such times sufficiently in advance of opening bids, as
the Office determines is adequate to ensure notice
and an opportunity for competition, except that ad-
vertising shall not be required when the Office deter-
mines that the making of any such purchase or con-
tract without advertising is necessary, or that adver-
tising is not reasonably practicable;
‘‘(B) may enter into and perform such pur-
chases and contracts for printing services, including
the process of composition, platemaking, presswork,
silk screen processes, binding, microform, and the
products of such processes, as it considers necessary
to carry out the functions of the Office, without re-
gard to sections 501 through 517 and 1101 through
1123 of title 44; and
‘‘(C) may enter into and perform such other
contracts, leases, cooperative agreements, or other
transactions with international, foreign, and domes-
tic public agencies and private organizations, and
persons as is necessary in the conduct of its business
and on such terms as it considers appropriate;
‘‘(8) may use, with their consent, services,
equipment, personnel, and facilities of other depart-
ments, agencies, and instrumentalities of the Fed-
eral Government, on a reimbursable basis, and to co-
operate with such other departments, agencies, and
instrumentalities in the establishment and use of
services, equipment, and facilities of the Office;
‘‘(9) may obtain from the Administrator of
General Services such services as the Administrator
is authorized to provide to other agencies of the
United States, on the same basis as those services
are provided to other agencies of the United States;
‘‘(10) may use, with the consent of the agency,
government, or international organization concerned,
the services, records, facilities, or personnel of any
State or local government agency or instrumentality
or foreign government or international organization
to perform functions on its behalf;
‘‘(11) may determine the character of and the
necessity for its obligations and expenditures and
the manner in which they shall be incurred, allowed,
and paid, subject to the provisions of this title and
the Act of July 5, 1946 (commonly referred to as
the ‘Trademark Act of 1946’);
‘‘(12) may retain and use all of its revenues
and receipts, including revenues from the sale, lease,
or disposal of any real, personal, or mixed property,
or any interest therein, of the Office, in carrying out
the functions of the Office, including for research
and development and capital investment, without ap-
portionment under the provisions of subchapter II of
chapter 15 of title 31;
‘‘(13) shall have the priority of the United
States with respect to the payment of debts from
bankrupt, insolvent, and decedents’ estates;
‘‘(14) may accept monetary gifts or donations
of services, or of real, personal, or mixed property,
in order to carry out the functions of the Office;
‘‘(15) may execute, in accordance with its by-
laws, rules, and regulations, all instruments nec-
essary and appropriate in the exercise of any of its
powers;
‘‘(16) may provide for liability insurance and
insurance against any loss in connection with its
property, other assets, or operations either by con-
tract or by self-insurance; and
‘‘(17) shall pay any settlement or judgment en-
tered against it from the funds of the Office and not
from amounts available under section 1304 of title
31.’’.
SEC. 103. ORGANIZATION AND MANAGEMENT.
Section 3 of title 35, United States Code, is amended
to read as follows:
‘‘§ 3. Officers and employees
‘‘(a) COMMISSIONER.—
‘‘(1) IN
GENERAL.—The management of the
Patent and Trademark Office shall be vested in
Commissioner of Patents and Trademarks (hereafter
in this title referred to as the ‘Commissioner’), who
shall be a citizen of the United States and who shall
be appointed by the President, by and with the ad-
vice and consent of the Senate. The Commissioner
shall be a person who, by reason of professional
background and experience in patent and trademark
law, is especially qualified to manage the Office.
‘‘(2) DUTIES.—
‘‘(A) IN
GENERAL.—The Commissioner
shall be responsible for the management and di-
rection of the Office, including the issuance of
patents and the registration of trademarks.
‘‘(B) ADVISING
THE
PRESIDENT.—The
Commissioner shall advise the President of all
activities of the Patent and Trademark Office
undertaken in response to obligations of the
United States under treaties and executive
agreements, or which relate to cooperative pro-
grams with those authorities of foreign govern-
ments that are responsible for granting patents
or registering trademarks. The Commissioner
shall also recommend to the President changes
in law or policy which may improve the ability
of U.S. citizens to secure and enforce patent
rights or trademark rights in the United States
or in foreign countries.
