[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 421 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 421

  To amend title 35, United States Code, to establish the Patent and 
 Trademark Office as a Government corporation, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 11, 1997

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

_______________________________________________________________________

                                 A BILL


 
  To amend title 35, United States Code, to establish the Patent and 
 Trademark Office as a Government corporation, 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 ``Patent and Trademark Office Reform 
Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
           TITLE I--UNITED STATES PATENT AND TRADEMARK OFFICE

Sec. 101. Establishment of Patent and Trademark Office as a Government 
                            corporation.
Sec. 102. Powers and duties.
Sec. 103. Organization and management.
Sec. 104. Management Advisory Board.
Sec. 105. Conforming amendments.
Sec. 106. Trademark Trial and Appeal Board.
Sec. 107. Board of Patent Appeals and Interferences.
Sec. 108. Suits by and against the Office.
Sec. 109. Annual report of Commissioner.
Sec. 110. Suspension or exclusion from practice.
Sec. 111. Funding.
Sec. 112. Audits.
Sec. 113. Transfers.
Sec. 114. Nonapplicability of Federal workforce reductions.
             TITLE II--EFFECTIVE DATE; TECHNICAL AMENDMENTS

Sec. 201. Effective date.
Sec. 202. Technical and conforming amendments.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. References.
Sec. 302. Exercise of authorities.
Sec. 303. Savings provisions.
Sec. 304. Transfer of assets.
Sec. 305. Delegation and assignment.
Sec. 306. Authority of Director of the Office of Management and Budget 
                            with respect to functions transferred.
Sec. 307. Certain vesting of functions considered transfers.
Sec. 308. Availability of existing funds.
Sec. 309. Definitions.
          TITLE IV--UNDER SECRETARY FOR INTELLECTUAL PROPERTY

Sec. 401. Under Secretary for Intellectual Property.

           TITLE I--UNITED STATES PATENT AND TRADEMARK OFFICE

SEC. 101. ESTABLISHMENT OF PATENT AND TRADEMARK OFFICE AS A GOVERNMENT 
              CORPORATION.

    Section 1 of title 35, United States Code, is amended to read as 
follows:
``Sec. 1. Establishment
    ``(a) Establishment.--The United States Patent and Trademark Office 
is established as a wholly owned Government corporation subject to 
chapter 91 of title 31, separate from any department of the United 
States, and shall be an agency of the United States under the policy 
direction of the Secretary of Commerce. For purposes of internal 
management, the United States Patent and Trademark Office shall be a 
corporate body not subject to direction or supervision by any 
department of the United States, except as otherwise provided in this 
title.
    ``(b) Offices.--The United States Patent and Trademark Office shall 
maintain its principal office in the metropolitan Washington, D.C. 
area, for the service of process and papers and for the purpose of 
carrying out its functions. The United States Patent and Trademark 
Office shall be deemed, for purposes of venue in civil actions, to be a 
resident of the district in which its principal office is located, 
except where jurisdiction is otherwise provided by law. The United 
States Patent and Trademark Office may establish satellite offices in 
such other places as it considers necessary and appropriate in the 
conduct of its business.
    ``(c) Reference.--For purposes of this title, the United States 
Patent and Trademark Office shall also be referred to as the `Office' 
and the `Patent and Trademark Office'.''.

SEC. 102. POWERS AND DUTIES.

    Section 2 of title 35, United States Code, is amended to read as 
follows:
``Sec. 2. Powers and duties
    ``(a) In General.--The United States Patent and Trademark Office 
shall be responsible for--
            ``(1) the granting and issuing of patents and the 
        registration of trademarks;
            ``(2) conducting studies, programs, or exchanges of items 
        or services regarding domestic and international law of 
        patents, trademarks, and related matters, 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 and trademark offices and 
        international organizations, in connection with the granting 
        and issuing of patents and the registration of trademarks; and
            ``(4) disseminating to the public information with respect 
        to patents and trademarks.
    ``(b) Specific Powers.--The Office--
            ``(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, and papers issued by the Office 
        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 7;
            ``(4) may indemnify the Commissioner, and other officers, 
        attorneys, agents, and employees (including members of the 
        Management Advisory Board established in section 5) of the 
        Office 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;
                    ``(B) shall be made after notice and opportunity 
                for full participation by interested public and private 
                parties;
                    ``(C) shall facilitate and expedite the processing 
                of patent applications, particularly those which can be 
                filed, stored, processed, searched, and retrieved 
                electronically, subject to the provisions of section 
                122 relating to the confidential status of 
                applications; and
                    ``(D) may govern the recognition and conduct of 
                agents, attorneys, or other persons representing 
                applicants or other parties before the Office, and may 
                require them, 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;
            ``(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 and 
        following), the Public Buildings Act (40 U.S.C. 601 and 
        following), and the Stewart B. McKinney Homeless Assistance Act 
        (42 U.S.C. 11301 and following); 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 Office, 
        without regard to sections 501 through 517 and 1101 through 
        1123 of title 44;
            ``(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 Office;
            ``(9) may obtain from the Administrator of General Services 
        such services as the Administrator is authorized to provide to 
        other agencies of the United States, on the same basis as those 
        services are provided to other agencies of the United States;
            ``(10) when the Commissioner determines that it is 
        practicable, efficient, and cost-effective to do so, 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 this title and the Act of July 5, 1946 (commonly referred to 
        as the `Trademark Act of 1946');
            ``(12) may retain and use all of its revenues and receipts, 
        including revenues from the sale, lease, or disposal of any 
        real, personal, or mixed property, or any interest therein, of 
        the Office, 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 Office;
            ``(15) may execute, in accordance with its bylaws, rules, 
        and regulations, all instruments necessary and appropriate in 
        the exercise of any of its powers; and
            ``(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.
    ``(c) Construction.--Nothing in this section shall be construed to 
nullify, void, cancel, or interrupt any pending request-for-proposal 
let or contract issued by the General Services Administration for the 
specific purpose of relocating or leasing space to the United States 
Patent and Trademark Office.''.

