[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1961 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 1961

 To establish the United States Intellectual Property Organization, to 
   amend the provisions of title 35, United States Code, relating to 
    procedures for patent applications, commercial use of patents, 
             reexamination reform, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 16, 1996

   Mr. Hatch introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To establish the United States Intellectual Property Organization, to 
   amend the provisions of title 35, United States Code, relating to 
    procedures for patent applications, commercial use of patents, 
             reexamination reform, 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 ``Omnibus Patent Act of 1996''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
       TITLE I--UNITED STATES INTELLECTUAL PROPERTY ORGANIZATION

Sec. 101. Short title.
 Subtitle A--Establishment of the United States Intellectual Property 
                              Organization

Sec. 111. Establishment of the United States Intellectual Property 
                            Organization as a Government corporation.
Sec. 112. Powers and duties.
Sec. 113. Organization and management.
Sec. 114. United States Patent Office.
Sec. 115. United States Trademark Office.
Sec. 116. United States Copyright Office.
Sec. 117. Suits by and against the Organization.
Sec. 118. Funding.
Sec. 119. Management report.
Sec. 120. Audits.
Sec. 121. Transfers.
            Subtitle B--Effective Date; Technical Amendments

Sec. 131. Effective date.
Sec. 132. Technical and conforming amendments.
                  Subtitle C--Miscellaneous Provisions

Sec. 141. References.
Sec. 142. Exercise of authorities.
Sec. 143. Savings provisions.
Sec. 144. Transfer of assets.
Sec. 145. Delegation and assignment.
Sec. 146. Authority of Director of the Office of Management and Budget 
                            with respect to functions transferred.
Sec. 147. Certain vesting of functions considered transfers.
Sec. 148. Availability of existing funds.
Sec. 149. Definitions.
           TITLE II--EARLY PUBLICATION OF PATENT APPLICATIONS

Sec. 201. Short title.
Sec. 202. Early publication.
Sec. 203. Time for claiming benefit of earlier filing date.
Sec. 204. Provisional rights.
Sec. 205. Prior art effect of published applications.
Sec. 206. Cost recovery for publication.
Sec. 207. Conforming changes.
Sec. 208. Last day of pendency of provisional application.
Sec. 209. Effective date.
                   TITLE III--PATENT TERM RESTORATION

Sec. 301. Patent term extension authority.
Sec. 302. Effective date.
                TITLE IV--PRIOR DOMESTIC COMMERCIAL USE

Sec. 401. Short title.
Sec. 402. Defense to patent infringement based on prior domestic 
                            commercial use.
Sec. 403. Effective date and applicability.
                  TITLE V--PATENT REEXAMINATION REFORM

Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Reexamination procedures.
Sec. 504. Conforming amendments.
Sec. 505. Effective date.
               TITLE VI--MISCELLANEOUS PATENT PROVISIONS

Sec. 601. Provisional applications.
Sec. 602. International applications.
Sec. 603. Plant patents.
Sec. 604. Just compensation for United States Government use of 
                            patents.
Sec. 605. Electronic filing.

       TITLE I--UNITED STATES INTELLECTUAL PROPERTY ORGANIZATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``United States Intellectual 
Property Organization Act of 1996''.

 Subtitle A--Establishment of the United States Intellectual Property 
                              Organization

SEC. 111. ESTABLISHMENT OF THE UNITED STATES INTELLECTUAL PROPERTY 
              ORGANIZATION AS A GOVERNMENT CORPORATION.

    (a) Establishment.--The United States Intellectual Property 
Organization is established as a wholly owned Government corporation 
subject to chapter 91 of title 31.
    (b) Offices.--The United States Intellectual Property Organization 
shall maintain an office in the District of Columbia, or the 
metropolitan area thereof, for the service of process and papers and 
shall be deemed, for purposes of venue in civil actions, to be a 
resident of the district in which its principal office is located. The 
United States Intellectual Property Organization may establish offices 
in such other places as it considers necessary or appropriate in the 
conduct of its business.
    (c) Reference.--For purposes of this title, the United States 
Intellectual Property Organization shall also be referred to as the 
``Organization'' and the ``Intellectual Property Organization''.

SEC. 112. POWERS AND DUTIES.

    (a) In General.--The United States Intellectual Property 
Organization shall be responsible for--
            (1) the granting and issuing of patents and the 
        registration of trademarks and copyrights;
            (2) conducting studies, programs, or exchanges of items or 
        services regarding domestic and international patent, 
        trademark, and copyright law, the administration of the 
        Organization, or any other function vested in the Organization 
        by law;
            (3)(A) authorizing or conducting studies and programs 
        cooperatively with foreign patent, trademark, and copyright 
        offices and international organizations, in connection with the 
        granting and issuing of patents and the registration of 
        trademarks and copyrights; and
            (B) with the concurrence of the Secretary of State, 
        authorizing the transfer of not to exceed $100,000 in any year 
        to the Department of State for the purpose of making special 
        payments to international intergovernmental organizations for 
        studies and programs for advancing international cooperation 
        concerning patents, trademarks, copyrights, and related 
        matters; and
            (4) disseminating to the public information with respect to 
        patents, trademarks, and copyrights.
    (b) Special Payments.--The special payments under subsection 
(a)(3)(B) may be in addition to any other payments or contributions to 
international organizations and shall not be subject to any limitations 
imposed by law on the amounts of such other payments or contributions 
by the United States Government.
    (c) Specific Powers.--The Organization--
            (1) shall have perpetual succession;
            (2) shall adopt and use a corporate seal, which shall be 
        judicially noticed and with which letters patent, certificates 
        of trademark registrations, certificates of copyright 
        registrations, and papers issued by the Organization shall be 
        authenticated;
            (3) may sue and be sued in its corporate name and be 
        represented by its own attorneys in all judicial and 
        administrative proceedings, subject to the provisions of 
        section 114;
            (4) may indemnify the Commissioner of Intellectual 
        Property, and other officers, attorneys, agents, and employees 
        (including members of the Management Advisory Boards of the 
        Patent Office, Trademark Office, and Copyright Office) of the 
        Organization for liabilities and expenses incurred within the 
        scope of their employment;
            (5) may adopt, amend, and repeal bylaws, rules, 
        regulations, and determinations, which--
                    (A) shall govern the manner in which its business 
                will be conducted and the powers granted to it by law 
                will be exercised; and
                    (B) shall be made after notice and opportunity for 
                full participation by interested public and private 
                parties;
            (6) may acquire, construct, purchase, lease, hold, manage, 
        operate, improve, alter, and renovate any real, personal, or 
        mixed property, or any interest therein, as it considers 
necessary to carry out its functions;
            (7)(A) may make such purchases, contracts for the 
        construction, maintenance, or management and operation of 
        facilities, and contracts for supplies or services, without 
        regard to the provisions of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), 
        the Public Buildings Act (40 U.S.C. 601 et seq.), and the 
        Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11301 et 
        seq.); and
            (B) may enter into and perform such purchases 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 Organization, 
        without regard to sections 501 through 517 and 1101 through 
        1123 of title 44, United States Code;
            (8) may use, with their consent, services, equipment, 
        personnel, and facilities of other departments, agencies, and 
        instrumentalities of the Federal Government, on a reimbursable 
        basis, and cooperate with such other departments, agencies, and 
        instrumentalities in the establishment and use of services, 
        equipment, and facilities of the Organization;
            (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 United States and 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 title 35 United States Code, the Act of July 5, 1946 
        (commonly referred to as the Trademark Act of 1946), and the 
        Act of October 19, 1976 (commonly referred to as the Copyright 
        Act of 1976);
            (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 Organization, including for research and development and 
        capital investment;
            (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 Organization;
            (15) may execute, in accordance with its bylaws, rules, and 
        regulations, all instruments necessary 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 contract or by self-insurance; and
            (17) shall pay any settlement or judgment entered against 
        it from the funds of the Organization and not from amounts 
        available under section 1304 of title 31, United States Code.
    (d) Repeal of Surcharge Restrictions.--Section 10101 of the Omnibus 
Budget Reconciliation Act of 1990 (35 U.S.C. 41 note) is repealed.

SEC. 113. ORGANIZATION AND MANAGEMENT.

    (a) Offices.--The United States Intellectual Property Organization 
shall consist of--
            (1) the United States Patent Office;
            (2) the United States Trademark Office; and
            (3) the United States Copyright Office.
    (b) Commissioner.--
            (1) In general.--The management of the United States 
        Intellectual Property Organization shall be vested in a 
        Commissioner of Intellectual Property (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 advice and consent of the Senate. The 
        Commissioner shall be a person who, by reason of professional 
        background and experience in patent, trademark, or copyright 
        law, is especially qualified to manage the Organization.
            (2) Duties.--(A) The Commissioner shall be responsible for 
        the Management and direction of the Organization and shall 
        perform this duty in a fair, impartial, and equitable manner.
            (B) The Commissioner shall advise the President, through 
        the Secretary of Commerce, of all activities of the office 
        undertaken in response to obligations of the United States 
        under treaties and executive agreements, or which relate to 
        cooperative programs with those authorities of foreign 
        governments that are responsible for granting patents, 
        registering trademarks or copyrights, or other intellectual 
        property rights. The Commissioner shall be the principal 
        advisor to the President, through the Secretary of Commerce, on 
        policy matters relating to intellectual property rights, and 
        shall recommend to the President, through the Secretary of 
        Commerce, changes in law or policy which may improve the 
        ability of United States citizens to secure and enforce patent 
        rights, trademark rights, copyrights, or other intellectual 
        property rights in the United States or in foreign countries.
            (C) At the direction of the President, the Commissioner may 
        represent the United States in international negotiations on 
        matters of intellectual property, or may designate an officer 
        or officers of the Organization to participate in such 
        negotiations.
            (D) The Commissioner, in consultation with the Director of 
        the Office of Personnel Management, shall maintain a program 
        for identifying national security positions and providing for 
        appropriate security clearances.
            (E) Except as otherwise provided in this title, the 
        Commissioner shall ensure that--
                    (i) the United States Patent Office, the United 
                States Trademark Office, and the United States 
                Copyright Office, respectively, shall--
                            (I) prepare all appropriation requests 
                        under section 1108 of title 31, United States 
                        Code, for each office for submission by the 
                        Commissioner;
                            (II) adjust fees to provide sufficient 
                        revenues to cover the expenses of such office; 
                        and
                            (III) expend funds derived from such fees 
                        for only the functions of such office; and
                    (ii) each such office is not involved in the 
                management of any other office.
            (3) Oath.--The Commissioner shall, before taking office, 
        take an oath to discharge faithfully the duties of the 
        Organization.
            (4) 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, United States 
        Code.
            (5) Removal.--The Commissioner shall serve at the pleasure 
        of the President.
            (6) Designee of commissioner.--The Commissioner shall 
        designate an officer of the Organization who shall be vested 
        with the authority to act in the capacity of the Commissioner 
        in the event of the absence or incapacity of the Commissioner.
    (c) Officers and Employees of the Office.--
            (1) Commissioners of patents, trademarks, and copyrights.--
        The Commissioner shall appoint a Commissioner of Patents, a 
        Commissioner of Trademarks, and a Commissioner of Copyrights 
        under section 3 of title 35, United States Code, section 53 of 
        the Act of July 5, 1946 (commonly referred to as the Trademark 
        Act of 1946), and section 701 of title 17, United States Code, 
        respectively, as amended by this Act. The Commissioner of 
        Patents, the Commissioner of Trademarks, and the Commissioner 
        of Copyrights shall be the principal policy advisors to the 
        Commissioner of Intellectual Property.
            (2) Other officers and employees.--The Commissioner shall--
                    (A) appoint an Inspector General and such other 
                officers, employees (including attorneys), and agents 
of the Organization as the Commissioner considers necessary to carry 
out its functions;
                    (B) fix the compensation of such officers and 
                employees, except as provided in subsection (e); and
                    (C) define the authority and duties of such 
                officers and employees and delegate to them such of the 
                powers vested in the Organization as the Commissioner 
                may determine.
            (3) Personnel limitations.--The Organization shall not be 
        subject to any administratively or statutorily imposed 
        limitation on positions or personnel, and no positions or 
        personnel of the Organization shall be taken into account for 
        purposes of applying any such limitation.
    (d) Limits on Compensation.--Except as otherwise provided by law, 
the annual rate of basic pay of an officer or employee of the 
Organization may not be fixed at a rate that exceeds, and total 
compensation payable to any such officer or employee for any year may 
not exceed, the annual rate of basic pay in effect for the Commissioner 
of the year involved. The Commissioner shall prescribe such regulations 
as may be necessary to carry out this subsection.
    (e) Applicability of Title 5, United States Code, Generally.--
Except as otherwise provided in this section, officers and employees of 
the Organization shall be subject to the provisions of title 5, United 
States Code, relating to Federal employees.
    (f) Title 5, United States Code, Exclusions.--The following 
provisions of title 5, United States Code, shall not apply to the 
Organization or its officers and employees:
            (1) Chapter 31 (relating to authority for employment).
            (2) Chapter 33 (relating to examination, selection, and 
        placement), except that the provisions relating to a preference 
        eligible shall apply to the Organization and its employees.
            (3) Chapter 35 (relating to retention preference, 
        restoration, and reemployment).
            (4) Chapter 43 (relating to performance appraisal).
            (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).
    (g) Provisions of Title 5, United States Code, Relating to Certain 
Benefits.--
            (1) In general.--Except as provided in paragraph (2), 
        officers and employees of the Organization shall remain subject 
        to chapters 83 (relating to the Civil Service Retirement 
        System), 84 (relating to the Federal Employees' Retirement 
        System), 87 (relating to life insurance), and 89 (relating to 
        health insurance) of title 5, United States Code.
            (2) Exception.--The Organization may, with respect to 
        officers and employees of the Organization, by regulation--
                    (A) provide for benefits to supplement the benefits 
                otherwise provided under such chapter 83 or 84, as the 
                case may be; or
                    (B) change the benefits provided under such chapter 
                87 or 89, so long as the changes do not result in 
                benefits under either chapter becoming, on the whole, 
                less favorable than the benefits which would then 
                otherwise be available under such chapter had such 
                changes not been made.
    (h) Labor-Management Relations.--Chapter 71 of title 5, United 
States Code (relating to labor-management relations), shall apply with 
respect to the Organization and its employees, except that--
            (1) the Organization shall not bargain over the 
        establishment, implementation, amendment, or repeal of--
                    (A) any system of classification of employees;
                    (B) any compensation system, including wages and 
                compensation based on performance, and contributions of 
                the Organization to the retirement and benefits 
                programs; or
                    (C) any system to determine qualifications and 
                procedures for employment; and
            (2) in any other matter, the Organization may negotiate 
        only with respect to--
                    (A) procedures which management officials of the 
                Organization observe in exercising any authority under 
                section 7106 of title 5, United States Code; and
                    (B) appropriate arrangements for employees 
                adversely affected by the exercise of any authority 
                under section 7106 of title 5, United States Code.
    (i) Carryover of Personnel.--
            (1) From pto or the copyright office.--Effective as of the 
        effective date of this title, all officers and employees of the 
        Patent and Trademark Office or the Copyright Office on the day 
before such effective date shall become officers and employees of the 
Organization, without a break in service.
            (2) Other personnel.--(A) Any individual who, on the day 
        before the effective date of this title, is an officer or 
        employee of the Department of Commerce (other than an officer 
        or employee under paragraph (1)) shall be transferred to the 
        Organization if--
                    (i) such individual serves in a position for which 
                a major function is the performance of work reimbursed 
                by the Patent and Trademark Office, as determined by 
                the Secretary of Commerce;
                    (ii) such individual serves in a position that 
                performed work in support of the Patent and Trademark 
                Office during at least half of the incumbent's work 
                time, as determined by the Secretary of Commerce; or
                    (iii) such transfer would be in the interest of the 
                Organization, as determined by the Secretary of 
                Commerce in consultation with the Commissioner.
            (B) Any transfer under this paragraph shall be effective as 
        of the same effective date as referred to in paragraph (1), and 
        shall be made without a break in service.
            (3) Accumulated leave.--The amount of sick and annual leave 
        and compensatory time accumulated under title 5, United States 
        Code, before the effective date described in paragraph (1), by 
        any individual who becomes an officer or employee of the 
        Organization under this subsection, are obligations of the 
        Organization.
            (4) Termination rights.--Any employee referred to in 
        paragraph (1) or (2) of this subsection whose employment with 
        the Organization is terminated during the 1-year period 
        beginning on the effective date of this title shall be entitled 
        to rights and benefits, to be afforded by the Organization, 
        similar to those such employee would have had under Federal law 
        if termination had occurred immediately before such date. An 
        employee who would have been entitled to appeal any such 
        termination to the Merit Systems Protection Board, if such 
        termination had occurred immediately before such effective 
        date, may appeal any such termination occurring within such 1-
        year period to the Board under such procedures as it may 
        prescribe.
            (5) Continuation in office of certain officers.--(A) The 
        individual serving as the Commissioner of Patents and 
        Trademarks on the day before the effective date of this title 
        shall serve as the Commissioner of Intellectual Property until 
        replaced under section 113(b)(5).
            (B) The individual serving as the Assistant Commissioner of 
        Patents on the day before the effective date of this title 
        shall serve as the Commissioner of Patents until the date on 
        which a Commissioner of Patents is appointed under section 3 of 
        title 35, United States Code, as amended by this Act.
            (C) The individual serving as the Assistant Commissioner of 
        Trademarks on the day before the effective date of this title 
        shall serve as the Commissioner of Trademarks until the date on 
        which a Commissioner of Trademarks is appointed under section 
        53 of the Act of July 5, 1946 (commonly referred to as the 
        Trademark Act of 1946), as amended by this Act.
            (D) The individual serving as the Register of Copyrights on 
        the day before the effective date of this title shall serve as 
        the Commissioner of Copyrights until the date on which a 
        Commissioner of Copyrights is appointed under section 701 of 
        title 17, United States Code, as amended by this Act.
    (j) Competitive Status.--For purposes of appointment to a position 
in the competitive service for which an officer or employee of the 
Organization is qualified, such officer or employee shall not forfeit 
any competitive status, acquired by such officer or employee before the 
effective date of this title, by reason of becoming an officer or 
employee of the Organization under subsection (h).
    (k) Savings Provisions.--Compensation, benefits, and other terms 
and conditions of employment in effect immediately before the effective 
date of this title, whether provided by statute or by rules and 
regulations of the former Patent and Trademark Office, the former 
Copyright Office, or the executive branch of the Government of the 
United States, shall continue to apply to officers and employees of the 
Organization, until changed in accordance with this section (whether by 
action of the Commissioner or otherwise).
    (l) Removal of Quasi-Judicial Examiners.--The Organization may 
remove a patent examiner or examiner-in-chief, or a trademark examiner 
or member of a Trademark Trial and Appeal Board only for such cause as 
will promote the efficiency of the Office.