‘‘(C) CONSULTING
WITH
THE
MANAGE-
MENT
ADVISORY
BOARD.—The Commissioner
shall consult with the Management Advisory
Board established in section 5 on a regular
basis on matters relating to the operation of the
Patent and Trademark Office, and shall consult
with the Board before submitting budgetary
proposals to the Office of Management and
Budget or changing or proposing to change pat-
ent or trademark user fees or patent or trade-
mark regulations.
‘‘(3) TERM.—The Commissioner shall serve a
term of six years, and may continue to serve until
a successor is appointed and assumes office. The
Commissioner may be reappointed to subsequent
terms.
‘‘(4) OATH.—The Commissioner shall, before
taking office, take an oath to discharge faithfully the
duties of the Office.
‘‘(5) COMPENSATION.—The Commissioner shall
receive compensation at the rate of pay in effect for
Level II of the Executive Schedule under section
5313 of title 5.
‘‘(6) REMOVAL.—The Commissioner may be re-
moved from office by the President only for cause.
‘‘(7) DESIGNEE OF COMMISSIONER.—The Com-
missioner shall designate an officer of the Office who
shall be vested with the authority to act in the ca-
pacity of the Commissioner in the event of the ab-
sence or incapacity of the Commissioner.
‘‘(b) OFFICERS AND EMPLOYEES OF THE OFFICE.—
‘‘(1) DEPUTY COMMISSIONERS.—The Commis-
sioner shall appoint a Deputy Commissioner for Pat-
ents and a Deputy Commissioner for Trademarks
for terms that shall expire on the date on which the
Commissioner’s term expires. The Deputy Commis-
sioner for Patents shall be a person with dem-
onstrated experience in patent law and the Deputy
Commissioner for Trademarks shall be a person with
demonstrated experience in trademark law. The
Deputy Commissioner for Patents and the Deputy
Commissioner for Trademarks shall be the principal
policy advisors to the Commissioner on all aspects of
the activities of the Office that affect the adminis-
tration of patent and trademark operations, respec-
tively.
‘‘(2) OTHER OFFICERS AND EMPLOYEES.—The
Commissioner shall—
‘‘(A) appoint an Inspector General and
such other officers, employees (including attor-
neys), and agents of the Office as the Commis-
sioner considers necessary to carry out its func-
tions;
‘‘(B) fix the compensation of such officers
and employees in accordance with the policy set
forth in section 5301 of title 5, including com-
pensation based on performance; and
‘‘(C) define the authority and duties of
such officers and employees and delegate to
them such of the powers vested in the Office as
the Commissioner may determine.
The Office shall not be subject to any administratively or
statutorily imposed limitation on positions or personnel,
and no positions or personnel of the Office shall be taken
into account for purposes of applying any such limitation,
except to the extent otherwise specifically provided by stat-
ute with respect to the Office.
‘‘(c) LIMITS ON COMPENSATION.—Except as other-
wise provided in this title or any other provision of law,
the basic pay of an officer or employee of the Office for
any calendar year may not exceed the annual rate of basic
pay in effect for level III of the Executive Schedule under
section 5314 of title 5. The Commissioner shall by regula-
tion establish a limitation on the total compensation pay-
able to officers or employees of the Office, consistent with
the limitation under section 5307 of title 5.
‘‘(d) APPLICABILITY OF TITLE 5 GENERALLY.—Ex-
cept as otherwise provided in this section, officers and em-
ployees of the Office shall be subject to the provisions of
title 5 relating to Federal employees.
‘‘(e) TITLE 5 EXCLUSIONS.—The following provi-
sions of title 5 shall not apply to the Office or its officers
and employees:
‘‘(1) Chapter 31 (relating to authority for em-
ployment).
‘‘(2) Chapter 33 (relating to examination, selec-
tion, and placement), except that the provisions re-
lating to a preference eligible shall apply to the Of-
fice and its employees.
‘‘(3) Chapter 35 (relating to retention pref-
erence, restoration, and reemployment).
‘‘(4) Chapter 43 (relating to performance ap-
praisal).
‘‘(5) Chapter 45 (relating to incentive awards).
‘‘(6) Chapter 51 (relating to classification).
‘‘(7) Subchapter III of chapter 53 (relating to
General Schedule pay rates).
