Unleashing American Innovators Act of 2022
Bill: S.2773 | Sponsor: Sen. Leahy, Patrick J. (D-VT)
Policy area: Commerce

Summary:
Unleashing American Innovators Act of 2022
This bill modifies the responsibilities of U.S. Patent and Trademark Office (PTO) satellite offices and addresses related issues.
The bill increases the discount on patent-related fees for small and micro entities. An entity that falsely claims such a discount shall be subject to a fine, in addition to any other existing penalties.
The bill also modifies the statutory purpose of PTO satellite offices to include (1) outreach activities targeting certain groups, such as low-income populations, veterans, and geographic groups that are underrepresented in patent filings; and (2) targeting patent examiners and administrative patent judges from economically, geographically, and demographically diverse backgrounds in the PTO's retention activities.
For each satellite office established after January 1, 2023, the PTO must consider the office's proximity to anchor institutions (e.g., hospitals primarily serving veterans and institutions of higher education) and certain groups, such as low-income populations, veterans, and geographic groups that are underrepresented in patent filings.
The PTO must establish (1) a satellite office in the southeastern United States within three years of this bill's enactment, (2) at least four community outreach offices throughout the United States within five years of this bill's enactment, and (3) a pilot program to help prospective first-time patent applicants assess the strengths and weaknesses of a potential patent application.
The PTO must also (1) conduct and report to Congress a study on patent pro bono programs, including whether such programs are sufficiently serving prospective and existing participants; and (2) use the study's findings to update such pro bono programs.

To amend the Leahy-Smith America Invents Act to address satellite 
offices of the United States Patent and Trademark Office, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Unleashing American Innovators Act 
of 2022''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Director.--The term ``Director'' means the Under 
        Secretary of Commerce for Intellectual Property and Director of 
        the Office.
            (2) Office.--The term ``Office'' means the United States 
        Patent and Trademark Office.
            (3) Patent pro bono programs.--The term ``patent pro bono 
        programs'' means the programs established pursuant to section 
        32 of the Leahy-Smith America Invents Act (35 U.S.C. 2 note).
            (4) Southeast region of the united states.--The term 
        ``southeast region of the United States'' means the area of the 
        United States that is comprised of the States of Virginia, 
        North Carolina, South Carolina, Georgia, Florida, Tennessee, 
        Alabama, Mississippi, Louisiana, and Arkansas.

SEC. 3. SATELLITE OFFICES.

    (a) Amendments to Purpose and Required Considerations.--Section 23 
of the Leahy-Smith America Invents Act (35 U.S.C. 1 note) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``increase outreach 
                        activities to''; and
                            (ii) by inserting after ``Office'' the 
                        following: ``, including by increasing outreach 
                        activities, including to individual inventors, 
                        small businesses, veterans, low-income 
                        populations, students, rural populations, and 
                        any geographic group of innovators that the 
                        Director may determine to be underrepresented 
                        in patent filings''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) enhance patent examiner and administrative patent 
        judge retention, including patent examiners and administrative 
        patent judges from economically, geographically, and 
        demographically diverse backgrounds;''; and
            (2) in subsection (c)(1)--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(F) with respect to each office established after 
                January 1, 2023, shall consider the proximity of the 
                office to anchor institutions (such as hospitals 
                primarily serving veterans and institutions of higher 
                education), individual inventors, small businesses, 
                veterans, low-income populations, students, rural 
                populations, and any geographic group of innovators 
                that the Director may determine to be underrepresented 
                in patent filings.''.
    (b) Southeast Regional Office.--
            (1) In general.--Not later than 3 years after the date of 
        enactment of this Act, the Director shall establish a satellite 
        office of the Office in the southeast region of the United 
        States.
            (2) Considerations.--When selecting a site for the office 
        required under paragraph (1), the Director shall consider the 
        following:
                    (A) The number of patent-intensive industries 
                located near the site.
                    (B) How many research-intensive institutions, 
                including institutions of higher education, are located 
                near the site.
                    (C) The State and local government legal and 
                business frameworks that support intellectual property-
                intensive industries located near the site.
    (c) Study on Additional Satellite Offices.--Not later than 2 years 
after the date of enactment of this Act, the Director shall complete a 
study to determine whether additional satellite offices of the Office 
are necessary to--
            (1) achieve the purposes described in section 23(b) of the 
        Leahy-Smith America Invents Act (35 U.S.C. 1 note), as amended 
        by this section; and
            (2) increase participation in the patent system by 
        individual inventors, small businesses, veterans, low-income 
        populations, students, rural populations, and any geographic 
        group of innovators that the Director may determine to be 
        underrepresented in patent filings.