SEC. 114. UNITED STATES PATENT OFFICE.

    (a) Establishment of the Patent Office as a Separate Administrative 
Unit.--Section 1 of title 35, United States Code, is amended to read as 
follows:
``Sec. 1. Establishment
    ``(a) Establishment.--The United States Patent Office is 
established as a separate administrative unit of the United States 
Intellectual Property Organization, where records, books, drawings, 
specifications, and other papers and things pertaining to patents shall 
be kept and preserved, except as otherwise provided by law.
    ``(b) Reference.--For purposes of this title, the United States 
Patent Office shall also be referred to as the `Office' and the `Patent 
Office'.''.
    (b) Powers and Duties.--Section 2 of title 35, United States Code, 
is amended to read as follows:
``Sec. 2. Powers and duties
    ``The United States Patent Office shall be responsible for--
            ``(1) granting and issuing patents;
            ``(2) conducting studies, programs, or exchanges of items 
        or services regarding domestic and international patent law, 
        the administration of the Office, or any other function vested 
        in the Office by law, including programs to recognize, 
        identify, assess, and forecast the technology of patented 
        inventions and their utility to industry;
            ``(3) authorizing or conducting studies and programs 
        cooperatively with foreign patent offices and international 
        organizations, in connection with the granting and issuing of 
        patents; and
            ``(4) disseminating to the public information with respect 
        to patents.''.
    (c) Organization and Management.--Section 3 of title 35, United 
States Code, is amended to read as follows:
``Sec. 3. Officers and employees
    ``(a) Commissioner.--
            ``(1) In general.--The management of the United States 
        Patent Office shall be vested in a Commissioner of Patents 
        (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 Commissioner of Intellectual Property and 
        shall serve at the pleasure of the Commissioner of Intellectual 
        Property. The Commissioner of Patents shall be a person who, by 
        reason of professional background and experience in patent law, 
        is especially qualified to manage the Office.
            ``(2) Duties.--
                    ``(A) In general.--The Commissioner shall be 
                responsible for all aspects of the management, 
                administration, and operation of the Office, including 
                the issuance of patents, and shall perform these duties 
                in a fair, impartial, and equitable manner.
                    ``(B) Advising the commissioner of intellectual 
                property.--The Commissioner of Patents shall advise the 
                Commissioner of Intellectual Property of all activities 
                of the Office undertaken in response to obligations of 
                the United States under treaties and executive 
                agreements, or which relate to cooperative programs 
                with those authorities of foreign governments that are 
                responsible for granting patents. The Commissioner of 
                Patents shall be the principal advisor to the 
                Commissioner of Intellectual Property on matters of 
                patent law and shall recommend to the Commissioner of 
                Intellectual Property changes in law or policy which 
                may improve the ability of United States citizens to 
                secure and enforce patent rights in the United States 
                or in foreign countries.
                    ``(C) Consultation with the management 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 Office, and shall consult with the Board before 
                submitting budgetary proposals to the Office of 
                Management and Budget or changing or proposing to 
                change patent user fees or patent regulations.
            ``(3) Oath.--The Commissioner shall, before taking office, 
        take an oath to discharge faithfully the duties of the Office.
            ``(4) Compensation.--The Commissioner shall receive 
        compensation at the rate of pay in effect for level III of the 
        Executive Schedule under section 5313 of title 5.
    ``(b) Officers and Employees.--The Commissioner shall appoint a 
Deputy Commissioner of Patents who shall be vested with the authority 
to act in the capacity of the Commissioner in the event of the absence 
or incapacity of the Commissioner. In the event of a vacancy in the 
Office of Commissioner, the Deputy Commissioner shall fill the office 
of Commissioner until a new Commissioner is appointed and takes office. 
Other officers, attorneys, employees, and agents shall be selected and 
appointed by the Commissioner, and shall be vested with such powers and 
duties as the Commissioner may determine.''.
    (d) Management Advisory Board.--Chapter 1 of part I of title 35, 
United States Code, is amended by inserting after section 4 the 
following:
``Sec. 5. Patent Office Management Advisory Board
    ``(a) Establishment of Management Advisory Board.--
            ``(1) Appointment.--The United States Patent Office shall 
        have a Management Advisory Board (hereafter in this title 
        referred to as the `Board') of 5 members, who shall be 
        appointed by the President and shall serve at the pleasure of 
        the President. Not more than 3 of the 5 members shall be 
        members of the same political party.
            ``(2) Chair.--The President shall designate a Chair of the 
        Board, whose term as chair shall be for 3 years.
            ``(3) Timing of appointments.--Initial appointments to the 
        Board shall be made within 3 months after the effective date of 
        the United States Intellectual Property Organization Act of 
        1996. Vacancies shall be filled in the manner in which the 
        original appointment was made under this subsection within 3 
        months after they occur.
    ``(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 United States Patent Office, and 
shall include individuals with substantial background and achievement 
in corporate finance and management.
    ``(c) Applicability of Certain Ethics Laws.--Members of the Board 
shall be special Government employees 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 United States Patent Office, and advise the 
        Commissioner on these matters; and
            ``(2) within 60 days after the end of each fiscal year--
                    ``(A) prepare an annual report on the matters 
                referred to in paragraph (1);
                    ``(B) transmit the report to the Commissioner of 
                Intellectual Property, the President, and the 
                Committees on the Judiciary of the Senate and the House 
                of Representatives; and
                    ``(C) publish the report in the Patent Office 
                Official Gazette.
    ``(f) Compensation.--Each member of the Board shall be compensated 
for each day (including travel time) during which such member is 
attending meetings or conferences of the Board or otherwise engaged in 
the business of the Board, at the rate which is the daily equivalent of 
the annual rate of basic pay in effect for level III of the Executive 
Schedule under section 5314 of title 5, and while away from such 
member's home or regular place of business such member may be allowed 
travel expenses, including per diem in lieu of subsistence, as 
authorized by section 5703 of title 5.
    ``(g) Access to Information.--Members of the Board shall be 
provided access to records and information in the United States Patent 
Office, except for personnel or other privileged information and 
information concerning patent applications required to be kept in 
confidence by section 122.''.
    (e) Conforming Amendments.--Section 6 of title 35, United States 
Code, and the item relating to such section in the table of contents 
for chapter 1 of title 35, United States Code, are repealed.
    (f) Board of Patent Appeals and Interferences.--Section 7 of title 
35, United States Code, is amended to read as follows:
``Sec. 7. Board of Patent Appeals and Interferences
    ``(a) Establishment and Composition.--There shall be in the United 
States Patent Office a Board of Patent Appeals and Interferences. The 
Commissioner, the Deputy Commissioner, and the examiners-in-chief shall 
constitute the Board. The examiners-in-chief shall be persons of 
competent legal knowledge and scientific ability.
    ``(b) Duties.--
            ``(1) In general.--The Board of Patent Appeals and 
        Interferences shall, on written appeal of an applicant, a 
        patent owner, or a third-party requester in a reexamination 
        proceeding--
                    ``(A) review adverse decisions of examiners--
                            ``(i) upon applications for patents; and
                            ``(ii) in reexamination proceedings; and
                    ``(B) determine priority and patentability of 
                invention in interferences declared under section 
                135(a).
            ``(2) Hearings.--Each appeal and interference shall be 
        heard by at least 3 members of the Board, who shall be 
designated by the Commissioner of Patents. Only the Board of Patent 
Appeals and Interferences may grant rehearings.''.
    (g) Annual Report of Commissioner.--Section 14 of title 35, United 
States Code, is amended to read as follows:
``Sec. 14. Annual report to Congress
    ``(a) In General.--Not later than 180 days after the end of each 
fiscal year, the Commissioner shall report to the Commissioner of 
Intellectual Property and to the Congress on--
            ``(1) the total of the moneys received and expended by the 
        Office;
            ``(2) the purposes for which the moneys were spent;
            ``(3) the quality and quantity of the work of the Office; 
        and
            ``(4) other information relating to the Office.
    ``(b) Additional Requirements.--The report under this section shall 
also meet the requirements of section 9106 of title 31, to the extent 
that such requirements are not inconsistent with subsection (a).''.
    (h) Practice Before Patent Office.--
            (1) In general.--Section 31 of title 35, United States 
        Code, is amended to read as follows:
``Sec. 31. Regulations for agents and attorneys
    ``The Commissioner may prescribe regulations governing the 
recognition and conduct of agents, attorneys, or other persons 
representing applicants or other parties before the Office. The 
regulations may require such persons, before being recognized as 
representatives of applicants or other persons, to show that they are 
of good moral character and reputation and are possessed of the 
necessary qualifications to render to applicants or other persons 
valuable service, advice, and assistance in the presentation or 
prosecution of their applications or other business before the 
Office.''.
            (2) Designation of attorney to conduct hearing.--Section 32 
        of title 35, United States Code, is amended in the first 
        sentence by deleting ``Patent and Trademark Office'' and 
        inserting ``Patent Office'' and by inserting before the last 
        sentence the following: ``The Commissioner shall have the 
        discretion to designate any attorney who is an officer or 
        employee of the United States Patent Office to conduct the 
        hearing required by this section.''.
    (i) Funding.--
            (1) Adjustment of fees.--Section 41(f) of title 35, United 
        States Code, is amended to read as follows:
    ``(f) The Commissioner, after consulting with the Patent Office 
Management Advisory Board pursuant to section 3(a)(2)(C) of this title, 
may, by regulation, adjust the fees established in this section.''.
            (2) Patent office funding.--Section 42 of title 35, United 
        States Code, is amended to read as follows:
``Sec. 42. Patent Office funding
    ``(a) Fees Payable to the Office.--All fees for services performed 
by or materials furnished by the United States Patent Office shall be 
payable to the Office.
    ``(b) Use of Moneys.--Moneys of the United States Patent 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 fiduciary, trust, or 
public funds. Fees available to the Commissioner of Patents under this 
title shall be used for the processing of patent applications and for 
other services and materials relating to patents.
    ``(c) Contribution to the Office of the Commissioner of 
Intellectual Property.--The Patent Office shall contribute one-third of 
the annual budget of the Office of the Commissioner of Intellectual 
Property.''.

SEC. 115. UNITED STATES TRADEMARK OFFICE.

    (a) Establishment of the United States Trademark Office as a 
Separate Administrative Unit.--The Act of July 5, 1946 (commonly 
referred to as the Trademark Act of 1946) is amended--
            (1) by redesignating titles X and XI as titles XI and XII, 
        respectively;
            (2) by redesignating sections 45, 46, 47, 48, 49, 50, and 
        51 as sections 61, 71, 72, 73, 74, 75, and 76, respectively; 
        and
            (3) by inserting after title IX the following new title:

               ``TITLE X--UNITED STATES TRADEMARK OFFICE

``SEC. 51. ESTABLISHMENT.

    ``(a) Establishment.--The United States Trademark Office is 
established as a separate administrative unit of the United States 
Intellectual Property Organization.
    ``(b) Reference.--For purposes of this chapter, the United States 
Trademark Office shall also be referred to as the `Office' and the 
`Trademark Office'.

``SEC. 52. POWERS AND DUTIES.

    ``The United States Trademark Office shall be responsible for--
            ``(1) the registration of trademarks;
            ``(2) conducting studies, programs, or exchanges of items 
        or services regarding domestic and international trademark law 
        or the administration of the Office;
            ``(3) authorizing or conducting studies and programs 
        cooperatively with foreign trademark offices and international 
        organizations, in connection with the registration of 
        trademarks; and
            ``(4) disseminating to the public information with respect 
        to trademarks.

``SEC. 53. OFFICERS AND EMPLOYEES.