‘‘(f) PROVISIONS OF TITLE 5 RELATING TO CERTAIN
BENEFITS.—Officers and employees of the Office shall re-
main subject to chapters 83 (relating to the Civil Service
Retirement System), 84 (relating to the Federal Employ-
ees’ Retirement System), 87 (relating to life insurance),
and 89 (relating to health insurance) of title 5, except that
the Office may, with respect to officers and employees of
the Office, by regulation—
‘‘(1) provide for benefits to supplement the ben-
efits otherwise provided under such chapter 83 or
84, as the case may be; or
‘‘(2) change the benefits provided under such
chapter 87 or 89, so long as the changes do not re-
sult in benefits under either chapter becoming, on
the whole, less favorable than the benefits which
would then otherwise be available under such chap-
ter had such changes not been made.
‘‘(g) LABOR-MANAGEMENT RELATIONS.—Chapter 71
of title 5 (relating to labor-management relations) shall
apply with respect to the Office and its employees, except
that—
‘‘(1) the Office shall not bargain over the estab-
lishment, implementation, amendment, or repeal
of—
‘‘(A) any system of classification of em-
ployees;
‘‘(B) any compensation system, including
wages and compensation based on performance,
and contributions of the Office to the retire-
ment and benefits programs; or
‘‘(C) any system to determine qualifica-
tions and procedures for employment; and
‘‘(2) in any other matter, the Office may nego-
tiate only with respect to—
‘‘(A) procedures which management offi-
cials of the Office observe in exercising any au-
thority under section 7106 of title 5; and
‘‘(B) appropriate arrangements for employ-
ees adversely affected by the exercise of any au-
thority under section 7106 of title 5.
‘‘(h) CARRYOVER OF PERSONNEL.—
‘‘(1) TO THE OFFICE.—Effective as of the ef-
fective date of the Patent and Trademark Office
Corporation Act of 1995, all officers and employees
of the Patent and Trademark Office on the day be-
fore such effective date shall become officers and
employees of the Office, without a break in service.
‘‘(2) 1-YEAR PROTECTIONS.—No individual who
so becomes an officer or employee of the Office shall,
for a period of 1 year after the effective date de-
scribed in paragraph (1), be subject to separation or
to any reduction in compensation as a consequence
of the establishment of the Office as a Government
corporation.
‘‘(3) ACCUMULATED
LEAVE.—The amount of
sick and annual leave and compensatory time accu-
mulated under title 5 before the effective date de-
scribed in paragraph (1), by officers or employees of
the Patent and Trademark Office who so become of-
ficers or employees of the Office, are obligations of
the Office.
‘‘(4) CONTINUATION
IN
OFFICE
OF
CERTAIN
OFFICERS.—(A) The individual serving as the Com-
missioner of Patents and Trademarks on the day be-
fore the effective date of the Patent and Trademark
Office Corporation Act of 1995 may serve as the
Commissioner for a period of 1 year beginning on
such effective date or, if earlier, until a Commis-
sioner has been appointed under subsection (a).
‘‘(B) The individual serving as the Assistant
Commissioner for Patents on the day before the ef-
fective date of the Patent and Trademark Office
Corporation Act of 1995 may serve as the Deputy
Commissioner for Patents for a period of 1 year be-
ginning on such effective date or, if earlier, until a
Deputy Commissioner for Patents has been ap-
pointed under subsection (b).
‘‘(C) The individual serving as the Assistant
Commissioner for Trademarks on the day before the
effective date of the Patent and Trademark Office
Corporation Act of 1995 may serve as the Deputy
Commissioner for Trademarks for a period of 1 year
beginning on such effective date or, if earlier, until
a Deputy Commissioner for Trademarks has been
appointed under subsection (b).
‘‘(i) COMPETITIVE STATUS.—For purposes of ap-
pointment to a position in the competitive service for
which an officer or employee of the Office is qualified,
such officer or employee shall—
‘‘(1) not forfeit any competitive status, acquired
by such officer or employee before the effective date
of the Patent and Trademark Office Corporation Act
of 1995, by reason of becoming an officer or em-
ployee of the Office pursuant to subsection (h)(1); or
‘‘(2) if not covered by paragraph (1), acquire
competitive status after completing at least 1 year of
continuous service under a nontemporary appoint-
ment to a position within the Office (taking into ac-
count such service, performed before the effective
date described in paragraph (1), as may be appro-
priate).
