< Back to H.R. 3460 (104th Congress, 1995–1996)

Text of the Moorhead-Schroeder Patent Reform Act

This bill was introduced on June 11, 1996, in a previous session of Congress, but was not enacted. The text of the bill below is as of Sep 12, 1996 (Reported by House Committee).

Source: GPO

HR 3460 RH

Union Calendar No. 423

104th CONGRESS

2d Session

H. R. 3460

[Report No. 104-784]

To establish the Patent and Trademark Office as a Government corporation, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

May 15, 1996

Mr. MOORHEAD (for himself, Mrs. SCHROEDER, Mr. CONYERS, Mr. SENSENBRENNER, Mr. COBLE, Mr. GOODLATTE, Mr. BERMAN, Mr. BOUCHER, Mr. GALLEGLY, Mr. HOKE, Mr. NADLER, and Ms. LOFGREN) introduced the following bill; which was referred to the Committee on the Judiciary

September 12, 1996

Additional sponsors: Ms. SLAUGHTER, Mr. HEINEMAN, Mr. GEKAS, Mr. FROST, Mr. DREIER, Mr. HYDE, Mr. JOHNSTON of Florida, Mr. MCHALE, Mr. LAHOOD, and Mr. Pickett

September 12, 1996

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on May 15, 1996]


A BILL

To establish the Patent and Trademark Office as a Government corporation, 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 ‘Moorhead-Schroeder Patent Reform Act’.

SEC. 2. TABLE OF CONTENTS.

      Sec. 1. Short title.

      Sec. 2. Table of contents.

TITLE I--PATENT AND TRADEMARK OFFICE GOVERNMENT CORPORATION

      Sec. 101. Short title.

Subtitle A--United States Patent and Trademark Office

      Sec. 111. Establishment of Patent and Trademark Office as a Government corporation.

      Sec. 112. Powers and duties.

      Sec. 113. Organization and management.

      Sec. 114. Management Advisory Board.

      Sec. 115. Conforming amendments.

      Sec. 116. Trademark Trial and Appeal Board.

      Sec. 117. Board of Patent Appeals and Interferences.

      Sec. 118. Suits by and against the Office.

      Sec. 119. Annual report of Commissioner.

      Sec. 120. Suspension or exclusion from practice.

      Sec. 121. Funding.

      Sec. 122. Audits.

      Sec. 123. Transfers.

Subtitle B--Effective Date; Technical Amendments

      Sec. 131. Effective date.

      Sec. 132. Technical and conforming amendments.

Subtitle C--Miscellaneous Provisions

      Sec. 141. References.

      Sec. 142. Exercise of authorities.

      Sec. 143. Savings provisions.

      Sec. 144. Transfer of assets.

      Sec. 145. Delegation and assignment.

      Sec. 146. Authority of Director of the Office of Management and Budget with respect to functions transferred.

      Sec. 147. Certain vesting of functions considered transfers.

      Sec. 148. Availability of existing funds.

      Sec. 149. Definitions.

TITLE II--EARLY PUBLICATION OF PATENT APPLICATIONS

      Sec. 201. Short title.

      Sec. 202. Early publication.

      Sec. 203. Time for claiming benefit of earlier filing date.

      Sec. 204. Provisional rights.

      Sec. 205. Prior art effect of published applications.

      Sec. 206. Cost recovery for publication.

      Sec. 207. Conforming changes.

      Sec. 208. Patent term extension authority.

      Sec. 209. Examining procedure improvements; further limited reexamination of patent applications.

      Sec. 210. Last day of pendency of provisional application.

      Sec. 211. Reporting requirement.

      Sec. 212. Effective date.

TITLE III--PRIOR DOMESTIC COMMERCIAL USE

      Sec. 301. Short title.

      Sec. 302. Defense to patent infringement based on prior domestic commercial use.

      Sec. 303. Effective date and applicability.

TITLE IV--INVENTOR PROTECTION

      Sec. 401. Short title.

      Sec. 402. Invention development services.

      Sec. 403. Technical and conforming amendment.

      Sec. 404. Effective date.

TITLE V--PATENT REEXAMINATION REFORM

      Sec. 501. Short title.

      Sec. 502. Definitions.

      Sec. 503. Reexamination procedures.

      Sec. 504. Conforming amendments.

      Sec. 505. Effective date.

TITLE VI--MISCELLANEOUS PATENT PROVISIONS

      Sec. 601. Provisional applications.

      Sec. 602. International applications.

      Sec. 603. Plant patents.

      Sec. 604. Just compensation for United States Government use of patents.

      Sec. 605. Electronic filing.

TITLE I--PATENT AND TRADEMARK OFFICE GOVERNMENT CORPORATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ‘Patent and Trademark Office Government Corporation Act of 1996’.

Subtitle A--United States Patent and Trademark Office

SEC. 111. ESTABLISHMENT OF PATENT AND TRADEMARK OFFICE AS A GOVERNMENT CORPORATION.

    Section 1 of title 35, United States Code, is amended to read as follows:

‘Sec. 1. Establishment

    ‘(a) ESTABLISHMENT- The United States Patent and Trademark Office is established as a wholly owned Government corporation subject to chapter 91 of title 31, and shall be an agency of the United States under the policy direction of the Secretary of Commerce, except as otherwise provided in this title. For purposes of internal management, the United States Patent and Trademark Office shall be a corporate body not subject to supervision by any department, except as otherwise provided in this title.

    ‘(b) OFFICES- The United States Patent and Trademark Office shall maintain an office in the District of Columbia, or the metropolitan area thereof, for the service of process and papers and shall be deemed, for purposes of venue in civil actions, to be a resident of the district in which its principal office is located. The United States Patent and Trademark Office may establish offices in such other places as it considers necessary or appropriate in the conduct of its business.

    ‘(c) REFERENCE- For purposes of this title, the United States Patent and Trademark Office shall also be referred to as the ‘Office’ and the ‘Patent and Trademark Office’.’.

SEC. 112. POWERS AND DUTIES.

    Section 2 of title 35, United States Code, is amended to read as follows:

‘Sec. 2. Powers and Duties

    ‘(a) IN GENERAL- The United States Patent and Trademark Office shall be responsible for--

      ‘(1) the granting and issuing of patents and the registration of trademarks;

      ‘(2) conducting studies, programs, or exchanges of items or services regarding domestic and international patent and trademark law, the administration of the Office, or any other function vested in the Office by law, including programs to recognize, identify, assess, and forecast the technology of patented inventions and their utility to industry;

      ‘(3)(A) authorizing or conducting studies and programs cooperatively with foreign patent and trademark offices and international organizations, in connection with the granting and issuing of patents and the registration of trademarks; and

      ‘(B) with the concurrence of the Secretary of State, authorizing the transfer of not to exceed $100,000 in any year to the Department of State for the purpose of making special payments to international intergovernmental organizations for studies and programs for advancing international cooperation concerning patents, trademarks, and related matters; and

      ‘(4) disseminating to the public information with respect to patents and trademarks.

    The special payments under paragraph (3)(B) shall be in addition to any other payments or contributions to international organizations described in paragraph (3)(B) and shall not be subject to any limitations imposed by law on the amounts of such other payments or contributions by the United States Government.

    ‘(b) SPECIFIC POWERS- The Office--

      ‘(1) shall have perpetual succession;

      ‘(2) shall adopt and use a corporate seal, which shall be judicially noticed and with which letters patent, certificates of trademark registrations, and papers issued by the Office shall be authenticated;

      ‘(3) may sue and be sued in its corporate name and be represented by its own attorneys in all judicial and administrative proceedings, subject to the provisions of section 7;

      ‘(4) may indemnify the Commissioner of Patents and Trademarks, and other officers, attorneys, agents, and employees (including members of the Management Advisory Board established in section 5) of the Office for liabilities and expenses incurred within the scope of their employment;

      ‘(5) may adopt, amend, and repeal bylaws, rules, regulations, and determinations, which--

        ‘(A) shall govern the manner in which its business will be conducted and the powers granted to it by law will be exercised;

        ‘(B) shall be made after notice and opportunity for full participation by interested public and private parties;

        ‘(C) shall facilitate and expedite the processing of patent applications, particularly those which can be filed, stored, processed, searched, and retrieved electronically, subject to the provisions of section 122 relating to the confidential status of applications; and

        ‘(D) may govern the recognition and conduct of agents, attorneys, or other persons representing applicants or other parties before the

Office, and may require them, before being recognized as representatives of applicants or other persons, to show that they are of good moral character and reputation and are possessed of the necessary qualifications to render to applicants or other persons valuable service, advice, and assistance in the presentation or prosecution of their applications or other business before the Office;

      ‘(6) may acquire, construct, purchase, lease, hold, manage, operate, improve, alter, and renovate any real, personal, or mixed property, or any interest therein, as it considers necessary to carry out its functions;

      ‘(7)(A) may make such purchases, contracts for the construction, maintenance, or management and operation of facilities, and contracts for supplies or services, without regard to the provisions of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 and following), the Public Buildings Act (40 U.S.C. 601 and following), and the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11301 and following); and

      ‘(B) may enter into and perform such purchases and contracts for printing services, including the process of composition, platemaking, presswork, silk screen processes, binding, microform, and the products of such processes, as it considers necessary to carry out the functions of the Office, without regard to sections 501 through 517 and 1101 through 1123 of title 44;

      ‘(8) may use, with their consent, services, equipment, personnel, and facilities of other departments, agencies, and instrumentalities of the Federal Government, on a reimbursable basis, and cooperate with such other departments, agencies, and instrumentalities in the establishment and use of services, equipment, and facilities of the Office;

