[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2146 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2146

  To establish a United States Patent and Trademark Office Innovation 
                Promotion Fund, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 13, 2014

Mrs. Feinstein (for herself, Mr. Coburn, Ms. Klobuchar, and Mr. Flake) 
introduced the following bill; which was read twice and referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To establish a United States Patent and Trademark Office Innovation 
                Promotion Fund, 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 Fee Integrity Act''.

SEC. 2. PATENT AND TRADEMARK OFFICE FUNDING.

    (a) Definitions.--In this Act:
            (1) Director.--The term ``Director'' means the Director of 
        the United States Patent and Trademark Office.
            (2) Fund.--The term ``Fund'' means the United States Patent 
        and Trademark Office Innovation Promotion Fund established 
        under subsection (c).
            (3) Office.--The term ``Office'' means the United States 
        Patent and Trademark Office.
            (4) Trademark act of 1946.--The term ``Trademark Act of 
        1946'' means the Act entitled ``An Act to provide for the 
        registration and protection of trademarks used in commerce, to 
        carry out the provisions of certain international conventions, 
        and for other purposes'', approved July 5, 1946 (15 U.S.C. 1051 
        et seq.) (commonly referred to as the ``Trademark Act of 1946'' 
        or the ``Lanham Act'').
    (b) Funding.--
            (1) In general.--Section 42 of title 35, United States 
        Code, is amended--
                    (A) in subsection (b), by striking ``Patent and 
                Trademark Office Appropriation Account'' and inserting 
                ``United States Patent and Trademark Office Innovation 
                Promotion Fund''; and
                    (B) in subsection (c),
                            (i) in paragraph (1)--
                                    (I) by striking ``To the extent'' 
                                and all that follows through ``fees'' 
                                and inserting ``Fees''; and
                                    (II) by striking ``shall be 
                                collected by and shall, subject to 
                                paragraph (3), be available to the 
                                Director'' and inserting ``shall be 
                                collected by the Director and shall be 
                                available to the Director until 
                                expended'';
                            (ii) by striking paragraph (2); and
                            (iii) by redesignating paragraph (3) as 
                        paragraph (2).
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on the first day of the first fiscal year 
        that begins on or after the date of enactment of this Act.
    (c) USPTO Revolving Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a revolving fund to be known as the ``United 
        States Patent and Trademark Office Innovation Promotion Fund''. 
        Any amounts in the Fund shall be available for use by the 
        Director without fiscal year limitation.
            (2) Derivation of resources.--
                    (A) In general.--There shall be deposited into the 
                Fund on or after the effective date described in 
                subsection (b)(2)--
                            (i) any fees collected under title 35, 
                        United States Code; and
                            (ii) any fees collected under the Trademark 
                        Act of 1946.
                    (B) Remaining balances.--There shall be deposited 
                in the Fund, on the effective date described in 
                subsection (b)(2), any available unobligated balances 
                remaining in the Patent and Trademark Office 
                Appropriation Account, and in the Patent and Trademark 
                Fee Reserve Fund established under section 42(b)(2) of 
                title 31, United States Code, as in effect on the date 
                before the effective date. Upon the payment of all 
                obligated amounts in the Patent and Trademark Fee 
                Reserve Fund, the Patent and Trademark Fee Reserve Fund 
                shall be terminated.
            (3) Expenses.--Amounts deposited into the Fund under 
        paragraph (2) shall be available, without fiscal year 
        limitation, to cover--
                    (A) all expenses to the extent consistent with the 
                limitation on the use of fees set forth in section 
                42(c) of title 35, United States Code, including all 
                administrative and operating expenses, determined in 
                the discretion of the Director to be ordinary and 
                reasonable, incurred by the Director for the continued 
                operation of all services, programs, activities, and 
                duties of the Office relating to patents and 
                trademarks, as such services, programs, activities, and 
                duties are described under--
                            (i) title 35, United States Code; and
                            (ii) the Trademark Act of 1946; and
                    (B) all expenses incurred pursuant to any 
                obligation, representation, or other commitment of the 
                Office.
    (d) Annual Report and Operation Plan.--Not later than 60 days after 
the end of each fiscal year, the Director shall submit to Congress a 
report that--
            (1) summarizes the operations of the Office for the 
        preceding fiscal year, including financial details and staff 
        levels broken down by each major activity of the Office;
            (2) describes the long-term modernization plans of the 
        Office;
            (3) sets forth details of any progress towards such 
        modernization plans made in the preceding fiscal year; and
            (4) includes the results of the most recent audit carried 
        out under subsection (f).
    (e) Annual Spending Plan.--
            (1) In general.--Not later than 30 days after the beginning 
        of each fiscal year, the Director shall notify the Committee on 
        Appropriations of the Senate and the Committee on 
        Appropriations of the House of Representatives of the plan for 
        the obligation and expenditure by the Office of the total 
        amount of the funds for that fiscal year in accordance with 
        section 605 of the Science, State, Justice, Commerce, and 
        Related Agencies Appropriations Act, 2006 (Public Law 109-108; 
        119 Stat. 2334).
            (2) Contents.--Each plan under paragraph (1) shall--
                    (A) summarize the operations of the Office for the 
                current and next fiscal year, including financial 
                details and staff levels with respect to major 
                activities; and
                    (B) detail the operating plan of the Office, 
                including specific expense and staff needs, for the 
                current and next fiscal year.
    (f) Audit.--The Director shall, on an annual basis, provide for an 
independent audit of the financial statements of the Office. Such audit 
shall be conducted in accordance with generally accepted accounting 
principles.
    (g) Budget.--The Fund shall prepare and submit each year to the 
President a business-type budget in such manner, and before such date, 
as the President prescribes by regulation.
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