SEC. 4. COMMUNITY OUTREACH OFFICES.

    (a) Establishment.--
            (1) In general.--Subject to paragraphs (2) and (3), not 
        later than 5 years after the date of enactment of this Act, the 
        Director shall establish not fewer than 4 community outreach 
        offices throughout the United States.
            (2) Restriction.--No community outreach office established 
        under paragraph (1) may be located in the same State as--
                    (A) the principal office of the Office; or
                    (B) any satellite office of the Office.
            (3) Requirement for northern new england region.--
                    (A) In general.--The Director shall establish not 
                less than 1 community outreach office under this 
                subsection in the northern New England region, which 
                shall serve the States of Vermont, New Hampshire, and 
                Maine.
                    (B) Considerations.--In determining the location 
                for the office required to be established under 
                subparagraph (A), the Director shall give preference to 
                a location in which--
                            (i) as of the date of enactment of this 
                        Act--
                                    (I) there is located not less than 
                                1 public institution of higher 
                                education and not less than 1 private 
                                institution of higher education; and
                                    (II) there are located not more 
                                than 15 registered patent attorneys, 
                                according to data from the Office of 
                                Enrollment and Discipline of the 
                                Office; and
                            (ii) according to data from the 2012 Survey 
                        of Business Owners conducted by the Bureau of 
                        the Census, less than 45 percent of the firms 
                        (as that term is defined for the purposes of 
                        that Survey) are owned by women, minorities, or 
                        veterans.
    (b) Purposes.--The purposes of the community outreach offices 
established under subsection (a) are to--
            (1) further achieve the purposes described in section 
        23(b)(1) of the Leahy-Smith America Invents Act (35 U.S.C. 1 
        note), as amended by this Act;
            (2) partner with local community organizations, 
        institutions of higher education, research institutions, and 
        businesses to create community-based programs that--
                    (A) provide education regarding the patent system; 
                and
                    (B) promote the career benefits of innovation and 
                entrepreneurship; and
            (3) educate prospective inventors, including individual 
        inventors, small businesses, veterans, low-income populations, 
        students, rural populations, and any geographic group of 
        innovators that the Director may determine to be 
        underrepresented in patent filings, about all public and 
        private resources available to potential patent applicants, 
        including the patent pro bono programs.

SEC. 5. UPDATES TO THE PATENT PRO BONO PROGRAMS.

    (a) Study and Updates.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Director shall--
                    (A) complete a study of the patent pro bono 
                programs; and
                    (B) submit the results of the study required under 
                subparagraph (A) to the Committee on the Judiciary of 
                the Senate and the Committee on the Judiciary of the 
                House of Representatives.
            (2) Scope of the study.--The study required under paragraph 
        (1)(A) shall--
                    (A) assess--
                            (i) whether the patent pro bono programs, 
                        as in effect on the date on which the study is 
                        commenced, are sufficiently serving prospective 
                        and existing participants;
                            (ii) whether the patent pro bono programs 
                        are sufficiently funded to serve prospective 
                        participants;
                            (iii) whether any participation requirement 
                        of the patent pro bono programs, including any 
                        requirement to demonstrate knowledge of the 
                        patent system, serves as a deterrent for 
                        prospective participants;
                            (iv) the degree to which prospective 
                        inventors are aware of the patent pro bono 
                        programs;
                            (v) what factors, if any, deter attorneys 
                        from participating in the patent pro bono 
                        programs;
                            (vi) whether the patent pro bono programs 
                        would be improved by expanding those programs 
                        to include non-attorney advocates; and
                            (vii) any other issue the Director 
                        determines appropriate; and
                    (B) make recommendations for such administrative 
                and legislative action as may be appropriate.
    (b) Use of Results.--Upon completion of the study required under 
subsection (a), the Director shall work with the Pro Bono Advisory 
Council, the operators of the patent pro bono programs, and 
intellectual property law associations across the United States to 
update the patent pro bono programs in response to the findings of the 
study.
    (c) Expansion of Income Eligibility.--
            (1) In general.--The Director shall work with and support, 
        including by providing financial support to, existing patent 
        pro bono programs and intellectual property law associations 
        across the United States to expand eligibility for the patent 
        pro bono programs to an individual living in a household, the 
        gross household income of which is not more than 400 percent of 
        the Federal poverty line.
            (2) Rule of construction.--Nothing in paragraph (1) may be 
        construed to prevent a patent pro bono program from electing to 
        establish a higher eligibility level, as compared to the level 
        described in that paragraph.