SEC. 103. 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 and Trademark Office shall be vested in a Commissioner 
        of the United States Patent and Trademark Office (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 or trademark law, is 
        especially qualified to manage the Office.
            ``(2) Duties.--
                    ``(A) In general.--The Commissioner shall be 
                responsible for the management and direction of the 
                Office, including the issuance of patents and the 
                registration of trademarks, and shall perform these 
                duties in a fair, impartial, and equitable manner.
                    ``(B) Advising the president.--The Commissioner 
                shall advise the President, through the Secretary of 
                Commerce, on the operation of the Office.
                    ``(C) Consulting 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 or trademark user fees or patent or 
                trademark regulations.
                    ``(D) Security clearances.--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.
            ``(3) Term.--The Commissioner shall serve a term of 5 
        years, and may continue to serve after the expiration of the 
        Commissioner's term until a successor is appointed and assumes 
        office. The Commissioner may be reappointed to subsequent 
        terms.
            ``(4) Oath.--The Commissioner shall, before taking office, 
        take an oath to discharge faithfully the duties of the Office.
            ``(5) Compensation.--The Commissioner shall receive 
        compensation at the rate of pay in effect for level II of the 
        Executive Schedule under section 5313 of title 5 and, in 
        addition, may receive as a bonus awarded by the Secretary, an 
        amount up to the equivalent of the annual rate of basic pay for 
such level II, based upon an evaluation by the Secretary of Commerce of 
the Commissioner's performance as defined in an annual performance 
agreement between the Commissioner and the Secretary. The annual 
performance agreement shall incorporate measurable goals as delineated 
in an annual performance plan agreed to by the Commissioner and the 
Secretary.
            ``(6) Removal.--The Commissioner may be removed from office 
        by the President. The President shall provide notification of 
        any such removal to both Houses of Congress.
            ``(7) Designee of commissioner.--The Commissioner shall 
        designate an officer of the Office 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.
    ``(b) Officers and Employees of the Office.--
            ``(1) Assistant commissioners.--The Commissioner shall 
        appoint an Assistant Commissioner for Patents and an Assistant 
        Commissioner for Trademarks for terms that shall expire on the 
        date on which the Commissioner's term expires. The Assistant 
        Commissioner for Patents shall be a person with demonstrated 
        experience in patent law and the Assistant Commissioner for 
        Trademarks shall be a person with demonstrated experience in 
        trademark law. The Assistant Commissioner for Patents and the 
        Assistant Commissioner for Trademarks shall be the principal 
        policy and management advisers to the Commissioner on all 
        aspects of the activities of the Office that affect the 
        administration of patent and trademark operations, 
        respectively.
            ``(2) Other officers and employees.--
                    ``(A) In general.--The Commissioner shall--
                            ``(i) appoint such officers, employees 
                        (including attorneys), and agents of the Office 
                        as the Commissioner considers necessary to 
                        carry out the functions of the Office;
                            ``(ii) fix the compensation of such 
                        officers and employees, except as otherwise 
                        provided in this section; and
                            ``(iii) define the authority and duties of 
                        such officers and employees and delegate to 
                        them such of the powers vested in the Office as 
                        the Commissioner may determine.
                    ``(B) Limitations.--The Office shall not be subject 
                to any administratively or statutorily imposed 
                limitation on positions or personnel, and no positions 
                or personnel of the Office shall be taken into account 
                for purposes of applying any such limitation.
    ``(c) Limits on Compensation.--Except as otherwise provided by law, 
the annual rate of basic pay of an officer or employee of the Office 
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 for that year 
involved. The Commissioner shall prescribe such regulations as may be 
necessary to carry out this subsection.
    ``(d) Inapplicability of Title 5 Generally.--Except as otherwise 
provided in this section, officers and employees of the Office shall 
not be subject to the provisions of title 5 relating to Federal 
employees.
    ``(e) Continued Applicability of Certain Provision of Title 5.--
            ``(1) In general.--The following provisions of title 5 
        shall apply to the Office and its officers and employees:
                    ``(A) Section 2302 (relating to prohibited 
                personnel practices).
                    ``(B) Section 3110 (relating to employment of 
                relatives; restrictions).
                    ``(C) Subchapter II of chapter 55 (relating to 
                withholding pay).
                    ``(D) Subchapters II and III of chapter 73 
                (relating to employment limitations and political 
                activities, respectively).
                    ``(E) Chapter 71 (relating to labor-management 
                relations), subject to paragraph (2) and subsection 
                (g).
                    ``(F) Section 3303 (relating to political 
                recommendations).
                    ``(G) Subchapter II of chapter 61 (relating to 
                flexible and compressed work schedules).
            ``(2) Compensation subject to collective bargaining.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, for purposes of applying chapter 71 
                of title 5 pursuant to paragraph (1)(D), basic pay and 
                other forms of compensation shall be considered to be 
                among the matters as to which the duty to bargain in 
                good faith extends under such chapter.
                    ``(B) Exceptions.--The duty to bargain in good 
                faith shall not, by reason of subparagraph (A), be 
                considered to extend to any benefit under title 5 which 
                is afforded by paragraph (1), (2), (3), or (4) of 
                subsection (f).
                    ``(C) Limitations apply.--Nothing in this 
                subsection shall be considered to allow any limitation 
                under subsection (c) to be exceeded.
    ``(f) Provisions of Title 5 That Continue To Apply, Subject to 
Certain Requirements.--
            ``(1) Retirement.--(A) The provisions of subchapter III of 
        chapter 83 and chapter 84 of title 5 shall apply to the Office 
        and its officers and employees, subject to subparagraph (B).
            ``(B)(i) The amount required of the Office under the second 
        sentence of section 8334(a)(1) of title 5 with respect to any 
        particular individual shall, instead of the amount which would 
        otherwise apply, be equal to the normal-cost percentage 
        (determined with respect to officers and employees of the 
        Office using dynamic assumptions, as defined by section 8401(9) 
        of such title) of the individual's basic pay, minus the amount 
        required to be withheld from such pay under such section 
        8334(a)(1).
            ``(ii) The amount required of the Office under section 
        8334(k)(1)(B) of title 5 with respect to any particular 
