An amendment made in order by a previous order of the House of today.
What it does: 6 changes: rewrites a provision, replaces text in 2 places, inserts text in 3 placesDescription
Amendment creates a "refund" program to eliminate the potential incentive for diverting Patent and Trade Office (PTO) revenue to non-PTO programs; applies a 50 percent discount to all searches for small entities; prohibits commercial searches that apply to classified matters; prevents commercial entities from performing searches when they have a financial interest or other conflict at stake; caps the search fee after the 6th year; and requires a joint PTO and Small Business Administration study regarding the effects of the fee structure on small entities.
What it changes
6 changes to H.R. 1561 · 1 shown in the bill's text
We couldn't read part of this amendment. That part is shown as written below.
Change 1: Rewrites section 5
ReplacesIn H.R. 1561 · Reported in House
SEC. 5. PATENT AND TRADEMARK
[struck: OFFICE ]FUNDING.Section 42[inserted: (c)] of title 35, United States Code, is amended--
Struck: (1) in subsection (b), by striking "Appropriation"; and
Struck: (2) in subsection (c), in the first sentence--
Struck: (A) by striking "To the extent" and all that follows through "fees" and inserting "Fees"; and
Struck: (B) by striking "shall be collected by and shall be available to the Director" and inserting "shall be collected by the Director and shall be available until expended".
Inserted: (1) by striking "(c)" and inserting "(c)(1)"; and
Inserted: (2) by adding at the end the following new paragraph:
Inserted: "(2) There is established in the Treasury a Patent and Trademark Fee Reserve Fund. If fee collections by the Patent and Trademark Office for a fiscal year exceed the amount appropriated to the Office for that fiscal year, fees collected in excess of the appropriated amount shall be deposited in the Patent and Trademark Fee Reserve Fund. After the end of each fiscal year, the Director shall make a finding as to whether the fees collected for that fiscal year exceed the amount appropriated to the Patent and Trademark Office for that fiscal year. If the amount collected exceeds the amount appropriated, the Director shall, if the Director determines that there are sufficient funds in the Reserve Fund, make payments from the Reserve Fund to persons who paid patent or trademark fees during that fiscal year. The Director shall by regulation determine which persons receive such payments and the amount of such payments, except that such payments in the aggregate shall equal the amount of funds deposited in the Reserve Fund during that fiscal year, less the cost of administering the provisions of this paragraph.".
Original wording
Strike section 5 and insert the following:
Change 2: Replaces “Except as” through the end of the sentence at the section 6(a) with “Except as otherwise provided in this Act and this section, this Act and the amendments ma…”
Replaces[struck: Except as …][inserted: Except as otherwise provided in this Act and this section, this Act and the amendments made by this Act shall take effect on October 1, 2004, or on the date of the enactment of this Act, whichever occurs later.]Original wording
In section 6(a), strike “Except as” and all that follows through the end of the sentence and insert “Except as otherwise provided in this Act and this section, this Act and the amendments made by this Act shall take effect on October 1, 2004, or on the date of the enactment of this Act, whichever occurs later.”.
Change 3: Rewrites page 12, lines 17–20
ReplacesPrinted pageRemoves page 12, lines 17–20 of the printed bill. See that page
Inserted: (d) Adjustments.--
Inserted: (1) In general.--Section 41(f) of title 35, United States Code, shall apply to the fees established under the amendments made by this section, beginning in fiscal year 2005.
Inserted: (2) Conforming amendment.--Effective October 1, 2004, section 41(f) of title 35, United States Code, is amended by striking "(a) and (b)" and inserting "(a), (b), and (d)".
Original wording
Page 12, strike lines 17 through 20 and insert the following:
Change 4: Inserts new text on page 11
InsertsPrinted pageOriginal wording
Page 11, add the following
Change 5: Inserts new text on page 12
InsertsPrinted pageInserted: (1) in paragraph (1), by striking "Fees charged under subsection (a) or (b)" and inserting "Subject to paragraph (3), fees charged under subsections (a), (b), and (d)(1)"; and
Inserted: (2) by adding at the end the following new paragraph:
Inserted: "(3) The fee charged under subsection (a)(1)(A) shall be reduced by 75 percent with respect to its application to any entity to which paragraph (1) applies, if the application is filed by electronic means as prescribed by the Director.".
