A bill to authorize appropriations for the Patent and Trademark Office in the Department of Commerce, and for other purposes.
PL 99-607 (H.R.2434), enacted 11/06/1986

100 STAT. 3470 
PUBLIC LAW 99-607—NOV. 6, 1986 
Public Law 99-607 
99th Congress 
An Act 
Nov. 6, 1986 
To authorize appropriations for the Patent and Trademark Office in the 
[H.R, 2434] 
Department of Commerce, 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. AUTHORIZATION OF APPROPRIATIONS. 
(a) PURPOSES AND AMOUNTS.—There are authorized to be appro-
priated to the Patent and Trademark Office— 
(1) for salaries and necessary expenses, $101,631,000 for fiscal 
year 1986, $110,400,000 for fiscal year 1987, and $111,900,000 for 
fiscal year 1988; and 
(2) such additional amounts as may be necessary for each such 
fiscal year for increases in salary, pay, retirement, and other 
employee benefits authorized by law. 
Ot)) REDUCTION OF PATENT FEES.—(1) Amounts appropriated under 
subsection (a) shall be used to reduce by 50 per centum each fee paid 
on or after October 1, 1985, under section 41(a) or 410t)) of title 35, 
United States Code, by— 
(A) an independent inventor or nonprofit organization as 
defined in regulations prescribed by the Commissioner of Pat-
ents and Trademarks, or 
Small business. 
(B) a small business concern as defined under section 3 of the 
Small Business Act (15 U.S.C. 632). 
(2) Section 41 of title 35, United States Code, is amended by adding 
at the end the following new subsection: 
Small business. 
"(h)(1) Fees charged under subsection (a) or (b) shall be reduced by 
50 percent with respect to their application to any small business 
concern as defined under section 3 of the Small Business Act, and to 
any independent inventor or nonprofit organization as defined in 
regulations issued by the Commissioner of Patents and Trademarks. 
'(2) With respect to its application to any entity described in 
paragraph (1), any surcharge or fee charged under subsection (c) or 
(.d) shall not be higher than the surcharge or fee required of any 
other 
entity 
under 
the 
same 
or 
substantially 
similar 
circumstances.". 
35 u s e 42 note. 
SEC. 2. APPROPRIATIONS AUTHORIZED TO BE CARRIED OVER. 
Amounts appropriated under this Act and such fees as may be 
collected under title 35, United States Code, and the Trademark Act 
of 1946 (15 U.S.C. 1051 and following) may remain available until 
expended. 
15 use 1113 
SEC. 3. OVERSIGHT OF AND LIMITATIONS ON TRADEMARK AND CERTAIN 
note. 
PATENT FEES. 
(a) TRADEMARK FEES.—The Commissioner of Patents and Trade-
marks may not, during fiscal years 1986, 1987, and 1988, increeise 
fees established under section 31 of the Trademark Act of 1946 (15 
U.S.C. 1113) except for purposes of making adjustments which in the 
PUBLIC LAW 99-607—NOV. 6, 1986 
100 STAT. 3471 
aggregate do not exceed fluctuations during the previous three years 
in the Consumer Price Index, as determined by the Secretary of 
Labor. The Commissioner also may not establish additional fees 
under such section during such fiscal years. 
(b) PATENT FEES.—The Commissioner of Patents and Trademarks 
35 USC 41 note, 
may not, during fiscal years 1986, 1987, and 1988, increase fees 
established under section 41(d) of title 35, United States Code, except 
for purposes of making adjustments which in the aggregate do not 
exceed fluctuations during the previous 3 years in the Consumer 
Price Index, as determined by the Secretary of Labor. The Commis-
sioner also may not establish additional fees under such section 
during such fiscal years. 
(c) REPORT TO CONGRESS.—The Secretary of Commerce shall, on 
35 use 14 note, 
the day on which the President submits the annual budget to the 
Congress, provide to the Committees on the Judiciary of the Senate 
and the House of Representatives— 
,, /1.^' .' 
(1) a list of patent and trademark fee collections by the Patent 
and Trademark Office during the preceding fiscal year; 
(2) a list of activities of the Patent and Trademark Office 
during the preceding fiscal year which were supported by 
patent fee expenditures, trademark fee expenditures, and 
appropriations; 
(3) budget plans for significant programs, projects, and activi-
ties of the Office, including out-year funding estimates; 
, 
(4) any proposed disposition of surplus fees by the Office; and 
(5) such other information as the committees consider 
^ 
necessary. 