        individual shall be equal to an amount computed in a manner 
        similar to that specified in clause (i), as determined in 
        accordance with clause (iii).
            ``(iii) Any regulations necessary to carry out this 
        subparagraph shall be prescribed by the Office of Personnel 
        Management.
            ``(C) The United States Patent and Trademark Office may 
        supplement the benefits provided under the preceding provisions 
        of this paragraph.
            ``(2) Health benefits.--(A) The provisions of chapter 89 of 
        title 5 shall apply to the Office and its officers and 
        employees, subject to subparagraph (B).
            ``(B)(i) With respect to any individual who becomes an 
        officer or employee of the Office pursuant to subsection (h), 
        the eligibility of such individual to participate in such 
        program as an annuitant (or of any other person to participate 
        in such program as an annuitant based on the death of such 
        individual) shall be determined disregarding the requirements 
        of section 8905(b) of title 5. The preceding sentence shall not 
apply if the individual ceases to be an officer or employee of the 
Office for any period of time after becoming an officer or employee of 
the Office pursuant to subsection (h) and before separation.
            ``(ii) The Government contributions authorized by section 
        8906 of title 5 for health benefits for anyone participating in 
        the health benefits program pursuant to this subparagraph shall 
        be made by the Office in the same manner as provided under 
        section 8906(g)(2) of title 5 with respect to the United States 
        Postal Service for individuals associated therewith.
            ``(iii) For purposes of this subparagraph, the term 
        `annuitant' has the meaning given such term by section 8901(3) 
        of title 5.
            ``(C) The Office may supplement the benefits provided under 
        the preceding provisions of this paragraph.
            ``(3) Life insurance.--(A) The provisions of chapter 87 of 
        title 5 shall apply to the Office and its officers and 
        employees, subject to subparagraph (B).
            ``(B)(i) Eligibility for life insurance coverage after 
        retirement or while in receipt of compensation under subchapter 
        I of chapter 81 of title 5 shall be determined, in the case of 
        any individual who becomes an officer or employee of the Office 
        pursuant to subsection (h), without regard to the requirements 
        of section 8706(b) (1) or (2) of such title, but subject to the 
        condition specified in the last sentence of paragraph (2)(B)(i) 
        of this subsection.
            ``(ii) Government contributions under section 8708(d) of 
        such title on behalf of any such individual shall be made by 
        the Office in the same manner as provided under paragraph (3) 
        thereof with respect to the United States Postal Service for 
        individuals associated therewith.
            ``(C) The Office may supplement the benefits provided under 
        the preceding provisions of this paragraph.
            ``(4) Employees' compensation fund.--(A) Officers and 
        employees of the Office shall not become ineligible to 
        participate in the program under chapter 81 of title 5, 
        relating to compensation for work injuries, by reason of 
        subsection (d).
            ``(B) The Office shall remain responsible for reimbursing 
        the Employees' Compensation Fund, pursuant to section 8147 of 
        title 5, for compensation paid or payable after the effective 
        date of the Patent and Trademark Office Reform Act in 
        accordance with chapter 81 of title 5 with regard to any 
        injury, disability, or death due to events arising before such 
        date, whether or not a claim has been filed or is final on such 
        date.
    ``(g) Labor-Management Relations.--
            ``(1) Labor relations and employee relations programs.--The 
        Office shall develop labor relations and employee relations 
        programs with the objective of improving productivity, 
        efficiency, and the quality of working life of Office 
        employees, incorporating the following principles:
                    ``(A) Such programs shall be consistent with the 
                merit principles in section 2301(b) of title 5.
                    ``(B) Such programs shall provide veterans 
                preference protections equivalent to those established 
                by sections 2108, 3308 through 3318, and 3320 of title 
                5.
                    ``(C)(i) The right to work shall not be subject to 
                undue restraint or coercion. The right to work shall 
                not be infringed or restricted in any way based on 
                membership in, affiliation with, or financial support 
                of a labor organization.
                    ``(ii) No person shall be required, as a condition 
                of employment or continuation of employment--
                            ``(I) to resign or refrain from voluntary 
                        membership in, voluntary affiliation with, or 
                        voluntary financial support of a labor 
                        organization;
                            ``(II) to become or remain a member of a 
                        labor organization;
                            ``(III) to pay any dues, fees, assessments, 
                        or other charges of any kind or amount to a 
                        labor organization;
                            ``(IV) to pay to any charity or other third 
                        party, in lieu of such payments, any amount 
                        equivalent to or a pro rata portion of dues, 
                        fees, assessments, or other charges regularly 
                        required of members of a labor organization; or
                            ``(V) to be recommended, approved, 
                        referred, or cleared by or through a labor 
                        organization.
                    ``(iii) This subparagraph shall not apply to a 
                person described in section 7103(a)(2)(v) of title 5 or 
                a `supervisor', `management official', or `confidential 
                employee' as those terms are defined in section 7103(a) 
                (10), (11), and (13) of such title.
                    ``(iv) Any labor organization recognized by the 
                Office as the exclusive representative of a unit of 
                employees of the Office shall represent the interests 
                of all employees in that unit without discrimination 
                and without regard to labor organization membership.
            ``(2) Adoption of existing labor agreements.--The Office 
        shall adopt all labor agreements which are in effect, as of the 
        day before the effective date of the Patent and Trademark 
        Office Reform Act, with respect to such Office (as then in 
        effect).
    ``(h) Carryover of Personnel.--
            ``(1) From pto.--Effective as of the effective date of the 
        Patent and Trademark Office Reform Act, all officers and 
        employees of the Patent and Trademark Office on the day before 
        such effective date shall become officers and employees of the 
        Office established under this Act or may be reassigned to the 
        Office of the Under Secretary for Intellectual Property, 
        without a break in service.
            ``(2) Other personnel.--Any individual who, on the day 
        before the effective date of the Patent and Trademark Office 
        Reform Act, is an officer or employee of the Department of 
        Commerce (other than an officer or employee under paragraph 
        (1)) shall be transferred to the Office if--
                    ``(A) 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;
                    ``(B) 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