Inserted: (f) Size Standards for Small Entities.--
Inserted: (1) Study.--The Director, in conjunction with the Administrator of the Small Business Administration and the Chief Counsel for Advocacy of the Small Business Administration, shall conduct a study on the effect of patent fees on the ability of small entity inventors to file patent applications. Such study shall examine whether a separate category of reduced patent fees is necessary to ensure adequate development of new technology by small entity inventors.
Inserted: (2) Report.--The Director shall, not later than 6 months after the date of the enactment of this Act, submit a report on the results of the study under paragraph (1) to the Committee on the Judiciary and the Committee on Small Business of the House of Representatives and the Committee on the Judiciary and the Committee on Small Business and Entrepreneurship of the Senate.
Original wording
Page 12, insert the following
Change 6: Inserts “For the 3-year period beginning on October 1, 2004, the fee for a search by a qualified s…” on page 8, line 3
InsertsPrinted pageInserted: For the 3-year period beginning on October 1, 2004, the fee for a search by a qualified search authority of a patent application described in clause (i), (iv), or (v) of subparagraph (B) may not exceed $500, of a patent application described in clause (ii) of subparagraph (B) may not exceed $100, and of a patent application described in clause (iii) of subparagraph (B) may not exceed $300. The Director may not increase any such fee by more than 20 percent in each of the next 3 1-year periods, and the Director may not increase any such fee thereafter.
Original wording
Page 8, line 3, add the following after the period: “For the 3-year period beginning on October 1, 2004, the fee for a search by a qualified search authority of a patent application described in clause (i), (iv), or (v) of subparagraph (B) may not exceed $500, of a patent application described in clause (ii) of subparagraph (B) may not exceed $100, and of a patent application described in clause (iii) of subparagraph (B) may not exceed $300. The Director may not increase any such fee by more than 20 percent in each of the next 3 1-year periods, and the Director may not increase any such fee thereafter.”.
Shown as written
Amendment made in order pursuant to the order of the House of today and House Resolution 547 offered by Mr. Sensenbrenner:
after line 24: “(F) The Director shall require that any search by a qualified search authority that is a commercial entity is conducted in the United States by persons that--“(i) if individuals, are United States citizens; and “(ii) if business concerns, are organized under the laws of the United States or any State and employ United States citizens to perform the searches. “(G) A search of an application that is the subject of a secrecy order under section 181 or otherwise involves classified information may only be conducted by Office personnel. “(H) A qualified search authority that is a commercial entity may not conduct a search of a patent application if the entity has any direct or indirect financial interest in any patent or in any pending or imminent application for patent filed or to be filed in the Patent and Trademark Office.
after line 20 and redesignate the succeeding subsection accordingly: (e) Fees for Small Entities.--Section 41(h) of title 35, United States Code, is amended--
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
Amendment made in order pursuant to the order of the House of today and House Resolution 547 offered by Mr. Sensenbrenner:
Strike section 5 and insert the following:
SEC. 5. PATENT AND TRADEMARK FUNDING.
Section 42(c) of title 35, United States Code, is amended--
(1) by striking “(c)” and inserting “(c)(1)”; and
(2) by adding at the end the following new paragraph:
“(2) There is established in the Treasury a Patent and Trademark Fee Reserve Fund. If fee collections by the Patent and Trademark Office for a fiscal year exceed the amount appropriated to the Office for that fiscal year, fees collected in excess of the appropriated amount shall be deposited in the Patent and Trademark Fee Reserve Fund. After the end of each fiscal year, the Director shall make a finding as to whether the fees collected for that fiscal year exceed the amount appropriated to the Patent and Trademark Office for that fiscal year. If the amount collected exceeds the amount appropriated, the Director shall, if the Director determines that there are sufficient funds in the Reserve Fund, make payments from the Reserve Fund to persons who paid patent or trademark fees during that fiscal year. The Director shall by regulation determine which persons receive such payments and the amount of such payments, except that such payments in the aggregate shall equal the amount of funds deposited in the Reserve Fund during that fiscal year, less the cost of administering the provisions of this paragraph.”.