    ``(a) Commissioner.--
            ``(1) In general.--The management of the United States 
        Trademark Office shall be vested in a Commissioner of 
        Trademarks, who shall be a citizen of the United States and who 
        shall be appointed by the Commissioner of Intellectual Property 
        and shall serve at the pleasure of the Commissioner of 
        Intellectual Property. The Commissioner of Trademarks shall be 
        a person who, by reason of professional background and 
        experience in trademark law, is especially qualified to manage 
        the Office.
            ``(2) Duties.--
                    ``(A) In general.--The Commissioner shall be 
                responsible for all aspects of the management, 
                administration, and operation of the Office, including 
                the registration of trademarks, and shall perform these 
                duties in a fair, impartial, and equitable manner.
                    ``(B) Advising the commissioner of intellectual 
                property.--The Commissioner of Trademarks shall advise 
                the Commissioner of Intellectual Property of all 
                activities of the Office undertaken in response to 
                obligations of the United States under treaties and 
                executive agreements, or which relate to cooperative 
                programs with those authorities of foreign governments 
                that are responsible for registering trademarks. The 
                Commissioner of Trademarks shall be the principal 
                advisor to the Commissioner of Intellectual Property on 
                matters of trademark law and shall recommend to the 
                Commissioner of Intellectual Property changes in law or 
                policy which may improve the ability of United States 
                citizens to secure and enforce trademark rights in the 
                United States or in foreign countries.
                    ``(C) Consultation with the management advisory 
                board.--The Commissioner shall consult with the 
                Trademark Office Management Advisory Board established 
                under section 54--
                            ``(i) on a regular basis on matters 
                        relating to the operation of the Office; and
                            ``(ii) before submitting budgetary 
                        proposals to the Office of Management and 
                        Budget or changing or proposing to change 
                        trademark user fees or trademark regulations.
                    ``(D) Publications.--(i) The Commissioner may 
                print, or cause to be printed, the following:
                            ``(I) Certificates of trademark 
                        registrations, including statements and 
                        drawings, together with copies of the same.
                            ``(II) The Official Gazette of the United 
                        States Trademark Office.
                            ``(III) Annual indexes of trademarks and 
                        registrants.
                            ``(IV) Annual volumes of decisions in 
                        trademark cases.
                            ``(V) Pamphlet copies of laws and rules 
                        relating to trademarks and circulars or other 
                        publications relating to the business of the 
                        Office.
                    ``(ii) The Commissioner may exchange any of the 
                publications specified under clause (i) for 
                publications desirable for the use of the Trademark 
                Office.
            ``(3) Oath.--The Commissioner shall, before taking office, 
        take an oath to discharge faithfully the duties of the Office.
            ``(4) Compensation.--The Commissioner shall receive 
        compensation at the rate of pay in effect for level III of the 
        Executive Schedule under section 5313 of title 5, United States 
        Code.
    ``(b) Officers and Employees.--The Commissioner shall appoint a 
Deputy Commissioner of Trademarks who shall be vested with the 
authority to act in the capacity of the Commissioner in the event of 
the absence or incapacity of the Commissioner. In the event of a 
vacancy in the office of Commissioner, the Deputy Commissioner shall 
fill the office of Commissioner until a new Commissioner is appointed 
and takes office. Other officers, attorneys, employees, and agents 
shall be selected and appointed by the Commissioner, and shall be 
vested with such powers and duties as the Commission may determine.

``SEC. 54. TRADEMARK OFFICE MANAGEMENT ADVISORY BOARD.

    ``(a) Establishment of Management Advisory Board.--
            ``(1) Appointment.--The United States Trademark Office 
        shall have a Management Advisory Board (hereafter in this title 
        referred to as the `Board') of 5 members, who shall be 
        appointed by the President and shall serve at the pleasure of 
        the President. Not more than 3 of the 5 members shall be 
        members of the same political party.
            ``(2) Chair.--The President shall designate a Chair of the 
        Board, whose term as chair shall be for 3 years.
            ``(3) Timing of appointments.--Initial appointments to the 
        Board shall be made within 3 months after the effective date of 
        the United States Intellectual Property Organization Act of 
        1996. Vacancies shall be filled in the manner in which the 
        original appointment was made under this section within 3 
        months after they occur.
    ``(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 United States Trademark Office, 
and shall include individuals with substantial background and 
achievement in corporate finance and management.
    ``(c) Applicability of Certain Ethics Laws.--Members of the Board 
shall be special Government employees 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 United States Trademark Office, and advise the 
        Commissioner on these matters; and
            ``(2) within 60 days after the end of each fiscal year--
                    ``(A) prepare an annual report on the matters 
                referred to under paragraph (1);
                    ``(B) transmit the report to the Commissioner of 
                Intellectual Property, the President, and the 
                Committees on the Judiciary of the Senate and the House 
                of Representatives; and
                    ``(C) publish the report in the Trademark Office 
                Official Gazette.
    ``(f) Compensation.--Each member of the Board shall be compensated 
for each day (including travel time) during which such member is 
attending meetings or conferences of the Board or otherwise engaged in 
the business of the Board, at the rate which is the daily equivalent of 
the annual rate of basic pay in effect for level III of the Executive 
Schedule under section 5314 of title 5, United States Code, and while 
away from such member's home or regular place of business such member 
may be allowed travel expenses, including per diem in lieu of 
subsistence, as authorized by section 5703 of title 5, United States 
Code.
    ``(g) Access to Information.--Members of the Board shall be 
provided access to records and information in the United States 
Trademark Office, except for personnel or other privileged information.

``SEC. 55. ANNUAL REPORT TO CONGRESS.

    ``(a) In General.--Not later than 180 days after the end of each 
fiscal year, the Commissioner shall report to the Commissioner of 
Intellectual Property and to the Congress on--
            ``(1) the moneys received and expended by the Office;
            ``(2) the purposes for which the moneys were spent;
            ``(3) the quality and quantity of the work of the Office; 
        and
            ``(4) other information relating to the Office.
    ``(b) Additional Requirements.--The report under this section shall 
meet the requirements of section 9106 of title 31, United States Code, 
to the extent that such requirements are not inconsistent with 
subsection (a).

``SEC. 56. TRADEMARK OFFICE FUNDING.

    ``(a) Fees Payable to the Office.--All fees for services performed 
by or materials furnished by the United States Trademark Office shall 
be payable to the Office.
    ``(b) Use of Moneys.--Moneys of the United States 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 fiduciary, trust, or 
public funds. Fees available to the Commissioner under this chapter 
shall be used for the registration of trademarks and for other services 
and materials relating to trademarks.
    ``(c) Contribution to the Office of the Commissioner of 
Intellectual Property.--The Trademark Office shall contribute one-third 
of the annual budget of the Office of the Commissioner of Intellectual 
Property.''.
    (b) Trademark Trial and Appeal Board.--Section 17 of the Act of 
July 5, 1946 (commonly referred 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 concurrent 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 determine and decide the respective rights of 
registration.
    ``(b) The Trademark Trial and Appeal Board shall include the 
Commissioner, the Deputy Commissioner of Trademarks, and members 
competent in trademark law who are appointed by the Commissioner.''.
    (c) Determination of Fees.--Section 31(a) of the Act of July 5, 
1946 (commonly referred to as the Trademark Act of 1946) (15 U.S.C. 
1067(a)) is amended by striking the second and third sentences and 
inserting the following: ``Fees established under this subsection may 
be adjusted by the Commissioner, after consulting with the Trademark 
Office Management Advisory Board in accordance with section 53(a)(2)(C) 
of this Act.''.

SEC. 116. UNITED STATES COPYRIGHT OFFICE.

