USPTO Cuts Expenses to Account for $85-100 Million ShortfallIn an email today to all USPTO staff, Director Kappos explained that the agency will be unable to spend the $85-100 million in fees being collected in FY 2011. Thus, effective immediately, and likely beyond the end of FY 2011 (September 30, 2011) the following cost cutting measures have been implemented: 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.It is unclear what the impact will be on the Cental Reexamination Unit (CRU). As discussed previously, the unit was scheduled to hire a group of examiners for temporary assignment, the status of that program remains unknown.As Congress continues to consider the Patent Reform legislation, especially fee diversion, this development will hopefully foster an even greater sense of urgen

In an email today to all USPTO staff, Director Kappos explained that the agency will be unable to spend the $85-100 million in fees being collected in FY 2011. Thus, effective immediately, and likely beyond the end of FY 2011 (September 30, 2011) the following cost cutting measures have been implemented:

  • 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.

It is unclear what the impact will be on the Cental Reexamination Unit (CRU). As discussed previously, the unit was scheduled to hire a group of examiners for temporary assignment, the status of that program remains unknown.

As Congress continues to consider the Patent Reform legislation, especially fee diversion, this development will hopefully foster an even greater sense of urgency.