      ‘(9) may obtain from the Administrator of General Services such services as the Administrator is authorized to provide to other agencies of the United States, on the same basis as those services are provided to other agencies of the United States;

      ‘(10) may use, with the consent of the United States and the agency, government, or international organization concerned, the services, records, facilities, or personnel of any State or local government agency or instrumentality or foreign government or international organization to perform functions on its behalf;

      ‘(11) may determine the character of and the necessity for its obligations and expenditures and the manner in which they shall be incurred, allowed, and paid, subject to the provisions of this title and the Act of July 5, 1946 (commonly referred to as the ‘Trademark Act of 1946’);

      ‘(12) may retain and use all of its revenues and receipts, including revenues from the sale, lease, or disposal of any real, personal, or mixed property, or any interest therein, of the Office, including for research and development and capital investment, subject to the provisions of section 10101 of the Omnibus Budget Reconciliation Act of 1990 (35 U.S.C. 41 note);

      ‘(13) shall have the priority of the United States with respect to the payment of debts from bankrupt, insolvent, and decedents’ estates;

      ‘(14) may accept monetary gifts or donations of services, or of real, personal, or mixed property, in order to carry out the functions of the Office;

      ‘(15) may execute, in accordance with its bylaws, rules, and regulations, all instruments necessary and appropriate in the exercise of any of its powers;

      ‘(16) may provide for liability insurance and insurance against any loss in connection with its property, other assets, or operations either by contract or by self-insurance; and

      ‘(17) shall pay any settlement or judgment entered against it from the funds of the Office and not from amounts available under section 1304 of title 31.’.

SEC. 113. ORGANIZATION AND MANAGEMENT.

    Section 3 of title 35, United States Code, is amended to read as follows:

‘Sec. 3. Officers and employees

    ‘(a) COMMISSIONER-

      ‘(1) IN GENERAL- The management of the United States Patent and Trademark Office shall be vested in a Commissioner of Patents and Trademarks (hereafter in this title referred to as the ‘Commissioner’), who shall be a citizen of the United States and who shall be appointed by the President, by and with the advice and consent of the Senate. The Commissioner shall be a person who, by reason of professional background and experience in patent or trademark law, is especially qualified to manage the Office.

      ‘(2) DUTIES-

        ‘(A) IN GENERAL- The Commissioner shall be responsible for the management and direction

of the Office, including the issuance of patents and the registration of trademarks, and shall perform these duties in a fair, impartial, and equitable manner.

        ‘(B) ADVISING THE PRESIDENT- The Commissioner shall advise the President, through the Secretary of Commerce, of all activities of the Office undertaken in response to obligations of the United States under treaties and executive agreements, or which relate to cooperative programs with those authorities of foreign governments that are responsible for granting patents or registering trademarks. The Commissioner shall also recommend to the President, through the Secretary of Commerce, changes in law or policy which may improve the ability of United States citizens to secure and enforce patent rights or trademark rights in the United States or in foreign countries.

        ‘(C) CONSULTING WITH THE MANAGEMENT ADVISORY BOARD- The Commissioner shall consult with the Management Advisory Board established in section 5 on a regular basis on matters relating to the operation of the Office, and shall consult with the Board before submitting budgetary proposals to the Office of Management and Budget or changing or proposing to change patent or trademark user fees or patent or trademark regulations.

        ‘(D) SECURITY CLEARANCES- The Commissioner, in consultation with the Director of the Office of Personnel Management, shall maintain a program for identifying national security positions and providing for appropriate security clearances.

      ‘(3) TERM- The Commissioner shall serve a term of 5 years, and may continue to serve after the expiration of the Commissioner’s term until a successor is appointed and assumes office. The Commissioner may be reappointed to subsequent terms.

      ‘(4) OATH- The Commissioner shall, before taking office, take an oath to discharge faithfully the duties of the Office.

      ‘(5) COMPENSATION- The Commissioner shall receive compensation at the rate of pay in effect for level II of the Executive Schedule under section 5313 of title 5.

      ‘(6) REMOVAL- The Commissioner may be removed from office by the President only for cause.

      ‘(7) DESIGNEE OF COMMISSIONER- The Commissioner shall designate an officer of the Office who shall be vested with the authority to act in the capacity of the Commissioner in the event of the absence or incapacity of the Commissioner.

    ‘(b) OFFICERS AND EMPLOYEES OF THE OFFICE-

      ‘(1) DEPUTY COMMISSIONERS- The Commissioner shall appoint a Deputy Commissioner for Patents and a Deputy Commissioner for Trademarks for terms that shall expire on the date on which the Commissioner’s term expires. The Deputy Commissioner for Patents shall be a person with demonstrated experience in patent law and the Deputy Commissioner for Trademarks shall be a person with demonstrated experience in trademark law. The Deputy Commissioner for Patents and the Deputy Commissioner for Trademarks shall be the principal policy and management advisors to the Commissioner on all aspects of the activities of the Office that affect the administration of patent and trademark operations, respectively.

      ‘(2) OTHER OFFICERS AND EMPLOYEES- The Commissioner shall--

        ‘(A) appoint an Inspector General and such other officers, employees (including attorneys), and agents of the Office as the Commissioner considers necessary to carry out its functions;

        ‘(B) fix the compensation of such officers and employees, except as otherwise provided in this section; and

        ‘(C) define the authority and duties of such officers and employees and delegate to them such of the powers vested in the Office as the Commissioner may determine.

      The Office shall not be subject to any administratively or statutorily imposed limitation on positions or personnel, and no positions or personnel of the Office shall be taken into account for purposes of applying any such limitation.

    ‘(c) LIMITS ON COMPENSATION- Except as otherwise provided by law, the annual rate of basic pay of an officer or employee of the Office may not be fixed at a rate that exceeds, and total compensation payable to any such officer or employee for any year may not exceed, the annual rate of basic pay in effect for the Commissioner for the year involved. The Commissioner shall prescribe such regulations as may be necessary to carry out this subsection.

    ‘(d) INAPPLICABILITY OF TITLE 5 GENERALLY- Except as otherwise provided in this section, officers and employees of the Office shall not be subject to the provisions of title 5 relating to Federal employees.

    ‘(e) CONTINUED APPLICABILITY OF CERTAIN PROVISION OF TITLE 5-

      ‘(1) IN GENERAL- The following provisions of title 5 shall apply to the Office and its officers and employees:

        ‘(A) Section 3110 (relating to employment of relatives; restrictions).

        ‘(B) Subchapter II of chapter 55 (relating to withholding pay).

        ‘(C) Subchapters II and III of chapter 73 (relating to employment limitations and political activities, respectively).

        ‘(D) Chapter 71 (relating to labor-management relations), subject to paragraph (2) and subsection (g).

        ‘(E) Section 3303 (relating to political recommendations).

        ‘(F) Subchapter II of chapter 61 (relating to flexible and compressed work schedules).

      ‘(2) COMPENSATION SUBJECT TO COLLECTIVE BARGAINING-

        ‘(A) IN GENERAL- Notwithstanding any other provision of law, for purposes of applying

chapter 71 of title 5 pursuant to paragraph (1)(D), basic pay and other forms of compensation shall be considered to be among the matters as to which the duty to bargain in good faith extends under such chapter.

        ‘(B) EXCEPTIONS- The duty to bargain in good faith shall not, by reason of subparagraph (A), be considered to extend to any benefit under title 5 which is afforded by paragraph (1), (2), (3), or (4) of subsection (f).

        ‘(C) LIMITATIONS APPLY- Nothing in this subsection shall be considered to allow any limitation under subsection (c) to be exceeded.

    ‘(f) PROVISIONS OF TITLE 5 THAT CONTINUE TO APPLY, SUBJECT TO CERTAIN REQUIREMENTS-

      ‘(1) RETIREMENT- (A) The provisions of subchapter III of chapter 83 and chapter 84 of title 5 shall apply to the Office and its officers and employees, subject to subparagraph (B).

      ‘(B)(i) The amount required of the Office under the second sentence of section 8334(a)(1) of title 5 with respect to any particular individual shall, instead of the amount which would otherwise apply, be equal to the normal-cost percentage (determined with respect to officers and employees of the Office using dynamic assumptions, as defined by section 8401(9) of such title) of the individual’s basic pay, minus the amount required to be withheld from such pay under such section 8334(a)(1).

      ‘(ii) The amount required of the Office under section 8334(k)(1)(B) of title 5 with respect to any particular individual shall be equal to an amount computed in a manner similar to that specified in clause (i), as determined in accordance with clause (iii).

      ‘(iii) Any regulations necessary to carry out this subparagraph shall be prescribed by the Office of Personnel Management.

      ‘(C) The United States Patent and Trademark Office may supplement the benefits provided under the preceding provisions of this paragraph.

      ‘(2) HEALTH BENEFITS- (A) The provisions of chapter 89 of title 5 shall apply to the Office and its officers and employees, subject to subparagraph (B).

      ‘(B)(i) With respect to any individual who becomes an officer or employee of the Office pursuant to subsection (h), the eligibility of such individual to participate in such program as an annuitant (or of any other person to participate in such program as an annuitant based on the death of such individual) shall be determined by disregarding the requirements of section 8905(b) of title 5. The preceding sentence shall not apply if the individual ceases to be an officer or employee of the Office for any period of time after becoming an officer or employee of the Office pursuant to subsection (h) and before separation.