                    ``(C) such transfer would be in the interest of the 
                Office, as determined by the Secretary of Commerce in 
                consultation with the Commissioner.
        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) Nonseparation.--No person who becomes an officer or 
        employee of the Office under this subsection shall, for a 
        period of 1 year after the effective date of the Patent and 
        Trademark Office Reform Act, be subject to separation as a 
        consequence of the establishment of the Office.
            ``(4) Accumulated leave.--The amount of sick and annual 
        leave and compensatory time accumulated under title 5 before 
        the effective date described in paragraph (1), by those 
        becoming officers or employees of the Office pursuant to this 
        subsection, are obligations of the Office.
            ``(5) Termination rights.--Any employee referred to in 
        paragraph (1) or (2) of this subsection whose employment with 
        the Office is terminated during the 2-year period beginning on 
        the effective date of the Patent and Trademark Office Reform 
        Act shall be entitled to rights and benefits, to be afforded by 
        the Office, 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 this 2-
        year period to the board under such procedures as it may 
        prescribe.
            ``(6) Continuation in office of certain officers.--``(A) 
        The individual serving as the Assistant Commissioner for 
        Patents on the day before the effective date of the Patent and 
        Trademark Office Reform Act may serve as the Assistant 
        Commissioner for Patents until the date on which an Assistant 
        Commissioner for Patents is appointed under subsection (b).
            ``(B) The individual serving as the Assistant Commissioner 
        for Trademarks on the day before the effective date of the 
        Patent and Trademark Office Reform Act may serve as the 
        Assistant Commissioner for Trademarks until the date on which 
        an Assistant Commissioner for Trademarks is appointed under 
        subsection (b).
    ``(i) Competitive Status.--For purposes of appointment to a 
position in the competitive service for which an officer or employee of 
the Office is qualified, such officer or employee shall not forfeit any 
competitive status, acquired by such officer or employee before the 
effective date of the Patent and Trademark Office Reform Act, by reason 
of becoming an officer or employee of the Office pursuant to subsection 
(h).
    ``(j) Savings Provisions.--
            ``(1) In general.--Compensation, benefits, and other terms 
        and conditions of employment in effect immediately before the 
        effective date of the Patent and Trademark Office Reform Act, 
        whether provided by statute or by rules and regulations of the 
        former Patent and Trademark Office or the executive branch of 
        the Government of the United States, shall continue to apply to 
        officers and employees of the Office, until changed in 
        accordance with this section (whether by action of the Director 
        or otherwise).
            ``(2) Provisions specific to basic pay.--(A) With respect 
        to any individual who becomes an officer or employee of the 
        Office pursuant to subsection (h), the rate of basic pay for 
        such officer or employee may not, on or after the effective 
        date of the Patent and Trademark Office Reform Act, be less 
        than the rate in effect immediately before such effective date, 
        except--
                    ``(i) pursuant to a collective-bargaining agreement 
                entered into under this section; or
                    ``(ii) for inefficiency, neglect of duty, or 
                misconduct, on the part of such individual.
            ``(B) For purposes of this paragraph, the term `basic pay' 
        includes any amount considered to be part of basic pay for 
        purposes of subchapter III of chapter 83 or chapter 84 of title 
        5.
    ``(k) Removal of Quasi-Judicial Examiners.--The Office 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. 104. 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 and Trademark Office Management Advisory Board
    ``(a) Establishment of Management Advisory Board.--
            ``(1) Appointment.--The United States Patent and Trademark 
        Office shall have a Management Advisory Board (hereafter in 
        this title referred to as the `Board') of 12 members, 4 of whom 
        shall be appointed by the President, 4 of whom shall be 
        appointed by the Speaker of the House of Representatives in 
        consultation with the minority leader of the House of 
        Representatives, and 4 of whom shall be appointed by the 
        majority leader of the Senate in consultation with the minority 
        leader of the Senate.
            ``(2) Terms.--Members of the Board shall be appointed for a 
        term of 4 years each, except that of the members first 
        appointed by each appointing authority, 1 shall be for a term 
        of 1 year, 1 shall be for a term of 2 years, and 1 shall be for 
        a term of 3 years. No member may serve more than 1 term.
            ``(3) Chair.--The President shall designate the chair of 
        the Board, whose term as chair shall be for 4 years.
            ``(4) Timing of appointments.--Initial appointments to the 
        Board shall be made within 3 months after the effective date of 
        the Patent and Trademark Office Reform Act, and vacancies shall 
        be filled within 3 months after they occur.
            ``(5) Vacancies.--Vacancies shall be filled in the manner 
        in which the original appointment was made under this 
        subsection. Members appointed to fill a vacancy occurring 
        before the expiration of the term for which the member's 
        predecessor was appointed shall be appointed only for the 
        remainder of that term. A member may serve after the expiration 
        of that member's term until a successor is appointed.
            ``(6) Committees.--The Chair shall designate members of the 
        Board to serve on a committee on patent operations and on a 
        committee on trademark operations to perform the duties set 
        forth in subsection (e) as they relate specifically to the 
        Office's patent operations, and the Office's trademark 
        operations, respectively.
    ``(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 and 
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 least quarterly and at any 
time 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 and Trademark Office, and 
        advise the Commissioner on these matters; and
            ``(2) within 60 days after the end of each fiscal year, 
        prepare an annual report on the matters referred to in 
        paragraph (1), transmit the report to the President, the 
        Commissioner, and the Committees on the Judiciary of the Senate 
        and the House of Representatives, and publish the report in the 
        Patent and Trademark Office Official Gazette.
    ``(f) Compensation.--Members of the Board shall be compensated for 
each day (including travel time) during which they are 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 their homes 
or regular places of business they may be allowed travel expenses, 
including per diem in lieu of subsistence, as authorized by section 
5703 of title 5.
    ``(g) Access to Assistance and Information.--
            ``(1) Assistance.--The Office shall provide at the request 
        of the Board such assistance as is necessary for the Board to 
        perform its functions.
            ``(2) Information.--Members of the Board shall be provided 
        access to records and information in the United States Patent 
        and Trademark Office, except for personnel or other privileged 
        information and information concerning patent applications 
        required to be kept in confidence by section 122.''.