‘‘(j) SAVINGS PROVISIONS.—All orders, determina-
tions, rules, and regulations regarding compensation and
benefits and other terms and conditions of employment,
in effect for the Office and its officers and employees im-
mediately before the effective date of the Patent and
Trademark Office Corporation Act of 1995, shall continue
in effect with respect to the Office and its officers and
employees until modified, superseded, or set aside by the
Office or a court of appropriate jurisdiction or by oper-
ation of law.’’.
SEC. 104. MANAGEMENT ADVISORY BOARD.
Chapter 1 of part I of title 35, United States Code,
is amended by inserting after section 4 the following:
‘‘§ 5. Patent and Trademark Office Management Advi-
sory Board
‘‘(a) COMPENSATION.—
‘‘(1) APPOINTMENT.—The Patent and Trade-
mark Office shall have a Management Advisory
Board (hereafter in this title referred to as the
‘Board’) of 18 members, 6 of whom shall be ap-
pointed by the President, 6 of whom shall be ap-
pointed by the Speaker of the House of Representa-
tives, and 6 of whom shall be appointed by the
President pro tempore of the Senate. Not more than
4 of the 6 members appointed by each appointing
authority shall be members of the same political
party.
‘‘(2) TERMS.—Members of the Board shall be
appointed for a term of 6 years each, except that of
the members first appointed by each appointing au-
thority, 1 shall be for a term of 1 year, 1 shall be
for a term of 2 years, 1 shall be for a term of 3
years, 1 shall be for a term of 4 years, and 1 shall
be for a term of 5 years. No member may serve
more than 1 term.
‘‘(3) CHAIR.—The President shall designate the
chair of the Board, whose term as chair shall be for
3 years.
‘‘(4) TIMING
OF
APPOINTMENTS.—Initial ap-
pointments to the Board shall be made within 3
months after the effective date of the Patent and
Trademark Office Corporation Act of 1995, and va-
cancies shall be filled within 3 months after they
occur.
‘‘(5) VACANCIES.—Vacancies shall be filled in
the manner in which the original appointment was
made under this subsection. Members appointed to
fill a vacancy occurring before the expiration of the
term for which the member’s predecessor was ap-
pointed shall be appointed only for the remainder of
that term. A member may serve after the expiration
of that member’s term until a successor is ap-
pointed.
‘‘(b) BASIS FOR APPOINTMENTS.—Members of the
Board shall be citizens of the United States who shall be
chosen so as to represent the interests of diverse users
of the Patent and Trademark Office, and shall include in-
dividuals with substantial background and achievement in
corporate finance and management.
‘‘(c) APPLICABILITY OF CERTAIN ETHICS LAWS.—
Members of the Board shall be special Government em-
ployees within the meaning of section 202 of title 18.
‘‘(d) MEETINGS.—The Board shall meet at the call
of the chair to consider an agenda set by the chair.
‘‘(e) DUTIES.—The Board shall—
‘‘(1) review the policies, goals, performance,
budget, and user fees of the Patent and Trademark
Office, and advise the Commissioner on these mat-
ters; and
‘‘(2) within 60 days after the end of each fiscal
year, prepare an annual report on the matters re-
ferred to in paragraph (1), transmit the report to
the President and the Committees on the Judiciary
of the Senate and the House of Representatives, and
publish the report in the Patent and Trademark Of-
fice Official Gazette.
‘‘(f) STAFF.—The Board shall employ a staff and
procure support services for the staff adequate to enable
the Board to carry out its functions, using funds available
to the Commissioner under section 42 of this title. Persons
employed by the Board shall receive compensation as de-
termined by the Board, serve in accordance with terms
and conditions of employment established by the Board,
and be subject solely to the direction of the Board, not-
withstanding any other provision of law.
‘‘(g) COMPENSATION.—Members of the Board may
accept reimbursement for expenses incurred in attending
meetings of the Board and compensation not to exceed
$1000 per day for each day in attendance at meetings of
the Board.
‘‘(h) ACCESS
TO INFORMATION.—Members of the
Board shall be provided access to records and information
in the Patent and Trademark Office, except for personnel
or other privileged information and information concern-
ing patent applications required to be kept in confidence
by section 122 of this title.