      ‘(ii) The Government contributions authorized by section 8906 for health benefits for anyone participating in the health benefits program pursuant to this subparagraph shall be made by the Office in the same manner as provided under section 8906(g)(2) of title 5 with respect to the United States Postal Service for individuals associated therewith.

      ‘(iii) For purposes of this subparagraph, the term ‘annuitant’ has the meaning given such term by section 8901(3) of title 5.

      ‘(C) The Office may supplement the benefits provided under the preceding provisions of this paragraph.

      ‘(3) LIFE INSURANCE- (A) The provisions of chapter 87 of title 5 shall apply to the Office and its officers and employees, subject to subparagraph (B).

      ‘(B)(i) Eligibility for life insurance coverage after retirement or while in receipt of compensation under subchapter I of chapter 81 of title 5 shall be determined, in the case of any individual who becomes an officer or employee of the Office pursuant to subsection (h), without regard to the requirements of section 8706(b) (1) or (2), but subject to the condition specified in the last sentence of paragraph (2)(B)(i) of this subsection.

      ‘(ii) Government contributions under section 8708(d) on behalf of any such individual shall be made by the Office in the same manner as provided under paragraph (3) thereof with respect to the United States Postal Service for individuals associated therewith.

      ‘(C) The Office may supplement the benefits provided under the preceding provisions of this paragraph.

      ‘(4) EMPLOYEES’ COMPENSATION FUND- (A) Officers and employees of the Office shall not become ineligible to participate in the program under chapter 81 of title 5, relating to compensation for work injuries, by reason of subsection (d).

      ‘(B) The Office shall remain responsible for reimbursing the Employees’ Compensation Fund, pursuant to section 8147 of title 5, for compensation paid or payable after the effective date of the Patent and Trademark Office Government Corporation Act of 1996 in accordance with chapter 81 of title 5 with regard to any injury, disability, or death due to events arising before such date, whether or not a claim has been filed or is final on such date.

    ‘(g) LABOR-MANAGEMENT RELATIONS-

      ‘(1) LABOR RELATIONS AND EMPLOYEE RELATIONS PROGRAMS- The Office shall develop labor relations and employee relations programs with the objective of improving productivity and efficiency, incorporating the following principles:

        ‘(A) Such programs shall be consistent with the merit principles in section 2301(b) of title 5.

        ‘(B) Such programs shall provide veterans preference protections equivalent to those established by sections 2108, 3308-3318, and 3320 of title 5.

        ‘(C)(i) The right to work shall not be subject to undue restraint or coercion. The right to work shall not be infringed or restricted in any way based on membership in, affiliation with, or financial support of a labor organization.

        ‘(ii) No person shall be required, as a condition of employment or continuation of employment--

          ‘(I) to resign or refrain from voluntary membership in, voluntary affiliation with, or voluntary financial support of a labor organization;

          ‘(II) to become or remain a member of a labor organization;

          ‘(III) to pay any dues, fees, assessments, or other charges of any kind or amount to a labor organization;

          ‘(IV) to pay to any charity or other third party, in lieu of such payments, any amount equivalent to or a pro-rata portion of dues, fees, assessments, or other charges regularly required of members of a labor organization; or

          ‘(V) to be recommended, approved, referred, or cleared by or through a labor organization.

        ‘(iii) This subparagraph shall not apply to a person described in section 7103(a)(2)(v) of title 5 or a ‘supervisor’, ‘management official’, or ‘confidential employee’ as those terms are defined in 7103(a) (10), (11), and (13) of such title.

        ‘(iv) Any labor organization recognized by the Office as the exclusive representative of a unit of employees of the Office shall represent

the interests of all employees in that unit without discrimination and without regard to labor organization membership.

      ‘(2) ADOPTION OF EXISTING LABOR AGREEMENTS- The Office shall adopt all labor agreements which are in effect, as of the day before the effective date of the Patent and Trademark Office Government Corporation Act of 1996, with respect to such Office (as then in effect).

    ‘(h) CARRYOVER OF PERSONNEL-

      ‘(1) FROM PTO- Effective as of the effective date of the Patent and Trademark Office Government Corporation Act of 1996, all officers and employees of the Patent and Trademark Office on the day before such effective date shall become officers and employees of the Office, without a break in service.

      ‘(2) OTHER PERSONNEL- Any individual who, on the day before the effective date of the Patent and Trademark Office Government Corporation Act of 1996, is an officer or employee of the Department of Commerce (other than an officer or employee under paragraph (1)) shall be transferred to the Office if--

        ‘(A) such individual serves in a position for which a major function is the performance of work reimbursed by the Patent and Trademark Office, as determined by the Secretary of Commerce;

        ‘(B) such individual serves in a position that performed work in support of the Patent and Trademark Office during at least half of the incumbent’s work time, as determined by the Secretary of Commerce; or

        ‘(C) such transfer would be in the interest of the Office, as determined by the Secretary of Commerce in consultation with the Commissioner of Patents and Trademarks.

      Any transfer under this paragraph shall be effective as of the same effective date as referred to in paragraph (1), and shall be made without a break in service.

      ‘(3) ACCUMULATED LEAVE- The amount of sick and annual leave and compensatory time accumulated under title 5 before the effective date described in paragraph (1), by those becoming officers or employees of the Office pursuant to this subsection, are obligations of the Office.

      ‘(4) TERMINATION RIGHTS- Any employee referred to in paragraph (1) or (2) of this subsection whose employment with the Office is terminated during the 2-year period beginning on the effective date of the Patent and Trademark Office Government Corporation Act of 1996 shall be entitled to rights and benefits, to be afforded by the Office, similar to those such employee would have had under Federal law if termination had occurred immediately before such date. An employee who would have been entitled to appeal any such termination to the Merit Systems Protection Board, if such termination had occurred immediately before such effective date, may appeal any such termination occurring within this 2-year period to the Board under such procedures as it may prescribe.

      ‘(5) CONTINUATION IN OFFICE OF CERTAIN OFFICERS- (A) The individual serving as the Commissioner of Patents and Trademarks on the day before the effective date of the Patent and Trademark Office Government Corporation Act of 1996 may serve as the Commissioner until the date on which a Commissioner is appointed under subsection (a).

      ‘(B) The individual serving as the Assistant Commissioner for Patents on the day before the effective date of the Patent and Trademark Office Government Corporation Act of 1996 may serve as the Deputy Commissioner for Patents until the date on which

a Deputy Commissioner for Patents is appointed under subsection (b).

      ‘(C) The individual serving as the Assistant Commissioner for Trademarks on the day before the effective date of the Patent and Trademark Office Government Corporation Act of 1996 may serve as the Deputy Commissioner for Trademarks until the date on which a Deputy Commissioner for Trademarks is appointed under subsection (b).

    ‘(i) COMPETITIVE STATUS- For purposes of appointment to a position in the competitive service for which an officer or employee of the Office is qualified,

such officer or employee shall not forfeit any competitive status, acquired by such officer or employee before the effective date of the Patent and Trademark Office Government Corporation Act of 1996, by reason of becoming an officer or employee of the Office pursuant to subsection (h).

    ‘(j) SAVINGS PROVISIONS-

      ‘(1) IN GENERAL- Compensation, benefits, and other terms and conditions of employment in effect immediately before the effective date of the Patent and Trademark Office Government Corporation Act of 1996, whether provided by statute or by rules and regulations of the former Patent and Trademark Office or the executive branch of the Government of the United States, shall continue to apply to officers and employees of the Office, until changed in accordance with this section (whether by action of the Commissioner or otherwise).

      ‘(2) PROVISIONS SPECIFIC TO BASIC PAY- With respect to any individual who becomes an officer or employee of the Office pursuant to subsection (h), the rate of basic pay for such officer or employee may not, on or after the effective date of the Patent and Trademark Office Government Corporation Act of 1996, be less than the rate in effect immediately before such effective date, except--

        ‘(A) pursuant to a collective-bargaining agreement entered into under this section; or

        ‘(B) for inefficiency, neglect of duty, or misconduct, on the part of such individual.

      For purposes of this subparagraph, the term ‘basic pay’ includes any amount considered to be part of basic pay for purposes of subchapter III of chapter 83 or chapter 84 of title 5.

    ‘(k) REMOVAL OF QUASI-JUDICIAL EXAMINERS- The Office may remove a patent examiner or examiner-in-chief, or a trademark examiner or member of a Trademark Trial and Appeal Board, only for such cause as will promote the efficiency of the Office.’.

SEC. 114. MANAGEMENT ADVISORY BOARD.

    Chapter 1 of part I of title 35, United States Code, is amended by inserting after section 4 the following:

‘Sec. 5. Patent and Trademark Office Management Advisory Board

    ‘(a) ESTABLISHMENT OF MANAGEMENT ADVISORY BOARD-

      ‘(1) APPOINTMENT- The United States Patent and Trademark Office shall have a Management Advisory Board (hereafter in this title referred to as the ‘Board’) of 12 members, 4 of whom shall be appointed by the President, 4 of whom shall be appointed by the Speaker of the House of Representatives, and 4 of whom shall be appointed by the President pro tempore of the Senate. Not more than 3 of the 4 members appointed by each appointing authority shall be members of the same political party.

      ‘(2) TERMS- Members of the Board shall be appointed for a term of 4 years each, except that of the members first appointed by each appointing authority, 1 shall be for a term of 1 year, 1 shall be for a term of 2 years, and 1 shall be for a term of 3 years. No member may serve more than 1 term.