SEC. 105. CONFORMING AMENDMENTS.

    (a) Duties.--Chapter 1 of title 35, United States Code, is amended 
by striking section 6.
    (b) Regulations for Agents and Attorneys.--Section 31 of title 35, 
United States Code, and the item relating to such section in the table 
of sections for chapter 3 of title 35, United States Code, are 
repealed.

SEC. 106. 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 Assistant Commissioner for Patents, the Assistant 
Commissioner for Trademarks, and members competent in trademark law who 
are appointed by the Commissioner.''.

SEC. 107. BOARD OF PATENT APPEALS AND INTERFERENCES.

    Chapter 1 of title 35, United States Code, is amended by striking 
section 7 and inserting after section 5 the following:
``Sec. 6. Board of Patent Appeals and Interferences
    ``(a) Establishment and Composition.--There shall be in the United 
States Patent and Trademark Office a Board of Patent Appeals and 
Interferences. The Commissioner, the Assistant Commissioner for 
Patents, the Assistant Commissioner for Trademarks, 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.--The Board of Patent Appeals and Interferences shall, 
on written appeal of an applicant, review adverse decisions of 
examiners upon applications for patents and shall determine priority 
and patentability of invention in interferences declared under section 
135(a). Each appeal and interference shall be heard by at least 3 
members of the Board, who shall be designated by the Commissioner. Only 
the Board of Patent Appeals and Interferences may grant rehearings.''.

SEC. 108. SUITS BY AND AGAINST THE OFFICE.

    Chapter 1 of part I of title 35, United States Code, is amended by 
inserting after section 6 the following new section:
``Sec. 7. Suits by and against the Office
    ``(a) Actions Under United States Law.--Any civil action or 
proceeding to which the United States Patent and Trademark Office 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 Office.
    ``(b) Representation by the Department of Justice.--The United 
States Patent and Trademark Office shall be deemed an agency of the 
United States for purposes of section 516 of title 28.
    ``(c) Prohibition on Attachment, Liens, Etc.--No attachment, 
garnishment, lien, or similar process, intermediate or final, in law or 
equity, may be issued against property of the Office.''.

SEC. 109. ANNUAL REPORT OF COMMISSIONER.

    Section 14 of title 35, United States Code, is amended to read as 
follows:
``Sec. 14. Annual report to Congress
    ``Not later than 180 days after the end of each fiscal year, the 
Commissioner shall report to Congress the moneys received and expended 
by the Office, the purposes for which the moneys were spent, the 
quality and quantity of the work of the Office, and other information 
relating to the Office. 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 the preceding sentence. The 
report required under this section shall be deemed to be the report of 
the United States Patent and Trademark Office under section 9106 of 
title 31, and the Commissioner shall not file a separate report under 
such section.''.

SEC. 110. SUSPENSION OR EXCLUSION FROM PRACTICE.

    Section 32 of title 35, United States Code, is amended 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 and Trademark Office to conduct the hearing 
required by this section.''.

SEC. 111. FUNDING.