    (a) Establishment of the Copyright Office as a Separate 
Administrative Unit.--Section 701 of title 17, United States Code, is 
amended to read as follows:
``Sec. 701. The Copyright Office: establishment, general 
              responsibilities, and organization
    ``(a) Establishment.--The United States Copyright Office is 
established as a separate administrative unit of the United States 
Intellectual Property Organization. For purposes of this title, the 
United States Patent Office shall also be referred to as the `Office' 
and the `Copyright Office'.
    ``(b) Commissioner.--
            ``(1) In general.--The management of the United States 
        Copyright Office shall be vested in a Commissioner of 
        Copyrights, who shall be a citizen of the United States and who 
        shall be appointed by the Commissioner of Intellectual Property 
        and shall serve at the pleasure of the Commissioner of 
        Intellectual Property. The Commissioner shall be a person who, 
        by reason of professional background and experience in 
        copyright law is especially qualified to manage the Office.
            ``(2) Duties.--
                    ``(A) In general.--The Commissioner shall be 
                responsible for all aspects of the management, 
                administration, and operation of the Office, including 
                all administrative functions and duties under this 
                title, except as otherwise specified.
                    ``(B) Advising the commissioner of intellectual 
                property.--The Commissioner of Copyrights shall advise 
                the Commissioner of Intellectual Property of all 
                activities of the Office undertaken in response to 
                obligations of the United States under treaties and 
                executive agreements, or which relate to cooperative 
                programs with those authorities of foreign governments 
                that are responsible for the administration of the 
                copyright laws of those countries. The Commissioner of 
                Copyrights shall be the principal advisor to the 
                Commissioner of Intellectual Property on matters of 
                copyright law and shall recommend to the Commissioner 
                of Intellectual Property changes in law or policy which 
                may improve the ability of United States citizens to 
                secure and enforce copyrights in the United States or 
                in foreign countries.
                    ``(C) Consultation with the management advisory 
                board.--The Commissioner shall consult with the 
                Management Advisory Board established under section 711 
                on a regular basis on matters relating to the operation 
                of the Office, and shall consult with the Board before 
                submitting budgetary proposals to the Office of 
                Management and Budget or changing or proposing to 
                change Copyright Office fees or regulations.
            ``(3) Oath.--The Commissioner shall, before taking office, 
        take an oath to discharge faithfully the duties of the Office.
            ``(4) Compensation.--The Commissioner shall receive 
        compensation at the rate of pay in effect for level III of the 
        Executive Schedule under section 5313 of title 5.
    ``(c) Officers and Employees.--The Commissioner shall appoint a 
Deputy Commissioner of Copyrights who shall be vested with the 
authority to act in the capacity of the Commissioner in the event of 
the absence or incapacity of the Commissioner. In the event of a 
vacancy in the office of Commissioner, the Deputy Commissioner shall 
fill the office of Commissioner until a new Commissioner is appointed 
and takes office. Other officers, attorneys, employees, and agents 
shall be selected and appointed by the Commissioner, and shall be 
vested with such powers and duties as the Commissioner may determine.
    ``(d) Annual Report to Congress.--
            ``(1) In general.--Not later than 180 days after the end of 
        each fiscal year, the Commissioner shall make an annual report 
        to the Commissioner of Intellectual Property and to the 
        Congress on--
                    ``(A) the moneys received and expended by the 
                Office;
                    ``(B) the purposes for which the moneys were spent;
                    ``(C) the quality and quantity of the work of the 
                Office; and
                    ``(D) other information relating to the Office.
            ``(2) Additional Requirements.--The report under this 
        section shall also meet the requirements of section 9106 of 
        title 31, to the extent that such requirements are not 
        inconsistent with paragraph (1).''.
    (b) Copyright Office Regulations.--Section 702 of title 17, United 
States Code, is amended to read as follows:
``Sec. 702. Copyright Office regulations
    ``The Commissioner of Copyrights is authorized to establish 
regulations not inconsistent with law for the administration of the 
functions and duties made the responsibility of the Commissioner under 
this title.''.
    (c) Copyright Office Fees.--Section 708 of title 17, United States 
Code, is amended to read as follows:
``Sec. 708. Copyright Office funding
    ``(a) Copyright Office Fees.--The following fees shall be payable 
to the Copyright Office--
            ``(1) on filing each application under section 408 for 
        registration of a copyright claim or for a supplementary 
        registration, including the issuance of a certificate of 
        registration if registration is made, $20;
            ``(2) on filing each application for registration of a 
        claim for renewal of a subsisting copyright under section 
        304(a), including the issuance of a certificate of registration 
        if registration is made, $20;
            ``(3) for the issuance of a receipt for a deposit under 
        section 407, $4;
            ``(4) for the recordation, as provided by section 205, of a 
        transfer of copyright ownership or other document covering not 
        more than one title, $20; for additional titles, $10 for each 
        group of not more than 10 titles;
            ``(5) for the filing, under section 115(b), of a notice of 
        intention to obtain a compulsory license, $12;
            ``(6) for the recordation, under section 302(c), of a 
        statement revealing the identity of an author of an anonymous 
        or pseudonymous work, or for the recordation, under section 
        302(d), of a statement relating to the death of an author, $20 
        for a document covering not more than one title; for each 
        additional title, $2;
            ``(7) for the issuance, under section 706, of an additional 
        certificate of registration, $8;
            ``(8) for the issuance of any other certification, $20 for 
        each hour or fraction of an hour consumed with respect thereto;
            ``(9) for the making and reporting of a search as provided 
        by section 705, and for any related services, $20 for each hour 
        or fraction of an hour consumed with respect thereto; and
            ``(10) for any other special services requiring a 
        substantial amount of time or expense, such fees as the 
        Commissioner may fix on the basis of the cost of providing the 
        service.
    ``(b) Fees on Basis of Preparation Costs.--The Commissioner is 
authorized to fix the fees for preparing copies of Copyright Office 
records, whether or not such copies are certified, on the basis of the 
cost of such preparation.
    ``(c) Applicability of Fees to the Government.--The fees prescribed 
by or under this section are applicable to the United States Government 
and any of its agencies, employees, or officers, but the Commissioner 
has discretion to waive the requirement of this subsection in 
occasional or isolated cases involving relatively small amounts.
    ``(d) Determination of Fees.--The Commissioner of Copyrights, after 
consulting with the Management Advisory Board in accordance with 
section 701(b)(2)(C), may, by regulation, adjust the fees specified 
under subsection (a).
    ``(e) Use of Moneys.--Moneys of the United States Copyright 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 fiduciary, trust, or 
public funds. Fees available to the Commissioner under this title shall 
be used for the registration of copyrights and for other services and 
materials relating to copyrights.
    ``(f) Contribution to Office of the Commissioner of Intellectual 
Property.--The Copyright Office shall contribute one-third of the 
annual budget of the Office of the Commissioner of Intellectual 
Property.''.
    (d) Copyright Office Management Advisory Board.--Chapter 7 of title 
17, United States Code, is amended by adding after section 710 the 
following new section:
``Sec. 711. Copyright Office Management Advisory Board
    ``(a) Establishment of Management Advisory Board.--
            ``(1) Appointment.--The United States Copyright Office 
        shall have a Management Advisory Board (hereafter in this title 
        referred to as the `Board') of 5 members, including the 
        Librarian of Congress and 4 additional members who shall be 
        appointed by the President and shall serve at the pleasure of 
        the President. Not more than 3 of the 5 members shall be 
        members of the same political party.
            ``(2) Chair.--The President shall designate a chair of the 
        Board, whose term as chair shall be for 3 years.
            ``(3) Timing of appointments.--Initial appointments to the 
        Board shall be made within 3 months after the effective date of 
        the United States Intellectual Property Organization Act of 
        1996. Vacancies shall be filled in the manner in which the 
        original appointment was made under this subsection within 3 
        months after they occur.
    ``(b) Basis for Appointments.--Members of the Board shall be 
citizens of the United States chosen to represent the interests of 
diverse users of the United States Copyright Office, and shall include 
individuals with substantial background and achievement in corporate 
finance and management.
    ``(c) Applicability of Certain Ethics Laws.--Members of the Board 
shall be special Government employees 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 
        fees of the United States Copyright Office, and advise the 
        Commissioner on these matters; and
            ``(2) within 60 days after the end of each fiscal year--
                    ``(A) prepare an annual report on the matters 
                referred to in paragraph (1);
                    ``(B) transmit the report to the Commissioner of 
                Intellectual Property, the President, and the 
                Committees on the Judiciary of the Senate and the House 
                of Representatives; and
                    ``(C) publish the report in the Federal Register.
    ``(f) Compensation.--Each member of the Board shall be compensated 
for each day (including travel time) during which such member is 
attending meetings or conferences of the Board or otherwise engaged in 
the business of the Board, at the rate which is the daily equivalent of 
the annual rate of basic pay in effect for level III of the Executive 
Schedule under section 5314 of title 5, and while away from such 
member's home or regular place of business such member may be allowed 
travel expenses, including per diem in lieu of subsistence, as 
authorized by section 5703 of title 5.
    ``(g) Access to Information.--Members of the Board shall be 
provided access to records and information in the United States 
Copyright Office, except for personnel or other privileged 
information.''.
    (e) Use of Administrative Law Judges for Copyright Royalty 
Disputes.--
            (1) In general.--Section 801 of title 17, United States 
        Code, is amended--
                    (A) by amending the section heading to read as 
                follows:
``Sec. 801. Copyright royalty disputes'';
                    (B) by amending subsection (a) to read as follows:
    ``(a) In General.--The Commissioner may employ administrative law 
judges to conduct proceedings and make determinations in accordance 
with this chapter.'';
                    (C) in subsection (b)--
                            (i) in the matter preceding paragraph (1) 
                        by striking ``copyright arbitration royalty 
                        panels'' and inserting ``proceedings conducted 
                        by administrative law judges'';
                            (ii) in paragraph (2)(A) in the second 
                        sentence by striking ``copyright arbitration 
                        royalty panels'' and inserting ``administrative 
                        law judge''; and
                            (iii) in paragraph (3) by striking 
                        ``Register of Copyrights'' and inserting 
                        ``Commissioner''; and
                    (D) by striking subsections (c) and (d).
            (2) Repeal of arbitration royalty panels.--Section 802 of 
        title 17, United States Code, is repealed.
            (3) Institution and conclusion of proceedings.--Section 803 
        of title 17, United States Code, is amended--
                    (A) by redesignating such section as section 802;
                    (B) in subsection (a)--
                            (i) in paragraph (1)--
                                    (I) in the first sentence by 
                                striking ``after such date of 
                                enactment, may file a petition with the 
                                Librarian of Congress'' and inserting 
                                ``or an administrative law judge after 
                                such date of enactment may file a 
                                petition with the Commissioner''; and
                                    (II) by striking the second and 
                                third sentence and inserting the 
                                following: ``The Commissioner shall 
                                make a determination as to whether the 
                                petitioner has such a significant 
                                interest in the royalty rate in which 
                                an adjustment is requested. If the 
                                Commissioner determines that the 
                                petitioner has such a significant 
                                interest, the Commissioner shall cause 
                                notice of this determination, with the 
                                reasons therefor, to be published in 
                                the Federal Register, together with the 
                                notice of commencement of proceedings 
                                under this chapter.'';
                            (ii) in paragraph (4)(B)--
                                    (I) by striking ``Librarian of 
                                Congress'' and inserting 
                                ``Commissioner'';
                                    (II) by striking ``convene a 
                                copyright arbitration royalty panel. 
                                The arbitration panel'' and inserting 
                                ``refer the matter to an administrative 
                                law judge. The administrative law 
                                judge''; and
                                    (III) in the third sentence by 
                                striking ``arbitration panel'' and 
                                inserting ``administrative law judge''; 
                                and
                            (iii) in paragraph (5) by striking 
                        ``Librarian of Congress'' and inserting 
                        ``Commissioner'';
                    (C) in subsection (b)--
                            (i) in the first sentence--
                                    (I) by striking ``Copyright Royalty 
                                Tribunal or the Librarian of Congress'' 
                                and inserting ``Commissioner''; and
                                    (II) by striking ``Librarian'' and 
                                inserting ``Commissioner'';
                            (ii) in the second sentence by striking 
                        ``Librarian'' and inserting ``Commissioner''; 
                        and
                            (iii) in the third sentence by striking 
                        ``or the Librarian of Congress'' and inserting 
                        ``, the Librarian of Congress, or the 
                        Commissioner'';
                    (D) in subsection (c) by striking ``Librarian of 
                Congress'' and inserting ``Commissioner''; and
                    (E) in subsection (d) by striking ``Librarian of 
                Congress'' and inserting ``Commissioner''.
            (4) Appeal and judicial review.--Chapter 8 of title 17, 
        United States Code (as amended by this section), is further 
        amended by adding at the end the following new section:
``Sec. 803. Proceedings, appeals, and judicial review
    ``(a) Proceedings.--
            ``(1) In general.--Administrative law judges shall conduct 
        arbitration proceedings and other proceedings under this 
        chapter in accordance with subchapter II of chapter 5 of title 
        5, for the purpose of making their determinations in carrying 
        out the purposes set forth in section 801. An administrative 
        law judge shall act on the basis of a fully documented written 
        record, prior decisions of the Copyright Royalty Tribunal, 
        prior copyright arbitration panel determinations, rulings by 
        the Librarian of Congress, and decisions by the Commissioner 
        under this chapter.
            ``(2) Submission of relevant information by parties.--Any 
        copyright owner who claims to be entitled to royalties under 
        section 111, 114, 116, or 119, any person entitled to a 
        compulsory license under section 114(d), any person entitled to 
        a compulsory license under section 115, or any interested 
        copyright party who claims to be entitled to royalties under 
        section 1006, may submit relevant information and proposals to 
        an administrative law judge in proceedings applicable to such 
        copyright owner or interested copyright party, and any other 
        person participating in such proceedings may submit such 
        relevant information and proposals to the administrative law 
        judge conducting the proceedings.
            ``(3) Ratemaking proceeding.--In ratemaking proceedings, 
        the parties to the proceedings shall bear the entire cost 
        thereof in such manner and proportion as the administrative law 
        judge shall direct.
            ``(4) Distribution proceedings.--In distribution 
        proceedings, the parties shall bear the cost in direct 
        proportion to their share of the distribution.
    ``(b) Report to the Commissioner.--No later than 180 days after 
publication of the notice in the Federal Register initiating a 
proceeding under this chapter, the administrative law judge conducting 
the proceeding shall report to the Commissioner its determination 
concerning the royalty fee or distribution of royalty fees, as the case 
may be. Such report shall be accompanied by the written record, and 
shall set forth the facts that the administrative law judge found 
relevant to the determination.
    ``(c) Appeal to Commissioner.--
            ``(1) In general.--Any party may file an appeal of any 
        determination reported by an administrative law judge under 
        subsection (b) with the Commissioner. Such appeal shall be 
        filed no later than 10 days after the date on which the 
        Commissioner receives the report.
            ``(2) Effect of no appeal.--If an appeal is not filed 
        within the 10-day period as provided under paragraph (1) the 
        determination of the administrative law judge shall be final 
        and may not be appealed to any officer of the Copyright Office 
        or the Intellectual Property Organization, or any court of the 
        United States.
            ``(3) Determination appealed.--If an appeal is filed within 
        the 10-day period as provided under paragraph (1) the 
        Commissioner shall review the determination of the 
        administrative law judge and make a final determination. The 
        Commissioner shall make such determination no later than 60 
        days after the date on which the Commissioner receives the 
        report of the administrative law judge.
            ``(4) Publishing of determination.--The Commissioner 
        shall--
                    ``(A) publish in the Federal Register the 
                determination of the administrative law judge and the 
                determination of the Commissioner;
                    ``(B) publicize such determinations in such other 
                manner as the Commissioner considers appropriate; and
                    ``(C) make the report of the administrative law 
                judge and the accompanying record available for public 
                inspection and copying.
    ``(d) Judicial Review.--
            ``(1) In general.--
                    ``(A) Appeal.--The determination of the 
                Commissioner shall--
                            ``(i) be a final administrative action;
                            ``(ii) constitute an exhaustion of 
                        remedies; and
                            ``(iii) no later than 30 days after the 
                        date of the determination of the Commissioner, 
                        may be appealed to the United States Court of 
                        Appeals for the Federal Circuit.
                    ``(B) Effect of no appeal.--If no appeal is brought 
                within the 30-day period as provided under subparagraph 
                (A), the determination of the Commissioner--
                            ``(i) is final, and the royalty fee or 
                        determination with respect to the distribution 
                        of fees, as the case may be, shall take effect 
                        as set forth in the determination; and
                            ``(ii) may not be appealed to any officer 
                        of the Intellectual Property Organization or 
                        any court of the United States.
            ``(2) Jurisdiction of court.--The court shall have 
        jurisdiction--
                    ``(A)(i) to modify or vacate a determination of the 
                Commissioner only if it finds, on the basis of the 
                record before the Commissioner, that the Commissioner 
                acted in an arbitrary manner; and
                    ``(ii) if the court modifies the decision of the 
                Commissioner, to enter the court's determination with 
                respect to the amount or distribution of royalty fees 
                and costs, to order the repayment of any excess fees, 
                and to order the payment of any underpaid fees, and the 
                interest pertaining respectively thereto, in accordance 
                with its final judgment; and
                    ``(B) to further vacate the decision of the 
                administrative law judge or the Commissioner and remand 
                the case to the Commissioner for proceedings in 
                accordance with subsection (a).
            ``(3) Effect of pendency of appeal.--The pendency of an 
        appeal under this subsection shall not relieve persons 
        obligated to make royalty payments under sections 111, 114, 
        115, 116, 118, 119, or 1003 who would be affected by the 
        determination on appeal to deposit the statement of account and 
        royalty fees specified in those sections.
    ``(f) Administrative Matters.--
            ``(1) Deduction of costs from royalty fees.--The 
        Commissioner may, to the extent not otherwise provided under 
        this title, deduct from royalty fees deposited or collected 
        under this title the reasonable costs incurred by the Copyright 
        Office under this chapter. Such deduction may be made before 
        the fees are distributed to any copyright claimants. If no 
        royalty pool exists from which their costs can be deducted, the 
        Commissioner may assess the reasonable costs directly to the 
        parties to the most recent relevant proceeding.
            ``(2) Positions required for administration of compulsory 
        licensing.--Section 307 of the Legislative Branch 
        Appropriations Act, 1994, shall not apply to employee positions 
        in the Copyright Office that are required to be filled in order 
        to carry out section 111, 114, 115, 116, 118, or 119 or chapter 
        10.''.
            (5) Technical and conforming amendments.--(A) The table of 
        sections for chapter 8 of title 17, United States Code, is 
amended to read as follows:

                ``CHAPTER 8--COPYRIGHT ROYALTY DISPUTES

``Sec.
``801. Copyright royalty disputes.
``802. Institution and conclusion of proceedings.
``803. Proceedings, appeals, and judicial review.''.
            (B) Section 111(d)(2) of title 17, United States Code, is 
        amended by striking ``a copyright arbitration royalty panel'' 
        and inserting ``an administrative law judge under chapter 8''.
            (C) Section 111(d)(4)(B) of title 17, United States Code, 
        is amended by striking ``convene a copyright arbitration 
        royalty panel'' and inserting ``refer the matter to an 
        administrative law judge''.
            (D) Section 115(c)(3)(D) of title 17, United States Code, 
        is amended--
                    (i) in the first sentence by striking ``section 
                803(a)(1)'' and inserting ``section 802(a)(1)'';
                    (ii) in the first sentence by striking ``convene a 
                copyright arbitration royalty panel to determine and 
                publish in the Federal Register'' and inserting ``refer 
                the matter to an administrative law judge to 
                determine'';
                    (iii) in the third sentence by striking ``copyright 
                arbitration royalty panel may'' and inserting 
                ``administrative law judge may''; and
                    (iv) by inserting after the first sentence ``The 
                Commissioner shall publish such schedule in the Federal 
                Register.''.
            (E) Section 118(b)(3) of title 17, United States Code, is 
        amended--
                    (i) in the first sentence by striking ``convene a 
                copyright arbitration royalty panel to determine and 
                publish in the Federal Register'' and inserting ``refer 
                the matter to administrative law judge to determine'';
                    (ii) in the second sentence by striking ``copyright 
                arbitration royalty panel may'' and inserting 
                ``administrative law judge may''; and
                    (iii) by inserting after the first sentence ``The 
                Commissioner shall publish such schedule in the Federal 
                Register.''.
            (F) Section 118(d) of title 17, United States Code, is 
        amended by striking ``a copyright arbitration royalty panel'' 
        and inserting ``an administrative law judge''.
            (G) Section 119(b)(4)(B) of title 17, United States Code, 
        is amended by striking ``convene a copyright arbitration 
        royalty panel'' and inserting ``refer the matter to an 
        administrative law judge''.
            (H) Section 1006(c) of title 17, United States Code, is 
        amended by striking ``convene a copyright arbitration royalty 
        panel which'' and inserting ``refer the matter to an 
        administrative law judge who''.
            (I) Section 1007(c) of title 17, United States Code, is 
        amended by striking ``convene a copyright arbitration royalty 
        panel'' and inserting ``refer the matter to an administrative 
        law judge''.
    (f) Copyright Appeals Board.--
            (1) In general.--The provisions of title 17, United States 
        Code, are amended by adding after chapter 11 the following new 
        chapter:

                 ``CHAPTER 12--COPYRIGHT APPEALS BOARD

``Sec.
``1201. Establishment.
``1202. Appeals.
``1203. Judicial review.
``Sec. 1201. Establishment
    ``There is established the Copyright Appeals Board within the 
Copyright Office. The Copyright Appeals Board shall include the 
Commissioner, the Deputy Commissioner of Copyrights, and members 
competent in copyright law who are appointed by the Commissioner.
``Sec. 1202. Appeals
    ``In any case of opposition to copyright registration or other 
determination of the Copyright Office relating to copyrights (other 
than any determination made under chapter 8) the Commissioner shall 
give notice to all parties and shall direct the Copyright Appeals Board 
to review any such determination.
``Sec. 1203. Judicial review
    ``Any final decision of the Copyright Appeals Board may be appealed 
to the United States Court of Appeals for the Federal Circuit.''.
            (2) Technical and conforming amendment.--The table of 
        chapters for title 17, United States Code, is amended by adding 
        after the item relating to chapter 11 the following new item:

``12. Copyright Appeals Board...............................    1201''.

SEC. 117. SUITS BY AND AGAINST THE ORGANIZATION.

    (a) In General.--
            (1) Actions under united states law.--Any civil action or 
        proceeding to which the United States Intellectual Property 
        Organization is a party is deemed to arise under the laws of 
        the United States. The Federal courts shall have exclusive 
        jurisdiction over all civil actions by or against the 
        Organization.
            (2) Contract claims.--Any action or proceeding against the 
        Organization in which any claim is cognizable under the 
        Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.) shall be 
        subject to such Act. For purposes of such Act, the Commissioner 
        shall be deemed to be the agency head with respect to contract 
        claims arising with respect to the Organization. 
        Notwithstanding any provision of title 28, United States Code, 
        any other action or proceeding against the Organization founded 
        upon contract may be brought in an appropriate district court.
            (3) Tort claims.--(A) Any action or proceeding against the 
        Organization in which any claim is cognizable under the 
        provisions of section 1346(b) and chapter 171 of title 28, 
        United States Code, shall be governed by those provisions.
            (B) Any other action or proceeding against the Organization 
        founded upon tort may be brought in an appropriate district 
        court without regard to the provisions of section 1346(b) and 
        chapter 171 of title 28, United States Code.
            (4) Prohibition on attachment, liens, or similar process.--
        No attachment, garnishment, lien, or similar process, 
        intermediate or final, in law or equity, may be issued against 
        property of the Organization.
            (5) Substitution of organization as party.--If the 
        Organization determines that the officer or employee was acting 
        within the scope of his employment with the Organization, the 
        Organization shall be substituted as defendant in any civil 
        action or proceeding against an officer or employee of the 
        Organization. If the Organization refuses to certify scope of 
        employment, the officer or employee may at any time before 
        trial petition the court to find and certify that the officer 
        or employee was acting within the scope of his employment. Upon 
        certification by the court, the Organization shall be 
        substituted as the party defendant. A copy of the petition 
        shall be served upon the Organization. In any such civil action 
        or proceeding to which paragraph (3)(A) applies, the provisions 
        of section 1346(b) and chapter 171 of title 28, United States 
        Code, shall apply in lieu of this paragraph.
    (b) Relationship With Justice Department.--
            (1) Exercise by organization of attorney general's 
        authorities.--Except as provided in this section, with respect 
        to any action or proceeding in which the Organization is a 
        party or an officer or employee thereof is a party in his 
        official capacity, the Organization, officer, or employee may 
        exercise, without prior authorization from the Attorney 
        General, the authorities and duties that otherwise would be 
        exercised by the Attorney General on behalf of the 
        Organization, officer, or employee under title 28, United 
        States Code, or other laws.
            (2) Appearances by attorney general.--Notwithstanding 
        paragraph (1), at any time the Attorney General may, in any 
        action or proceeding described in paragraph (1), file an 
        appearance on behalf of the Organization or the officer or 
        employee involved, without the consent of the Organization or 
        the officer or employee. Upon such filing, the Attorney General 
        shall represent the Organization or such officer or employee 
        with exclusive authority in the conduct, settlement, or 
        compromise of that action or proceeding.
            (3) Consultations with and assistance by attorney 
        general.--The Organization may consult with the Attorney 
        General concerning any legal matter, and the Attorney General 
        shall provide advice and assistance to the Organization, 
        including representing the Organization in litigation, if 
        requested by the Organization.
            (4) Representation before supreme court.--The Attorney 
        General shall represent the Organization in all cases before 
        the United States Supreme Court.
            (5) Qualifications of attorneys.--An attorney 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 employed 
        by the Organization may represent the Organization in any legal 
        proceeding in which the Organization or an officer or employee 
        of the Organization is a party or interested--
                    (A) regardless of whether the attorney is a 
                resident of the jurisdiction in which the proceeding is 
                held; and
                    (B) notwithstanding any other prerequisites of 
                qualification or appearance required by the court or 
                administrative body before which the proceeding is 
                conducted.

