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Client Alert

April 22, 2011

United States Patent and Trademark Office Curtails Activities as Part of Recently Announced Spending Cuts

In view of the funding cuts reflected in the final Fiscal Year 2011 budget that was signed by the President on April 15, 2011, United States Patent and Trademark Office (USPTO) Director Kappos, in a memo to the examination corps, explained the extent of the funding cuts and the impact on USPTO operations.

For the remaining five months of Fiscal Year 2011, the USPTO will be forced to cut approximately $85-100 million from its budget.

Impact on USPTO Operations
In view of the budget cuts, Mr. Kappos announced that effective immediately:

  • All overtime is suspended until further notice;
  • Hiring—both for new positions and for backfills—is frozen for the rest of the year unless an exemption is given by the Office of the Under Secretary;
  • Funding for employee training will be limited to mandatory training for the remainder of the year;
  • Funding for contracting of Patent Cooperation Treaty (PCT) search is significantly reduced;
  • The opening of the planned Nationwide Workforce satellite office in Detroit and any consideration of other satellite locations are postponed until further notice;
  • Only limited funding will be available for mission-critical IT capital investments; and
  • The Track One expedited patent examination program, scheduled to go into effect on May 4, 2011, is postponed until further notice.
     

In addition, all business units will be required to reduce all other non-compensation-related expenses, including travel, conferences and contracts. Trademark activities are unaffected and will maintain normal operations.

We expect applicants will experience slower response times and higher patent pendency rates due to the budget cuts. If you have any questions or wish to discuss how this decision may impact your company, please contact your attorney at Brinks Hofer Gilson & Lione.
 

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This Client Alert is intended to provide information of general interest to the public and is not intended to offer legal advice about specific situations or problems. Brinks Hofer Gilson & Lione does not intend to create an attorney-client relationship by offering this information and review of the information shall not be deemed to create such a relationship. You should consult a lawyer if you have a legal matter requiring attention. For further information, please contact a Brinks Hofer Gilson & Lione lawyer.

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