[House Report 105-528]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-528
_______________________________________________________________________


 
 UNITED STATES PATENT AND TRADEMARK OFFICE REAUTHORIZATION ACT, FISCAL 
                               YEAR 1999

_______________________________________________________________________


  May 12, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Coble, from the Committee on the Judiciary, submitted the following

                              R E P O R T

                        [To accompany H.R. 3723]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 3723) to authorize funds for the payment of salaries 
and expenses of the Patent and Trademark Office, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.


                           TABLE OF CONTENTS

                                                                   Page
The Amendment..............................................           2
Purpose and Summary........................................           3
Background and Need for the Legislation....................           3
Hearings...................................................           5
Committee Consideration....................................           5
Committee Oversight Findings...............................           5
Committee on Government Reform and Oversight Findings......           5
New Budget Authority and Tax Expenditures..................           5
Committee Cost Estimate....................................           5
Constitutional Authority Statement.........................           5
Section-by-Section Analysis................................           6
Agency Views...............................................           8
Changes in Existing Law Made by the Bill, as Reported......           9

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Patent and Trademark 
Office Reauthorization Act, Fiscal Year 1999''.

SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be made available for the payment of 
salaries and necessary expenses of the Patent and Trademark Office in 
fiscal year 1999, $66,000,000 from fees collected in fiscal year 1998 
and such fees as are collected in fiscal year 1999, pursuant to title 
35, United States Code, and the Trademark Act of 1946 (15 U.S.C. 1051 
et seq.). Amounts made available pursuant to this section shall remain 
available until expended.

SEC. 3. LEVEL OF FEES FOR PATENT SERVICES.

    (a) General Patent Fees.--Section 41 of title 35, United States 
Code, is amended by striking subsection (a) and inserting the 
following:
    ``(a) The Commissioner shall charge the following fees:
            ``(1)(A) On filing each application for an original patent, 
        except in design or plant cases, $760.
            ``(B) In addition, on filing or on presentation at any 
        other time, $78 for each claim in independent form which is in 
        excess of 3, $18 for each claim (whether independent or 
        dependent) which is in excess of 20, and $260 for each 
        application containing a multiple dependent claim.
            ``(C) On filing each provisional application for an 
        original patent, $150.
            ``(2) For issuing each original or reissue patent, except 
        in design or plant cases, $1,210.
            ``(3) In design and plant cases--
                    ``(A) on filing each design application, $310;
                    ``(B) on filing each plant application, $480;
                    ``(C) on issuing each design patent, $430; and
                    ``(D) on issuing each plant patent, $580.
            ``(4)(A) On filing each application for the reissue of a 
        patent, $760.
            ``(B) In addition, on filing or on presentation at any 
        other time, $78 for each claim in independent form which is in 
        excess of the number of independent claims of the original 
        patent, and $18 for each claim (whether independent or 
        dependent) which is in excess of 20 and also in excess of the 
        number of claims of the original patent.
            ``(5) On filing each disclaimer, $110.
            ``(6)(A) On filing an appeal from the examiner to the Board 
        of Patent Appeals and Interferences, $300.
            ``(B) In addition, on filing a brief in support of the 
        appeal, $300, and on requesting an oral hearing in the appeal 
        before the Board of Patent Appeals and Interferences, $260.
            ``(7) On filing each petition for the revival of an 
        unintentionally abandoned application for a patent or for the 
        unintentionally delayed payment of the fee for issuing each 
        patent, $1,210, unless the petition is filed under section 133 
        or 151 of this title, in which case the fee shall be $110.
            ``(8) For petitions for 1-month extensions of time to take 
        actions required by the Commissioner in an application--
                    ``(A) on filing a first petition, $110;
                    ``(B) on filing a second petition, $270; and
                    ``(C) on filing a third petition or subsequent 
                petition, $490.
            ``(9) Basic national fee for an international application 
        where the Patent and Trademark Office was the International 
        Preliminary Examining Authority and the International Searching 
        Authority, $670.
            ``(10) Basic national fee for an international application 
        where the Patent and Trademark Office was the International 
        Searching Authority but not the International Preliminary 
        Examining Authority, $760.
            ``(11) Basic national fee for an international application 
        where the Patent and Trademark Office was neither the 
        International Searching Authority nor the International 
        Preliminary Examining Authority, $970.
            ``(12) Basic national fee for an international application 
        where the international preliminary examination fee has been 
        paid to the Patent and Trademark Office, and the international 
        preliminary examination report states that the provisions of 
        Article 33 (2), (3), and (4) of the Patent Cooperation Treaty 
        have been satisfied for all claims in the application entering 
        the national stage, $96.
            ``(13) For filing or later presentation of each independent 
        claim in the national stage of an international application in 
        excess of 3, $78.
            ``(14) For filing or later presentation of each claim 
        (whether independent or dependent) in a national stage of an 
        international application in excess of 20, $18.
            ``(15) For each national stage of an international 
        application containing a multiple dependent claim, $260.
For the purpose of computing fees, a multiple dependent claim referred 
to in section 112 of this title or any claim depending therefrom shall 
be considered as separate dependent claims in accordance with the 
number of claims to which reference is made. Errors in payment of the 
additional fees may be rectified in accordance with regulations of the 
Commissioner.''.
    (b) Patent Maintenance Fees.--Section 41 of title 35, United States 
Code, is amended by striking subsection (b) and inserting the 
following:
    ``(b) The Commissioner shall charge the following fees for 
maintaining in force all patents based on applications filed on or 
after December 12, 1980:
            ``(1) 3 years and 6 months after grant, $940.
            ``(2) 7 years and 6 months after grant, $1,900.
            ``(3) 11 years and 6 months after grant, $2,910.
Unless payment of the applicable maintenance fee is received in the 
Patent and Trademark Office on or before the date the fee is due or 
within a grace period of 6 months thereafter, the patent will expire as 
of the end of such grace period. The Commissioner may require the 
payment of a surcharge as a condition of accepting within such 6-month 
grace period the payment of an applicable maintenance fee. No fee may 
be established for maintaining a design or plant patent in force.''.

