[Congressional Record Volume 155, Number 101 (Wednesday, July 8, 2009)]
[Extensions of Remarks]
[Pages E1671-E1672]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                U.S. PATENT AND TRADEMARK OFFICE FUNDING

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                               speech of

                          HON. JAMES P. MORAN

                              of virginia

                    in the house of representatives

                         Tuesday, July 7, 2009

  Mr. MORAN of Virginia. Mr. Speaker, I rise in strong support of H.R. 
3114, and commend the Chairman for his leadership in acting so swiftly 
to rectify this situation.
  The U.S. Patent & Trademark Office, located in my District, is funded 
entirely by the user fees it collects; it does not draw any taxpayer 
funds from the general Treasury.
  Like many other businesses and industries, the PTO has seen 
significant reductions in its revenues as a result of economic belt-
tightening by its customers. In response, PTO has already enacted over 
$140 million in budget cuts and cost-savings measures. PTO has 
instituted a hiring freeze, curtailed non-bargaining unit performance 
awards, stopped overtime for many workers and significantly reduced 
contracts, travel, supplies and other non-essential overhead expenses.
  In the meantime, we must ensure that the USPTO can continue to 
maintain its personnel level and perform its critical mission of 
examining and granting patents that promote innovation and create jobs. 
As a result, a serious budget situation has developed. Absent adoption 
of this legislation approximately 9,000 patent office employees would 
be subject to furloughs during the last pay period of FY09 (last two 
weeks of September).

[[Page E1672]]

  The Department of Commerce is monitoring the situation on a daily 
basis, and out of an abundance of caution, and to prevent a possible 
violation of federal law, the Department of Commerce is asking for a 
one-time funding fix from Congress to avoid the furlough of Patent 
Office employees.
  The Trademark Office, as distinct from the Patent Office, within PTO 
has a surplus of $60-$70 million. Without asking for new monies from 
Congress, the Treasury, or other agency programs funds, this bill 
before us would provide an immediate and one-time-only borrowing option 
that is accompanied by a statutory repayment period. In 1999 and 2005, 
the opposite situation occurred, and the Trademark Office received 
assistance from Patents totaling $24 million.
  In order for Americans to prevail against this economic downturn, and 
to remain competitive globally, we need to ensure new technologies, 
innovation, and products are fully funded. The new concepts and ideas 
promoted by the work of PTO are drivers for American economic recovery 
and growth.
  At such a time as this, America should be looking for its next Thomas 
Edison, Bill Gates, or Steve Jobs.
  This bill simply lets the USPTO's patent operation borrow from an 
existing balance held by the trademark operation, and only if 
reasonably necessary to avoid employee furloughs or a reduction in 
force. Payback of any borrowed funds is assured by a temporary 
surcharge on patent fees.
  This is a crucial juncture for the PTO. We need to remain at the 
cutting edge of global technological progress and achievement, or we 
risk lagging behind other nations.
  The bill amounts to an insurance policy for the USPTO to make sure it 
can cover its payroll for over 9,000 federal employees. I ask my 
colleagues to support it.

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