SEC. 4. FEES FOR USE OF SEARCH ROOMS AND LIBRARIES PROHIBITED. 
35 USC 41 note. 
The Commissioner of Patents and Trademarks may not impose a 
fee for use of public patent or trademark search rooms and libraries. 
The costs of such rooms and libraries shall come from amounts 
appropriated by Congress. 
SEC. 5. CONGRESSIONAL OVERSIGHT AND LIMITATIONS ON THE USE OF 
FEE REVENUES FOR PROPOSED PURCHASE OF AUTOMATED 
DATA PROCESSING SYSTEMS. 
(a) FUNDING OF AUTOMATED DATA PROCESSING RESOURCES.— 
(1) ALLOCATIONS.—Of amounts available to the Patent and 
Trademark Office for automatic data processing resources for 
fiscal years 1987 and 1988, not more than 30 percent of such 
amounts in each such fiscal year may be from fees collected 
under section 31 of the Trademark Act of 1946 (15 U.S.C. 1113) 
and section 41 of title 35, United States Code. The Commissioner 
of Patents and Trademarks shall notify the Committees on the 
Judiciary of the Senate and the House of Representatives of any 
proposed reprogrammings which would increase or decrease the 
amount of appropriations expended for automatic data process-
ing resources. 
(2) USE OF REVENUES BY PATENT AND TRADEMARK OFFICE.— 
Except as otherwise specifically provided in this Act and section 
42(c) of title 35, United States Code, the Patent and Trademark 
Office is authorized to use appropriated or apportioned fee 
revenues for any of its operations or activities. 
(b) REPORT BY COMMISSIONER ON IMPLEMENTATION AUTOMATION 
PLAN.—At least 90 calendar days before the date of implementation 
of each key deployment decision provided for in the revised master 
71_igA 0 - ?9 - 37 : QL. 3 PartA 
100 STAT. 3472 
PUBLIC LAW 99-607—NOV. 6, 1986 
Contracts. 
Reports. 
Contracts. 
International 
organizations. 
35 u s e 6 note. 
automation plan that was approved by the Secretary of Commerce 
and the Director of the Office of Management and Budget and that 
was submitted, in February 1986, to the Committees on the 
Judiciary of the Senate and the House of Representatives, the 
Commissioner of Patents and Trademarks shall report the proposed 
implementation to those committees. Each key deployment decision 
shall be approved by the designated Senior Official for Information 
Resources Management of the Department of Commerce before the 
report on the decision is made under the preceding sentence. Each 
such report on a key deployment decision shall include the cost and 
method of financing the deployment decision, including, where 
appropriate, a comparison with the cost benefit analysis contained 
in the revised automation master plan, as well as such other 
information as the committees consider necessary. 
(c) PROHIBITION ON NEW OBUGATIONS.—The Patent and Trade-
mark Office may not enter into any new contract, or obligate any 
funds, to implement a key deployment decision described in subsec-
tion (b) until the expiration of 90 calendar days after the report with 
respect to such deployment decision is submitted under such 
subsection. 
(d) EFFECTIVE DATE.—Subsections (b) and (c) take effect on Janu-
ary 1,1987. 
SEC. 6. USE OF EXCHANGE AGREEMENTS RELATING TO AUTOMATIC 
DATA PROCESSING RESOURCES PROHIBITED. 
The Commissioner of Patents and Trademarks may not enter into 
new agreements for the exchange of items or services (as authorized 
under section 6(a) of title 35, United States Code) relating to auto-
matic data processing resources (including hardware, software and 
related services, and machine readable data) during fiscal years 
1986, 1987, and 1988, nor continue existing agreements for the 
exchange of such items or services after April 1, 1987. This section 
shall not apply to any agreement relating to data for automation 
programs entered into with a foreign government or with an inter-
nationed intergovernmental organization. 
Approved November 6, 1986. 
. ' ' ' 
' 
LEGISLATIVE HISTORY—H.R. 2434: 
HOUSE REPORTS: No. 99-104 (Comm. on the Judiciary). 
SENATE REPORTS: No. 99-305 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD: 
Vol. 131 (1985): June 24, considered and passed House. 
Vol. 132 (1986): June 6, considered and passed Senate, amended. 
Oct. 2, House concurred in certain Senate amendments, in 
others with amendments. 
Oct. 18, Senate concurred in House amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 22 (1986): 
Nov. 6, Presidential statement.