SEC. 4. AUTHORIZATION OF EXPENDITURE.

    Section 42(c) of title 35, United States Code, is amended by 
striking the first sentence and inserting the following: ``To the 
extent and in the amounts provided in advance in appropriations Acts, 
fees authorized in this title or any other Act to be charged or 
established by the Commissioner shall be available to the Commissioner 
to carry out the activities of the Patent and Trademark Office.''.

SEC. 5. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
October 1, 1998.

                          Purpose and Summary

    The purpose of H.R. 3723, the ``United States Patent and 
Trademark Office Reauthorization Act, Fiscal Year 1999,'' is to 
authorize necessary appropriations for the Patent and Trademark 
Office (PTO) by adjusting the patent fee structure set forth in 
35 U.S.C. Sec. 41, and to prevent the diversion of agency 
revenues for activities unrelated to PTO operations.

                Background and Need For the Legislation

                Agency Operations and the OBRA Surcharge

    The Administration announced that, in light of the 
expiration of Section 10101 of the Omnibus Budget 
Reconciliation Act of 1990 (OBRA), the patent fees established 
under subsections 41 (a) and (b) of title 35 to the U.S. Code 
would revert to their pre-OBRA level. It was stated that, 
unless adjusted, the fees would fall $131,526,000 short of the 
amount the PTO needs to execute the program recommended by the 
President in his Fiscal Year 1999 (FY99) budget. To compensate 
for this reduction in fee revenues, Assistant Secretary of 
Commerce and Commissioner of Patents and Trademarks Bruce 
Lehman stated that an increase was needed in the base patent 
fees in an amount equal to the reduction in revenue which would 
result from the lapsing of the surcharge authority.
    While all Members of the Committee are very supportive of 
policies to ensure that the PTO is adequately funded to provide 
the services requested by patent and trademark applicants, the 
Administration request received by the Subcommittee would 
actually raise $50 million more than the amount the President 
stated in his budget the PTO will need in FY99. Commissioner 
Lehman explained that this revenue, along with $66 million from 
FY98, would be used to fund other government agencies and 
programs. This continuing diversion of PTO fee revenues was 
strongly opposed by inventors and the trademark community, who 
pay for patent and trademark applications to fund only the 
services they receive from the PTO.
    The PTO is 100%-funded through the payment of application 
and user fees. Taxpayer support for the operations of the 
Office was eliminated in 1990 with the passage of OBRA. OBRA 
imposed a massive fee increase (referred to as a ``surcharge'') 
on American inventors and industry in order to replace taxpayer 
support the Office was then receiving. The revenues generated 
by this surcharge were placed into a surcharge account. The PTO 
was required to solicit permission from the Committee on 
Appropriations to use the revenues in the surcharge account to 
support that portion of its operations these revenues 
represented. It was anticipated in 1990 that Congress would 
routinely grant the PTO permission to use the surcharge revenue 
since it was generated originally from fees paid by users of 
the patent and trademark systems to support only the cost of 
those systems.
    Unfortunately, the user fees paid into the surcharge 
account became a target of opportunity to fund other, 
unrelated, taxpayer-supported government programs. The 
temptation to use the surcharge, and thus a significant portion 
of the operating budget of the PTO, was proven to be 
increasingly irresistible, to the detriment and sound 
functioning of the patent and trademark systems. Beginning with 
a diversion of $8 million in 1992, Congress increasingly 
redirected a larger share of the surcharge revenue, reaching a 
record level of $54 million in FY97. In total, over the past 
seven fiscal years, more than $142 million has been diverted 
from the PTO to other agencies and programs.