‘‘(i) APPLICABILITY OF FEDERAL ADVISORY COM-
MITTEE ACT.—The provisions of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to meet-
ings of the Board, but all meetings of the Board shall be
announced in the Federal Register at least 30 days in ad-
vance and all meetings shall be open to the public unless
closed by the Board for good cause.’’.
SEC. 105. INDEPENDENCE FROM DEPARTMENT OF COM-
MERCE.
Section 6 of title 35, United States Code, is amend-
ed—
(1) by striking ‘‘, under the direction of the
Secretary of Commerce,’’ each place it appears; and
(2) by striking ‘‘, subject to the approval of the
Secretary of Commerce,’’.
SEC. 106. TRADEMARK TRIAL AND APPEAL BOARD.
Section 17 of the Act of July 5, 1946 (commonly re-
ferred to as the ‘‘Trademark Act of 1946’’) (15 U.S.C.
1067) is amended to read as follows:
‘‘SEC. 17. (a) In every case of interference, opposition
to registration, application to register as a lawful concur-
rent user, or application to cancel the registration of a
mark, the Commissioner shall give notice to all parties and
shall direct a Trademark Trial and Appeal Board to deter-
mine and decide the respective rights of registration.
‘‘(b) The Trademark Trial and Appeal Board shall
include the Commissioner, the Deputy Commissioner for
Patents, the Deputy Commissioner for Trademarks, and
members competent in trademark law who are appointed
by the Commissioner.’’.
SEC. 107. 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) ESTABLISHMENT
AND COMPOSITION.—There
shall be in the Patent and Trademark Corporation a
Board of Patent Appeals and Interferences. The Commis-
sioner, the Deputy Commissioner for Patents, the Deputy
Commissioner for Trademarks, the officer principally re-
sponsible for the examination of patents, the officer prin-
cipally responsible for the examination of trademarks, and
the examiners-in-chief shall constitute the Board. The ex-
aminers-in-chief shall be persons of competent legal knowl-
edge and scientific ability.
‘‘(b) DUTIES.—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 3 members of the Board, who shall be des-
ignated by the Commissioner. Only the Board of Patent
Appeals and Interferences may grant rehearings.’’.
SEC. 108. SUITS BY AND AGAINST THE CORPORATION.
Chapter 1 of part I of title 35, United States Code,
is amended—
(1) by redesignating sections 8 through 14 as
sections 9 through 15; and
(2) by inserting after section 7 the following
new section:
‘‘§ 8. Suits by and against the Corporation
‘‘(a) IN GENERAL.—
‘‘(1) ACTIONS UNDER UNITED STATES LAW.—
Any civil action, suit, or proceeding to which the
Patent and Trademark Office is a party is deemed
to arise under the laws of the United States. Exclu-
sive jurisdiction over all civil actions by or against
the Office is in the Federal courts as provided by
law.
‘‘(2) CONTRACT CLAIMS.—Any action, suit, or
proceeding against the Office founded upon contract
shall be subject to the limitations and exclusive rem-
edy provided in section 1346(a)(2) and sections
1491 through 1509 of title 28, whether or not such
contract claims are cognizable under the sections
507, 1346, 1402, 1491, 1496, 1497, 1501, 1503,
2071, 2072, 2411, 2501, 2512 of title 28). For pur-
poses of the Contract Disputes Act of 1978 (41
U.S.C. 601 and following), the Commissioner shall
be deemed to be the agency head with respect to
contract claims arising with respect to the Office.
‘‘(3) TORT CLAIMS.—Any action, suit, or pro-
ceeding against the Office founded upon tort shall be
subject to the limitations and exclusive remedies pro-
vided in section 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.
‘‘(4) PROHIBITION
ON
ATTACHMENT, LIENS,
ETC.—No attachment, garnishment, lien, or similar
process, intermediate or final, in law or equity, may
be issued against property of the Office.
