text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Innovation Protection Act''.
  
  SEC. 2. PATENT AND TRADEMARK OFFICE FUNDING.
  
      (a) Definitions.--In this section:
              (1) Director.--The term ``Director'' means the Under 
          Secretary of Commerce for Intellectual Property and Director of 
          the United States Patent and Trademark Office.
              (2) Fund.--The term ``Fund'' means the United States Patent 
          and Trademark Office Public Enterprise Revolving fund 
          established under subsection (c).
              (3) Office.--The term ``Office'' means the United States 
          Patent and Trademark Office.
              (4) Trademark act of 1946.--The term ``Trademark Act of 
          1946'' means 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'' 
          or the ``Lanham Act'').
      (b) Funding.--
              (1) In general.--Section 42 of title 35, United States 
          Code, is amended--
                      (A) in subsection (b), by striking ``Patent and 
                  Trademark Office Appropriation Account'' and inserting 
                  ``United States Patent and Trademark Office Public 
                  Enterprise Fund''; and
                      (B) in subsection (c)--
                              (i) in paragraph (1)--
                                      (I) in the first sentence, by 
                                  striking ``To the extent'' and all that 
                                  follows through ``fees'' and inserting 
                                  ``Fees''; and
                                      (II) by striking ``shall be 
                                  collected by and shall, subject to 
                                  paragraph (3), be available to the 
                                  Director'' and inserting ``shall be 
                                  collected by, and shall be available 
                                  to, the Director until expended''; and
                              (ii) by striking paragraph (2) and 
                          redesignating paragraph (3) as paragraph (2).
              (2) Effective date.--The amendments made by paragraph (1) 
          shall take effect on the first day of the first fiscal year 
          that begins on or after the date of the enactment of this Act.
      (c) USPTO Revolving Fund.--
              (1) Establishment.--There is established in the Treasury of 
          the United States a revolving fund to be known as the ``United 
          States Patent and Trademark Office Public Enterprise Fund''. 
          Any amounts in the Fund shall be available for use by the 
          Director without fiscal year limitation.
              (2) Derivation of resources.--
                      (A) In general.--There shall be deposited into the 
                  Fund on and after the effective date set forth in 
                  subsection (b)(2)--
                              (i) any fees collected under title 35, 
                          United States Code; and
                              (ii) any fees collected under the Trademark 
                          Act of 1946 (15 U.S.C. 1051 et seq.).
                      (B) Remaining balances.--There shall be deposited 
                  in the Fund, on the effective date set forth in 
                  subsection (b)(2), any unobligated balances remaining 
                  in the Patent and Trademark Office Appropriation 
                  Account, and in the Patent and Trademark Fee Reserve 
                  Fund established under section 42(b)(2) of title 31, 
                  United States Code, as in effect on the day before such 
                  effective date. Upon the payment of all obligated 
                  amounts in the Patent and Trademark Fee Reserve Fund, 
                  the Patent and Trademark Fee Reserve Fund shall be 
                  terminated.
              (3) Expenses.--Amounts deposited into the Fund under 
          paragraph (2) shall be available, without fiscal year 
          limitation, to cover--
                      (A) all expenses, to the extent consistent with the 
                  limitation on the use of fees set forth in section 
                  42(c) of title 35, United States Code, including all 
                  administrative and operating expenses, determined in 
                  the discretion of the Director to be ordinary and 
                  reasonable, incurred by the Director for the continued 
                  operation of all services, programs, activities, and 
                  duties of the Office relating to patents and 
                  trademarks, as such services, programs, activities, and 
                  duties are described under--
                              (i) title 35, United States Code; and
                              (ii) the Trademark Act of 1946; and
                      (B) all expenses incurred pursuant to any 
                  obligation, representation, or other commitment of the 
                  Office.
      (d) Annual Report and Operation Plan.--Not later than 60 days after 
  the end of each fiscal year, the Director shall submit to Congress a 
  report that--
              (1) summarizes the operations of the Office for the 
          preceding fiscal year, including financial details and staff 
          levels broken down by each major activity of the Office;
              (2) describes the long term modernization plans of the 
          Office;
              (3) sets forth details of any progress towards such 
          modernization plans made in the preceding fiscal year; and
              (4) includes the results of the most recent audit carried 
          out under subsection (f).
      (e) Annual Spending Plan.--
              (1) In general.--Not later than 30 days after the beginning 
          of each fiscal year, the Director shall notify the Committee on 
          Appropriations of the House of Representatives and the 
          Committee on Appropriations of the Senate of the plan for the 
          obligation and expenditure by the Office of the total amount of 
          the funds for that fiscal year in accordance with section 605 
          of the Science, State, Justice, Commerce, and Related Agencies 
          Appropriations Act, 2006 (Public Law 109-108; 119 Stat. 2334).
              (2) Contents.--Each plan under paragraph (1) shall--
                      (A) summarize the operations of the Office for the 
                  current fiscal year, including financial details and 
                  staff levels with respect to major activities; and
                      (B) detail the operating plan of the Office, 
                  including specific expense and staff needs, for the 
                  current fiscal year.
      (f) Audit.--The Director shall, on an annual basis, provide for an 
  independent audit of the financial statements of the Office. Such audit 
  shall be conducted in accordance with generally accepted accounting 
  principles.
      (g) Budget.--The Fund shall prepare and submit each year to the 
  President a business-type budget in such manner, and before such date, 
  as the President prescribes by regulation.
target: Innovation Protection Act - Establishes in the Treasury the United States Patent and Trademark Office Public Enterprise Fund (Public Enterprise Fund) to be used as a revolving fund by the Director of the U.S. Patent and Trademark Office (USPTO) without fiscal year limitation.  Requires to be credited to or deposited in the Public Enterprise Fund: (1) appropriations for defraying the costs of USPTO activities; (2) fees collected under federal patent and trademark laws; and (3) any unobligated balances remaining in the Patent and Trademark Office Appropriation Account and in the Patent and Trademark Fee Reserve Fund. (Thus, replaces the Patent and Trademark Office Appropriation Account, eliminates the Patent and Trademark Fee Reserve Fund, and provides a source of permanent funding for the USPTO.) Requires fees collected by the Director to remain available to the Director until expended.  Makes the Public Enterprise Fund available to cover: (1) ordinary and reasonable administrative, operating, and other expenses incurred by the Director for the continued operation of USPTO services, programs, activities, and duties relating to patents and trademarks; and (2) expenses incurred pursuant to obligations, representations, or other commitments of the USPTO.  Requires the Director, on an annual basis, to: (1) report to Congress with operation and spending plans, including financial details and staff levels broken down by each major activity; (2) provide for an independent audit of USPTO financial statements; and (3) submit a budget to the President. 
feat_title: Innovation Protection Act