                    Administration Request for FY99

    In its budget submission for FY99, the Administration noted 
that ``. . . legislation will be proposed to set the [PTO] base 
fee structure for 1999.'' \1\ The General Counsel of the 
Department of Commerce has since forwarded the Administration 
recommendations to adjust the fee structure to compensate for 
the expiration of the surcharge. Were Congress to adopt the 
Administration plan, PTO resources for FY99 would total roughly 
$902 million, which includes $654 million in fee collections 
exclusive of the expired surcharge, $182 million to compensate 
for the expiration of the surcharge, and $66 million in 
carryover funds.
---------------------------------------------------------------------------
    \1\ Budget of the United States Government, Fiscal Year 1999 
(Appendix) at 210.
---------------------------------------------------------------------------
    As previously noted, the Administration request also 
assumes that $116 million will be diverted for deficit 
reduction purposes. The diversion is comprised of the $66 
million in carryover funds, and an additional $50 million in 
FY99 revenues.
    Importantly, the President concedes in his budget request 
that ``[i]f the PTO legislative proposal to revise patent fees 
is not enacted into law, then the Administration will need to 
reduce the proposed rescission.'' \2\
---------------------------------------------------------------------------
    \2\ Id.
---------------------------------------------------------------------------

                                Hearings

    The Committee's Subcommittee on Courts and Intellectual 
Property conducted an oversight hearing on PTO operations on 
March 19, 1998. Testimony was received from seven witnesses 
representing seven organizations.

                        Committee Consideration

    On April 30, 1998, the Subcommittee on Courts and 
Intellectual Property met in open session and ordered favorably 
reported the bill H.R. 3723, as amended, by voice vote, a 
quorum being present. On May 6, 1998, the Committee met in open 
session and ordered favorably reported the bill H.R. 3723 with 
an amendment in the nature of a substitute by voice vote, a 
quorum being present.

                      Committee Oversight Findings

    In compliance with clause 2(1)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(1)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    Clause 2(1)(3)(B) of rule XI of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority or increased tax 
expenditures.

                        Committee Cost Estimate

    In compliance with clause 7(a) of rule XIII of the Rules of 
the House of Representatives, the Committee believes that the 
bill H.R. 3723 will have no budget effect for Fiscal Year 1999.

                   Constitutional Authority Statement

    Pursuant to rule XI, clause 2(1)(4) of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, clause 8, section 8 of the 
Constitution.

                      Section-By-Section Analysis

                              Section One

    Section One sets forth the short title of the bill, the 
``United States Patent and Trademark Office Reauthorization 
Act, Fiscal Year 1999.''

                              Section Two

    Section Two authorizes the PTO to pay FY99 salaries and 
necessary expenses in the following amounts from the following 
sources: $66 million in carryover funds from the preceding 
fiscal year; and ``such fees as are collected'' in FY99 from 
patent and trademark applicants and owners.
    Section Two also specifies that the PTO shall retain all of 
its funds generated from these sources until they are expended; 
in other words, this provision will prevent Congress from 
accessing carryover funds for non-agency purposes.

