Cutbacks at the Patent Office = Cutbacks in Jobs, Innovation
U.S. Patent and Trademark Office Director David Kappos recently sent a memo to all employees announcing cutbacks.
In the politically charged fight to curb the federal deficit, the USPTO got caught in the crosshairs. The U.S. Government has opted to save pennies today by robbing the nation of dollars (and jobs) tomorrow.
The USPTO won’t be able to keep as much as $100 million in fees it expects to collect, which means a hiring freeze and other reductions … which also likely means continuing, if not burgeoning, backlogs in processing patents.
The average time to obtain – or get rejected for – a patent is 34 months.
That the USPTO can’t keep the fees it collects is a set-back for innovation and a short-sighted budget decision.
Shame on Congress.
And shame on us for letting Congress pull the rug out from under inventors and innovation.
Here’s how to contact your Representatives and your Senators.
Here’s Kappos’ memo:
As you may know, the FY 2011 budget was signed by the president on April 15, 2011 and contains the USPTO’s appropriation through the end of this fiscal year, September 30, 2011.
With the enactment of the Full-Year Continuing Appropriations Act, 2011 (Pub. Law 112-10), USPTO spending authority for FY 2011 has been limited to $2.09 billion. In view of the funding cuts reflected in the final budget and affecting the U.S. government as a whole, we will be unable to expend the additional $85-100 million in fees that we will be collecting during this fiscal year—funds that we had anticipated being able to use to fund operations this year.
In short, the Continuing Appropriations Act for FY 2011 does not allow us to maintain spending at the levels planned for this year. Further, I am mindful of the fact that we may very well be operating at the FY 2011 level for the foreseeable future. As a result, we have had to make some difficult decisions in order to ensure the responsible stewardship of the agency. It is against that backdrop that I must reluctantly announce, effective immediately, that:
• 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;
• 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.
I want each of you to know that we have not come by these decisions easily. I recognize that these measures will place additional burdens on your offices, your staff, and your ability to carry out the agency’s mission. However, I believe that they are absolutely necessary to ensuring that the agency can continue to operate through the remainder of this fiscal year and into FY 2012.
I thank you for continuing cooperation and patience, and I appreciate your dedication and service during this challenging time.
David Kappos
Under Secretary of Commerce for Intellectual Property and Director of the USPTO
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