      ‘(3) CHAIR- The President shall designate the chair of the Board, whose term as chair shall be for 3 years.

      ‘(4) TIMING OF APPOINTMENTS- Initial appointments to the Board shall be made within 3 months after the effective date of the Patent and Trademark Office Government Corporation Act of 1996, and vacancies shall be filled within 3 months after they occur.

      ‘(5) VACANCIES- Vacancies shall be filled in the manner in which the original appointment was made under this subsection. Members appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed only for the remainder of that term. A member may serve after the expiration of that member’s term until a successor is appointed.

      ‘(6) COMMITTEES- The Chair shall designate members of the Board to serve on a committee on patent operations and on a committee on trademark operations to perform the duties set forth in subsection (e) as they relate specifically to the Office’s patent operations, and the Office’s trademark operations, respectively.

    ‘(b) BASIS FOR APPOINTMENTS- Members of the Board shall be citizens of the United States who shall be chosen so as to represent the interests of diverse users of the United States Patent and Trademark Office, and shall

include individuals with substantial background and achievement in corporate finance and management.

    ‘(c) APPLICABILITY OF CERTAIN ETHICS LAWS- Members of the Board shall be special Government employees within the meaning of section 202 of title 18.

    ‘(d) MEETINGS- The Board shall meet at the call of the chair to consider an agenda set by the chair.

    ‘(e) DUTIES- The Board shall--

      ‘(1) review the policies, goals, performance, budget, and user fees of the United States Patent and Trademark Office, and advise the Commissioner on these matters; and

      ‘(2) within 60 days after the end of each fiscal year, prepare an annual report on the matters referred to in paragraph (1), transmit the report to the President and the Committees on the Judiciary of the Senate and the House of Representatives, and publish the report in the Patent and Trademark Office Official Gazette.

    ‘(f) COMPENSATION- Members of the Board shall be compensated for each day (including travel time) during which they are attending meetings or conferences of the Board or otherwise engaged in the business of the Board, at the rate which is the daily equivalent of the annual rate of basic pay in effect for level III of the Executive Schedule under section 5314 of title 5, and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5.

    ‘(g) ACCESS TO INFORMATION- Members of the Board shall be provided access to records and information in the United States Patent and Trademark Office, except for personnel or other privileged information and information concerning patent applications required to be kept in confidence by section 122.’.

SEC. 115. CONFORMING AMENDMENTS.

    (a) DUTIES OF COMMISSIONER- Chapter 1 of title 35, United States Code, is amended by striking section 6.

    (b) REGULATIONS FOR AGENTS AND ATTORNEYS- Section 31 of title 35, United States Code, and the item relating to such section in the table of sections for chapter 3 of title 35, United States Code, are repealed.

SEC. 116. TRADEMARK TRIAL AND APPEAL BOARD.

    Section 17 of the Act of July 5, 1946 (commonly referred to as the ‘Trademark Act of 1946’) (15 U.S.C. 1067) is amended to read as follows:

    ‘SEC. 17. (a) In every case of interference, opposition to registration, application to register as a lawful concurrent user, or application to cancel the registration of a mark, the Commissioner shall give notice to all parties and shall direct a Trademark Trial and Appeal Board to determine and decide the respective rights of registration.

    ‘(b) The Trademark Trial and Appeal Board shall include the Commissioner, the Deputy Commissioner for Patents, the Deputy Commissioner for Trademarks, and members competent in trademark law who are appointed by the Commissioner.’.

SEC. 117. BOARD OF PATENT APPEALS AND INTERFERENCES.

    Chapter 1 of title 35, United States Code, is amended by striking section 7 and inserting after section 5 the following:

‘Sec. 6. Board of Patent Appeals and Interferences

    ‘(a) ESTABLISHMENT AND COMPOSITION- There shall be in the United States Patent and Trademark Office a Board of Patent Appeals and Interferences. The Commissioner, the Deputy Commissioner for Patents, the Deputy Commissioner for Trademarks, and the examiners-in-chief shall constitute the Board. The examiners-in-chief shall be persons of competent legal knowledge and scientific ability.

    ‘(b) DUTIES- The Board of Patent Appeals and Interferences shall, on written appeal of an applicant, review adverse decisions of examiners upon applications for patents and shall determine priority and patentability of invention in interferences declared under section 135(a). Each appeal and interference shall be heard by at least 3 members of the Board, who shall be designated by the Commissioner. Only the Board of Patent Appeals and Interferences may grant rehearings.’.

SEC. 118. SUITS BY AND AGAINST THE OFFICE.

    Chapter 1 of part I of title 35, United States Code, is amended by inserting after section 6 the following new section:

‘Sec. 7. Suits by and against the Office

    ‘(a) IN GENERAL-

      ‘(1) ACTIONS UNDER UNITED STATES LAW- Any civil action or proceeding to which the United States Patent and Trademark Office is a party is deemed to arise under the laws of the United States. The Federal courts shall have exclusive jurisdiction over all civil actions by or against the Office.

      ‘(2) CONTRACT CLAIMS- Any action or proceeding against the Office in which any claim is cognizable under the Contract Disputes Act of 1978 (41 U.S.C. 601 and following) shall be subject to that Act. For purposes of that Act, the Commissioner shall be deemed to be the agency head with respect to contract claims arising with respect to the Office. Any other action or proceeding against the Office founded upon

contract may be brought in an appropriate district court, notwithstanding any provision of title 28.

      ‘(3) TORT CLAIMS- (A) Any action or proceeding against the Office in which any claim is cognizable under the provisions of section 1346(b) and chapter 171 of title 28, shall be governed by those provisions.

      ‘(B) Any other action or proceeding against the Office founded upon tort may be brought in an appropriate district court without regard to the provisions of section 1346(b) and chapter 171 of title 28.

      ‘(4) PROHIBITION ON ATTACHMENT, LIENS, ETC- No attachment, garnishment, lien, or similar process, intermediate or final, in law or equity, may be issued against property of the Office.

      ‘(5) SUBSTITUTION OF OFFICE AS PARTY- The Office shall be substituted as defendant in any civil action or proceeding against an officer or employee of the Office, if the Office determines that the officer or employee was acting within the scope of his or her employment with the Office. If the Office refuses to certify scope of employment, the officer or employee may at any time before trial petition the court to find and certify that the officer or employee was acting within the scope of his or her employment. Upon certification by the court, the Office shall be substituted as the party defendant. A copy of the petition shall be served upon the Office. In any such civil action or proceeding to which paragraph (3)(A) applies, the provisions of section 1346(b) and chapter 171 of title 28 shall apply in lieu of this paragraph.

    ‘(b) RELATIONSHIP WITH JUSTICE DEPARTMENT-

      ‘(1) EXERCISE BY OFFICE OF ATTORNEY GENERAL’S AUTHORITIES- Except as provided in this section, with respect to any action or proceeding in

which the Office is a party or an officer or employee thereof is a party in his or her official capacity, the Office, officer, or employee may exercise, without prior authorization from the Attorney General, the authorities and duties that otherwise would be exercised by the Attorney General on behalf of the Office, officer, or employee under title 28 or other laws.

      ‘(2) APPEARANCES BY ATTORNEY GENERAL- Notwithstanding paragraph (1), at any time the Attorney General may, in any action or proceeding described in paragraph (1), file an appearance on behalf of the Office or the officer or employee involved, without the consent of the Office or the officer or employee. Upon such filing, the Attorney General shall represent the Office or such officer or employee with exclusive authority in the conduct, settlement, or compromise of that action or proceeding.

      ‘(3) CONSULTATIONS WITH AND ASSISTANCE BY ATTORNEY GENERAL- The Office may consult with the Attorney General concerning any legal matter, and the Attorney General shall provide advice and assistance to the Office, including representing the Office in litigation, if requested by the Office.

      ‘(4) REPRESENTATION BEFORE SUPREME COURT- The Attorney General shall represent the

Office in all cases before the United States Supreme Court.

      ‘(5) QUALIFICATIONS OF ATTORNEYS- An attorney admitted to practice to the bar of the highest court of at least one State in the United States or the District of Columbia and employed by the Office may represent the Office in any legal proceeding in which the Office or an officer or employee of the Office is a party or interested, regardless of whether the attorney is a resident of the jurisdiction in which the proceeding is held and notwithstanding any other prerequisites of qualification or appearance required by the court or administrative body before which the proceeding is conducted.’.

SEC. 119. ANNUAL REPORT OF COMMISSIONER.

    Section 14 of title 35, United States Code, is amended to read as follows:

‘Sec. 14. Annual report to Congress

    ‘The Commissioner shall report to the Congress, not later than 180 days after the end of each fiscal year, the moneys received and expended by the Office, the purposes for which the moneys were spent, the quality and quantity of the work of the Office, and other information relating to the Office. The report under this section shall also meet the requirements of section 9106 of title 31, to the extent that such requirements are not inconsistent with the preceding sentence. The report required under this section shall be deemed to be the report of the United States Patent and Trademark Office under section 9106 of title 31, and the Commissioner shall not file a separate report under such section.’.

SEC. 120. SUSPENSION OR EXCLUSION FROM PRACTICE.

    Section 32 of title 35, United States Code, is amended by inserting before the last sentence the following: ‘The Commissioner shall have the discretion to designate any attorney who is an officer or employee of the United States Patent and Trademark Office to conduct the hearing required by this section.’.

SEC. 121. FUNDING.

    Section 42 of title 35, United States Code, is amended to read as follows:

‘Sec. 42. Patent and Trademark Office funding

    ‘(a) FEES PAYABLE TO THE OFFICE- All fees for services performed by or materials furnished by the United States Patent and Trademark Office shall be payable to the Office.