                             Section Three

    Section Three prescribes the dollar amounts for certain 
corresponding ``general'' patent and patent application fees 
set forth in 35 U.S.C. Sec. 41.
    Under Sec. 41(a)(1)(A), the filing fee for an original 
patent, except in design or plant cases, is $760. In addition, 
Sec. 41(a)(1)(B) states that upon filing or upon presentation 
at any other time, $78 is due for each claim in independent 
form which is in excess of three; $18 is due for each claim 
(whether independent or dependent) which is in excess of 20; 
and $260 is due for each application containing a multiple 
dependent claim. Section 41(a)(1)(C) states that $150 is due 
upon filing each provision application for an original patent.
    Section 41(a)(2) establishes a $1,210 fee for issuing each 
original or reissue patent, except in design or plant cases. 
For design patent cases, the filing fee would be $310 and the 
issue fee would be $430. For plant cases, the filing gee is 
$480 and the issue fee is $580.
    Section 41(1)(4)(A) relates to fees in reissue case and 
establishes a fee of $760 for filing each application for the 
reissue of a patent. In addition, upon filing or upon 
presentation at any other time, $78 is due for each claim in 
independent form which is in excess of the number of 
independent claims of the original patent, and $18 is due for 
each claim (whether independent or dependent) which is in 
excess of 20 and also in excess of the number of claims of the 
original patent.
    Under Sec. 41(a)(5), a fee of $110 would be established for 
filing each in a patent or a patent application.
    Section 41(a)(6)(A) establishes a $300 fee due upon filing 
an appeal from the examiner to the Board of Patent Appeals and 
Interferences. In addition, a fee of $300 is due upon filing a 
brief in support of the appeal, and a fee of $260 is due for 
requesting an oral hearing before the Board of a Patent Appeals 
and Interferences.
    Section 41(a)(7) establishes a fee of $1,210 for filing 
each petition for revival or acceptance of the delayed payment 
of an issue fee where the abandonment or the failure to pay the 
issue fee is unintentional. The section establishes a fee of 
$110 for filing a petition under Sec. Sec. 133 or 151 of title 
35 in accordance with standards presently in effect requiring 
that the delay resulting in the abandonment, or the delay in 
payment of the issue fee, be unavoidable. Under this section, a 
petition accompanied by either a fee of $1,210 or $110 would 
not be granted where the abandonment or the failure to pay the 
fee for issuing the patent was intentional as opposed to being 
unintentional or unavoidable.
    Section 41(a)(8) establishes fees for the filing of 
petitions for extensions of time. Various time periods are 
prescribed by the Office for taking actions on matters relating 
to patent applications. These time periods are set pursuant to 
statute or regulatory authority of the Commissioner. This 
section establishes fees for filing petitions to extend the 
time periods for taking action within any statutory 
limitations.
    A fee of $110 is established for filing a request for a 
first one-month extension; an additional fee of $270 for filing 
a second one-month extension request which would expire two 
months after the end of the time period set for taking action; 
and a third fee of $490 for filing a request for a third one-
month extension which would expire three months after the end 
of the time period set for taking the action. A subsequent or 
fourth extension could be requested if additional time was 
available under the statute. In no case could a period be 
extended beyond the maximum time set by statute.
    Section 41(a)(9) establishes a $670 fee for the filing of 
an international application under the Patent Cooperation 
Treaty where the PTO was the International Preliminary 
Examining Authority and the International Searching Authority. 
Section 41(a)(10) establishes a $760 fee for the filing of an 
international application when the PTO is the International 
Searching Authority but not the International Preliminary 
Examining Authority. Section 41(a)(11) establishes a $970 fee 
for an international application when PTO is neither Authority.
    Section 41(a)(12) establishes a fee of $96 for the filing 
of an international application where the international 
preliminary examination fee has been paid to the PTO and the 
international preliminary examination report states that the 
provisions of Article 33 (2), (3), and (4) of the Patent 
Cooperation Treaty have been satisfied for all claims in the 
application entering the national state. For filing of each 
independent claim in excess of three in the national stage 
application, Sec. 41(a)(13) establishes a $78 fee; and for 
filing each claim (independent or dependent) in excess of 20 in 
a nationals stage application, the fee is $18. Finally, 
Sec. 41(a)(15) establishes a $260 fee for filing each national 
state application continuing a multiple dependent claim. A 
multiple dependent claim, for purposes of computing fees, shall 
be considered as separate dependent claims in accordance with 
the number of claims to which reference is made.
    Section 41(b) provides that the Commissioner charge the 
following fees for maintaining a patent, other than a design or 
plant patent, in force: at three years and six months after 
grant, $940; at seven years and six months after grant, $1,900; 
and at 11 years and six months after grant, $2,910.
    Section Three also states that, unless the agency receives 
the payment of an applicable maintenance fee on or before the 
due date, the affected patent owner will be granted a six-month 
grace period to pay the fee, after which the patent will 
expire. The PTO Commissioner is empowered under this section to 
impose a surcharge for accepting a late payment during the 
grace period.
    Finally, Section Three prohibits the PTO from establishing 
a maintenance fee for a design or plant patent in force.