‘‘(5) SUBSTITUTION
OF
OFFICE
AS
PARTY.—
The Office shall be substituted as defendant in any
civil action, suit, or proceeding against an officer or
employee of the Office, if the Office determines that
the employee was acting within the scope of the offi-
cer or employee’s employment with the Office. If the
Office refuses to certify scope of employment, the of-
ficer or employee may at any time before trial peti-
tion the court to find and certify that the officer or
employee was acting within the scope of the officer
or employee’s employment. Upon certification by the
court, the Office shall be substituted as the party
defendant. A copy of the petition shall be served
upon the Office.
‘‘(b) RELATIONSHIP WITH JUSTICE DEPARTMENT.—
‘‘(1) EXERCISE BY OFFICE OF ATTORNEY GEN-
ERAL’S AUTHORITIES.—Except as provided in this
section, in relation to all judicial proceedings in
which the Office or an officer or employee thereof is
a party or in which the officer or employee thereof
is interested and which arise from or relate to offi-
cers or employees thereof acting within the scope of
their employment, torts, contracts, property, reg-
istration of patent and trademark practitioners, pat-
ents or trademarks, or fees, the officer or employee
thereof may exercise, without prior authorization
from the Attorney General, the authorities and du-
ties that otherwise would be exercised by the Attor-
ney General on behalf of the officer or employee
thereof under title 28, and other laws. In all other
judicial or administrative proceedings in which the
Office or an officer or employee of the Office is a
party or is interested, the Office may exercise these
authorities and duties only after obtaining author-
ization from the Attorney General.
‘‘(2) APPEARANCES BY ATTORNEY GENERAL.—
The Attorney General may file an appearance on be-
half of the Office or an employee of the Office, with-
out the consent of the Office, in any suit in which
the Office is a party and represent the Office with
exclusive authority in the conduct, settlement, or
compromise of that suit.
‘‘(3) CONSULTATIONS
WITH
AND
ASSISTANCE
BY ATTORNEY GENERAL.—The Office may consult
with the Attorney General concerning any legal mat-
ter, and the Attorney General shall provide advice
and assistance to the Office, including representing
the Office in litigation, if requested by the Office.
‘‘(4) 
REPRESENTATION
BEFORE
SUPREME
COURT.—The Attorney General shall represent the
Office in all cases before the United States Supreme
Court.
‘‘(5) QUALIFICATIONS OF ATTORNEYS.—An at-
torney admitted to practice to the bar of the highest
court of at least one State in the United States or
the District of Columbia and appointed by the Office
may represent the Office in any legal proceeding in
which the Office or an officer or employee of the Of-
fice is a party or interested, regardless of whether
the attorney is a resident of the jurisdiction in which
the proceeding is held and notwithstanding any
other prerequisites of qualification or appearance re-
quired by the court or administrative body.’’.
SEC. 109. ANNUAL REPORT OF COMMISSIONER.
Section 15 of title 35, United States Code, as redesig-
nated by section 108 of this Act, is amended to read as
follows:
‘‘§ 15. Annual report to Congress
‘‘The Commissioner shall report to the Congress, not
later than 90 days after the end of each fiscal year, the
moneys received and expended by the Office, the purposes
for which the moneys were spent, the quality and quantity
of the work of the Office, and other information relating
to the Office.’’.
SEC. 110. SUSPENSION OR EXCLUSION FROM PRACTICE.
Section 32 of title 35, United States Code, is amend-
ed by inserting before the last sentence the following: ‘‘The
Commissioner shall have the discretion to designate any
officer or employee of the Patent and Trademark Office
to conduct the hearing required by this section.’’.
SEC. 111. FUNDING.
Section 42 of title 35, United States Code, is amend-
ed to read as follows:
‘‘§ 42. Patent and Trademark Office funding
‘‘(a) FEES PAYABLE TO THE OFFICE.—All fees for
services performed by or materials furnished by the Patent
and Trademark Office shall be payable to the Office.
‘‘(b) USE OF MONEYS.—Moneys of the Patent and
Trademark Office not otherwise used to carry out the
functions of the Office shall be kept in cash on hand or
on deposit, or invested in obligations of the United States
or guaranteed by the United States, or in obligations or
other instruments which are lawful investments for fidu-
ciary, trust, or public funds. Fees available to the Commis-
sioner under this title shall be used exclusively for the
processing of patent applications and for other services
and materials relating to patents. Fees available to the
Commissioner under section 31 of the Act of July 5, 1946
(commonly referred to as the ‘Trademark Act of 1946’)
(15 U.S.C. 1113) shall be used exclusively for the process-
ing of trademark registrations and for other services and
materials relating to trademarks.