    ‘(b) USE OF MONEYS- Moneys from fees shall be available to the United States Patent and Trademark Office to carry out, to the extent provided in appropriations Acts, the functions of the Office. Moneys of the Office not otherwise used to carry out the functions of the Office shall be kept in cash on hand or on deposit, or invested in obligations of the United States or guaranteed by the United States, or in obligations or other instruments which are lawful investments for fiduciary, trust, or public funds. Fees available to the Office under this title shall be used for the processing of patent applications and for other services and materials relating to patents. Fees available to the Office under section 31 of the Act of July 5, 1946 (commonly referred to as the ‘Trademark Act of 1946’; 15 U.S.C. 1113), shall be used for the processing of trademark registrations and for other services and materials relating to trademarks.

    ‘(c) BORROWING AUTHORITY- The United States Patent and Trademark Office is authorized to issue from time to time for purchase by the Secretary of the Treasury its debentures, bonds, notes, and other evidences of indebtedness (hereafter in this subsection referred to as ‘obligations’) to assist in financing its activities. Borrowing under this subsection shall be subject to prior approval in appropriations Acts. Such borrowing shall not exceed amounts approved in appropriations Acts. Any borrowing under this subsection shall be repaid only from fees paid to the Office and surcharges appropriated by the Congress. Such obligations shall be redeemable at the option of the Office before maturity in the manner stipulated in such obligations and shall have such maturity as is determined by the Office with the approval of the Secretary of the Treasury. Each such obligation issued to the Treasury shall bear interest at a rate not less than the current yield on outstanding marketable obligations of the United States of comparable maturity during the month preceding the issuance of the obligation as determined by the Secretary of the Treasury. The Secretary of the Treasury shall purchase any obligations of the Office issued under this subsection and for such purpose the Secretary of the Treasury is authorized to use as a public-debt transaction the proceeds of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under that chapter are extended to include such purpose. Payment under this subsection of the purchase price of such obligations of the United States Patent and Trademark Office shall be treated as public debt transactions of the United States.’.

SEC. 122. AUDITS.

    Chapter 4 of part I of title 35, United States Code, is amended by adding at the end the following new section:

‘Sec. 43. Audits

    ‘(a) IN GENERAL- Financial statements of the United States Patent and Trademark Office shall be prepared on an annual basis in accordance with generally accepted accounting principles. Such statements shall be audited by an independent certified public accountant chosen by the Commissioner. The audit shall be conducted in accordance with standards that are consistent with generally accepted Government auditing standards and other standards established by the Comptroller General, and with the generally accepted auditing standards of the private sector, to the extent feasible. The Commissioner shall transmit to the Committees on the Judiciary of the House of Representatives and the Senate the results of each audit under this subsection.

    ‘(b) REVIEW BY COMPTROLLER GENERAL- The Comptroller General may review any audit of the financial statement of the Patent and Trademark Office that is conducted under subsection (a). The Comptroller General shall report to the Congress and the Office the results of any such review and shall include in such report appropriate recommendations.

    ‘(c) AUDIT BY COMPTROLLER GENERAL- The Comptroller General may audit the financial statements of the Office and such audit shall be in lieu of the audit required by subsection (a). The Office shall reimburse the Comptroller General for the cost of any audit conducted under this subsection.

    ‘(d) ACCESS TO OFFICE RECORDS- All books, financial records, report files, memoranda, and other property that the Comptroller General deems necessary for the

performance of any audit shall be made available to the Comptroller General.

    ‘(e) APPLICABILITY IN LIEU OF TITLE 31 PROVISIONS- This section applies to the Office in lieu of the provisions of section 9105 of title 31.’.

SEC. 123. TRANSFERS.

    (a) TRANSFER OF FUNCTIONS- Except as otherwise provided in this title, there are transferred to, and vested in, the United States Patent and Trademark Office all functions, powers, and duties vested by law in the Secretary of Commerce or the Department of Commerce or in the officers or components in the Department of Commerce with respect to the authority to grant patents and register trademarks, and in the Patent and Trademark Office, as in effect on the day before the effective date of this title, and in the officers and components of such Office.

    (b) TRANSFER OF FUNDS AND PROPERTY- The Secretary of Commerce shall transfer to the United States Patent and Trademark Office, on the effective date of this title, so much of the assets, liabilities, contracts, property, records, and unexpended and unobligated balances of appropriations, authorizations, allocations, and other funds employed, held, used, arising from, available to, or to be made available to the Department of Commerce, including funds set aside for accounts receivable which are related to functions, powers, and duties which are vested in the Patent and Trademark Office by this title.

Subtitle B--Effective Date; Technical Amendments

SEC. 131. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 4 months after the date of the enactment of this Act.

SEC. 132. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) AMENDMENTS TO TITLE 35-

      (1) The item relating to part I in the table of parts for chapter 35, United States Code, is amended to read as follows:

‘I. United States Patent and Trademark Office

--1’.

      (2) The heading for part I of title 35, United States Code, is amended to read as follows:

‘PART I--UNITED STATES PATENT AND TRADEMARK OFFICE’.

      (3) The table of chapters for part I of title 35, United States Code, is amended by amending the item relating to chapter 1 to read as follows:

1’.

      (4) The table of sections for chapter 1 of title 35, United States Code, is amended to read as follows:

‘CHAPTER 1--ESTABLISHMENT, OFFICERS AND EMPLOYEES, FUNCTIONS

      ‘Sec.

      ‘1. Establishment.

      ‘2. Powers and duties.

      ‘3. Officers and employees.

      ‘4. Restrictions on officers and employees as to interest in patents.

      ‘5. Patent and Trademark Office Management Advisory Board.

      ‘6. Board of Patent Appeals and Interferences.

      ‘7. Suits by and against the Office.

      ‘8. Library.

      ‘9. Classification of patents.

      ‘10. Certified copies of records.

      ‘11. Publications.

      ‘12. Exchange of copies of patents with foreign countries.

      ‘13. Copies of patents for public libraries.

      ‘14. Annual report to Congress.’.

      (5) The table of sections for chapter 4 of part I of title 35, United States Code, is amended by adding at the end the following new item:

      ‘43. Audits.’.

    (b) OTHER PROVISIONS OF LAW-

      (1) Section 9101(3) of title 31, United States Code, is amended by adding at the end the following:

        ‘(R) the United States Patent and Trademark Office.’.

      (2) Section 500(e) of title 5, United States Code, is amended by striking ‘Patent Office’ and inserting ‘United States Patent and Trademark Office’.

      (3) Section 5102(c)(23) of title 5, United States Code, is amended by striking ‘Patent and Trademark Office, Department of Commerce’ and inserting ‘United States Patent and Trademark Office’.

      (4) Section 5316 of title 5, United States Code (5 U.S.C. 5316) is amended by striking ‘Commissioner of Patents, Department of Commerce.’, ‘Deputy Commissioner of Patents and Trademarks.’, ‘Assistant Commissioner for Patents.’, and ‘Assistant Commissioner for Trademarks.’.

      (5) Section 12 of the Act of February 14, 1903 (15 U.S.C. 1511) is amended by striking ‘(d) Patent and Trademark Office;’ and redesignating subsections (a) through (g) as paragraphs (1) through (6), respectively.

      (6) The Act of April 12, 1892 (27 Stat. 395; 20 U.S.C. 91) is amended by striking ‘Patent Office’ and inserting ‘United States Patent and Trademark Office’.

      (7) Sections 505(m) and 512(o) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(m) and 360b(o)) are each amended by striking ‘Patent and Trademark Office of the Department of Commerce’ and inserting ‘United States Patent and Trademark Office’.

      (8) Section 105(e) of the Federal Alcohol Administration Act (27 U.S.C. 205(e)) is amended by striking ‘United States Patent Office’ and inserting ‘United States Patent and Trademark Office’.

      (9) Section 1744 of title 28, United States Code is amended--

        (A) by striking ‘Patent Office’ each place it appears in the text and section heading and inserting ‘United States Patent and Trademark Office’; and

        (B) by striking ‘Commissioner of Patents’ and inserting ‘Commissioner of Patents and Trademarks’.

      (10) Section 1745 of title 28, United States Code, is amended by striking ‘United States Patent Office’ and inserting ‘United States Patent and Trademark Office’.

      (11) Section 1928 of title 28, United States Code, is amended by striking ‘Patent Office’ and inserting ‘United States Patent and Trademark Office’.

      (12) Section 160 of the Atomic Energy Act of 1954 (42 U.S.C. 2190) is amended--

        (A) by striking ‘United States Patent Office’ and inserting ‘United States Patent and Trademark Office’; and

        (B) by striking ‘Commissioner of Patents’ and inserting ‘Commissioner of Patents and Trademarks’.

      (13) Section 305(c) of the National Aeronautics and Space Act of 1958 (42 U.S.C. 2457(c)) is amended by striking ‘Commissioner of Patents’ and inserting ‘Commissioner of Patents and Trademarks’.

      (14) Section 12(a) of the Solar Heating and Cooling Demonstration Act of 1974 (42 U.S.C. 5510(a)) is amended by striking ‘Commissioner of the Patent Office’ and inserting ‘Commissioner of Patents and Trademarks’.

      (15) Section 1111 of title 44, United States Code, is amended by striking ‘the Commissioner of Patents,’.

      (16) Section 1114 of title 44, United States Code, is amended by striking ‘the Commissioner of Patents,’.