SEC. 6. PRE-PROSECUTION ASSESSMENT PILOT PROGRAM.

    (a) Pilot Program.--Not later than 1 year after the date of 
enactment of this Act, the Director shall establish a pilot program to 
assist first-time prospective patent applicants in assessing the 
strengths and weaknesses of a potential patent application submitted by 
such a prospective applicant.
    (b) Considerations.--In developing the pilot program required under 
subsection (a), the Director shall establish--
            (1) a notification process to notify a prospective patent 
        applicant seeking an assessment described in that subsection 
        that any assessment so provided may not be considered an 
        official ruling of patentability from the Office;
            (2) conditions to determine eligibility for the pilot 
        program, taking into consideration available resources;
            (3) reasonable limitations on the amount of time to be 
        spent providing assistance to each individual first-time 
        prospective patent applicant;
            (4) procedures for referring prospective patent applicants 
        to legal counsel, including through the patent pro bono 
        programs; and
            (5) procedures to protect the confidentiality of the 
        information disclosed by prospective patent applicants.

SEC. 7. FEE REDUCTION FOR SMALL AND MICRO ENTITIES.

    (a) Title 35.--Section 41(h) of title 35, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``50 percent'' and 
        inserting ``60 percent''; and
            (2) in paragraph (3), by striking ``75 percent'' and 
        inserting ``80 percent''.
    (b) False Certifications.--Title 35, United States Code, is 
amended--
            (1) in section 41, by adding at the end the following:
    ``(j) Penalty for False Assertions.--In addition to any other 
penalty available under law, an entity that is found to have falsely 
asserted entitlement to a fee reduction under this section shall be 
subject to a fine, to be determined by the Director, the amount of 
which shall be not less than 3 times the amount that the entity failed 
to pay as a result of the false assertion, whether the Director 
discovers the false assertion before or after the date on which a 
patent has been issued.''; and
            (2) in section 123, by adding at the end the following:
    ``(f) Penalty for False Certifications.--In addition to any other 
penalty available under law, an entity that is found to have falsely 
made a certification under this section shall be subject to a fine, to 
be determined by the Director, the amount of which shall be not less 
than 3 times the amount that the entity failed to pay as a result of 
the false certification, whether the Director discovers the false 
certification before or after the date on which a patent has been 
issued.''.
    (c) Leahy-Smith America Invents Act.--Section 10(b) of the Leahy 
Smith America Invents Act (35 U.S.C. 41 note) is amended--
            (1) by striking ``50 percent'' and inserting ``60 
        percent''; and
            (2) by striking ``75 percent'' and inserting ``80 
        percent''.
    (d) Study on Fees.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Director shall--
                    (A) complete a study of the fees charged by the 
                Office; and
                    (B) submit the results of the study required under 
                subparagraph (A) to the Committee on the Judiciary of 
                the Senate and the Committee on the Judiciary of the 
                House of Representatives.
            (2) Scope of study.--The study required under paragraph 
        (1)(A) shall--
                    (A) assess whether--
                            (i) fees for small and micro entities are 
                        inhibiting the filing of patent applications by 
                        those entities;
                            (ii) fees for examination should 
                        approximately match the costs of examination 
                        and what incentives are created by using 
                        maintenance fees to cover the costs of 
                        examination; and
                            (iii) the results of the assessments 
                        performed under clauses (i) and (ii) counsel in 
                        favor of changes to the fee structure of the 
                        Office, such as--
                                    (I) raising standard application 
                                and examination fees;
                                    (II) reducing standard maintenance 
                                fees; and
                                    (III) reducing the fees for small 
                                and micro entities as a percentage of 
                                standard application fees; and
                    (B) make recommendations for such administrative 
                and legislative action as may be appropriate.

            Passed the Senate December 6, 2022.

            Attest:

                                                             Secretary.
117th CONGRESS

  2d Session

                                S. 2773

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