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CED-78-163 1 (1978-11-14)

handle is hein.gao/gaobaayfd0001 and id is 1 raw text is: DOCURENT RESGME 07643 - [C320Iii- Patent and Trademark Fees Need To Be Raised. CID-78-163; B-157691. November 14, 1978. 10 pp. # 3 appendices (6 pp.). Report to the Congress; by Elmer B. Staats, Comptrcller General. Issut Area: Program and Budget Information for Congressicnal Use (3400); Alternative Approaches or Methods to Achieve Federal Program Objectives (3600). Contact: Community and Econosic Development Div. Budget Function: Ccmserce and Transportation: Other Advancement and Regulation of Cormerce (403). Orqanization Concerned: Department of Commerce; Patent and Tr adIark- Offtice. Congressional Relevance: Hots. Committee on the Judiciary; Senate Committee on the Judiciary; Congress. Authority: Patent Act of 1952, as amended (35 U.S.C. 41). Trademark Act of 1946, as amended (15 U.S.C. 1113). Patent Act of 1975; S. 2255 (941th Cong.). H.R. 13f28 (95th Cong.). During fiscel year 1977, the Patent and Trademark Office (PTOD of the Department of Coiserce received 109,773 patent applications and 63,886 trademark applications. The principal fees the PTO charges for its patent and trademark services are prescribed by statute; in 1965, PTO user fees were set by the Congress to recover about 74% of PTO operating costs. Findings/Conclusions: Fiscal year 1977 opnratina costs rose by $87.5 million, and the cost recovery rate fell to 32%. If the recovery of costs had been the considered reasonable rate of 74%, an additional $37 million would have been collected from patent and trademark users. Statutory fees for individual latent and trademark services need to be increased so that a more reasonable share of PTO's costs may be borne Ly thcse using its services. Some individual inventors and small business concerns say not have adequate resources so that higher fees could deter the from obtaining patents and trademarks. The Congress may wish to consider lower fees for independent inventors and small businesses with limited resources. Eacomendations: The Congress should amend the patent and trademark acts to update patent and trademark fees. In the future, the Congress should: establish criteria that will assure a constant overall recovery of a fixed percentage of PTOts operating cost, authorize the Secretary of Commerce to periodically determine and establish revised fees based on the cost recovery criteria established in the law, and specify how frequently fees should be adjusted. (BRS)

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