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 2003 through 2008 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.--Not later than December 1, 
2004, the Director shall complete the development of an electronic 
system for the filing and processing of patent and trademark 
applications, that--
            (1) is user friendly; and
            (2) includes the necessary infrastructure to--
                    (A) allow examiners and applicants to send all 
                communications electronically; and
                    (B) 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 are authorized to be appropriated to carry out 
subsection (a) of this section not more than $50,000,000 for each of 
fiscal years 2003 and 2004. Amounts made available under this 
subsection shall remain available until expended.

SEC. 4. ANNUAL REPORTS ON STRATEGIC PLAN.

    In each of the 5 calendar years following the date of enactment of 
this Act, the Secretary of Commerce shall submit a report to the 
Committees on the Judiciary of the Senate and the House of 
Representatives on--
            (1) the progress made in implementing the 21st Century 
        Strategic Plan issued on June 3, 2002; and
            (2) any amendments made to the plan.

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.

            Passed the Senate June 26, 2002.

            Attest:

                                                             Secretary.
107th CONGRESS

  2d Session

                                S. 1754

_______________________________________________________________________

                                 AN ACT

To authorize appropriations for the United States Patent and Trademark 
   Office for fiscal years 2003 through 2008, and for other purposes.
Patent and Trademark Office Authorization Act of 2002 - Authorizes appropriations to the U.S. Patent and Trademark Office for salaries and expenses for FY 2003 through 2008 in an amount equal to all patent and trademark fees estimated by the Secretary of Commerce (Secretary) to be collected in each such fiscal year.(Sec. 2) Requires the Under Secretary of Commerce for Intellectual Property and the Director of the Office (Director), by February 15 of each fiscal year, to report an estimate of all fees to be collected in the next fiscal year to the chairman and ranking member of specified congressional committees.(Sec. 3) Requires the Director, by December 1, 2004, to complete the development of an electronic system for the filing and processing of patent and trademark applications that: (1) is user friendly; and (2) includes the necessary infrastructure to allow examiners and applicants to send all communications electronically, and the Office to process, maintain, and search electronically the contents and history of each application. Authorizes appropriations for FY 2003 and 2004 for development of such system.(Sec. 4) Requires the Secretary, in each of the five calendar years following the enactment of this Act, to report to specified congressional committees on the progress made in implementing the 21st Century Strategic Plan issued on June 3, 2002, and on any amendments made to it.(Sec. 5) Amends Federal patent law to provide that previous citation by or to, or consideration by the Office of, a patent or printed publication does not preclude the existence of a substantial new question of patentability in patent reexamination proceedings.(Sec. 6) Revises requirements for appeals in inter partes reexamination proceedings to allow a third-party requester to appeal to the U.S. Court of Appeals for the Federal Circuit, or be a party to any appeal taken by the patent owner, with respect to any final decision favorable to the patentability of any original or proposed amended or new claim of the patent.Allows a third-party requester to appeal a decision of the Board of Patent Appeals and Interferences.Provides that a third-party requester in an inter partes reexamination proceeding dissatisfied with the final decision in an appeal to the Board may appeal the decision only to the U.S. Court of Appeals for the Federal Circuit.
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