In section 6(a), strike “Except as” and all that follows through the end of the sentence and insert “Except as otherwise provided in this Act and this section, this Act and the amendments made by this Act shall take effect on October 1, 2004, or on the date of the enactment of this Act, whichever occurs later.”.
Page 12, strike lines 17 through 20 and insert the following:
(d) Adjustments.--
(1) In general.--Section 41(f) of title 35, United States Code, shall apply to the fees established under the amendments made by this section, beginning in fiscal year 2005.
(2) Conforming amendment.--Effective October 1, 2004, section 41(f) of title 35, United States Code, is amended by striking “(a) and (b)” and inserting “(a), (b), and (d)”.
Page 11, add the following after line 24:
“(F) The Director shall require that any search by a qualified search authority that is a commercial entity is conducted in the United States by persons that--
“(i) if individuals, are United States citizens; and
“(ii) if business concerns, are organized under the laws of the United States or any State and employ United States citizens to perform the searches.
“(G) A search of an application that is the subject of a secrecy order under section 181 or otherwise involves classified information may only be conducted by Office personnel.
“(H) A qualified search authority that is a commercial entity may not conduct a search of a patent application if the entity has any direct or indirect financial interest in any patent or in any pending or imminent application for patent filed or to be filed in the Patent and Trademark Office.
Page 12, insert the following after line 20 and redesignate the succeeding subsection accordingly:
(e) Fees for Small Entities.--Section 41(h) of title 35, United States Code, is amended--
(1) in paragraph (1), by striking “Fees charged under subsection (a) or (b)” and inserting “Subject to paragraph (3), fees charged under subsections (a), (b), and (d)(1)”; and
(2) by adding at the end the following new paragraph:
“(3) The fee charged under subsection (a)(1)(A) shall be reduced by 75 percent with respect to its application to any entity to which paragraph (1) applies, if the application is filed by electronic means as prescribed by the Director.”.
(f) Size Standards for Small Entities.--
(1) Study.--The Director, in conjunction with the Administrator of the Small Business Administration and the Chief Counsel for Advocacy of the Small Business Administration, shall conduct a study on the effect of patent fees on the ability of small entity inventors to file patent applications. Such study shall examine whether a separate category of reduced patent fees is necessary to ensure adequate development of new technology by small entity inventors.
(2) Report.--The Director shall, not later than 6 months after the date of the enactment of this Act, submit a report on the results of the study under paragraph (1) to the Committee on the Judiciary and the Committee on Small Business of the House of Representatives and the Committee on the Judiciary and the Committee on Small Business and Entrepreneurship of the Senate.
Page 8, line 3, add the following after the period: “For the 3-year period beginning on October 1, 2004, the fee for a search by a qualified search authority of a patent application described in clause (i), (iv), or (v) of subparagraph (B) may not exceed $500, of a patent application described in clause (ii) of subparagraph (B) may not exceed $100, and of a patent application described in clause (iii) of subparagraph (B) may not exceed $300. The Director may not increase any such fee by more than 20 percent in each of the next 3 1-year periods, and the Director may not increase any such fee thereafter.”.
Legislative Activity
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House amendment offered
March 3, 2004
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House amendment offered
March 3, 2004
House amendment agreed to: On agreeing to the Sensenbrenner amendment (A001) Agreed to by voice vote.
March 3, 2004 • 5:30 PM
Amendment agreed to Committee of the Whole
March 3, 2004 • 5:30 PM
House amendment offered/reported by : Amendment (A001) offered by Mr. Sensenbrenner.(consideration: CR H801-803; text: CR H801-802)
March 3, 2004 • 5:27 PM
Amendment (A001) offered by Mr. Sensenbrenner. (consideration: CR H801-803; text: CR H801-802)
March 3, 2004 • 5:27 PM
On agreeing to the Sensenbrenner amendment (A001) Agreed to by voice vote.
March 3, 2004 • 5:30 PM