‘‘(c) BORROWING
AUTHORITY.—The Patent and
Trademark Office is authorized to issue from time to time
for purchase by the Secretary of the Treasury its deben-
tures, bonds, notes, and other evidences of indebtedness
(hereafter in this subsection referred to as ‘obligations’)
in an amount not exceeding $2,000,000 outstanding at
any one time, to assist in financing its activities. Such ob-
ligations shall be redeemable at the option of the Office
before maturity in the manner stipulated in such obliga-
tions and shall have such maturity as is determined by
the Office with the approval of the Secretary of the Treas-
ury. Each such obligation issued to the Treasury shall
bear interest at a rate not less than the current yield on
outstanding marketable obligations of the United States
of comparable maturity during the month preceding the
issuance of the obligation as determined by the Secretary
of the Treasury. The Secretary of the Treasury shall pur-
chase any obligations of the Office issued under this sub-
section and for such purpose the Secretary of the Treasury
is authorized to use as a public-debt transaction the pro-
ceeds of any securities issued under chapter 31 of title
31, and the purposes for which securities may be issued
under that chapter are extended to include such purpose.
Payment under this subsection of the purchase price of
such obligations of the Patent and Trademark Office shall
be treated as public debt transactions of the United
States.’’.
SEC. 112. AUDITS.
Chapter 4 of part I title 35, United States Code, is
amended by adding at the end the following new section:
‘‘§ 43. Audits
‘‘(a) IN GENERAL.—Financial statements of the Pat-
ent and Trademark Office shall be prepared on an annual
basis in accordance with generally accepted accounting
principles. Such statements shall be audited by an inde-
pendent certified public accountant chosen by the Sec-
retary. The audit shall be conducted in accordance with
standards that are consistent with generally accepted Gov-
ernment auditing standards and other standards estab-
lished by the Comptroller General, and with the generally
accepted auditing standards of the private sector, to the
extent feasible.
‘‘(b) REVIEW
BY COMPTROLLER GENERAL.—The
Comptroller General may review any audit of the financial
statement of the Patent and Trademark Office that is con-
ducted under subsection (a). The Comptroller General
shall report to the Congress and the Office the results of
any such review and shall include in such report appro-
priate recommendations.
‘‘(c) AUDIT
BY
COMPTROLLER
GENERAL.—The
Comptroller General may audit the financial statements
of the Office and such audit shall be in lieu of the audit
required by subsection (a). The Office shall reimburse the
Comptroller General for the cost of any audit conducted
under this subsection.
‘‘(d) ACCESS TO OFFICE RECORDS.—All books, fi-
nancial records, report files, memoranda, and other prop-
erty that the Comptroller General deems necessary for the
performance of any audit shall be made available to the
Comptroller General.
‘‘(e) APPLICABILITY IN LIEU OF TITLE 31 PROVI-
SIONS.—This section applies to the Office in lieu of the
provisions of section 9105 of title 31.’’.
SEC. 113. TRANSFER.
(a) TRANSFER OF FUNCTIONS.—Except as otherwise
provided in this Act, there are transferred to, and vested
in, the Patent and Trademark Office all functions, powers,
and duties vested by law in the Secretary of Commerce
or the Department of Commerce or in the officers or com-
ponents in the Department of Commerce with respect to
the authority to grant patents and register trademarks,
and in the Patent and Trademark Office, as in effect on
the day before the effective date of this Act, and in the
officers and components of such Office.
(b) TRANSFER
OF FUNDS
AND PROPERTY.—The
Secretary of Commerce shall transfer to the Patent and
Trademark Office, on the effective date of this Act, so
much of the assets, liabilities, contracts, property, records,
and unexpended and unobligated balances of appropria-
tions, authorizations, allocations, and other funds em-
ployed, held, used, arising from, available to, or to be
made available to the Department of Commerce, including
funds set aside for accounts receivable which are related
to functions, powers, and duties which are vested in the
Patent and Trademark Office by this Act.