    (a) In General.--Chapter 4 of title 35, United States Code, is 
amended by striking section 42 and inserting the following:
``Sec. 42. Patent and Trademark Office funding
    ``(a) Fees Payable to the Office.--All fees for services performed 
by or materials furnished by the United States Patent and Trademark 
Office shall be payable to the Office.
    ``(b) Use of Moneys.--Moneys from fees shall be available to the 
United States Patent and Trademark Office to carry out the functions of 
the Office. Moneys of the 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 Office under this title shall be used for the processing of patent 
applications and for other services and materials relating to patents. 
Fees available to the Office under section 31 of the Act of July 5, 
1946 (commonly referred to as the `Trademark Act of 1946'; 15 U.S.C. 
1113), shall be used only for the processing of trademark registrations 
and for other services and materials relating to trademarks.
    ``(c) Borrowing Authority.--The United States Patent and Trademark 
Office 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 its activities. Borrowing under 
this subsection shall be subject to prior approval in appropriations 
Acts. Such borrowing shall not exceed amounts approved in appropriation 
Acts. Any borrowing under this subsection shall be repaid only from 
fees paid to the Office. Such obligations shall be redeemable at the 
option of the Office before maturity in the manner stipulated in such 
obligations and shall have such maturity as is determined by the Office 
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. The Secretary of the Treasury shall purchase any obligations 
of the Office 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, and the purposes for which securities may be issued under 
that chapter are extended to include such purpose. Payment under this 
subsection of the purchase price of such obligations of the United 
States Patent and Trademark Office shall be treated as public debt 
transactions of the United States.
    ``(d) Refund.--The Commissioner may refund any fee paid by mistake 
or any amount paid in excess of that required.''.
    (b) Extension of Surcharges on Patent Fees.--
            (1) In general.--Section 10101 of the Omnibus Budget 
        Reconciliation Act of 1990 (35 U.S.C. 41 note) is amended by 
        striking subsections (a) through (c) and inserting the 
        following:
    ``(a) Surcharges.--There shall be a surcharge on all fees 
authorized by subsections (a) and (b) of section 41 of title 35, United 
States Code, in order to ensure that the amounts specified in 
subsection (c) are collected.
    ``(b) Use of Surcharges.--Notwithstanding section 3302 of title 31, 
United States Code, all surcharges collected by the United States 
Patent and Trademark Office--
            ``(1) shall be credited to a separate account established 
        in the Treasury and ascribed to the United States Patent and 
        Trademark Office activities in the Department of Commerce as 
        offsetting collections;
            ``(2) shall be collected by and made available to the 
        United States Patent and Trademark Office for all authorized 
        activities and operations of the Office, including all direct 
and indirect costs of services provided by the Office; and
            ``(3) shall remain available until expended.
    ``(c) Establishment of Surcharges.--The Commissioner of the United 
States Patent and Trademark Office shall establish surcharges under 
subsection (a), subject to the provisions of section 553 of title 5, 
United States Code, in order to ensure that $119,000,000, but not more 
than $119,000,000, are collected in fiscal year 1999 and each fiscal 
year thereafter.
    ``(d) Appropriations Act Required.--Notwithstanding subsections (a) 
through (c), no fee established by subsection (a) shall be collected 
nor shall be available for spending without prior authorization in 
appropriations Acts.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on October 1, 1998.

SEC. 112. AUDITS.

    Chapter 4 of title 35, United States Code, is amended by adding at 
the end the following new section:
``Sec. 43. Audits
    ``(a) In General.--Financial statements of the United States Patent 
and Trademark Office 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, 
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 House of Representatives and the 
Senate the results of each audit under this subsection.
    ``(b) Review by Comptroller General.--The Comptroller General may 
review any audit of the financial statement of the United States Patent 
and Trademark Office that is conducted under subsection (a). The 
Comptroller General shall report to Congress and the Office the results 
of any such review and shall include in such report appropriate 
recommendations.
    ``(c) Audit by Comptroller General.--The Comptroller General may 
audit the financial statements of the Office and such audit shall be in 
lieu of the audit required by subsection (a). The Office shall 
reimburse the Comptroller General for the cost of any audit conducted 
under this subsection.
    ``(d) Access to Office Records.--All books, financial records, 
report files, memoranda, and other property that the Comptroller 
General deems necessary for the performance of any audit shall be made 
available to the Comptroller General.
    ``(e) Applicability in Lieu of Title 31 Provisions.--This section 
applies to the Office in lieu of the provisions of section 9105 of 
title 31.''.

SEC. 113. TRANSFERS.

    (a) Transfer of Functions.--Except to the extent that such 
functions, powers, and duties relate to the direction of patent or 
trademark policy, there are transferred to, and vested in, the United 
States Patent and Trademark Office all functions, powers, and duties 
vested by law in the Secretary of Commerce or the Department of 
Commerce or in the officers or 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 Act, 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 Patent and Trademark Office, on the 
effective date of this Act, so much of the assets, liabilities, 
contracts, property, records, and unexpended and unobligated balances 
of 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 United States Patent and Trademark Office by 
this Act.

SEC. 114. NONAPPLICABILITY OF FEDERAL WORKFORCE REDUCTIONS.

    No full-time equivalent position in the United States Patent and 
Trademark Office shall be eliminated to meet the requirements of 
section 5 of the Federal Workforce Restructuring Act of 1994 (5 U.S.C. 
3101 note).

             TITLE II--EFFECTIVE DATE; TECHNICAL AMENDMENTS

SEC. 201. EFFECTIVE DATE.

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

SEC. 202. TECHNICAL AND CONFORMING AMENDMENTS.

