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IEEE-USA Urges Congress to End Patent Application Fee Diversion

WASHINGTON (16 September 2004) — Congress should not pass an increase in patent application fees without ending the diversion of fees from the United States Patent and Trademark Office (USPTO) to other government programs, IEEE-USA President-Elect Gerard A. Alphonse said in a letter to Senate Commerce-State-Justice Appropriations Committee members and Senate leaders Wednesday.

Although the USPTO is funded solely by user fees, since 1990 a portion of the fees has been diverted to the U.S. Treasury. According to IEEE-USA, this diversion of fees reduces the patent office's income and hinders its ability to keep up with the growing number of patent and trademark applications it receives each year. Delays in the issuance of patent and trademark registrations could have enormous economic impact.

"The patent and trademark system serves to reduce the risks of commercial ventures and provides a business tool that helps U.S. corporations compete in the global market," Alphonse said. "The need for U.S. companies to protect intellectual property also creates an incentive for these companies to keep highly skilled technical professionals close to home, rather than shipping their jobs overseas."

A significant reason the United States has been a magnet for new technology ventures is the overall strength of the U.S. patent system. The USPTO receives far more foreign applications than foreign patent offices receive U.S. applications.

"Discontinuing fee diversion will help the U.S. patent system to remain the leader and will enhance our ability to attract new technology ventures to the United States," IEEE-USA's Alphonse added. "This will have a positive effect on capital formation for such ventures in the United States, which in turn will help create new high-paying jobs."

IEEE-USA is an organizational unit of the IEEE. It was created in 1973 to advance the public good and promote the careers and public-policy interests of the more than 225,000 technology professionals who are U.S. members of the IEEE. The IEEE is the world's largest technical professional society. For more information, go to www.ieeeusa.org.

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Last Update:  15 May 2007
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