      (17) Section 1123 of title 44, United States Code, is amended by striking ‘the Patent Office,’.

      (18) Sections 1337 and 1338 of title 44, United States Code, and the items relating to those sections in the table of contents for chapter 13 of such title, are repealed.

      (19) Section 10(i) of the Trading With the Enemy Act (50 U.S.C. App. 10(i)) is amended by striking ‘Commissioner of Patents’ and inserting ‘Commissioner of Patents and Trademarks’.

      (20) Section 8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by inserting ‘the United States Patent and Trademark Office,’ after ‘the United States International Trade Commission,’.

Subtitle C--Miscellaneous Provisions

SEC. 141. REFERENCES.

    Any reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or pertaining to a department or office from which a function is transferred by this title--

      (1) to the head of such department or office is deemed to refer to the head of the department or office to which such function is transferred; or

      (2) to such department or office is deemed to refer to the department or office to which such function is transferred.

SEC. 142. EXERCISE OF AUTHORITIES.

    Except as otherwise provided by law, a Federal official to whom a function is transferred by this title may, for purposes of performing the function, exercise all authorities under any other provision of law that were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date of the transfer of the function under this title.

SEC. 143. SAVINGS PROVISIONS.

    (a) LEGAL DOCUMENTS- All orders, determinations, rules, regulations, permits, grants, loans, contracts, agreements, certificates, licenses, and privileges--

      (1) that have been issued, made, granted, or allowed to become effective by the President, the Secretary of Commerce, any officer or employee of any office transferred by this title, or any other Government official, or by a court of competent jurisdiction, in the performance of any function that is transferred by this title, and

      (2) that are in effect on the effective date of such transfer (or become effective after such date pursuant to their terms as in effect on such effective date),

    shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, any other authorized official, a court of competent jurisdiction, or operation of law.

    (b) PROCEEDINGS- This title shall not affect any proceedings or any application for any benefits, service, license, permit, certificate, or financial assistance pending on the effective date of this title before an office transferred by this title, but such proceedings and applications shall be continued. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this title had not been enacted, and orders issued in any such proceeding shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law. Nothing in this subsection shall be considered to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this title had not been enacted.

    (c) SUITS- This title shall not affect suits commenced before the effective date of this title, and in all such suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this title had not been enacted.

    (d) NONABATEMENT OF ACTIONS- No suit, action, or other proceeding commenced by or against the Department of Commerce or the Secretary of Commerce, or by or against any individual in the official capacity of such individual as an officer or employee of an office transferred by this title, shall abate by reason of the enactment of this title.

    (e) CONTINUANCE OF SUITS- If any Government officer in the official capacity of such officer is party to a suit with respect to a function of the officer, and under this title such function is transferred to any other officer or office, then such suit shall be continued with the other officer or the head of such other office, as applicable, substituted or added as a party.

    (f) ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW- Except as otherwise provided by this title, any statutory requirements relating to notice, hearings, action upon the record, or administrative or judicial review that apply to any function transferred by this title shall apply to the exercise of such function by the head of the Federal

agency, and other officers of the agency, to which such function is transferred by this title.

SEC. 144. TRANSFER OF ASSETS.

    Except as otherwise provided in this title, so much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with a function transferred to an official or agency by this title shall be available to the official or the head of that agency, respectively, at such time or times as the Director of the Office of Management and Budget directs for use in connection with the functions transferred.

SEC. 145. DELEGATION AND ASSIGNMENT.

    Except as otherwise expressly prohibited by law or otherwise provided in this title, an official to whom functions are transferred under this title (including the head of any office to which functions are transferred under this title) may delegate any of the functions so transferred to such officers and employees of the office of the official as the official may designate, and may authorize successive redelegations of such functions as may be necessary or appropriate. No delegation of functions under this section or under any other provision of this title shall relieve the official to whom a function is transferred under this title of responsibility for the administration of the function.

SEC. 146. AUTHORITY OF DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET WITH RESPECT TO FUNCTIONS TRANSFERRED.

    (a) DETERMINATIONS- If necessary, the Director of the Office of Management and Budget shall make any determination of the functions that are transferred under this title.

    (b) INCIDENTAL TRANSFERS- The Director of the Office of Management and Budget, at such time or times as the Director shall provide, may make such determinations as may be necessary with regard to the functions transferred by this title, and to make such additional incidental dispositions of personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds held, used, arising from, available to, or to be made available in connection with such functions, as may be necessary to carry out the provisions of this title. The Director shall provide for the termination of the affairs of all entities terminated by this title and for such further measures and dispositions as may be necessary to effectuate the purposes of this title.

SEC. 147. CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFERS.

    For purposes of this title, the vesting of a function in a department or office pursuant to reestablishment of an office shall be considered to be the transfer of the function.

SEC. 148. AVAILABILITY OF EXISTING FUNDS.

    Existing appropriations and funds available for the performance of functions, programs, and activities terminated pursuant to this title shall remain available, for the duration of their period of availability, for necessary expenses in connection with the termination and resolution of such functions, programs, and activities.

SEC. 149. DEFINITIONS.

    For purposes of this title--

      (1) the term ‘function’ includes any duty, obligation, power, authority, responsibility, right, privilege, activity, or program; and

      (2) the term ‘office’ includes any office, administration, agency, bureau, institute, council, unit, organizational entity, or component thereof.

TITLE II--EARLY PUBLICATION OF PATENT APPLICATIONS

SEC. 201. SHORT TITLE.

    This title may be cited as the ‘Patent Application Publication Act of 1996’.

SEC. 202. EARLY PUBLICATION.

    Section 122 of title 35, United States Code, is amended to read as follows:

‘Sec. 122. Confidential status of applications; publication of patent applications

    ‘(a) CONFIDENTIALITY- Except as provided in subsection (b), applications for patents shall be kept in confidence by the Patent and Trademark Office and no information concerning the same given without authority of the applicant or owner unless necessary to carry out the provisions of an Act of Congress or in such special circumstances as may be determined by the Commissioner.

    ‘(b) PUBLICATION-

      ‘(1) IN GENERAL- (A) Subject to paragraph (2), each application for patent, except applications for design patents filed under chapter 16 of this title and provisional applications filed under section 111(b) of this title, shall be published, in accordance with procedures determined by the Commissioner, as soon as possible after the expiration of a period of 18 months from the earliest filing date for which a benefit is sought under this title. At the request of the applicant, an application may be published earlier than the end of such 18-month period.

      ‘(B) No information concerning published patent applications shall be made available to the public except as the Commissioner determines.

      ‘(C) Notwithstanding any other provision of law, a determination by the Commissioner to release or not to release information concerning a published patent application shall be final and nonreviewable.

      ‘(2) EXCEPTIONS- (A) An application that is no longer pending shall not be published.

      ‘(B) An application that is subject to a secrecy order pursuant to section 181 of this title shall not be published.

      ‘(C)(i) Upon the request of the applicant at the time of filing, the application shall not be published in accordance with paragraph (1) until 3 months after the Commissioner makes a notification to the applicant under section 132 of this title.

      ‘(ii) Applications filed pursuant to section 363 of this title, applications asserting priority under section 119 or 365(a) of this title, and applications asserting the benefit of an earlier application under section 120, 121, or 365(c) of this title shall not be eligible for a request pursuant to this subparagraph.

      ‘(iii) In a request under this subparagraph, the applicant shall certify that the invention disclosed in the application was not and will not be the subject of an application filed in a foreign country.

      ‘(iv) A request under this subparagraph shall only be available to an applicant who has been accorded the status of independent inventor under section 41(h) of this title.

      ‘(v) The Commissioner may establish appropriate procedures and fees for making a request under this subparagraph.

    ‘(c) PRE-ISSUANCE OPPOSITION- The provisions of this section shall not operate to create any new opportunity for pre-issuance opposition. The Commissioner may establish appropriate procedures to ensure that this section does not create any new opportunity for pre-issuance opposition.’.

SEC. 203. TIME FOR CLAIMING BENEFIT OF EARLIER FILING DATE.

    (a) IN A FOREIGN COUNTRY- Section 119(b) of title 35, United States Code, is amended to read as follows:

    ‘(b)(1) No application for patent shall be entitled to this right of priority unless a claim, identifying the foreign application by specifying its application number, country, and the day, month, and year of its filing, is filed in the Patent and Trademark Office at such time during the pendency of the application as required by the Commissioner.

    ‘(2) The Commissioner may consider the failure of the applicant to file a timely claim for priority as a waiver of any such claim, and may require the payment of a surcharge as a condition of accepting an untimely claim during the pendency of the application.

    ‘(3) The Commissioner may require a certified copy of the original foreign application, specification, and drawings upon which it is based, a translation if not in the English language, and such other information as the Commissioner considers necessary. Any such certification shall be made by the patent office of the foreign country in which the foreign application was filed and show the date of the application and of the filing of the specification and other papers.’.

    (b) IN THE UNITED STATES- Section 120 of title 35, United States Code, is amended by adding at the end the following: ‘The Commissioner may determine the time period during the pendency of the application within which an amendment containing the specific reference to the earlier filed application is submitted. The Commissioner may consider the failure to submit such an amendment within that time period as a waiver of any benefit under this section. The Commissioner may establish procedures, including the payment of a surcharge, to accept unavoidably late submissions of amendments under this section.’.

SEC. 204. PROVISIONAL RIGHTS.