SEC. 118. FUNDING.

    (a) In General.--The activities of the United States Intellectual 
Property Organization and each Office of the Organization shall be 
funded entirely through fees payable to the United States Patent Office 
(under section 42 of title 35, United States Code), the United 
States Trademark Office (under section 56 of the Act of July 5, 1946 
(commonly known as the Trademark Act of 1946)), and the United States 
Copyright Office (under section 708 of title 17, United States Code), 
subject to the provisions of subsection (b).
    (b) Borrowing Authority.--
            (1) In general.--The United States Intellectual Property 
        Organization is authorized to issue from time to time for 
        purchase by the Secretary of the Treasury its debentures, 
        bonds, notes, and other evidences of indebtedness (hereafter in 
        this subsection referred to as ``obligations'') to assist in 
        financing the activities of the United States Patent Office, 
        the United States Trademark Office, and the United States 
        Copyright Office.
            (2) Borrowing authority.--Any borrowing under this 
        subsection shall be repaid only from fees paid to the Office 
        for which such obligations were issued. Such obligations shall 
        be redeemable at the option of the Organization before maturity 
        in the manner stipulated in such obligations and shall have 
        such maturity as is determined by the Organization with the 
        approval of the Secretary of the Treasury. 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.
            (3) Purchase of obligations.--The Secretary of the Treasury 
        shall purchase any obligations of the Organization issued under 
        this subsection and for such purpose the Secretary of the 
        Treasury is authorized to use as a public-debt transaction the 
        proceeds of any securities issued under chapter 31 of title 31, 
        United States Code, and the purposes for which securities may 
        be issued under that chapter are extended to include such 
        purpose.
            (4) Treatment.--Payment under this subsection of the 
        purchase price of such obligations of the United States 
        Intellectual Property Organization shall be treated as public-
        debt transactions of the United States.

SEC. 119. MANAGEMENT REPORT.

    The report of the Commissioner of Patents (as required by section 
14 of title 35, United States Code), the report of the Commissioner of 
Trademarks (as required under section 55 of the Act of July 5, 1946 
(commonly known as the Trademark Act of 1946)), and the report of the 
Commissioner of Copyrights, as required by section 701(c) of title 17, 
United States Code, shall collectively be deemed to be the report of 
the United States Intellectual Property Organization under section 9106 
of title 31, United States Code, and the Commissioner of Intellectual 
Property shall not file a separate report under such section.

SEC. 120. AUDITS.

    (a) In General.--Financial statements of the United States 
Intellectual Property Organization shall be prepared on an annual basis 
in accordance with generally accepted accounting principles. Such 
statements shall be audited by an independent certified public 
accountant chosen by the Commissioner. The audit shall be conducted in 
accordance with standards that are consistent with generally accepted 
Government auditing standards and other standards established by the 
Comptroller General of the United States, and with the generally 
accepted auditing standards of the private sector, to the extent 
feasible. The Commissioner shall transmit to the Committees on the 
Judiciary of the Senate and the House of Representatives the results of 
each audit under this subsection.
    (b) Review by Comptroller General of the United States.--The 
Comptroller General of the United States may review any audit of the 
financial statement of the Intellectual Property Organization that is 
conducted under subsection (a). The Comptroller General of the United 
States shall report to the Congress and the Organization the results of 
any such review and shall include in such report appropriate 
recommendations.
    (c) Audit by Comptroller General of the United States.--The 
Comptroller General of the United States may audit the financial 
statements of the Organization and such audit shall be in lieu of the 
audit required by subsection (a). The Organization shall reimburse the 
Comptroller General of the United States for the cost of any audit 
conducted under this subsection.
    (d) Access to Office Records.--All books, financial records, report 
files, memoranda, and other property that the Comptroller General of 
the United States deems necessary for the performance of any audit 
shall be made available to the Comptroller General of the United 
States.
    (e) Applicability in Lieu of Title 31, United States Code, 
Provisions.--This section applies to the Office in lieu of the 
provisions of section 9105 of title 31, United States Code.

SEC. 121. TRANSFERS.

    (a) Transfer of Functions.--Except as otherwise provided in this 
title, there are transferred to, and vested in, the United States 
Intellectual Property Organization all functions, powers, and duties 
vested by law in the Secretary of Commerce or the Department of 
Commerce or in the officers or components 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 title, and in the officers and components of 
such office.
    (b) Transfer of Funds and Property.--The Secretary of Commerce 
shall transfer to the United States Intellectual Property Organization, 
on the effective date of this title, so much of the assets, 
liabilities, contracts, property, records, and unexpended and 
unobligated balances of appropriations, authorizations, allocations, 
and other funds employed, 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 Intellectual Property Organization 
by this title.

            Subtitle B--Effective Date; Technical Amendments

SEC. 131. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
4 months after the date of the enactment of this Act.

SEC. 132. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Amendments to Title 35.--
            (1) Table of parts.--The item relating to part I in the 
        table of parts for title 35, United States Code, is amended to 
        read as follows:

``I. United States Patent Office............................      1.''.
            (2) Heading.--The heading for part I of title 35, United 
        States Code, is amended to read as follows:

                ``PART I--UNITED STATES PATENT OFFICE''.

            (3) Table of chapters.--The table of chapters for part I of 
        title 35, United States Code, is amended by amending the item 
        relating to chapter 1 to read as follows:

``1. Establishment, Officers and Employees, Functions.......       1''.
            (4) Table of sections.--The table of sections for chapter 1 
        of title 35, United States Code, is amended to read as follows:

     ``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 Office Management Advisory Board.
``6. Duties of Commissioner.
``7. Board of Patent Appeals and Interferences.
``8. Library.
``9. Classification of patents.
``10. Certified copies of records.
``11. Publications.
``12. Exchange of copies of patents with foreign countries.
``13. Copies of patents for public libraries.
``14. Annual report to Congress.''.
            (5) Commissioner of patents and trademarks.--(A) Section 
        41(h)(1) of title 35, United States Code, is amended by 
        striking ``Commissioner of Patents and Trademarks'' and 
        inserting ``Commissioner''.
            (B) Section 155 of title 35, United States Code, is amended 
        by striking ``Commissioner of Patents and Trademarks'' and 
        inserting ``Commissioner''.
            (C) Section 155A(c) of title 35, United States Code, is 
        amended by striking ``Commissioner of Patents'' and inserting 
        ``Commissioner''.
            (6) Patent and trademark office.--The provisions of title 
        35, United States Code, is amended by striking ``Patent and 
        Trademark Office'' each place it appears and inserting ``Patent 
        Office''.
    (b) Amendments to the Trademark Act of 1946.--
            (1) References.--All amendments in this subsection refer to 
        the Act of July 5, 1946 (commonly referred to as the Trademark 
        Act of 1946).
            (2) Amendments relating to commissioner.--Section 61 (as 
        redesignated by section 115(a)(2) of this Act) is amended by 
        striking the undesignated paragraph relating to the definition 
        of the term ``Commissioner'' and inserting the following:
    ``The term `Commissioner' means the Commissioner of Trademarks.''.
            (3) Amendments relating to patent and trademark office.--
        (A) Section 1(a)(1) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (B) Section 1(a)(2) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (C) Section 1(b)(1) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (D) Section 1(b)(2) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (E) Section 1(d)(1) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (F) Section 1(e) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (G) Section 2(d) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (H) Section 7(a) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (I) Section 7(d) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (J) Section 7(e) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (K) Section 7(f) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (L) Section 7(g) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (M) Section 8(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (N) Section 8(b) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (O) Section 10 is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (P) Section 12(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (Q) Section 13(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (R) Section 13(b)(1) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (S) Section 15(2) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (T) Section 17 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (U) Section 21(a)(2) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (V) Section 21(a)(3) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (W) Section 21(a)(4) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (X) Section 21(b)(3) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (Y) Section 21(b)(4) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (Z) Section 24 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (AA) Section 29 is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (BB) Section 30 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (CC) Section 31(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (DD) Section 34(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (EE) Section 34(d)(1)(B)(i) is amended by striking ``Patent 
        and Trademark Office'' and inserting ``Trademark Office''.
            (FF) Section 35(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (GG) Section 36 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (HH) Section 37 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (II) Section 38 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (JJ) Section 39(b) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (KK) Section 41 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (LL) Section 61 (as redesignated under section 115(a)(2) of 
        this Act) is amended in the undesignated paragraph relating to 
        the definition of ``registered mark''--
                    (i) by striking ``Patent and Trade Mark Office'' 
                and inserting ``Trademark Office; and
                    (ii) by striking ``Patent and Trade Office'' and 
                inserting ``Trademark Office''.
            (MM) Section 72(a) (as redesignated under section 115(a)(2) 
        of this Act) is amended by striking ``Patent and Trademark 
        Office'' and inserting ``Trademark Office''.
            (NN) Section 75 (as redesignated under section 115(a)(2) of 
        this Act) is amended by striking ``Patent and Trademark 
        Office'' and inserting ``Trademark Office''.
    (c) Amendments to Title 17.--
            (1) References.--All amendments in this subsection refer to 
        title 17, United States Code.
            (2) Definition of commissioner.--Section 101 is amended by 
        inserting after the undesignated paragraph relating to the 
        definition of a ``collective work'' the following new 
        undesignated paragraph:
    ``The term `Commissioner' means the Commissioner of Copyrights 
appointed under section 701(b)(1).''.
            (3) Table of sections.--The table of sections for chapter 7 
        is amended by adding at the end the following:

``711. Copyright Office Management Advisory Board.''.
            (4) Amendment relating to d.c. circuit court.--Section 
        1010(g) is amended by striking ``District of Columbia'' and 
        inserting ``Federal''.
            (5) Amendments to register.--(A) Section 111(d)(1) is 
        amended by striking ``Register shall'' and inserting 
        ``Commissioner shall''.
            (B) Section 113(d)(3) is amended by striking ``Register 
        shall'' and inserting ``Commissioner shall''.
            (C) Section 115(c)(5) is amended by striking ``Register 
        shall'' and inserting ``Commissioner shall''.
            (D) Section 119(a)(2)(C) is amended by striking ``Register 
        shall'' and inserting ``Commissioner shall''.
            (E) Section 119(b)(1) is amended by striking ``Register 
        shall'' and inserting ``Commissioner shall''.
            (F) Section 302(d) is amended by striking ``Register 
        shall'' and inserting ``Commissioner shall''.
            (G) Section 302(d) is amended by striking ``Register 
        considers'' and inserting ``Commissioner considers''.
            (H) Section 408(b), in the matter following paragraph (4), 
        is amended by striking ``Register'' each place it appears and 
        inserting ``Commissioner''.
            (I) Section 408(d) is amended by striking ``Register'' and 
        inserting ``Commissioner''.
            (J) Section 410(a) is amended by striking ``Register 
        shall'' and inserting ``Commissioner shall''.
            (K) Section 410(b) is amended by striking ``Register 
        shall'' and inserting ``Commissioner shall''.
            (L) Section 411(a) is amended by striking ``Register may'' 
        and inserting ``Commissioner may''.
            (M) Section 508(a) is amended by striking ``Register 
        within'' and inserting ``Commissioner within''.
            (N) Section 508(b) is amended by striking ``Register'' and 
        inserting ``Commissioner''.
            (O) Section 508(c) is amended by striking ``Register'' and 
        inserting ``Commissioner''.
            (P) Section 704(d) is amended by striking ``Register and'' 
        and inserting ``Commissioner and''.
            (Q) Section 707(a) is amended by striking ``Register has'' 
        and inserting ``Commissioner has''.
            (R) Section 707(b) is amended by striking ``Register'' each 
        place it appears and inserting ``Commissioner''.
            (S) Section 709 is amended by striking ``Register may'' and 
        inserting ``Commissioner may''.
            (T) Section 709 is amended by striking ``Register 
        determines'' and inserting ``Commissioner determines''.
            (U) Section 908(c) is amended by striking ``Register'' and 
        inserting ``Commissioner''.
            (V) Section 908(d) is amended by striking ``Register 
        shall'' and inserting ``Commissioner shall''.
            (W) Section 908(e) is amended by striking ``Register 
        shall'' and inserting ``Commissioner shall''.
            (X) Section 910(b)(2) is amended by striking ``Register 
        may'' and inserting ``Commissioner may''.
            (Y) Section 910(b)(2) is amended by striking ``Register 
        to'' and inserting ``Commissioner to''.
            (Z) Section 1003(b) is amended by striking ``Register'' and 
        inserting ``Commissioner''.
            (AA) Section 1003(c)(1) is amended by striking ``content as 
        the Register'' and inserting ``content as the Commissioner''.
            (BB) Section 1003(c)(1) is amended by striking 
        ``distribution as the Register'' and inserting ``distribution 
        as the Commissioner''.
            (CC) Section 1003(c)(2) is amended by striking ``Register'' 
        and inserting ``Commissioner''.
            (DD) Section 1005 is amended by striking ``Register may, in 
        the Register's discretion,'' and inserting ``Commissioner may, 
        in the Commissioner's discretion,''.
            (EE) Section 1009(e) is amended by striking ``Register'' 
        and inserting ``Commissioner''.
            (6) Amendments to register of copyrights.--The provisions 
        of title 17, United States Code, are amended by striking 
        ``Register of Copyrights'' each place such term appears and 
        inserting ``Commissioner''.
    (d) Amendments Relating to the Librarian of Congress.--
            (1) References.--All amendments in this subsection refer to 
        title 17, United States Code.
            (2) Amendments.--(A) Section 111(d)(2) is amended by 
        striking ``Librarian of Congress'' and inserting 
        ``Commissioner''.
            (B) Section 111(d)(4)(A) is amended by striking ``Librarian 
        of Congress'' each place it appears and inserting 
        ``Commissioner''.
            (C) Section 111(d)(4)(B) is amended by striking ``Librarian 
        of Congress shall, upon the recommendation of the Register of 
        Copyrights'' and inserting ``Commissioner shall''.
            (D) Section 111(d)(4)(B) is amended by striking 
        ``Librarian'' each place it appears and inserting 
        ``Commissioner''.
            (E) Section 111(d)(4)(C) is amended by striking ``Librarian 
        of Congress'' and inserting ``Commissioner''.
            (F) Section 115(c)(3)(C) is amended by striking ``Librarian 
        of Congress'' each place it appears and inserting 
        ``Commissioner''.
            (G) Section 115(c)(3)(D) is amended by striking ``Librarian 
        of Congress'' each place it appears and inserting 
        ``Commissioner''.
            (H) Section 115(c)(3)(E) is amended by striking ``Librarian 
        of Congress'' and inserting ``Commissioner''.
            (I) Section 115(c)(3)(F) is amended by striking ``Librarian 
        of Congress'' and inserting ``Commissioner''.
            (J) Section 1010(e) is amended by striking ``Librarian of 
        Congress'' and inserting ``Commissioner''.
            (K) Section 116(b)(2) is amended by striking ``Librarian of 
        Congress'' each place it appears and inserting 
        ``Commissioner''.
            (L) Section 118(b)(1) is amended by striking ``Librarian of 
        Congress'' each place it appears and inserting 
        ``Commissioner''.
            (M) Section 118(b)(2) is amended by striking ``Librarian of 
        Congress'' and inserting ``Commissioner''.
            (N) Section 118(b)(3) is amended by striking ``Librarian of 
        Congress'' each place it appears and inserting 
        ``Commissioner''.
            (O) Section 118(c) is amended by striking ``Librarian of 
        Congress'' and inserting ``Commissioner''.
            (P) Section 119(b)(2) is amended by striking ``Librarian of 
        Congress'' and inserting ``Commissioner''.
            (Q) Section 119(b)(3) is amended by striking ``Librarian of 
        Congress'' and inserting ``Commissioner''.
            (R) Section 119(b)(4) is amended by striking ``Librarian of 
        Congress'' each place it appears and inserting 
        ``Commissioner''.
            (S) Section 119(c)(2) is amended by striking ``Librarian of 
        Congress'' each place it appears and inserting 
        ``Commissioner''.
            (T) Section 119(c)(3)(A) is amended by striking ``Librarian 
        of Congress'' and inserting ``Commissioner''.
            (U) Section 1004(a) is amended by striking ``Librarian of 
        Congress'' each place it appears and inserting 
        ``Commissioner''.
            (V) Section 1006(c) is amended by striking ``Librarian of 
        Congress'' and inserting ``Commissioner''.
            (W) Section 1007(a) is amended by striking ``Librarian of 
        Congress'' each place it appears and inserting 
        ``Commissioner''.
            (X) Section 1007(b) is amended by striking ``Librarian of 
        Congress'' each place it appears and inserting 
        ``Commissioner''.
            (Y) Section 1007(c) is amended by striking ``Librarian of 
        Congress'' each place it appears and inserting 
        ``Commissioner''.
            (Z) Section 1007(c) is amended by striking ``Librarian 
        shall'' and inserting ``Commissioner shall''.
            (AA) Section 1007(c) is amended by striking ``Librarian 
        under'' and inserting ``Commissioner under''.
            (BB) Section 1010(b) is amended by striking ``Librarian of 
        Congress'' each place it appears and inserting 
        ``Commissioner''.
            (CC) Section 1010(e) is amended by striking ``Librarian of 
        Congress'' and inserting ``Commissioner''.
            (DD) Section 1010(f) is amended by striking ``Librarian of 
        Congress'' and inserting ``Commissioner''.
            (EE) Section 1010(g) is amended by striking ``Librarian of 
        Congress'' and inserting ``Commissioner''.
    (e) Amendments Relating To Satellite Home Viewer Act Amendments.--
Section 119(c) of title 17, United States Code, is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A) by striking the last 
                sentence and inserting ``Such notice shall include the 
                names and qualifications of potential arbitrators 
                chosen by the Commissioner from a list of available 
                arbitrators obtained from the American Arbitration 
                Association or such similar organization as the 
Commissioner shall select.'';
                    (B) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Selection of arbitration panel.--Not later 
                than 10 days after publication of the notice initiating 
                an arbitration proceeding, and in accordance with the 
                procedures to be specified by the Commissioner, one 
                arbitrator shall be selected from the published list by 
                copyright owners who claim to be entitled to royalty 
                fees under subsection (b)(4) and who are not party to a 
                voluntary agreement filed with the Copyright Office in 
                accordance with paragraph (2), and one arbitrator shall 
                be selected from the published list by satellite 
                carriers and distributors who are not parties to such a 
                voluntary agreement. The two arbitrators so selected 
                shall, within 10 days after their selection, choose a 
                third arbitrator from the same list, who shall serve as 
                chairperson of the arbitrators. If either group fail to 
                agree upon the selection of an arbitrator, or if the 
                arbitrators selected by such groups fail to agree upon 
                the selection of a chairperson, the Commissioner shall 
                promptly select the arbitrator or chairperson, 
                respectively. The arbitrators selected under this 
                subparagraph shall constitute and Arbitration Panel.'';
                    (C) by amending subparagraph (C) to read as 
                follows:
                    ``(C) Arbitration proceeding.--The Arbitration 
                Panel shall conduct an arbitration proceeding in 
                accordance with such procedures as it may adopt. The 
                panel shall act on the basis of a fully documented 
                written record. Any copyright owner who claims to be 
                entitled to royalty fees under subsection (b)(4), any 
                satellite carrier, and any distributor, who is not 
                party to a voluntary agreement filed with the Copyright 
                Office in accordance with paragraph (2), may submit 
                relevant information and proposals to the Panel. The 
                parties to the proceeding shall bear the entire cost 
                thereof in such manner and proportion as the Panel 
                shall direct.'';
                    (D) in subparagraph (D) by striking ``Copyright''; 
                and
                    (E) by adding at the end the following new 
                subparagraphs:
                    ``(E) Report to the commissioner.--Not later than 
                60 days after publication of the notice initiating an 
                arbitration proceeding, the Arbitration Panel shall 
                report to the Commissioner its determination concerning 
                the royalty fee. Such report shall be accompanied by 
                the written record, and shall set forth the facts that 
                the Panel found relevant to its determination and the 
                reasons why its determination is consistent with the 
                criteria set forth in subparagraph (D).
                    ``(F) Action by commissioner.--Within 60 days after 
                receiving the report of the Arbitration Panel under 
                subparagraph (E), the Commissioner shall adopt or 
                reject the determination of the Panel. The Commissioner 
                shall adopt the determination of the Panel unless the 
                Commissioner finds that the determination is clearly 
                inconsistent with the criteria set forth in 
                subparagraph (D). If the Commissioner rejects the 
                determination of the Panel, the Commissioner shall, 
                before the end of that 60-day period, and after full 
                examination of the record created in the arbitration 
                proceeding, issue an order, consistent with the 
                criteria set forth in subparagraph (D), setting the 
                royalty fee under this paragraph. The Commissioner 
                shall cause to be published in the Federal Register the 
                determination of the Panel, and the decision of the 
                Commissioner with respect to the determination 
                (including any order issued under the preceding 
                sentence). The Commissioner shall also publicize such 
                determination and decision in such other manner as the 
                Commissioner considers appropriate. The Commissioner 
                shall also make the report of the Arbitration Panel and 
                the accompanying record available for public inspection 
                and copying.
                    ``(G) Period during which decision of arbitration 
                panel or order of commissioner effective.--The 
                obligation to pay the royalty fee established under a 
                determination of the Arbitration Panel which is 
                confirmed by the Commissioner in accordance with this 
                paragraph, or established by any order issued under 
                subparagraph (F), shall become effective as provided 
                under paragraph (4) or July 1, 1997, whichever is 
                later.''; and
            (2) by adding at the end the following new paragraph:
            ``(4) Judicial review.--
                    ``(A) In general.--Any decision of the Commissioner 
                under paragraph (3) with respect to a determination of 
                the Arbitration Panel may be appealed, by any aggrieved 
                party who would be bound by the determination, to the 
                United States Court of Appeals for the Federal Circuit, 
                within 30 days after the publication of the decision in 
                the Federal Register. If no appeal is brought within 
                such 30-day period, the decision of the Commissioner is 
                final, and the royalty fee shall take effect as set 
                forth in the decision. The pendency of an appeal under 
                this paragraph shall not relieve satellite carriers of 
                the obligation under subsection (b)(1) to deposit the 
                statement of account and royalty fees specified in that 
                subsection.
                    ``(B) Judicial actions.--The court shall have 
                jurisdiction to modify or vacate a decision of the 
                Commissioner only if it finds, on the basis of the 
                record before the Commissioner and the statutory 
                criteria set forth in paragraph (3)(D), that the 
                Arbitration Panel or the Commissioner acted in an 
                arbitrary manner. If the court modifies the decision of 
                the Commissioner, the court shall have jurisdiction to 
                enter its own determination with respect to royalty 
                fees, to order the repayment of any excess fees 
                deposited under subsection (b)(1)(B), and to order the 
                payment of any underpaid fees, and the interest 
                pertaining respectively thereto, in accordance with its 
                final judgment. The court may further vacate the 
                decision of the Commissioner and remand the case for 
                arbitration proceedings in accordance with paragraph 
                (3).''.
    (f) Amendments to Title 5.--Section 5316 of title 5, United States 
Code, is amended--
            (1) by striking ``Commissioner of Patents, Department of 
        Commerce.''; and
            (2) by striking:
            ``Deputy Commissioner of Patents and Trademarks.
            ``Assistant Commissioner for Patents.
            ``Assistant Commissioner for Trademarks.''.
    (g) Amendment to Title 31.--Section 9101(3) of title 31, United 
States Code, is amended by adding at the end the following:
                    ``(O) the United States Intellectual Property 
                Organization.''.

                  Subtitle C--Miscellaneous Provisions

SEC. 141. REFERENCES.

    Any reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or 
pertaining to a department, agency, or office from which a function is 
transferred by this title--
            (1) to the head of such department, agency, or office is 
        deemed to refer to the head of the department, agency, or 
        office to which such function is transferred; or
            (2) to such department, agency, or office is deemed to 
        refer to the department, agency, or office to which such 
        function is transferred.

SEC. 142. EXERCISE OF AUTHORITIES.

    Except as otherwise provided by law, a Federal official to whom a 
function is transferred by this title may, for purposes of performing 
the function, exercise all authorities under any other provision of law 
that were available with respect to the performance of that function to 
the official responsible for the performance of the function 
immediately before the effective date of the transfer of the function 
under this title.

SEC. 143. SAVINGS PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, agreements, 
certificates, licenses, and privileges that--
            (1) have been issued, made, granted, or allowed to become 
        effective by the President, the Secretary of Commerce, any 
        officer or employee of any office transferred by this title, or 
        any other Government official, or by a court of competent 
        jurisdiction, in the performance of any function that is 
        transferred by this title, and
            (2) are in effect on the effective date of such transfer 
        (or become effective after such date pursuant to their terms as 
        in effect on such effective date), shall continue in effect 
        according to their terms until modified, terminated, 
        superseded, set aside, or revoked in accordance with law by the 
        President, any other authorized official, a court of competent 
        jurisdiction, or operation of law.
    (b) Proceedings.--This title shall not affect any proceedings or 
any application for any benefits, service, license, permit, 
certificate, or financial assistance pending on the effective date of 
this title before an office transferred by this title, but such 
proceedings and applications shall be continued. Orders shall be issued 
in such proceedings, appeals shall be taken therefrom, and payments 
shall be made pursuant to such orders, as if this title had not been 
enacted, and orders issued in any such proceeding shall continue in 
effect until modified, terminated, superseded, or revoked by a duly 
authorized official, by a court of competent jurisdiction, or by 
operation of law. Nothing in this subsection shall be considered to 
prohibit the discontinuance or modification of any such proceeding 
under the same terms and conditions and to the same extent that such 
proceeding could have been discontinued or modified if this title had 
not been enacted.
    (c) Suits.--This title shall not affect suits commenced before the 
effective date of this title, and in all such suits, proceedings shall 
be had, appeals taken, and judgments rendered in the same manner and 
with the same effect as if this title had not been enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Department of Commerce or the Secretary of 
Commerce, or by or against any individual in the official capacity of 
such individual as an officer or employee of an office transferred by 
this title, shall abate by reason of the enactment of this title.
    (e) Continuance of Suits.--If any Government officer in the 
official capacity of such officer is party to a suit with respect to a 
function of the officer, and under this title such function is 
transferred to any other officer or office, then such suit shall be 
continued with the other officer or the head of such other office, as 
applicable, substituted or added as a party.
    (f) Administrative Procedure and Judicial Review.--Except as 
otherwise provided by this title, any statutory requirements relating 
to notice, hearings, action upon the record, or administrative or 
judicial review that apply to any function transferred by this title 
shall apply to the exercise of such function by the head of the Federal 
agency, and other officers of the agency, to which such function is 
transferred by this title.

SEC. 144. TRANSFER OF ASSETS.

    Except as otherwise provided in this title, so much of the 
personnel, property, records, and unexpended balances of 
appropriations, allocations, and other funds employed, used, held, 
available, or to be made available in connection with a function 
transferred to an official or agency by this title shall be available 
to the official or the head of that agency, respectively, at such time 
or times as the Director of the Office of Management and Budget directs 
for use in connection with the functions transferred.

SEC. 145. DELEGATION AND ASSIGNMENT.

    (a) In General.--Except as otherwise expressly prohibited by law or 
otherwise provided in this title, an official to whom functions are 
transferred under this title (including the head of any office to which 
functions are transferred under this title) may--
            (1) delegate any of the functions so transferred to such 
        officers and employees of the office of the official as the 
        official may designate; and
            (2) authorize successive redelegations of such functions as 
        may be necessary or appropriate.
    (b) Responsibility for Administration.--No delegation of functions 
under this section or under any other provision of this title shall 
relieve the official to whom a function is transferred under this title 
of responsibility for the administration of the function.

SEC. 146. AUTHORITY OF DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET 
              WITH RESPECT TO FUNCTIONS TRANSFERRED.

    (a) Determinations.--If necessary, the Director of the Office of 
Management and Budget shall make any determination of the functions 
that are transferred under this title.
    (b) Incidental Transfers.--The Director of the Office of Management 
and Budget, at such time or times as the Director shall provide, may 
make such determinations as may be necessary with regard to the 
functions transferred by this title, and to make such additional 
incidental dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available in connection 
with such functions, as may be necessary to carry out the provisions of 
this title.
    (c) Termination of Affairs.--The Director shall provide for the 
termination of the affairs of all entities terminated by this title and 
for such further measures and dispositions as may be necessary to 
effectuate the purposes of this title.

SEC. 147. CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFERS.

    For purposes of this title, the vesting of a function in a 
department, agency, or office pursuant to reestablishment of an office 
shall be considered to be the transfer of the function.

SEC. 148. AVAILABILITY OF EXISTING FUNDS.

    Existing appropriations and funds available for the performance of 
functions, programs, and activities terminated pursuant to this title 
shall remain available, for the duration of their period of 
availability, for necessary expenses in connection with the termination 
and resolution of such functions, programs, and activities.

SEC. 149. DEFINITIONS.

    For purposes of this title--
            (1) the term ``function'' includes any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program; and
            (2) the term ``office'' includes any office, 
        administration, agency, bureau, institute, council, unit, 
        organizational entity, or component thereof.

           TITLE II--EARLY PUBLICATION OF PATENT APPLICATIONS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Patent Application Publication Act 
of 1996''.

SEC. 202. EARLY PUBLICATION.

