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[DOCID: f:s1754is.txt]






107th CONGRESS
  1st Session
                                S. 1754

To authorize appropriations for the United States Patent and Trademark 
   Office for fiscal years 2002 through 2007, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 30, 2001

     Mr. Leahy (for himself, Mr. Hatch, Mr. Reid, and Mr. Bennett) 
introduced the following bill; which was read twice and referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To authorize appropriations for the United States Patent and Trademark 
   Office for fiscal years 2002 through 2007, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Patent and Trademark Office 
Authorization Act of 2002''.

SEC. 2. AUTHORIZATION OF AMOUNTS AVAILABLE TO THE PATENT AND TRADEMARK 
              OFFICE.

    (a) In General.--There are authorized to be appropriated to the 
United States Patent and Trademark Office for salaries and necessary 
expenses for each of the fiscal years 2002 through 2007 an amount equal 
to the fees estimated by the Secretary of Commerce to be collected in 
each such fiscal year, respectively, under--
            (1) title 35, United States Code; and
            (2) the Act entitled ``An Act to provide for the 
        registration and protection of trademarks used in commerce, to 
        carry out the provisions of certain international conventions, 
        and for other purposes'', approved July 5, 1946 (15 U.S.C. 1051 
        et seq.) (commonly referred to as the Trademark Act of 1946).
    (b) Estimates.--Not later than February 15, of each fiscal year, 
the Undersecretary of Commerce for Intellectual Property and the 
Director of the Patent and Trademark Office (in this Act referred to as 
the Director) shall submit an estimate of all fees referred to under 
subsection (a) to be collected in the next fiscal year to the chairman 
and ranking member of--
            (1) the Committees on Appropriations and Judiciary of the 
        Senate; and
            (2) the Committees on Appropriations and Judiciary of the 
        House of Representatives.

SEC. 3. ELECTRONIC FILING AND PROCESSING OF PATENT AND TRADEMARK 
              APPLICATIONS.

    (a) Electronic Filing and Processing.--The Director shall, during 
the 3-year period beginning December 1, 2001, develop an electronic 
system for the filing and processing of patent and trademark 
applications, that--
            (1) is user friendly; and
            (2) includes the necessary infrastructure--
                    (A) to allow examiners and applicants to send all 
                communications electronically; and
                    (B) to allow the Office to process, maintain, and 
                search electronically the contents and history of each 
                application.
    (b) Authorization of Appropriations.--Of amounts authorized under 
section 2, there is authorized to be appropriated to carry out 
subsection (a) of this section not more than $50,000,000 for each of 
fiscal years 2002 and 2003. Amounts made available pursuant to this 
subsection shall remain available until expended.

SEC. 4. STRATEGIC PLAN.

    (a) Development of Plan.--The Director shall, in close consultation 
with the Patent Public Advisory Committee and the Trademark Public 
Advisory Committee, develop a strategic plan that sets forth the goals 
and methods by which the United States Patent and Trademark Office 
will, during the 5-year period beginning on October 1, 2002--
            (1) enhance patent and trademark quality;
            (2) reduce patent and trademark pendency; and
            (3) develop and implement an effective electronic system 
        for use by the Patent and Trademark Office and the public for 
        all aspects of the patent and trademark processes, including, 
        in addition to the elements set forth in section 3, searching, 
        examining, communicating, publishing, and making publicly 
        available, patents and trademark registrations.
The strategic plan shall include milestones and objective and 
meaningful criteria for evaluating the progress and successful 
achievement of the plan. The Director shall consult with the Public 
Advisory Committees with respect to the development of each aspect of 
the strategic plan.
    (b) Report to Congressional Committees.--The Director shall, not 
later than February 15, 2002, or 4 months after the date of the 
enactment of this Act, whichever is later, submit the plan developed 
under subsection (a) to the Committees on the Judiciary of the Senate 
and the House of Representatives.

SEC. 5. DETERMINATION OF SUBSTANTIAL NEW QUESTION OF PATENTABILITY IN 
              REEXAMINATION PROCEEDINGS.

    (a) In General.--Sections 303(a) and 312(a) of title 35, United 
States Code, are each amended by adding at the end the following: ``The 
existence of a substantial new question of patentability is not 
precluded by the fact that a patent or printed publication was 
previously cited by or to the Office or considered by the Office.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to any determination of the Director of the United 
States Patent and Trademark Office that is made under section 303(a) or 
312(a) of title 35, United States Code, on or after the date of the 
enactment of this Act.

SEC. 6. APPEALS IN INTER PARTES REEXAMINATION PROCEEDINGS.

    (a) Appeals by Third-Party Requester in Proceedings.--Section 
315(b) of title 35, United States Code, is amended to read as follows:
    ``(b) Third-Party Requester.--A third-party requester--
            ``(1) may appeal under the provisions of section 134, and 
        may appeal under the provisions of sections 141 through 144, 
        with respect to any final decision favorable to the 
        patentability of any original or proposed amended or new claim 
        of the patent; and
            ``(2) may, subject to subsection (c), be a party to any 
        appeal taken by the patent owner under the provisions of 
        section 134 or sections 141 through 144.''.
    (b) Appeal to Board of Patent Appeals and Interferences.--Section 
134(c) of title 35, United States Code, is amended by striking the last 
sentence.
    (c) Appeal to Court of Appeals for the Federal Circuit.--Section 
141 of title 35, United States Code, is amended in the third sentence 
by inserting ``, or a third-party requester in an inter partes 
reexamination proceeding, who is'' after ``patent owner''.
    (d) Effective Date.--The amendments made by this section apply with 
respect to any reexamination proceeding commenced on or after the date 
of the enactment of this Act.
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