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

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

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

            (3) 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) 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 and Trademark Office Management Advisory Board.
``6.  Board of Patent Appeals and Interferences.
``7.  Suits by and against the Office.
``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) The table of sections for chapter 4 of title 35, United 
        States Code, is amended by adding after the item relating to 
        section 42 the following:

``43. Audits.''.
            (6) Section 41(a)(8)(A) of title 35, United States Code, is 
        amended by striking ``On'' and inserting ``on''.
    (b) Other Provisions of Law.--
            (1) Section 9101(3) of title 31, United States Code, is 
        amended by adding at the end the following:
                    ``(R) the United States Patent and Trademark 
                Office.''.
            (2) Section 500(e) of title 5, United States Code, is 
        amended by striking ``Patent Office'' and inserting ``United 
        States Patent and Trademark Office''.
            (3) Section 5102(c)(23) of title 5, United States Code, is 
        amended by striking ``Patent and Trademark Office, Department 
        of Commerce'' and inserting ``United States Patent and 
        Trademark Office''.
            (4) Section 5314 of title 5, United States Code, is amended 
        by adding at the end the following: ``Under Secretary for 
        Intellectual Property, Department of Commerce.''.
            (5) Section 5315 of title 5, United States Code, is amended 
        by adding at the end the following: ``Inspector General, United 
        States Patent and Trademark Office.''.
            (6) Section 5316 of title 5, United States Code (5 U.S.C. 
        5316) is amended by striking ``Commissioner of Patents, 
        Department of Commerce.'', ``Deputy Commissioner of Patents and 
        Trademarks.'', ``Assistant Commissioner for Patents.'', and 
        ``Assistant Commissioner for Trademarks.''.
            (7) Section 9(p)(1)(B) of the Small Business Act (15 U.S.C. 
        638(p)(1)(B)) is amended to read as follows:
                    ``(B) the Commissioner of the United States Patent 
                and Trademark Office; and''.
            (8) Section 12 of the Act of February 14, 1903 (15 U.S.C. 
        1511) is amended by striking ``(d) Patent and Trademark 
        Office;'' and redesignating subsections (a) through (g) as 
        paragraphs (1) through (6), respectively.
            (9) Section 1127 of title 15, United States Code, is 
        amended by striking ``Commissioner of Patents and Trademarks'' 
        and inserting ``Commissioner of the United States Patent and 
        Trademark Office''.
            (10) Section 19 of the Tennessee Valley Authority Act of 
        1933 (16 U.S.C. 831r) is amended--
                    (A) by striking ``Patent and Trademark Office of 
                the United States'' and inserting ``United States 
                Patent and Trademark Office''; and
                    (B) by striking ``Commissioner of Patents'' and 
                inserting ``Commissioner of the United States Patent 
                and Trademark Office''.
            (11) Section 182(b)(2)(A) of the Trade Act of 1974 (19 
        U.S.C. 2242(b)(2)(A)) is amended by striking ``Commissioner of 
        Patents and Trademarks'' and inserting ``Under Secretary for 
        Intellectual Property''.
            (12) Section 302(b)(2)(D) of the Trade Act of 1974 (19 
        U.S.C. 2412(b)(2)(D)) is amended by striking ``Commissioner of 
        Patents and trademarks'' and inserting ``Under Secretary for 
        Intellectual Property''.
            (13) The Act of April 12, 1892 (27 Stat. 395; 20 U.S.C. 91) 
        is amended by striking ``Patent Office'' and inserting ``United 
        States Patent and Trademark Office''.
            (14) Sections 505(m) and 512(o) of the Federal Food, Drug, 
        and Cosmetic Act (21 U.S.C. 355(m) and 360b(o)) are each 
        amended by striking ``Patent and Trademark Office of the 
        Department of Commerce'' and inserting ``United States Patent 
        and Trademark Office''.
            (15) Section 702(d) of the Federal Food, Drug, and Cosmetic 
        Act (21 U.S.C. 372(d)) is amended by striking ``Commissioner of 
        Patents'' and inserting ``Commissioner of the United States 
        Patent and Trademark Office''.
            (16) Section 2151t-1(b)(1) of title 22, United States Code, 
        is amended by striking ``Patent and Trademark Office'' and 
        inserting ``Under Secretary for Intellectual Property''.
            (17) Section 105(e) of the Federal Alcohol Administration 
        Act (27 U.S.C. 205(e)) is amended by striking ``United States 
        Patent Office'' and inserting ``United States Patent and 
        Trademark Office''.
            (18) Section 1744 of title 28, United States Code is 
        amended--
                    (A) by striking ``Patent Office'' each place it 
                appears in the text and section heading and inserting 
                ``United States Patent and Trademark Office''; and
                    (B) by striking ``Commissioner of Patents'' and 
                inserting ``Commissioner of the United States Patent 
                and Trademark Office''.
            (19) Section 1295(a)(4) of title 28, United States Code, is 
        amended--
                    (A) in subparagraph (A) by inserting ``United 
                States'' before ``Patent and Trademark''; and
                    (B) in subparagraph (B) by striking ``Commissioner 
                of Patents and Trademarks'' and inserting 
                ``Commissioner of the United States Patent and 
                Trademark Office''.
            (20) Section 1745 of title 28, United States Code, is 
        amended by striking ``United States Patent Office'' and 
        inserting ``United States Patent and Trademark Office''.
            (21) Section 1928 of title 28, United States Code, is 
        amended by striking ``Patent Office'' and inserting ``United 
        States Patent and Trademark Office''.
            (22) Section 151 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2181) is amended in subsections c. and d. by striking 
        ``Commissioner of Patents and Trademarks'' and inserting 
        ``Commissioner of the United States Patent and Trademark 
        Office''.
            (23) Section 152 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2182) is amended by striking ``Commissioner of Patents 
        and Trademarks'' each place it appears and inserting 
        ``Commissioner of the United States Patent and Trademark 
        Office''.
            (24) Section 160 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2190) is amended--
                    (A) by striking ``United States Patent Office'' and 
                inserting ``United States Patent and Trademark 
                Office''; and
                    (B) by striking ``Commissioner of Patents'' and 
                inserting ``Commissioner of the United States Patent 
                and Trademark Office''.
            (25) Section 305(c) of the National Aeronautics and Space 
        Act of 1958 (42 U.S.C. 2457(c)) is amended by striking 
        ``Commissioner of Patents'' and inserting ``Commissioner of the 
        United States Patent and Trademark Office''.
            (26) Section 12(a) of the Solar Heating and Cooling 
        Demonstration Act of 1974 (42 U.S.C. 5510(a)) is amended by 
        striking ``Commissioner of the Patent Office'' and inserting 
        ``Commissioner of the United States Patent and Trademark 
        Office''.
            (27) Section 1111 of title 44, United States Code, is 
        amended by striking ``the Commissioner of Patents,''.
            (28) Section 1114 of title 44, United States Code, is 
        amended by striking ``the Commissioner of Patents,''.
            (29) Section 1123 of title 44, United States Code, is 
        amended by striking ``the Patent Office,''.
            (30) Sections 1337 and 1338 of title 44, United States 
        Code, and the items relating to those sections in the table of 
        contents for chapter 13 of such title, are repealed.
            (31) Section 10(i) of the Trading With the Enemy Act (50 
        U.S.C. App. 10(i)) is amended by striking ``Commissioner of 
        Patents'' and inserting ``Commissioner of the United States 
        Patent and Trademark Office''.
            (32) Section 11 of the Inspector General Act of 1978 (5 
        U.S.C. App.) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``and'' before ``the chief 
                        executive officer of the Resolution Trust 
                        Corporation;'';
                            (ii) by striking ``and'' before ``the 
                        Chairperson of the Federal Deposit Insurance 
                        Corporation;'';
                            (iii) by striking ``or'' before ``the 
                        Commissioner of Social Security,''; and
                            (iv) by inserting ``or the Commissioner of 
                        the United States Patent and Trademark 
                        Office;'' after ``Social Security 
                        Administration;''; and
                    (B) in paragraph (2)--
                            (i) by striking ``or'' before ``the 
                        Veterans' Administration,''; and
                            (ii) by striking ``or the Social Security 
                        Administration'' and inserting ``the Social 
                        Security Administration, or the United States 
                        Patent and Trademark Office''.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. 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 or office from which a function is 
transferred by this Act--
            (1) to the head of such department or office is deemed to 
        refer to the head of the department or office to which such 
        function is transferred; or
            (2) to such department or office is deemed to refer to the 
        department or office to which such function is transferred.

