Hate to say “We told you so.” Congress is stealing the higher PTO fee revenues for other programs and the PTO is putting its “improvement” programs on hold due to the resultant lack of funding. Same old same old. Congressional lies and corruption.
In our opposition to the AIA we predicted Congress would see the USPTO as a revenue stream to be spent and would divert fees despite the promises of Senator Patrick “IBM” Leahy and former PTO Director David “IBM” Kappos to the contrary. You remember, IBM Kappos assuring the AIA was needed so the PTO could keep its revenues and would be properly funded and could cut down its backlog and that Section 22 of the AIA made sure that would occur. I predicted the PTO revenue fund would be raided and that the promises to the contrary were lies. Surprise, they lied and just as we predicted, the increased fees are being diverted. The PTO has announced that it will stop hiring, stop the branch offices and the backlog will not decrease, but that the higher fees will remain in place.
Unfortunately, our predictions have been proven accurate. Congress is using “Sequestration” to steal money from those paying increased patent fees who agreed to support increased fees in return for Congressional promises to use the money exclusively for the PTO.
No surprise really that Congress welches on a promise to patent applicants or that Congress steals $148,000,000 of PTO revenues for other programs, just sad that no one listened when we were saying the loophole that might allow that needed to be closed so Congress could not welch on its “promise.” After all, this is the best Congress money can buy. And, if there is not enough money to buy them, they steal some.
Here is what I said back in Sept. 2011 about Sec. 22 of the AIA:
“Sec. 22. Patent and Trademark Office funding. Establishes the USPTO Public Enterprise Fund (replaces the Appropriation Account) as a revolving fund available to the Director without fiscal year limitation. Requires all fees paid to the Director and all appropriations for defraying the costs of USPTO activities to be credited to the Fund. Requires fees charged or established by the Director to be collected by the Director and available to carry out USPTO activities until expended. Directs fees from specified sources to be deposited in the Fund, recorded as offsetting receipts, and available to cover appropriate expenses. [This is the fund that would be set up as a means to capture all PTO revenue and expenses and make a ready fund available for easy diversion by congressional money grabbers eager to fund earmarks in totally unrelated areas by making inventors pay for them. This is an idiotic provision that will obviously run up patent fees and hurt American inventors of all sizes. So, we have to give another point to the idiots. This actually hurts everone, so Bigs & Foreigners +38, Small Guys-22, Idiots -16] Requires the Director to submit an annual report to Congress including: (1) the USPTO’s operating plan, expenses, and staff levels; (2) long term modernization plans and related progress updates; and (3) the results of an annual independent audit of the USPTO’s financial statements required by this section. Requires the Director to annually: (1) notify Congress of its spending plan, and (2) submit to the President a business-type budget as prescribed by regulation for the federal budget. [This annual report is obviously designed to make the PTO budget subject to annual appropriation so that PTO fees can be diverted to earmarks. That hurts everyone. Bigs & Foreigners+37, Small Guys-23, Idiots-17]”
See my full review of the AIA at the time it was passed, here: http://www.burdlaw.com/blog/?m=201109
This is one time when it hurts to be proven right. It is times like this when we see that the AIA really was what we called it from the start, the “ANTI-Inventor Act” rather than the “America Invents Act.”