, 1946 (commonly known as
the Trademark Act of 1946), as amended (chapter 22 of
title 15), is amended—
(1) in paragraph 1(d)(1), second sentence, by
striking ‘‘in the Patent and Trademark Office’’ and
inserting ‘‘by the Under Secretary for Intellectual
Property’’;
(2) in subsection 2(d)—
(A) by striking ‘‘Patent and Trademark
Office’’ and inserting ‘‘United States’’; and
(B) in the second and third sentences by
striking ‘‘Commissioner’’ and inserting ‘‘Under
Secretary for Intellectual Property’’;
(3) in section 7—
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(A) in subsection (a) by striking ‘‘under
the seal of the Patent and Trademark Office
and shall be signed by the Commissioner’’ and
inserting ‘‘and shall be signed by the Under
Secretary for Intellectual Property’’;
(B) in subsection (d) by striking ‘‘Commis-
sioner’’ and inserting ‘‘Under Secretary for In-
tellectual Property’’;
(C) in subsection (e) by striking ‘‘Commis-
sioner’’ in all occurrences and inserting ‘‘Under
Secretary for Intellectual Property’’;
(D) in subsection (g) by striking ‘‘Commis-
sioner’’ and inserting ‘‘Under Secretary for In-
tellectual Property’’; and
(E) in subsection (h) by striking ‘‘Commis-
sioner’’ and inserting ‘‘Under Secretary for In-
tellectual Property’’;
(4) in subsection 12(a) by striking ‘‘shall refer
the application to the examiner in charge of the reg-
istration of marks’’;
(5) in section 45 by striking ‘‘The term Com-
missioner means the Commissioner of Patents and
Trademarks.’’ and inserting ‘‘The term Chief Execu-
tive Officer’’ means the Chief Executive Officer of
the United States Intellectual Property Organization
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and the term ‘‘Under Secretary for Intellectual
Property’’ shall mean the Under Secretary for Intel-
lectual Property within the Department of Com-
merce.’’;
(6) in all other occurrences by striking the
words ‘‘Commissioner of Patents and Trademarks’’
and ‘‘Commissioner’’ (insofar as the word refers to
the Commissioner of Patents and Trademarks) and
inserting ‘‘Chief Executive Officer’’; and
(7) by striking the words ‘‘Patent and Trade-
mark Office’’ whenever they appear and inserting
‘‘United States Intellectual Property Organization’’.
(f) Section 500(e) of title 5, United States Code, is
amended by striking ‘‘the Patent Office’’ and ‘‘the United
States Intellectual Property Organization’’.
(g) Subsection 5102(c) of title 5, United States Code,
by striking paragraph (23) and redesignating paragraphs
(24) through (30) as paragraphs (23) through (29).
(h) Section 5316 of title 5, United States Code, is
amended—
(1) by striking ‘‘Commissioner of Patents, De-
partment of Commerce’’;
(2) by striking ‘‘Deputy Commissioner for Pat-
ents’’;