    Section 122 of title 35, United States Code, is amended to read as 
follows:
``Sec. 122. Confidential status of applications; publication of patent 
              applications
    ``(a) Confidentiality.--Except as provided in subsection (b), 
applications for patents shall be kept in confidence by the Patent 
Office and no information concerning the same given without authority 
of the applicant or owner unless necessary to carry out the provisions 
of an Act of Congress or in such special circumstances as may be 
determined by the Commissioner.
    ``(b) Publication.--
            ``(1) In general.--(A) Subject to paragraph (2), each 
        application for patent, except applications for design patents 
        filed under chapter 16 of this title and provisional 
        applications filed under section 111(b) of this title, shall be 
        published, in accordance with procedures determined by the 
        Commissioner, as soon as possible after the expiration of a 
        period of 18 months from the earliest filing date for which a 
        benefit is sought under this title. At the request of the 
        applicant, an application may be published earlier than the end 
        of such 18-month period.
            ``(B) No information concerning published patent 
        applications shall be made available to the public except as 
        the Commissioner determines.
            ``(C) Notwithstanding any other provision of law, a 
        determination by the Commissioner to release or not to release 
        information concerning a published patent application shall be 
        final and nonreviewable.
            ``(2) Exceptions.--(A) An application that is no longer 
        pending shall not be published.
            ``(B) An application that is subject to a secrecy order 
        pursuant to section 181 of this title shall not be published.
            ``(C)(i) Upon the request of the applicant at the time of 
        application shall not be published in accordance with paragraph 
        (1) until 3 months after the Commissioner makes a notification 
        to the applicant under section 132 of this title.
            ``(ii) Applications filed pursuant to section 363 of this 
        title, applications asserting priority under section 119 or 
        365(a) of this title, and applications asserting the benefit of 
        an earlier application under section 120, 121, or 365(c) of 
        this title shall not be eligible for a request pursuant to this 
        subparagraph.
            ``(iii) In a request under this subparagraph, the applicant 
        shall certify that the invention disclosed in the application 
        was not and will not be the subject of an application filed in 
        a foreign country.
            ``(iv) The Commissioner may establish appropriate 
        procedures and fees for making a request under this 
        subparagraph.
    ``(c) Pre-Issuance Opposition.--The provisions of this section 
shall not operate to create any new opportunity for pre-issuance 
opposition. The Commissioner may establish appropriate procedures to 
ensure that this section does not create any new opportunity for pre-
issuance opposition that did not exist prior to the adoption of this 
section.''.

SEC. 203. TIME FOR CLAIMING BENEFIT OF EARLIER FILING DATE.

    (a) In a Foreign Country.--Section 119(b) of title 35, United 
States Code, is amended to read as follows:
    ``(b)(1) No application for patent shall be entitled to this right 
of priority unless a claim, identifying the foreign application by 
specifying its application number, country, and the day, month, and 
year of its filing, is filed in the Patent Office at such time during 
the pendency of the application as required by the Commissioner.
    ``(2) The Commissioner may consider the failure of the applicant to 
file a timely claim for priority as a waiver of any such claim, and may 
require the payment of a surcharge as a condition of accepting an 
untimely claim during the pendency of the application.
    ``(3) The Commissioner may require a certified copy of the original 
foreign application, specification, and drawings upon which it is 
based, a translation if not in the English language, and such other 
information as the Commissioner considers necessary. Any such 
certification shall be made by the foreign intellectual property 
authority in which the foreign application was filed and show the 
date of the application and of the filing of the specification and 
other papers.''.
    (b) In the United States.--Section 120 of title 35, United States 
Code, is amended by adding at the end the following: ``The Commissioner 
may determine the time period during the pendency of the application 
within which an amendment containing the specific reference to the 
earlier filed application is submitted. The Commissioner may consider 
the failure to submit such an amendment within that time period as a 
waiver of any benefit under this section. The Commissioner may 
establish procedures, including the payment of a surcharge, to accept 
unavoidably late submissions of amendments under this section.''.

SEC. 204. PROVISIONAL RIGHTS.

    Section 154 of title 35, United States Code, is amended--
            (1) in the section caption by inserting ``; provisional 
        rights'' after ``patent''; and
            (2) by adding at the end the following new subsection:
    ``(d) Provisional Rights.--
            ``(1) In general.--In addition to other rights provided by 
        this section, a patent shall include the right to obtain a 
        reasonable royalty from any person who, during the period 
        beginning on the date of publication of the application for 
        such patent pursuant to section 122(b) of this title, or in the 
        case of an international application designating the United 
        States, the date of international publication of the 
        application, and ending on the date the patent is issued--
                    ``(A)(i) makes, uses, offers for sale, or sells in 
                the United States the invention as claimed in the 
                published patent application or imports such an 
                invention into the United States; or
                    ``(ii) if the invention as claimed in the published 
                patent application is a process, uses, offers for sale, 
                or sells in the United States or imports into the 
                United States products made by that process as claimed 
                in the published patent application; and
                    ``(B) had actual notice of the published patent 
                application and where the right arising under this 
                paragraph is based upon an international application 
                designating the United States that is published in a 
                language other than English, a translation of the 
                international application into the English language.
            ``(2) Right based on substantially identical inventions.--
        The right under paragraph (1) to obtain a reasonable royalty 
        shall not be available under this subsection unless the 
        invention as claimed in the patent is substantially identical 
        to the invention as claimed in the published patent 
        application.
            ``(3) Time limitation on obtaining a reasonable royalty.--
        The right under paragraph (1) to obtain a reasonable royalty 
        shall be available only in an action brought not later than 6 
        years after the patent is issued. The right under paragraph (1) 
        to obtain a reasonable royalty shall not be affected by the 
        duration of the period described in paragraph (1).
            ``(4) Requirements for international applications.--
                    ``(A) Effective date.--The right under paragraph 
                (1) to obtain a reasonable royalty based upon the 
                publication under the treaty of an international 
                application designating the United States shall 
                commence from the date that the Patent Office receives 
                a copy of the publication under the treaty of the 
                international application, or, if the publication under 
                the treaty of the international application is in a 
                language other than English, from the date that the 
                Patent Office receives a translation of the 
                international application in the English language.
                    ``(B) Copies.--The Commissioner may require the 
                applicant to provide a copy of the international 
                application and a translation thereof.''.

SEC. 205. PRIOR ART EFFECT OF PUBLISHED APPLICATIONS.

    Section 102(e) of title 35, United States Code, is amended to read 
as follows:
    ``(e) the invention was described in--
            ``(1)(A) an application for patent, published pursuant to 
        section 122(b) of this title, by another filed in the United 
        States before the invention by the applicant for patent, except 
        that an international application filed under the treaty 
        defined in section 351(a) of this title shall have the effect 
        under this subsection of a national application published under 
        section 122(b) of this title only if the international 
        application designating the United States was published under 
        Article 21(2)(a) of such treaty in the English language, or
            ``(B) a patent granted on an application for patent by 
        another filed in the United States before the invention by the 
        applicant for patent, except that a patent granted on an 
international application filed under the treaty defined in section 
351(a) of this title shall have the effect under this subsection of a 
patent granted on a national application only if the international 
application was published under Article 21(2)(a) of such treaty in the 
English language, or''.

SEC. 206. COST RECOVERY FOR PUBLICATION.

    The Commissioner shall recover the cost of early publication 
required by the amendment made by section 202 by adjusting the filing, 
issue, and maintenance fees under title 35, United States Code, by 
charging a separate publication fee, or by any combination of these 
methods.

SEC. 207. CONFORMING CHANGES.

    The following provisions of title 35, United States Code, are 
amended:
            (1) Section 11 is amended in paragraph 1 of subsection (a) 
        by inserting ``and published applications for patents'' after 
        ``Patents''.
            (2) Section 12 is amended--
                    (A) in the section caption by inserting ``and 
                applications'' after ``patents''; and
                    (B) by inserting ``and published applications for 
                patents'' after ``patents''.
            (3) Section 13 is amended--
                    (A) in the section caption by inserting ``and 
                applications'' after ``patents''; and
                    (B) by inserting ``and published applications for 
                patents'' after ``patents''.
            (4) The items relating to sections 12 and 13 in the table 
        of sections for chapter 1 are each amended by inserting ``and 
        applications'' after ``patents''.
            (5) The item relating to section 122 in the table of 
        sections for chapter 11 is amended by inserting ``; publication 
        of patent applications'' after ``applications''.
            (6) The item relating to section 154 in the table of 
        sections for chapter 14 is amended by inserting ``; provisional 
        rights'' after ``patent''.
            (7) Section 181 is amended--
                    (A) in the first undesignated paragraph--
                            (i) by inserting ``by the publication of an 
                        application or'' after ``disclosure''; and
                            (ii) ``the publication of the application 
                        or'' after ``withhold'';
                    (B) in the second undesignated paragraph by 
                inserting ``by the publication of an application or'' 
                after ``disclosure of an invention'';
                    (C) in the third undesignated paragraph--
                            (i) by inserting ``by the publication of 
                        the application or'' after ``disclosure of the 
                        invention''; and
                            (ii) ``the publication of the application 
                        or'' after ``withhold''; and
                    (D) in the fourth undesignated paragraph by 
                inserting ``the publication of an application or'' 
                after ``and'' in the first sentence.
            (8) Section 252 is amended in the first undesignated 
        paragraph by inserting ``substantially'' before ``identical'' 
        each place it appears.
            (9) Section 284 is amended by adding at the end of the 
        second undesignated paragraph the following: ``Increased 
        damages under this paragraph shall not apply to provisional 
        rights under section 154(d) of this title.''.
            (10) Section 374 is amended to read as follows:
``Sec. 374. Publication of international application: Effect
    ``The publication under the treaty, defined in section 351(a) of 
this title, of an international application designating the United 
States shall confer the same rights and shall have the same effect 
under this title as an application for patent published under section 
122(b), except as provided in sections 102(e) and 154(d) of this 
title.''.

SEC. 208. LAST DAY OF PENDENCY OF PROVISIONAL APPLICATION.

    Section 119(e) of title 35, United States Code, is amended by 
adding at the end the following:
    ``(3) If the day that is 12 months after the filing date of a 
provisional application falls on a Saturday, Sunday, or legal holiday 
as defined in rule 6(a) of the Federal Rules of Civil Procedure, the 
period of pendency of the provisional application shall be extended to 
the next succeeding business day.''.

SEC. 209. EFFECTIVE DATE.

    (a) Sections 202 Through 207.--Sections 202 through 207, and the 
amendments made by such sections, shall take effect on April 1, 1997, 
and shall apply to all applications filed under section 111 of title 
35, United States Code, on or after that date, and all applications 
complying with section 371 of title 35, United States Code, that 
resulted from international applications filed on or after that date. 
The amendment made by section 204 shall also apply to international 
applications designating the United States that are filed on or after 
April 1, 1997.
    (b) Section 208.--The amendments made by section 208 shall take 
effect on the date of the enactment of this Act and, except for a 
design patent application filed under chapter 16 of title 35, United 
States Code, shall apply to any application filed on or after June 8, 
1995.

                   TITLE III--PATENT TERM RESTORATION

SEC. 301. PATENT TERM EXTENSION AUTHORITY.

    Section 154(b) of title 35, United States Code, is amended to read 
as follows:
    ``(b) Term Extension.--
            ``(1) Basis for patent term extension.--
                    ``(A) Delay.--Subject to the limitations under 
                paragraph (2), if the issue of an original patent is 
                delayed due to--
                            ``(i) a proceeding under section 135(a) of 
                        this title;
                            ``(ii) the imposition of an order pursuant 
                        to section 181 of this title;
                            ``(iii) appellate review by the Board of 
                        Patent Appeals and Interferences or by a 
                        Federal court where the patent was issued 
                        pursuant to a decision in the review reversing 
                        an adverse determination of patentability; or
                            ``(iv) an unusual administrative delay by 
                        the Patent Office in issuing the patent,
                the term of the patent shall be extended for the period 
                of delay.
                    ``(B) Administrative delay.--For purposes of 
                subparagraph (A)(iv), an unusual administrative delay 
                by the Patent Office is the failure to--
                            ``(i) make a notification of the rejection 
                        of any claim for a patent or any objection or 
                        argument under section 132 of this title or 
                        give or mail a written notice of allowance 
                        under section 151 of this title not later than 
                        14 months after the date on which the 
                        application was filed;
                            ``(ii) respond to a reply under section 132 
                        of this title or to an appeal taken under 
                        section 134 of this title not later than 4 
                        months after the date on which the reply was 
                        filed or the appeal was taken;
                            ``(iii) act on an application not later 
                        than 4 months after the date of a decision by 
                        the Board of Patent Appeals and Interferences 
                        under section 134 or 135 of this title or a 
                        decision by a Federal court under section 141, 
                        145, or 146 of this title where allowable 
                        claims remain in an application; or
                            ``(iv) issue a patent not later than 4 
                        months after the date on which the issue fee 
                        was paid under section 151 of this title and 
                        all outstanding requirements were satisfied.
            ``(2) Limitations.--
                    ``(A) In general.--The total duration of any 
                extensions granted pursuant to either subclause (iii) 
                or (iv) of paragraph (1)(A) or both such subclauses 
                shall not exceed 10 years. To the extent that periods 
                of delay attributable to grounds specified in paragraph 
                (1) overlap, the period of any extension granted under 
                this subsection shall not exceed the actual number of 
                days the issuance of the patent was delayed.
                    ``(B) Reduction of extension.--The period of 
                extension of the term of a patent under this subsection 
                shall be reduced by a period equal to the time in which 
                the applicant failed to engage in reasonable efforts to 
                conclude prosecution of the application. The 
                Commissioner shall prescribe regulations establishing 
                the circumstances that constitute a failure of an 
                applicant to engage in reasonable efforts to conclude 
                processing or examination of an application.
                    ``(C) Disclaimed term.--No patent the term of which 
                has been disclaimed beyond a specified date may be 
                extended under this section beyond the expiration date 
                specified in the disclaimer.
            ``(3) Procedures.--The Commissioner shall prescribe 
        regulations establishing procedures for the notification of 
        patent term extensions under this subsection and procedures for 
        contesting patent term extensions under this subsection.''.

SEC. 302. EFFECTIVE DATE.

    The amendments made by section 301 shall take effect on the date of 
the enactment of this Act and, except for a design patent application 
filed under chapter 16 of title 35, United States Code, shall apply to 
any application filed on or after June 8, 1995.

                TITLE IV--PRIOR DOMESTIC COMMERCIAL USE

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Prior Domestic Commercial Use Act 
of 1996''.

SEC. 402. DEFENSE TO PATENT INFRINGEMENT BASED ON PRIOR DOMESTIC 
              COMMERCIAL USE.