SEC. 302. EXERCISE OF AUTHORITIES.

    Except as otherwise provided by law, a Federal official to whom a 
function is transferred by this Act 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 Act.

SEC. 303. SAVINGS PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, agreements, 
certificates, licenses, and privileges--
            (1) that 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 Act, 
        or any other Government official, or by a court of competent 
        jurisdiction, in the performance of any function that is 
        transferred by this Act, and
            (2) that 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 Act 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 Act before 
an office transferred by this Act, 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 Act 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 Act had not been enacted.
    (c) Suits.--This Act shall not affect suits commenced before the 
effective date of this Act, 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 Act 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 Act, shall abate by reason of the enactment of this Act.
    (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 Act 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 Act, any statutory requirements relating to 
notice, hearings, action upon the record, or administrative or judicial 
review that apply to any function transferred by this Act 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 Act.

SEC. 304. TRANSFER OF ASSETS.

    Except as otherwise provided in this Act, 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 Act 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. 305. DELEGATION AND ASSIGNMENT.

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

SEC. 306. 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 Act.
    (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 Act, 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 Act. The Director shall provide for the termination of the affairs 
of all entities terminated by this Act and for such further measures 
and dispositions as may be necessary to effectuate the purposes of this 
Act.

SEC. 307. CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFERS.

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

SEC. 308. AVAILABILITY OF EXISTING FUNDS.

    Existing appropriations and funds available for the performance of 
functions, programs, and activities terminated pursuant to this Act 
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. 309. DEFINITIONS.

    For purposes of this Act--
            (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 IV--UNDER SECRETARY FOR INTELLECTUAL PROPERTY

SEC. 401. UNDER SECRETARY FOR INTELLECTUAL PROPERTY.

    (a) Appointment.--There is established in the Department of 
Commerce, an Under Secretary for Intellectual Property, who shall be 
appointed by the President by and with the advice and consent of the 
Senate. Pending appointment of the Under Secretary by and with the 
advice and consent of the Senate, the individual serving as 
Commissioner of Patents and Trademarks prior to the enactment of the 
Act shall perform the functions of the Under Secretary.
    (b) Functions.--The Under Secretary for Intellectual Property, 
under the direction of the Secretary of Commerce, shall--
            (1) advise the President, through the Secretary of 
        Commerce, on national and international intellectual property 
        policy issues;
            (2) advise the Secretary of Commerce on international trade 
        issues concerning intellectual property;
            (3) promote in international trade the United States 
        industries that rely on intellectual property;
            (4) advise Federal agencies on ways to improve intellectual 
        property protection in other countries through economic 
        assistance and international trade;
            (5) review and coordinate all proposals by agencies to 
        assist foreign governments and international intergovernmental 
        agencies in improving intellectual property protection;
            (6) carry on studies related to the effectiveness of 
        intellectual property protection throughout the world; and
            (7) in coordination with the Department of State, carry on 
        studies cooperatively with foreign intellectual property 
        offices and international intergovernmental organizations.
    (c) Consultation.--In connection with the performance of this 
section, the Under Secretary for Intellectual Property shall, in 
advance of major policy initiatives, consult with the Commissioner of 
the United States Patent and Trademark Office and the Register of 
Copyrights.
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