Congressional Record, Volume 157 Issue 28 (Monday, February 28, 2011)

[Congressional Record Volume 157, Number 28 (Monday, February 28, 2011)]
[Senate]
[Pages S956-S957]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

PATENT REFORM ACT OF 2011--Resumed

Mr. LEAHY. Mr. President, I understand that the Senator from Colorado
has an amendment that could be disposed of quickly and which is
agreeable to both sides.
I yield to the Senator from Colorado.
The PRESIDING OFFICER. The Senator from Colorado is recognized.

Amendment No. 116

Mr. BENNET. Mr. President, I thank Chairman Leahy, Senator Grassley,
Senator Hatch, and all of the members of the Judiciary Committee for
their hard work on patent reform. Moving this bill forward has been a
difficult task. I look forward to supporting the bill as we are in the
process of amending it and improving it.
This legislation is critical for our economic growth if we are going
to rebuild our economy and win the future. We need to make sure our
patent system promotes research and development, investment, job
creation, and global competitiveness.
This evening, I want to call up two amendments to this legislation
that I believe address the need for efficiency and quality at the U.S.
Patent and Trademark Office.
Mr. President, I call up amendment No. 116, which is at the desk.
The PRESIDING OFFICER. Without objection, the pending amendment is
set aside.
The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Colorado [Mr. Bennet] proposes an
amendment numbered 116.

Mr. BENNET. Mr. President, I ask unanimous consent that reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:

(Purpose: To reduce the fee amounts paid by small entities requesting
prioritized examination under Three-Track Examination)

On page 86, between lines 8 and 9, insert the following:
(i) Reduction in Fees for Small Entity Patents.--The
Director shall reduce fees for providing prioritized
examination of utility and plant patent applications by 50
percent for small entities that qualify for reduced fees
under section 41(h)(1) of title 35, United States Code, so
long as the fees of the prioritized examination program are
set to recover the estimated cost of the program.
On page 86, line 9, strike ``(i)'' and insert ``(j)''.

Mr. BENNET. My first amendment, cosponsored by Senator Ayotte, can
help small businesses utilize the Patent Office's Track I program by
reducing their fees for participating. Track I allows applicants to get
their patent processed more quickly, but the cost can be burdensome for
small entities. This amendment would reduce small business costs by 50
percent.
This Track I program will give applicants the opportunity for
prioritized examination of a patent within 12 months of its filing
date. On average, the pendency period for first action was 25.7 months
in 2010 and 35.3 months for final disposition. By moving this process
along for small businesses, we will stimulate business activity and
create jobs.
The 50-percent discount is in line with other small entity filing fee
discounts offered by the Patent and Trademark Office and will ensure
startups and smaller inventors will be at a more level playing field in
order to take advantage of Track I.
I encourage my colleagues to support my small business amendment at
the appropriate time.
Mr. President, I yield to the chairman.
Mr. LEAHY. Mr. President, I appreciate the amendment of the Senator
from Colorado. When it comes to a vote, I think it will probably be
unanimous. I suspect there will not even be a requirement for a
rollcall vote. It does have this mandatory reduction in fees for small
businesses at the Patent Office. I know the Senator is a strong
advocate for small business in Colorado. The Patent Office has a
backlog of more than 700,000 applications that haven't yet had a first
response. This hits small businesses and independent ventures
particularly hard because they can least afford a delay in receiving
their rights. They have done a lot to reduce that backlog, but they
need this legislation to finish it. They have the fast track process,
where applicants pay additional fees to cover the costs and the
examiners work overtime. Not all small businesses can afford the fast
track application fee, and the Senator from Colorado, Mr. Bennet,
wisely recognized that not all can afford that.
His amendment will ensure that small businesses and independent
vendors will receive a 50-percent reduction in the fee. When the time
comes for a vote, I will strongly support the amendment. I suspect both
sides will strongly support it. I thank the Senator.
The PRESIDING OFFICER. The Senator from Colorado is recognized.
Mr. BENNET. I thank the Senator from Vermont for his leadership and
for his kind words about the amendment.

Amendment No. 117

At this time, I ask unanimous consent to set aside the pending
amendment and call up my second amendment, which is currently at the
desk.
The PRESIDING OFFICER. Without objection, it is so ordered.
The clerk will report.
The legislative clerk read as follows:

The Senator from Colorado [Mr. Bennet] proposes an
amendment numbered 117.

Mr. BENNET. Mr. President, I ask unanimous consent that reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:

(Purpose: To establish additional USPTO satellite offices)

On page 104, between lines 22 and 23, insert the following:

SEC. 18. SATELLITE OFFICES.