    (a) Defense.--Chapter 28 of title 35, United States Code, is 
amended by adding at the end the following new section:
``Sec. 273. Prior domestic commercial use; defense to infringement
    ``(a) Definitions.--For purposes of this section--
            ``(1) the terms `commercially used', `commercially use', 
        and `commercial use' mean the use in the United States in 
        commerce or the use in the design, testing, or production in 
        the United States of a product or service which is used in 
        commerce, whether or not the subject matter at issue is 
        accessible to or otherwise known to the public;
            ``(2) the terms `used in commerce', and `use in commerce' 
        mean that there has been an actual sale or other commercial 
        transfer of the subject matter at issue or that there has been 
        an actual sale or other commercial transfer of a product or 
        service resulting from the use of the subject matter at issue; 
        and
            ``(3) the `effective filing date' of a patent is the 
        earlier of the actual filing date of the application for the 
        patent or the filing date of any earlier United States, 
        foreign, or international application to which the subject 
matter at issue is entitled under section 119, 120, or 365 of this 
title.
    ``(b) Defense to Infringement.--
            ``(1) In general.--A person shall not be liable as an 
        infringer under section 271 of this title with respect to any 
        subject matter that would otherwise infringe one or more claims 
        in the patent being asserted against such person, if such 
        person had, acting in good faith, commercially used the subject 
        matter before the effective filing date of such patent.
            ``(2) Exhaustion of right.--The sale or other disposition 
        of the subject matter of a patent by a person entitled to 
        assert a defense under this section with respect to that 
        subject matter shall exhaust the patent owner's rights under 
        the patent to the extent such rights would have been exhausted 
        had such sale or other disposition been made by the patent 
        owner.
    ``(c) Limitations and Qualifications of Defense.--The defense to 
infringement under this section is subject to the following:
            ``(1) Derivation.--A person may not assert the defense 
        under this section if the subject matter on which the defense 
        is based was derived from the patentee or persons in privity 
        with the patentee.
            ``(2) Not a general license.--The defense asserted by a 
        person under this section is not a general license under all 
        claims of the patent at issue, but extends only to the subject 
        matter claimed in the patent with respect to which the person 
        can assert a defense under this chapter, except that the 
        defense shall also extend to variations in the quantity or 
        volume of use of the claimed subject matter, and to 
        improvements in the claimed subject matter that do not infringe 
        additional specifically claimed subject matter of the patent.
            ``(3) Effective and serious preparation.--With respect to 
        subject matter that cannot be commercialized without a 
        significant investment of time, money, and effort, a person 
        shall be deemed to have commercially used the subject matter 
        if--
                    ``(A) before the effective filing date of the 
                patent, the person reduced the subject matter to 
                practice in the United States, completed a significant 
                portion of the total investment necessary to 
                commercially use the subject matter, and made a 
                commercial transaction in the United States in 
                connection with the preparation to use the subject 
                matter; and
                    ``(B) thereafter the person diligently completed 
                the remainder of the activities and investments 
                necessary to commercially use the subject matter, and 
                promptly began commercial use of the subject matter, 
                even if such activities were conducted after the 
                effective filing date of the patent.
            ``(4) Burden of proof.--A person asserting the defense 
        under this section shall have the burden of establishing the 
        defense.
            ``(5) Abandonment of use.--A person who has abandoned 
        commercial use of subject matter may not rely on activities 
        performed before the date of such abandonment in establishing a 
        defense under subsection (b) with respect to actions taken 
        after the date of such abandonment.
            ``(6) Personal defense.--The defense under this section may 
        only be asserted by the person who performed the acts necessary 
        to establish the defense and, except for any transfer to the 
        patent owner, the right to assert the defense shall not be 
        licensed or assigned or transferred to another person except in 
        connection with the good faith assignment or transfer of the 
        entire enterprise or line of business to which the defense 
        relates.
            ``(7) One-year limitation.--A person may not assert a 
        defense under this section unless the subject matter on which 
        the defense is based had been commercially used or reduced to 
        practice more than one year prior to the effective filing date 
        of the patent by the person asserting the defense or someone in 
        privity with that person.
    ``(d) Unsuccessful Assertion of Defense.--If the defense under this 
section is pleaded by a person who is found to infringe the patent and 
who subsequently fails to demonstrate a reasonable basis for asserting 
the defense, the court shall find the case exceptional for the purpose 
of awarding attorney's fees under section 285 of this title.
    ``(e) Invalidity.--A patent shall not be deemed to be invalid under 
section 102 or 103 of this title solely because a defense is 
established under this section.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of chapter 28 of title 35, United States Code, is amended by adding at 
the end the following new item:

``Sec. 273. Prior domestic commercial use; defense to infringement.''.

SEC. 403. EFFECTIVE DATE AND APPLICABILITY.

    This title and the amendments made by this title shall take effect 
on the date of the enactment of this Act, but shall not apply to any 
action for infringement that is pending on such date of enactment or 
with respect to any subject matter for which an adjudication of 
infringement, including a consent judgment, has been made before such 
date of enactment.

                  TITLE V--PATENT REEXAMINATION REFORM

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Patent Reexamination Reform Act of 
1996''.

SEC. 502. DEFINITIONS.

    Section 100 of title 35, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) The term `third-party requester' means a person requesting 
reexamination under section 302 of this title who is not the patent 
owner.''.

SEC. 503. REEXAMINATION PROCEDURES.

    (a) Request for Reexamination.--Section 302 of title 35, United 
States Code, is amended to read as follows:
``Sec. 302. Request for reexamination
    ``(a) In General.--Any person at any time may file a request for 
reexamination by the Office of a patent on the basis of any prior art 
cited under the provisions of section 301 of this title or on the basis 
of the requirements of section 112 of this title except for the 
requirement to set forth the best mode of carrying out the invention.
    ``(b) Requirements.--The request shall--
            ``(1) be in writing, include the identity of the real party 
        in interest, and be accompanied by payment of a reexamination 
        fee established by the Commissioner of Patents pursuant to the 
        provisions of section 41 of this title; and
            ``(2) set forth the pertinency and manner of applying cited 
        prior art to every claim for which reexamination is requested 
        or the manner in which the patent specification or claims fail 
        to comply with the requirements of section 112 of this title.
    ``(c) Copy.--Unless the requesting person is the owner of the 
patent, the Commissioner promptly shall send a copy of the request to 
the owner of record of the patent.''.
    (b) Determination of Issue by Commissioner.--Section 303 of title 
35, United States Code, is amended to read as follows:
``Sec. 303. Determination of issue by Commissioner
    ``(a) Reexamination.--Not later than 3 months after the filing of a 
request for reexamination under the provisions of section 302 of this 
title, the Commissioner shall determine whether a substantial new 
question of patentability affecting any claim of the patent concerned 
is raised by the request, with or without consideration of other 
patents or printed publications. On the Commissioner's initiative, and 
any time, the Commissioner may determine whether a substantial new 
question of patentability is raised by patents and publications or by 
the failure of the patent specification or claims to comply with the 
requirements of section 112 of this title except for the best mode 
requirement described in section 302.
    ``(b) Record.--A record of the Commissioner's determination under 
subsection (a) shall be placed in the official file of the patent, and 
a copy shall be promptly given or mailed to the owner of record of the 
patent and to the third-party requester, if any.
    ``(c) Final Decision.--A determination by the Commissioner pursuant 
to subsection (a) shall be final and nonappealable. Upon a 
determination that no substantial new question of patentability has 
been raised, the Commissioner may refund a portion of the reexamination 
fee required under section 302 of this title.''.
    (c) Reexamination Order by Commissioner.--Section 304 of title 35, 
United States Code, is amended to read as follows:
``Sec. 304. Reexamination order by Commissioner
    ``If, in a determination made under the provisions of section 
303(a) of this title, the Commissioner finds that a substantial new 
question of patentability affecting a claim of a patent is raised, the 
determination shall include an order for reexamination of the patent 
for resolution of the question. The order may be accompanied by the 
initial action of the Patent Office on the merits of the reexamination 
conducted in accordance with section 305 of this title.''.
    (d) Conduct of Reexamination Proceedings.--Section 305 of title 35, 
United States Code, is amended to read as follows:
``Sec. 305. Conduct of reexamination proceedings
    ``(a) In General.--Subject to subsection (b), reexamination shall 
be conducted according to the procedures established for initial 
examination under the provisions of sections 132 and 133 of this title. 
In any reexamination proceeding under this chapter, the patent owner 
shall be permitted to propose any amendment to the patent and a new 
claim or claims, except that no proposed amended or new claim enlarging 
the scope of the claims of the patent shall be permitted.
    ``(b) Response.--(1) This subsection shall apply to any 
reexamination proceeding in which the order for reexamination is based 
upon a request by a third-party requester.
    ``(2) With the exception of the reexamination request, any document 
filed by either the patent owner or the third-party requester shall be 
served on the other party.
    ``(3) If the patent owner files a response to any Patent Office 
action on the merits, the third-party requester shall have 1 
opportunity to file written comments within a reasonable period not 
less than 1 month after the date of service of the patent owner's 
response. Written comments provided under this paragraph shall be 
limited to issues covered by the Patent Office action or the patent 
owner's response.
    ``(c) Special Dispatch.--Unless otherwise provided by the 
Commissioner for good cause, all reexamination proceedings under this 
section, including any appeal to the Board of Patent Appeals and 
Interferences, shall be conducted with special dispatch within the 
Office.''.
    (e) Appeal.--Section 306 of title 35, United States Code, is 
amended to read as follows:
``Sec. 306. Appeal
    ``(a) Patent Owner.--The patent owner involved in a reexamination 
proceeding under this chapter--
            ``(1) may appeal under the provisions of section 134 of 
        this title, and may appeal under the provisions of sections 141 
        through 144 of this title, with respect to any decision adverse 
        to the patentability of any original or proposed amended or new 
        claim of the patent, and
            ``(2) may be a party to any appeal taken by a third-party 
        requester pursuant to subsection (b) of this section.
    ``(b) Third-Party Requester.--A third-party requester may--
            ``(1) appeal under the provisions of section 134 of this 
        title, and may appeal under the provisions of sections 141 
        through 144 of this title, with respect to any final decision 
        favorable to the patentability of any original or proposed 
        amended or new claim of the patent; or
            ``(2) be a party to any appeal taken by the patent owner, 
        subject to subsection (c) of this section.
    ``(c) Participation as Party.--
            ``(1) In general.--A third-party requester who, under the 
        provisions of sections 141 through 144 of this title, files a 
        notice of appeal or who participates as a party to an appeal by 
        the patent owner is estopped from asserting at a later time, in 
        any forum, the invalidity of any claim determined to be 
        patentable on appeal on any ground which the third-party 
        requester raised or could have raised during the reexamination 
        proceedings.
            ``(2) Election to participate.--A third-party requester is 
        deemed not to have participated as a party to an appeal by the 
        patent owner unless, not later than 20 days after the patent 
        owner has filed notice of appeal, the third-party requester 
        files notice with the Commissioner electing to participate.''.
    (f) Reexamination Prohibited.--
            ``(1) In general.--Chapter 30 of title 35, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 308. Reexamination prohibited
    ``(a) Order for Reexamination.--Notwithstanding any provision of 
this chapter, once an order for reexamination of a patent has been 
issued under section 304 of this title, neither the patent owner nor 
the third-party requester, if any, nor privies of either, may file a 
subsequent request for reexamination of the patent until a 
reexamination certificate is issued and published under section 307 of 
this title, unless authorized by the Commissioner.
    ``(b) Final Decision.--Once a final decision has been entered 
against a party in a civil action arising in whole or in part under 
section 1338 of title 28 that the party has not sustained its burden of 
proving the invalidity of any patent claim in suit, then neither that 
party nor its privies may thereafter request reexamination of any such 
patent claim on the basis of issues which that party or its privies 
raised or could have raised in such civil action, and a reexamination 
requested by that party or its privies on the basis of such issues may 
not thereafter be maintained by the Office, notwithstanding any other 
provision of this chapter.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 30 of title 35, United States Code, is 
        amended by adding at the end the following:

``308. Reexamination prohibited.''.

SEC. 504. CONFORMING AMENDMENTS.

    (a) Patent Fees; Patent Search Systems.--Section 41(a)(7) of title 
35, United States Code, is amended to read as follows:
            ``(7) On filing each petition for the revival of an 
        unintentionally abandoned application for a patent, for the 
        unintentionally delayed payment of the fee for issuing each 
        patent, or for an unintentionally delayed response by the 
        patent owner in a reexamination proceeding, $1,250, unless the 
        petition is filed under sections 133 or 151 of this title, in 
        which case the fee shall be $110.''.
    (b) Appeal to the Board of Patent Appeals and Interferences.--
Section 134 of title 35, United States Code, is amended to read as 
follows:
``Sec. 134. Appeal to the Board of Patent Appeals and Interferences
    ``(a) Patent Applicant.--An applicant for a patent, any of whose 
claims has been twice rejected, may appeal from the decision of the 
primary examiner to the Board of Patent Appeals and Interferences, 
having once paid the fee for such appeal.
    ``(b) Patent Owner.--A patent owner in a reexamination proceeding 
may appeal from the final rejection of any claim by the primary 
examiner to the Board of Patent Appeals and Interferences, having once 
paid the fee for such appeal.
    ``(c) Third-Party.--A third-party requester may appeal to the Board 
of Patent Appeals and Interferences from the final decision of the 
primary examiner favorable to the patentability of any original or 
proposed amended or new claim of a patent, having once paid the fee for 
such appeal.''.
    (d) Appeal to Court of Appeals for the Federal Circuit.--Section 
141 of title 35, United States Code, is amended by amending the first 
sentence to read as follows: ``An applicant, a patent owner, or a 
third-party requester, dissatisfied with the final decision in an 
appeal to the Board of Patent Appeals and Interferences under section 
134 of this title, may appeal the decision to the United States Court 
of Appeals for the Federal Circuit.''.
    (e) Proceedings on Appeal.--Section 143 of title 35, United States 
Code, is amended by amending the third sentence to read as follows: 
``In ex parte and reexamination cases, the Commissioner shall submit to 
the court in writing the grounds for the decision of the Patent Office, 
addressing all the issues involved in the appeal.''.
    (f) Civil Action To Obtain Patent.--Section 145 of title 35, United 
States Code, is amended in the first sentence by inserting ``(a)'' 
after ``section 134''.

SEC. 505. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
on the date that is 6 months after the date of the enactment of this 
Act and shall apply to all reexamination requests filed on or after 
such date.

               TITLE VI--MISCELLANEOUS PATENT PROVISIONS

SEC. 601. PROVISIONAL APPLICATIONS.

    (a) Abandonment.--Section 111(b)(5) of title 35, United States 
Code, is amended to read as follows:
            ``(5) Abandonment.--Notwithstanding the absence of a claim, 
        upon timely request and as prescribed by the Commissioner, a 
        provisional application may be treated as an application filed 
        under subsection (a). If no such request is made, the 
        provisional application shall be regarded as abandoned 12 
        months after the filing date of such application and shall not 
        be subject to revival thereafter.''.
    (b) Effective Date.--The amendments made by subsection (a) apply to 
a provisional application filed on or after June 8, 1995.

SEC. 602. INTERNATIONAL APPLICATIONS.

    Section 119 of title 35, United States Code, is amended as follows:
            (1) In subsection (a), insert ``or in a WTO member 
        country'' after ``or to citizens of the United States,''.
            (2) At the end of section 119 add the following new 
        subsections:
    ``(f) Applications for plant breeder's rights filed in a WTO member 
country (or in a foreign UPOV Contracting Party) shall have the same 
effect for the purpose of the right of priority under subsections (a) 
through (c) of this section as applications for patents, subject to the 
same conditions and requirements of this section as apply to 
applications for patents.
    ``(g) As used in this section--
            ``(1) the term `WTO member country' has the same meaning as 
        the term is defined in section 104(b)(2) of this title; and
            ``(2) the term `UPOV Contracting Party' means a member of 
        the International Convention for the Protection of New 
        Varieties of Plants.''.

SEC. 603. PLANT PATENTS.

    (a) Tuber Propagated Plants.--Section 161 of title 35, United 
States Code, is amended by striking ``a tuber propagated plant or''.
    (b) Rights in Plant Patents.--The text of section 163 of title 35, 
United States Code, is amended to read as follows: ``In the case of a 
plant patent, the grant to the patentee, such patentee's heirs or 
assigns, shall have the right to exclude others from asexually 
reproducing the plant, and from using, offering for sale, or selling 
the plant so reproduced, or any of its parts, throughout the United 
States, or from importing the plant so reproduced, or any parts 
thereof, into the United States.''.
    (c) Effective Date.--The amendments by subsection (a) shall apply 
on the date of enactment of this Act. The amendments made by subsection 
(b) shall apply to any plant patent issued on or after the date of 
enactment of this Act.

SEC. 604. JUST COMPENSATION FOR UNITED STATES GOVERNMENT USE OF 
              PATENTS.

    (a) Compensation.--Section 1498(a) of title 28, United States Code, 
is amended by adding at the end of the first paragraph the following: 
``Reasonable and entire compensation shall include the owner's 
reasonable costs, including reasonable fees for expert witnesses and 
attorneys, in pursuing the action if the owner is an independent 
inventor, a nonprofit organization, or an entity that had no more than 
500 employees at any time during the 5-year period preceding the use or 
manufacture of the patented invention by or for the United States.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to actions under section 1498(a) of title 28, United States Code, 
that are pending on, or brought on or after, the date of the enactment 
of this Act.

SEC. 605. ELECTRONIC FILING.

    Section 22 of title 35, United States Code, is amended by striking 
``printed or typewritten'' and inserting ``printed, typewritten, or on 
an electronic medium''.