                              Section Four

    Section Four authorizes the availability of fee revenue to 
the PTO Commissioner to carry out the activities of the agency, 
to the extent and in the amounts provided in corresponding 
appropriations acts.

                              Section Five

    Section Five sets forth the effective date of H.R. 3723: 
October 1, 1998.

                               Discussion

    House Resolution 3723 makes a policy statement that 
Congress must stop diverting the fees of inventors and 
trademark applicants to fund other taxpayer-funded government 
programs. Accordingly, the bill prescribes a schedule of fees 
that would recover only the amount of money which the 
Administration has stated it needs to execute the program 
recommended by the President for the PTO in FY99. In other 
words, the fee structure reflects the Administration request 
less $50 million, or the amount of FY99 fee collections which 
would be diverted pursuant to the President's budget. It will 
still allow the appropriators to divert, at the President's 
request, the $66 million in carryover funds from the preceding 
fiscal year. This legislation not only fully funds the stated 
needs of the PTO, it will provide a real decrease in fees paid 
by patent applicants--the first actual decrease in fees in at 
least the last fifty years; indeed, perhaps since the patent 
system was established in 1790.
    The decrease in fees provided by this legislation will 
provide tangible assistance to American inventors, while 
ensuring that they get their monies worth, especially since 
their creativity and ingenuity are so crucial to the welfare of 
our nation.

                              Agency Views

                             Department of Commerce
                                            General Counsel
                                       Washington, DC, May 6, 1998.
Hon. Henry J. Hyde, Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: I am writing to set forth the 
Administration's views on H.R. 3723, the ``United States Patent 
and Trademark Office Authorization Act, FY 1999.'' The bill 
amends section 41 of title 5, Unites States Code, regarding the 
patent fees collected by the United States Patent and Trademark 
Office (PTO).
    While we appreciate Chairman Coble's fine work and personal 
efforts in helping to solve the funding issues for the PTO 
created by the expiration of Section 10101 of the Omnibus 
Budget Reconciliation Act of 1990, the bill differs from the 
Administration's proposed legislation with regard to the patent 
fee levels. The President's FY 1999 Budget assumes that total 
funds are available for the PTO program operations in FY 1999, 
and that $50 million from the FY 1999 PTO fee collections would 
contribute toward a balanced budget. This can be accomplished 
by setting patent user fee levels at their current level. The 
new fee amounts provided for in H.R. 3723 would not provide 
sufficient income to achieve these goals.
    This fee level jeopardizes our long-term strategic planning 
efforts by introducing greater revenue uncertainty. If we are 
going to achieve our long-term goals of reducing patent cycle 
time, implementing new automated systems, and achieving 
customer quality improvements critical to the future of the 
patent system, patent fee levels need to be relatively stable 
over a significant time period and in an amount sufficient to 
deliver the strategic goals. The Administration's April 1 
legislative proposal to reset the patent user fee levels to the 
current FY 1998 fee levels achieves this purpose.
    The Administration's legislative proposal also ensures that 
the Appropriations Committee receives credit for patent fee 
collections. The Subcommittee failed to adopt this proposal, 
putting in jeopardy the scoring of new receipts to the 
Appropriations Committee.
    The Department looks forward to working with you to resolve 
these issues so that the Administration can support passage of 
the bill. OMB advises that it has no objection to the 
submission of this letter from the standpoint of the 
Administration's program.
            Sincerely,
                                          Andrew J. Pincus.
    cc: Hon. John Conyers, Jr.
         Hon. Howard Coble.
         Hon. Barney Frank.

