March 2, 2011

Status of the Patent Budget

2

Steps in the Budget Process

• Strategic Planning – long term

• Budget Formulation and Performance Planning - 18 months in advance of fiscal year

• Budget Execution and Performance Reporting – begins at start of fiscal year

3

18 Month Formulation Timeline

• Data Call to Offices: March/April

• Coordination with DoC: June

• Submit to OMB: Early September

• Submit to Congress: Early February

• Testimony to Congress: March/April

• House & Senate Bills: June/July

– House and Senate Appropriations Committees pass individual spending bills with accompanying reports articulating Congressional intent

• Conference:

– House and Senate convene to resolve differences in their bills

• President Signs Public Law: Prior to start of new fiscal year on October 1

4

Federal Budget Calendar

Aug OctSep DecNov FebJan Mar Apr May JunJul

Fiscal Year 2010 Fiscal Year 2011

FY 2010 Budget

FY 2011 Budget

FY 2012 Budget

FY 2013 Budget

Execution

Congressional Action

Execution

Formulation Budget Submission to Congress

Congressional Action

Formulation

OMB

5

Where Does Our Money Come From - Fiscal Year 2010

Actual Collections - $2,069M

Other Service Fees2%

Patent Issue15%Patent Filing

23%

Patent Maintenance

32%

Patent Other18%

Trademark Processing

10%

6

Where Does Our Money Go - Fiscal Year 2010

Agency Spending - $1,938M

Equipment3%

Compensation70%

Contracts16%

Rent6%

Supplies & Materials

1%

Printing4%

Other0%

7

Patent Actual Spending - $1,260MFiscal Year 2010

Salaries, benefits & awards

80%

Workload driven contracts (RTIS, AKIMA)

10%

Overtime4%

Other operational contracts (P GP ub Class, P CT

Outsourcing)2%

Other P atent support (P ALM services, examiner P Cs, IAC,

office managers, travel, comm, supplies, equip)

2%

Training0%Examiner search support

(CDBs, NP L, STIC, EICs, translations, ITRP s)

2%

Salaries, benefits, awards, and overtime are 84% of our budget. Compensation plus major processing/ operations contracts & searching costs are 98% of our budget

8

FY 2011 Appropriation Status

Budget request:

• Sent to Congress February, 2010

• Assumes interim patent fee increase of $224 million (15% surcharge)

• Suggests language providing for regulatory fee setting authority

• Requests authority to use excess fee collections up to $100 million

• Planned enactment by October 1, 2010, currently under Continuing Resolution

(C.R.) until March 4

Patent Business Line 2,080.6

Trademark Business Line 250.7

Total $2,331.3

(dollars in millions)

9

FY 2012 President’s Budget

Budget request:

• Sent to Congress February 14, 2011

• Assumes passage of FY 2011 President’s Budget

• Requests authority to use all collections

• Planned enactment by October 1, 2011

Patent Business 2,308.6

Trademark Business 219.8

IP Policy Protection and Enforcement 71.1

Total $2,599.5(dollars in millions)

Questions?

Thank You!