    Section 154 of title 35, United States Code, is amended--

      (1) in the section caption by inserting ‘; provisional rights’ after ‘patent’; and

      (2) by adding at the end the following new subsection:

    ‘(d) PROVISIONAL RIGHTS-

      ‘(1) IN GENERAL- In addition to other rights provided by this section, a patent shall include the right to obtain a reasonable royalty from any person who, during the period beginning on the date of publication of the application for such patent pursuant to section 122(b) of this title, or in the case of an international application designating the United States, the date of international publication of the application, and ending on the date the patent is issued--

        ‘(A)(i) makes, uses, offers for sale, or sells in the United States the invention as claimed in the published patent application or imports such an invention into the United States; or

        ‘(ii) if the invention as claimed in the published patent application is a process, uses, offers for sale, or sells in the United States or imports into the United States products made by that process as claimed in the published patent application; and

        ‘(B) had actual notice of the published patent application and where the right arising under this paragraph is based upon an international application designating the United States that is published in a language other than English, a translation of the international application into the English language.

      ‘(2) RIGHT BASED ON SUBSTANTIALLY IDENTICAL INVENTIONS- The right under paragraph (1) to obtain a reasonable royalty shall not be available under this subsection unless the invention as claimed in the patent is substantially identical to the invention as claimed in the published patent application.

      ‘(3) TIME LIMITATION ON OBTAINING A REASONABLE ROYALTY- The right under paragraph (1) to obtain a reasonable royalty shall be available only in an action brought not later than 6 years after the patent is issued. The right under paragraph (1) to obtain a reasonable royalty shall not be affected by the duration of the period described in paragraph (1).

      ‘(4) REQUIREMENTS FOR INTERNATIONAL APPLICATIONS- The right under paragraph (1) to obtain a reasonable royalty based upon the publication under the treaty of an international application designating the United States shall commence from the date that the Patent and Trademark Office receives a copy of the publication under the treaty of the international application, or, if the publication under the treaty of the international application is in a language other than English, from the date that the Patent and Trademark Office receives a translation of the international application in the English language. The Commissioner may require the applicant to provide a copy of the international publication of the international application and a translation thereof.’.

SEC. 205. PRIOR ART EFFECT OF PUBLISHED APPLICATIONS.

    Section 102(e) of title 35, United States Code, is amended to read as follows:

    ‘(e) the invention was described in--

      ‘(1) an application for patent, published pursuant to section 122(b) of this title, by another filed in the United States before the invention by the applicant for patent, except that an international application filed under the treaty defined in section 351(a) of this title shall have the effect under this subsection of a national application published under section 122(b) of this title only if the international application designating the United States was published under Article 21(2)(a) of such treaty in the English language, or

      ‘(2) a patent granted on an application for patent by another filed in the United States before the invention by the applicant for patent, except that a patent granted on an international application filed under the treaty defined in section 351(a) of this title shall have the effect under this subsection of a patent granted on a national application only if the international application was published under Article 21(2)(a) of such treaty in the English language, or’.

SEC. 206. COST RECOVERY FOR PUBLICATION.

    The Commissioner shall recover the cost of early publication required by the amendment made by section 202 by adjusting the filing, issue, and maintenance fees under title 35, United States Code, by charging a separate publication fee, or by any combination of these methods.

SEC. 207. CONFORMING CHANGES.

    The following provisions of title 35, United States Code, are amended:

      (1) Section 11 is amended in paragraph 1 of subsection (a) by inserting ‘and published applications for patents’ after ‘Patents’.

      (2) Section 12 is amended--

        (A) in the section caption by inserting ‘and applications’ after ‘patents’; and

        (B) by inserting ‘and published applications for patents’ after ‘patents’.

      (3) Section 13 is amended--

        (A) in the section caption by inserting ‘and applications’ after ‘patents’; and

        (B) by inserting ‘and published applications for patents’ after ‘patents’.

      (4) The items relating to sections 12 and 13 in the table of sections for chapter 1 are each amended by inserting ‘and applications’ after ‘patents’.

      (5) The item relating to section 122 in the table of sections for chapter 11 is amended by inserting ‘; publication of patent applications’ after ‘applications’.

      (6) The item relating to section 154 in the table of sections for chapter 14 is amended by inserting ‘; provisional rights’ after ‘patent’.

      (7) Section 181 is amended--

        (A) in the first paragraph--

          (i) by inserting ‘by the publication of an application or’ after ‘disclosure’; and

          (ii) by inserting ‘the publication of the application or’ after ‘withhold’;

        (B) in the second paragraph by inserting ‘by the publication of an application or’ after ‘disclosure of an invention’;

        (C) in the third paragraph--

          (i) by inserting ‘by the publication of the application or’ after ‘disclosure of the invention’; and

          (ii) by inserting ‘the publication of the application or’ after ‘withhold’; and

        (D) in the fourth paragraph by inserting ‘the publication of an application or’ after ‘and’ in the first sentence.

      (8) Section 252 is amended in the first paragraph by inserting ‘substantially’ before ‘identical’ each place it appears.

      (9) Section 284 is amended by adding at the end of the second paragraph the following: ‘Increased damages under this paragraph shall not apply to provisional rights under section 154(d) of this title.’.

      (10) Section 374 is amended to read as follows:

‘Sec. 374. Publication of international application: Effect

    ‘The publication under the treaty, defined in section 351(a) of this title, of an international application designating the United States shall confer the same rights and shall have the same effect under this title as an application for patent published under section 122(b), except as provided in sections 102(e) and 154(d) of this title.’.

SEC. 208. PATENT TERM EXTENSION AUTHORITY.

    Section 154(b) of title 35, United States Code, is amended to read as follows:

    ‘(b) TERM EXTENSION-

      ‘(1) BASIS FOR PATENT TERM EXTENSION-

        ‘(A) DELAY- Subject to the limitations set forth in paragraph (2), if the issue of an original patent is delayed due to--

          ‘(i) a proceeding under section 135(a) of this title,

          ‘(ii) the imposition of an order pursuant to section 181 of this title,

          ‘(iii) appellate review by the Board of Patent Appeals and Interferences or by a Federal court where the patent was issued pursuant to a decision in the review reversing an adverse determination of patentability, or

          ‘(iv) an unusual administrative delay by the Patent and Trademark Office in issuing the patent,

        the term of the patent shall be extended for the period of delay.

        ‘(B) ADMINISTRATIVE DELAY- For purposes of subparagraph (A)(iv), an unusual administrative delay by the Patent and Trademark office is the failure to--

          ‘(i) make a notification of the rejection of any claim for a patent or any objection or argument under section 132 of this title or give or mail a written notice of allowance under section 151 of this title not later than 14 months after the date on which the application was filed;

          ‘(ii) respond to a reply under section 132 of this title or to an appeal taken under section 134 of this title not later than 4 months after the date on which the reply was filed or the appeal was taken;

          ‘(iii) act on an application not later than 4 months after the date of a decision by the Board of Patent Appeals and Interferences under section 134 or 135 of this title or a decision by a Federal court under section 141, 145, or 146 of this title where allowable claims remain in an application; or

          ‘(iv) issue a patent not later than 4 months after the date on which the issue fee was paid under section 151 of this title and all outstanding requirements were satisfied.

      ‘(2) LIMITATIONS- (A) The total duration of any extensions granted pursuant to either clause (iii) or (iv) of paragraph (1)(A) or both such clauses shall not exceed 10 years. To the extent that periods of delay attributable to grounds specified in paragraph (1) overlap, the period of any extension granted under this subsection shall not exceed the actual number of days the issuance of the patent was delayed.

      ‘(B) The period of extension of the term of a patent under this subsection shall be reduced by a period equal to the time in which the applicant failed to engage in reasonable efforts to conclude prosecution of the application. The Commissioner shall prescribe regulations establishing the circumstances that constitute a failure of an applicant to engage in reasonable efforts to conclude processing or examination of an application.

      ‘(C) No patent the term of which has been disclaimed beyond a specified date may be extended under this section beyond the expiration date specified in the disclaimer.

      ‘(3) PROCEDURES- The Commissioner shall prescribe regulations establishing procedures for the notification of patent term extensions under this subsection and procedures for contesting patent term extensions under this subsection.’.

SEC. 209. EXAMINING PROCEDURE IMPROVEMENTS; FURTHER LIMITED REEXAMINATION OF PATENT APPLICATIONS.

    The Commissioner of Patents and Trademarks shall prescribe regulations to provide for the further limited reexamination of applications for patent. The Commissioner may establish appropriate fees for such further limited reexamination and shall be authorized to provide a 50 percent reduction on such fees for small entities that qualify for reduced fees under section 41(h)(1) of title 35, United States Code.

SEC. 210. LAST DAY OF PENDENCY OF PROVISIONAL APPLICATION.

    Section 119(e) of title 35, United States Code, is amended by adding at the end the following:

    ‘(3) If the day that is 12 months after the filing date of a provisional application falls on a Saturday, Sunday, or legal holiday as defined in rule 6(a) of the Federal Rules

of Civil Procedure, the period of pendency of the provisional application shall be extended to the next succeeding business day.’.

SEC. 211. REPORTING REQUIREMENT.

    The Commissioner of Patents and Trademarks shall report to the Congress not later than April 1, 2000, and not later than April 1 of each year thereafter, regarding the impact of publication on the patent applications filed by an applicant who has been accorded the status of independent inventor under section 41(h) of title 35, United States Code. The report shall include information concerning the frequency and number of initial and continuing patent applications, pendency, interferences, reexaminations, rejection, abandonment rates, fees, other expenses, and other relevant information related to the prosecution of patent applications.