H.L.C.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

TITLE 35, UNITED STATES CODE

           *       *       *       *       *       *       *


PART I--PATENT AND TRADEMARK OFFICE

           *       *       *       *       *       *       *


CHAPTER 4--PATENT FEES; FUNDING; SEARCH SYSTEMS

           *       *       *       *       *       *       *


Sec. 41. Patent fees; patent and trademark search systems

    [(a) The Commissioner shall charge the following fees:
            [(1)(A) On filing each application for an original 
        patent, except in design or plant cases, $500.
            [(B) In addition, on filing or on presentation at 
        any other time, $52 for each claim in independent form 
        which is in excess of 3, $14 for each claim (whether 
        independent or dependent) which is in excess of 20, and 
        $160 for each application containing a multiple 
        dependent claim.
            [(C) On filing each provisional application for an 
        original patent, $150.
            [(2) For issuing each original or reissue patent, 
        except in design or plant cases, $820.
            [(3) In design and plant cases--
                    [(A) on filing each design application, 
                $200;
                    [(B) on filing each plant application, 
                $330;
                    [(C) on issuing each design patent, $290; 
                and
                    [(D) on issuing each plant patent, $410.
            [(4)(A) On filing each application for the reissue 
        of a patent, $500.
            [(B) In addition, on filing or on presentation at 
        any other time, $52 for each claim in independent form 
        which is in excess of the number of independent claims 
        of the original patent, and $14 for each claim (whether 
        independent or dependent) which is in excess of 20 and 
        also in excess of the number of claims of the original 
        patent.
            [(5) On filing each disclaimer, $78.
            [(6)(A) On filing an appeal from the examiner to 
        the Board of Patent Appeals and Interferences, $190.
            [(B) In addition, on filing a brief in support of 
        the appeal, $190, and on requesting an oral hearing in 
        the appeal before the Board of Patent Appeals and 
        Interferences, $160.
            [(7) On filing each petition for the revival of an 
        unintentionally abandoned application for a patent or 
        for the unintentionally delayed payment of the fee for 
        issuing each patent, $820, unless the petition is filed 
        under section 133 or 151 of this title, in which case 
        the fee shall be $78.
            [(8) For petitions for 1-month extensions of time 
        to take actions required by the Commissioner in an 
        application--
                    [(A) On filing a first petition, $78;
                    [(B) on filing a second petition, $172; and
                    [(C) on filing a third petition or 
                subsequent petition, $340.
            [(9) Basic national fee for an international 
        application where the Patent and Trademark Office was 
        the International Preliminary Examining Authority and 
        the International Searching Authority, $450.
            [(10) Basic national fee for an international 
        application where the Patent and Trademark Office was 
        the International Searching Authority but not the 
        International Preliminary Examining Authority, $500.
            [(11) Basic national fee for an international 
        application where the Patent and Trademark Office was 
        neither the International Searching Authority nor the 
        International Preliminary Examining Authority, $670.
            [(12) Basic national fee for an international 
        application where the international preliminary 
        examination has been paid to the Patent and Trademark 
        Office, and the international preliminary examination 
        report states that the provisions of Article 33(2), 
        (3), and (4) of the Patent Cooperation Treaty have been 
        satisfied for all claims in the application entering 
        the national stage, $66.
            [(13) For filing or later presentation of each 
        independent claim in the national stage of an 
        international application in excess of 3, $52.
            [(14) For filing or later presentation of each 
        claim (whether independent or dependent) in a national 
        stage of an international application in excess of 20, 
        $14.
            [(15) For each national stage of an international 
        application containing a multiple dependent claim, 
        $160.
For the purpose of computing fees, a multiple dependent claim 
as referred to in section 112 of this title or any claim 
depending therefrom shall be considered as separate dependent 
claims in accordance with the number of claims to which 
reference is made. Errors in payment of the additional fees may 
be rectified in accordance with regulations of the 
Commissioner.
    [(b) The Commissioner shall charge the following fees for 
maintaining in force all patents based on applications filed on 
or after December 12, 1980:
            [(1) 3 years and 6 months after grant, $650.
            [(2) 7 years and 6 months after grant, $1,310.
            [(3) 11 years and 6 months after grant, $1,980.
Unless payment of the applicable maintenance fee is received in 
the Patent and Trademark Office on or before the date the fee 
is due or within a grace period of six months thereafter, the 
patent will expire as of the end of such grace period. The 
Commissioner may require the payment of a surcharge as a 
condition of accepting within such six-month grace period the 
late payment of an applicable maintenance fee. No fee will be 
established for maintaining a design or plant patent in force.]
    (a) The Commissioner shall charge the following fees:
            (1)(A) On filing each application for an original 
        patent, except in design or plant cases, $760.
            (B) In addition, on filing or on presentation at 