(a) Establishment.--Subject to available resources, the
Director shall establish 3 or more satellite offices in the
United States to carry out the responsibilities of the Patent
and Trademark Office.
(b) Purpose.--The purpose of the satellite offices
established under subsection (a) are to--
(1) increase outreach activities to better connect patent
filers and innovators with the Patent and Trademark Office;
(2) enhance patent examiner retention;
(3) improve recruitment of patent examiners; and
(4) decrease the number of patent applications waiting for
examination and improve the quality of patent examination.
(c) Required Considerations.--In selecting the locale of
each satellite office to be established under subsection (a),
the Director shall--
(1) ensure geographic diversity among the offices,
including by ensuring that such offices are established in
different States and regions throughout the Nation; and
(2) rely upon any previous evaluations by the Patent and
Trademark Office of potential locales for satellite offices,
including any evaluations prepared as part of the Patent and
Trademark Office's Nationwide Workforce Program that resulted
in the 2010 selection of Detroit, Michigan as the first ever
satellite office of the Patent and Trademark Office.
(d) Phase-in.--The Director shall satisfy the requirements
of subsection (a) over the 3-year period beginning on the
date of enactment of this Act.
(e) Report to Congress.--Not later than the end of the
first fiscal year that occurs after the date of the enactment
of this Act, and each fiscal year thereafter, the Director
shall submit a report to Congress on--
(1) the rationale of the Director in selecting the locale
of any satellite office required under subsection (a);
(2) the progress of the Director in establishing all such
satellite offices; and
(3) whether the operation of existing satellite offices is
achieving the purposes required under subsection (b).
(f) Definitions.--In this section, the following
definitions shall apply:
(1) Director.--The term ``Director'' means the Director of
the United States Patent and Trademark Office.
(2) Patent and trademark office.--The term ``Patent and
Trademark Office'' means the United States Patent and
Trademark Office.
On page 104, line 23, strike ``SEC. 18.'' and insert ``SEC.
19.''.

Mr. BENNET. Mr. President, my amendment provides for the
establishment of three regional satellite PTO

[[Page S957]]

offices in the next 3 years. The Patent and Trademark Office has
struggled to hire and retain over 6,000 examiners at a single location
in Alexandria, VA. This has resulted in one-third of patent examiners
having been with the U.S. Patent and Trademark Office for less than 3
years. Ideally, the Patent and Trademark Office would recruit examiners
from all across the country, leveraging regional expertise.
The PTO recently recognized this weakness in our patent
infrastructure by announcing an initial satellite pilot in Detroit, MI.
My amendment seeks to support this effort and further connect
innovators to the U.S. Patent and Trademark Office.
The establishment of satellite offices will help the USPTO to recruit
and retain workers from across the country. Regional offices will draw
local scientists, engineers, and patent attorneys into the USPTO, which
add real-world expertise to the patent review process.
Regional satellite offices will also increase outreach activities and
connection to patent filers, enhance the ability of the USPTO to
recruit and retain patent examiners, and improve the quality and
pendency for patent applications.
Europe currently uses four patent offices as a recruitment tool and
is known for the ability to attract and retain highly qualified
examiners. In short, the limitations of our lone patent office are
placing our economy at a competitive disadvantage. It is essential,
therefore, that we establish satellite offices in locations that will
connect innovators and businesses across the country.
I ask Senators to support my amendment at the appropriate time.
Again, I thank the chairman for his leadership, and I look forward to
working with him and the rest of this body to craft a good piece of
legislation that helps America take the lead in the world's
increasingly competitive innovation economy.
Mr. LEAHY. Mr. President, I know the Senator has advocated for
satellite offices. His amendment speaks for geographic diversity.
Otherwise, every one of us would be asking for one in our State.
Vermont, which receives more patents per capita than any other State in
the Union, would be asking for one, and so forth. He does not try to
tilt the balance in favor of a particular State but he calls for
geographic diversity. That is very wise. When the amendment comes to a
vote, I will be there to support it.
Mr. President, parliamentary inquiry: What is pending?
The PRESIDING OFFICER. Amendment No. 117.
Mr. LEAHY. Was that set aside so he could introduce his second
amendment?
The PRESIDING OFFICER. That is his second amendment.
Mr. LEAHY. That is what is pending now?
The PRESIDING OFFICER. That is correct.
Mr. LEAHY. I thank the Chair.
The PRESIDING OFFICER. The Senator from Utah is recognized.

Amendment No. 115

Mr. LEE. Mr. President, I ask unanimous consent that the pending
amendment be set aside, and I call up amendment No. 115 and ask for its
immediate consideration.
The PRESIDING OFFICER. Is there objection?
Mr. LEAHY. Mr. President, once the Senator has introduced his
amendment and has spoken, will he be willing to set that aside so that
other amendments on the patent bill can come up?
Mr. LEE. Yes.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:

The Senator from Utah [Mr. Lee] proposes an amendment
numbered 115.

(Purpose: To express the sense of the Senate in support of a balanced
budget amendment to the Constitution)

At the appropriate place, insert the following:

SEC. ___. SENSE OF THE SENATE.

It is the sense of the Senate that Congress should pass and
the States should agree to an amendment to the Constitution
requiring a Federal balanced budget.

The PRESIDING OFFICER. The Senator from Utah.
Mr. LEE. This is a self-explanatory amendment. I am a supporter of
this legislation, the patent reform bill. I also point out that this
amendment does not bring about any substantive change to that
legislation, nor does it lock anyone into a particular variation of a
balanced budget amendment proposal.
I am happy to work out an agreement as to the timing for a possible
vote, and I hope we can get to that sometime soon.
I yield the floor.
The PRESIDING OFFICER. The Senator from Idaho is recognized.
Mr. CRAPO. Mr. President, I ask unanimous consent to speak as in
morning business for up to 15 minutes, with the time to be shared
between myself and Senator Risch.
The PRESIDING OFFICER. Without objection, it is so ordered.

____________________