USPTO also advises the administration on all domestic and global aspects of intellectual property. Fees and volume of patent activity are different for small and large entities. The majority of patent applicants are large entities filing applications for utility patents. USPTO’s Past and Future Operations

		Patent Applications Filed

The number of patent applications filed nearly doubled during fiscal years 1990 through 2001, increasing from about 164,000 to about 326,000, and USPTO’s Corporate, Business, and Strategic Plans projected that the number of applications would increase to between 351,000 and 368,000 in fiscal year 2002. USPTO’s three plans projected that pendency would increase to between 26.1 months and 26.7 months in fiscal year 2002. Fee collections and funding requirements projected for fiscal year 2003 in the Business Plan would be the same in the Strategic Plan—$1.527 billion in fee collections and $1.365 billion in funding requirements—but the specifics would change. In addition, some new fees would be established for such things as surcharges authorized by the USPTO Director in certain instances. If a large entity maintains the patent through the payment of the three maintenance fees, the total fee increase resulting from the proposed legislation would be nearly $4,100, or about a 51 percent increase over current fees. Furthermore, because maintenance fees are higher, if a small entity maintains the patent through the payment of the three maintenance fees, the total fee increase resulting from the proposed legislation would be nearly $2,700, or about a 67 percent increase over current fees. Although we did not independently verify the data provided by USPTO, to the extent feasible we corroborated it with other agency sources. Briefing for the Chairman of the Joint

U.S. Patent and Trademark Office: Information on Past and Future Operations July 25, 2002  U.S. Patent and Trademark Office (USPTO)
Background (con’t.) Methodology

Patent Applications Filed (Fiscal years 1990-2001) and Corporate, Business, and Strategic Plan Projections (Fiscal years 2002-2007)
Patents Granted (Fiscal years 1990-2001) and Corporate, Business, and Strategic Plan Projections (Fiscal years 2002-2007)
End-of-Year Patent Inventory (Fiscal years 1990-2001) and Corporate, Business, and Strategic Plan Projections (Fiscal years 2002-2007)
Total Patent Pendency (Fiscal years 1990-2001) and Corporate, Business, and Strategic Plan Projections (Fiscal years 2002-2007)
Employment of Patent Examiners (Fiscal years 1990-2001) and Business and Strategic Plan Projections (Fiscal years 2002-2007)
Patent Examiners Hired (Fiscal years 1990-2001) and Business and Strategic Plan Projections (Fiscal years 2002-2007)
Examiners Who Left (Fiscal years 1990-2001) and Business and Strategic Plan Projections  (Fiscal years 2002-2007)
Fee Collections and Funding Requirements (Fiscal years 1999-2001) and Business Plan Projections (Fiscal years 2002-2007)
Fee Collections and Funding Requirements (Fiscal years 1999-2001) and Strategic Plan Projections (Fiscal years 2002-2007)

			Business Plan Pendency—from time applicant

			Filing fee would be lower, but other fees would be higher—to

compensate for the eliminated FY 2003 patent fee surcharge and the expected decrease in patent applications.
Why GAO Did This Study

The U.S. Patent and Trademark Office (USPTO) has a staff of 6,426 and collected $1.1 billion in patent and trademark fees in fiscal year 2001. As the U.S. economy depends increasingly on new innovations, the need to patent or trademark quickly the intellectual property resulting from such innovations becomes more important. Expressing concerns about USPTO's plans for the future, Congress directed USPTO to develop a 5-year plan. In February 2001, USPTO issued its first 5-year plan, called the USPTO Business Plan. Because the Director of USPTO did not believe that the Business Plan went far enough, in June 2002, USPTO produced another 5-year plan, called the 21st Century Strategic Plan.

What GAO Found

GAO found that patent activity grew substantially from 1990 through 2001. The numbers of patent applications filed and patents granted nearly doubled; the inventory of patent applications nearly tripled; patent pendency increased from slightly over 18 months to nearly 25 months, and the number of patent examiners increased by about 80 percent. Furthermore, in fiscal year 2001, both fee collections and agency funding requirements exceeded $1 billion for the first time in the agency's history. Although both 5-year plans cover the same period, the assumptions and projected results of the Business Plan are different in several ways from the Strategic Plan. The administration's recent legislative proposal to restructure patent fees to implement the Strategic Plan would result in higher fees for the majority of patent applications--large entities--that receive utility patents and maintain such patents in to the future. Consequently, total fees for these applicants would increase by $4,100 or 51 percent. Also, total fees for most small entities would increase $2,700 or 67 percent over current fees.