        any other time, $78 for each claim in independent form 
        which is in excess of 3, $18 for each claim (whether 
        independent or dependent) which is in excess of 20, and 
        $260 for each application containing a multiple 
        dependent claim.
            (C) On filing each provisional application for an 
        original patent, $150.
            (2) For issuing each original or reissue patent, 
        except in design or plant cases, $1,210.
            (3) In design and plant cases--
                    (A) on filing each design application, 
                $310;
                    (B) on filing each plant application, $480;
                    (C) on issuing each design patent, $430; 
                and
                    (D) on issuing each plant patent, $580.
            (4)(A) On filing each application for the reissue 
        of a patent, $760.
            (B) In addition, on filing or on presentation at 
        any other time, $78 for each claim in independent form 
        which is in excess of the number of independent claims 
        of the original patent, and $18 for each claim (whether 
        independent or dependent) which is in excess of 20 and 
        also in excess of the number of claims of the original 
        patent.
            (5) On filing each disclaimer, $110.
            (6)(A) On filing an appeal from the examiner to the 
        Board of Patent Appeals and Interferences, $300.
            (B) In addition, on filing a brief in support of 
        the appeal, $300, and on requesting an oral hearing in 
        the appeal before the Board of Patent Appeals and 
        Interferences, $260.
            (7) On filing each petition for the revival of an 
        unintentionally abandoned application for a patent or 
        for the unintentionally delayed payment of the fee for 
        issuing each patent, $1,210, unless the petition is 
        filed under section 133 or 151 of this title, in which 
        case the fee shall be $110.
            (8) For petitions for 1-month extensions of time to 
        take actions required by the Commissioner in an 
        application--
                    (A) on filing a first petition, $110;
                    (B) on filing a second petition, $270; and
                    (C) on filing a third petition or 
                subsequent petition, $490.
            (9) Basic national fee for an international 
        application where the Patent and Trademark Office was 
        the International Preliminary Examining Authority and 
        the International Searching Authority, $670.
            (10) Basic national fee for an international 
        application where the Patent and Trademark Office was 
        the International Searching Authority but not the 
        International Preliminary Examining Authority, $760.
            (11) Basic national fee for an international 
        application where the Patent and Trademark Office was 
        neither the International Searching Authority nor the 
        International Preliminary Examining Authority, $970.
            (12) Basic national fee for an international 
        application where the international preliminary 
        examination fee has been paid to the Patent and 
        Trademark Office, and the international preliminary 
        examination report states that the provisions of 
        Article 33 (2), (3), and (4) of the Patent Cooperation 
        Treaty have been satisfied for all claims in the 
        application entering the national stage, $96.
            (13) For filing or later presentation of each 
        independent claim in the national stage of an 
        international application in excess of 3, $78.
            (14) For filing or later presentation of each claim 
        (whether independent or dependent) in a national stage 
        of an international application in excess of 20, $18.
            (15) For each national stage of an international 
        application containing a multiple dependent claim, 
        $260.
For the purpose of computing fees, a multiple dependent claim 
referred to in section 112 of this title or any claim depending 
therefrom shall be considered as separate dependent claims in 
accordance with the number of claims to which reference is 
made. Errors in payment of the additional fees may be rectified 
in accordance with regulations of the Commissioner.
    (b) The Commissioner shall charge the following fees for 
maintaining in force all patents based on applications filed on 
or after December 12, 1980:
            (1) 3 years and 6 months after grant, $940.
            (2) 7 years and 6 months after grant, $1,900.
            (3) 11 years and 6 months after grant, $2,910.
Unless payment of the applicable maintenance fee is received in 
the Patent and Trademark Office on or before the date the fee 
is due or within a grace period of 6 months thereafter, the 
patent will expire as of the end of such grace period. The 
Commissioner may require the payment of a surcharge as a 
condition of accepting within such 6-month grace period the 
payment of an applicable maintenance fee. No fee may be 
established for maintaining a design or plant patent in force.

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Sec. 42. Patent and Trademark Office funding

    (a) * * *

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    (c) [Revenues from fees shall be available to the 
Commissioner to carry out, to the extent provided in 
appropriation Acts, the activities of the Patent and Trademark 
Office.] To the extent and in the amounts provided in advance 
in appropriations Acts, fees authorized in this title or any 
other Act to be charged or established by the Commissioner 
shall be available to the Commissioner to carry out the 
activities of the Patent and Trademark Office. Fees available 
to the Commissioner under section 31 of the Trademark Act of 
1946 may be used only for the processing of trademark 
registrations and for other activities, services, and materials 
relating to trademarks and to cover a proportionate share of 
the administrative costs of the Patent and Trademark Office.

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