(c) TRANSFER OF SURCHARGE FUND.—On the effec-
tive date of this Act, there are transferred to the Patent
and Trademark Office those residual and unappropriated
balances remaining as of the effective date within the Pat-
ent and Trademark Office Surcharge Fund established by
section 10101(b) of the Omnibus Budget Reconciliation
Act of 1990 (35 U.S.C. 41 note).
TITLE II—EFFECTIVE DATE;
TECHNICAL AMENDMENTS
SEC. 201. EFFECTIVE DATE.
This Act shall take effect 6 months after the date
of the enactment of this Act.
SEC. 202. TECHNICAL AND CONFORMING AMENDMENTS.
(a) AMENDMENTS TO TITLE 35.—
(1) The table of contents for part I of title 35,
United States Code, is amended by amending the
item relating to chapter 1 to read as follows:
(2) The table of sections for chapter 1 of title
35, United States Code, is amended to read as fol-
lows:
‘‘1. Establishment, Officers and Employees, Functions ...........................
1.’’
‘‘CHAPTER 1—ESTABLISHMENT, OFFICERS
AND EMPLOYEES FUNCTIONS
‘‘Sec.
‘‘1. Establishment.
‘‘2. Powers and duties.
‘‘3. Officers and employees.
‘‘4. Restrictions on officers and employees as to interest in patents.
‘‘5. Patent and Trademark Office Management Advisory Board.
‘‘6. Duties of Commissioner.
‘‘7. Board of Patent Appeals and Interferences.
‘‘8. Suits by and against the Corporation.
‘‘9. Library.
‘‘10. Classification of patents.
‘‘11. Certified copies of records.
‘‘12. Publications.
‘‘13. Exchange of copies of patents with foreign countries.
‘‘14. Copies of patents for public libraries.
‘‘15. Annual report to Congress.’’.
(3) The table of contents for chapter 4 of part I of
title 35, United States Code, is amended by adding at the
end the following new item:
‘‘43. Audits.’’.
(b) OTHER PROVISIONS OF LAW.—
(1) Section 9101(3) of title 31, United States
Code, is amended by adding at the end the follow-
ing:
‘‘(O) the Patent and Trademark Office.’’.
(2) Section 602(d) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 474)
is amended—
(A) in paragraph (20) by striking ‘‘or’’
after the semicolon;
(B) in paragraph (21) by striking the pe-
riod and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(22) the Patent and Trademark Office.’’.
(3) Section 500(e) of title 5, United States
Code (5 U.S.C. 500(e)) is amended by striking
‘‘Patent Office’’ and inserting ‘‘Patent and Trade-
mark Office’’.
(4) Section 5102(c)(23) of title 5, United
States Code, is amended by striking ‘‘Department of
Commerce’’.
(5) Section 5316 of title 5, United States Code
(5 U.S.C. 5316) is amended by striking ‘‘Commis-
sioner of Patents, Department of Commerce.’’,
‘‘Deputy Commissioner of Patents and Trade-
marks.’’, ‘‘Assistant Commissioner for Patents.’’,
and ‘‘Assistant Commissioner for Trademarks.’’.
(6) Section 4 of the Act of February 14, 1903
(15 U.S.C. 1511) is amended by striking ‘‘(d) Pat-
ent and Trademark Office;’’ and redesignating sub-
sections (a) through (g) as paragraphs (1) through
(6), respectively.
(7) The Act of April 12, 1892 (27 Stat. 395;
20 U.S.C. 91) is amended by striking ‘‘Patent Of-
fice’’ and inserting ‘‘Patent and Trademark Office’’.
(8) Sections 505(m) and 512(o) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 355(m)
and 360b(o)) are each amended by striking ‘‘of the
Department of Commerce’’.
(9) Section 105(e) of the Federal Alcohol Ad-
ministration Act (27 U.S.C. 205(e)) is amended by
striking ‘‘Patent Office’’ and inserting ‘‘Patent and
Trademark Office’’.
(10) Section 1744 of title 28, United States
Code is amended—
(A) by striking ‘‘Patent Office’’ each place
it appears and inserting ‘‘Patent and Trade-
mark Office’’; and
(B) by striking ‘‘Commissioner of Patents’’
and inserting ‘‘Commissioner of Patents and
Trademarks’’.
(11) Section 1745 of title 28, United States
Code, is amended by striking ‘‘United States Patent