I 
113TH CONGRESS 
1ST SESSION H. R. 3349 
To provide for the permanent funding of the United States Patent and 
Trademark Office, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 28, 2013 
Mr. CONYERS (for himself, Mr. WATT, and Mr. COLLINS of Georgia) intro-
duced the following bill; which was referred to the Committee on the Ju-
diciary 
A BILL 
To provide for the permanent funding of the United States 
Patent and Trademark Office, 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 ‘‘Innovation Protection 
Act’’. 
SEC. 2. PATENT AND TRADEMARK OFFICE FUNDING. 
(a) DEFINITIONS.—In this section: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Under Secretary of Commerce for Intellectual 
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Property and Director of the United States Patent 
and Trademark Office. 
(2) FUND.—The term ‘‘Fund’’ means the 
United States Patent and Trademark Office Public 
Enterprise Revolving fund established under sub-
section (c). 
(3) OFFICE.—The term ‘‘Office’’ means the 
United States Patent and Trademark Office. 
(4) TRADEMARK
ACT
OF
1946.—The term 
‘‘Trademark Act of 1946’’ means the Act entitled 
‘‘An Act to provide for the registration and protec-
tion 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.) (commonly referred to as the 
‘‘Trademark Act of 1946’’ or the ‘‘Lanham Act’’). 
(b) FUNDING.— 
(1) IN
GENERAL.—Section 42 of title 35, 
United States Code, is amended— 
(A) in subsection (b), by striking ‘‘Patent 
and Trademark Office Appropriation Account’’ 
and inserting ‘‘United States Patent and 
Trademark Office Public Enterprise Fund’’; 
and 
(B) in subsection (c)— 
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(i) in paragraph (1)— 
(I) in the first sentence, by strik-
ing ‘‘To the extent’’ and all that fol-
lows through ‘‘fees’’ and inserting 
‘‘Fees’’; and 
(II) by striking ‘‘shall be col-
lected by and shall, subject to para-
graph (3), be available to the Direc-
tor’’ and inserting ‘‘shall be collected 
by, and shall be available to, the Di-
rector until expended’’; and 
(ii) by striking paragraph (2) and re-
designating 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’’. Any 
amounts in the Fund shall be available for use by 
the Director without fiscal year limitation. 
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(2) DERIVATION OF RESOURCES.— 
(A) IN GENERAL.—There shall be depos-
ited 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 Trade-
mark Office Appropriation Account, and in the 
Patent and Trademark Fee Reserve Fund es-
tablished under section 42(b)(2) of title 31, 
United States Code, as in effect on the day be-
fore such effective date. Upon the payment of 
all obligated amounts in the Patent and Trade-
mark Fee Reserve Fund, the Patent and Trade-
mark Fee Reserve Fund shall be terminated. 
(3) EXPENSES.—Amounts deposited into the 
Fund under paragraph (2) shall be available, with-
out fiscal year limitation, to cover— 
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(A) all expenses, to the extent consistent 
with the limitation on the use of fees set forth 
in section 42(c) of title 35, United States Code, 
including all administrative and operating ex-
penses, determined in the discretion of the Di-
rector to be ordinary and reasonable, incurred 
by the Director for the continued operation of 
all services, programs, activities, and duties of 
the Office relating to patents and trademarks, 
as such services, programs, activities, and du-
ties are described under— 
(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; 
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(3) sets forth details of any progress towards 
such modernization plans made in the preceding fis-
cal 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 Ap-
propriations of the Senate of the plan for the obliga-
tion and expenditure by the Office of the total 
amount of the funds for that fiscal year in accord-
ance with section 605 of the Science, State, Justice, 
Commerce, and Related Agencies Appropriations 
Act, 2006 (Public Law 109–108; 119 Stat. 2334). 
(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 ac-
tivities; and 
(B) detail the operating plan of the Office, 
including specific expense and staff needs, for 
the current fiscal year. 
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(f) AUDIT.—The Director shall, on an annual basis, 
provide for an independent audit of the financial state-
ments of the Office. Such audit shall be conducted in ac-
cordance 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. 
Æ 
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