SEC. 212. EFFECTIVE DATE.

    (a) SECTIONS 202 THROUGH 207- Sections 202 through 207, and the amendments made by such sections, shall take effect on April 1, 1997, and shall apply to all applications filed under section 111 of title 35, United States Code, on or after that date, and all international applications designating the United States that are filed on or after that date.

    (b) SECTIONS 208 THROUGH 210- The amendments made by sections 208 through 210 shall take effect on the date of the enactment of this Act and, except for a design patent application filed under chapter 16 of title 35, United States Code, shall apply to any application filed on or after June 8, 1995.

TITLE III--PRIOR DOMESTIC COMMERCIAL USE

SEC. 301. SHORT TITLE.

    This title may be cited as the ‘Prior Domestic Commercial Use Act of 1996’.

SEC. 302. DEFENSE TO PATENT INFRINGEMENT BASED ON PRIOR DOMESTIC COMMERCIAL USE.

    (a) DEFENSE- Chapter 28 of title 35, United States Code, is amended by adding at the end the following new section:

‘Sec. 273. Prior domestic commercial use; defense to infringement

    ‘(a) DEFINITIONS- For purposes of this section--

      ‘(1) the terms ‘commercially used’, ‘commercially use’, and ‘commercial use’ mean the use in the United States in commerce or the use in the design, testing, or production in the United States of a product or service which is used in commerce, whether or not the subject matter at issue is accessible to or otherwise known to the public;

      ‘(2) the terms ‘used in commerce’, and ‘use in commerce’ mean that there has been an actual sale or other commercial transfer of the subject matter at issue or that there has been an actual sale or other commercial transfer of a product or service resulting from the use of the subject matter at issue; and

      ‘(3) the ‘effective filing date’ of a patent is the earlier of the actual filing date of the application for the patent or the filing date of any earlier United States, foreign, or international application to which the subject matter at issue is entitled under section 119, 120, or 365 of this title.

    ‘(b) DEFENSE TO INFRINGEMENT- (1) A person shall not be liable as an infringer under section 271 of this title with respect to any subject matter that would otherwise infringe one or more claims in the patent being asserted against such person, if such person had, acting in good faith, commercially used the subject matter before the effective filing date of such patent.

    ‘(2) The sale or other disposition of the subject matter of a patent by a person entitled to assert a defense under this section with respect to that subject matter shall exhaust the patent owner’s rights under the patent to the extent such rights would have been exhausted had such sale or other disposition been made by the patent owner.

    ‘(c) LIMITATIONS AND QUALIFICATIONS OF DEFENSE- The defense to infringement under this section is subject to the following:

      ‘(1) DERIVATION- A person may not assert the defense under this section if the subject matter on which the defense is based was derived from the patentee or persons in privity with the patentee.

      ‘(2) NOT A GENERAL LICENSE- The defense asserted by a person under this section is not a general license under all claims of the patent at issue, but extends only to the subject matter claimed in the patent with respect to which the person can assert a defense under this chapter, except that the defense shall also extend to variations in the quantity or volume of use of the claimed subject matter, and to improvements in the claimed subject matter that do not infringe additional specifically claimed subject matter of the patent.

      ‘(3) EFFECTIVE AND SERIOUS PREPARATION- With respect to subject matter that cannot be commercialized without a significant investment of time, money, and effort, a person shall be deemed to have commercially used the subject matter if--

        ‘(A) before the effective filing date of the patent, the person reduced the subject matter to practice in the United States, completed a significant portion of the total investment necessary to commercially use the subject matter, and made a commercial transaction in the United States in connection with the preparation to use the subject matter; and

        ‘(B) thereafter the person diligently completed the remainder of the activities and investments necessary to commercially use the subject matter, and promptly began commercial use of the subject matter, even if such activities were conducted after the effective filing date of the patent.

      ‘(4) BURDEN OF PROOF- A person asserting the defense under this section shall have the burden of establishing the defense.

      ‘(5) ABANDONMENT OF USE- A person who has abandoned commercial use of subject matter may not rely on activities performed before the date of such abandonment in establishing a defense under subsection (b) with respect to actions taken after the date of such abandonment.

      ‘(6) PERSONAL DEFENSE- The defense under this section may only be asserted by the person who performed the acts necessary to establish the defense and, except for any transfer to the patent owner, the right to assert the defense shall not be licensed or assigned or transferred to another person except in connection with the good faith assignment or transfer of the entire enterprise or line of business to which the defense relates.

      ‘(7) ONE-YEAR LIMITATION- A person may not assert a defense under this section unless the subject matter on which the defense is based had been commercially used or reduced to practice more than one year prior to the effective filing date of the patent by the person asserting the defense or someone in privity with that person.

    ‘(d) UNSUCCESSFUL ASSERTION OF DEFENSE- If the defense under this section is pleaded by a person who is found to infringe the patent and who subsequently fails to demonstrate a reasonable basis for asserting the defense, the court shall find the case exceptional for the purpose of awarding attorney’s fees under section 285 of this title.

    ‘(e) INVALIDITY- A patent shall not be deemed to be invalid under section 102 or 103 of this title solely because a defense is established under this section.’.

    (b) CONFORMING AMENDMENT- The table of sections at the beginning of chapter 28 of title 35, United States Code, is amended by adding at the end the following new item:

      ‘273. Prior domestic commercial use; defense to infringement.’.

SEC. 303. EFFECTIVE DATE AND APPLICABILITY.

    This title and the amendments made by this title shall take effect on the date of the enactment of this Act, but shall not apply to any action for infringement that is pending on such date of enactment or with respect to any subject matter for which an adjudication of infringement, including a consent judgment, has been made before such date of enactment.

TITLE IV--INVENTOR PROTECTION

SEC. 401. SHORT TITLE.

    This title may be cited as the ‘Inventor Protection Act of 1996’.

SEC. 402. INVENTION DEVELOPMENT SERVICES.

    Part I of title 35, United States Code, is amended by adding after chapter 4 the following new chapter:

‘CHAPTER 5--INVENTION DEVELOPMENT SERVICES

      ‘Sec.

      ‘51. Definitions.

      ‘52. Contracting requirements.

      ‘53. Standard provisions for cover notice.

      ‘54. Reports to customer required.

      ‘55. Mandatory contract terms.

      ‘56. Remedies.

      ‘57. Records of complaints.

      ‘58. Fraudulent representation by an invention developer.

      ‘59. Rule of construction.

‘Sec. 51. Definitions

    ‘For purposes of this chapter--

      ‘(1) the term ‘contract for invention development services’ means a contract by which an invention developer undertakes invention development services for a customer;

      ‘(2) the term ‘customer’ means any person, firm, partnership, corporation, or other entity who is solicited by, seeks the services of, or enters into a contract with an invention promoter for invention promotion services;

      ‘(3) the term ‘invention promoter’ means any person, firm, partnership, corporation, or other entity who offers to perform or performs for, or on behalf of, a customer any act described under paragraph (4), but does not include--

        ‘(A) any department or agency of the Federal Government or of a State or local government;

        ‘(B) any nonprofit, charitable, scientific, or educational organization, qualified under applicable State law or described under section 170(b)(1)(A) of the Internal Revenue Code of 1986; or

        ‘(C) any person duly registered and in good standing before the Patent and Trademark Office acting within the scope of that person’s registration to practice before the Patent and Trademark Office; and

      ‘(4) the term ‘invention development services’ means, with respect to an invention by a customer, any act involved in--

        ‘(A) evaluating the invention to determine its protectability as some form of intellectual property, other than evaluation by a person licensed by a State to practice law who is acting solely within the scope of that person’s professional license;

        ‘(B) evaluating the invention to determine its commercial potential by any person for purposes other than providing venture capital; or

        ‘(C) marketing, brokering, licensing, selling, or promoting the invention or a product or service in which the invention is incorporated or used, except that the display only of an invention at a trade show or exhibit shall not be considered to be invention development services.

‘Sec. 52. Contracting requirements

    ‘(a) IN GENERAL- (1) Every contract for invention development services shall be in writing and shall be subject to the provisions of this chapter. A copy of the signed written contract shall be given to the customer at the time the customer enters into the contract.

    ‘(2) If a contract is entered into for the benefit of a third party, such party shall be considered a customer for purposes of this chapter.

    ‘(b) REQUIREMENTS OF INVENTION DEVELOPER- The invention developer shall--

      ‘(1) state in a written document, at the time a customer enters into a contract for invention development services, whether the usual business practice of the invention developer is to--

        ‘(A) seek more than 1 contract in connection with an invention; or

        ‘(B) seek to perform services in connection with an invention in 1 or more phases, with the performance of each phase covered in 1 or more subsequent contracts; and

      ‘(2) supply to the customer a copy of the written document together with a written summary of the usual business practices of the invention developer, including--

        ‘(A) the usual business terms of contracts; and

        ‘(B) the approximate amount of the usual fees or other consideration that may be required from the customer for each of the services provided by the developer.

    ‘(c) RIGHT OF CUSTOMER TO CANCEL CONTRACT- (1) Notwithstanding any contractual provision to the contrary, a customer shall have the right to terminate a contract for invention development services by sending a written letter to the invention developer stating the customer’s intent to cancel the contract. The letter of termination must be deposited with the United States Postal Service on or before 5 business days after the date upon which the customer or the invention developer executes the contract, whichever is later.

    ‘(2) Delivery of a promissory note, check, bill of exchange, or negotiable instrument of any kind to the invention developer or to a third party for the benefit of the invention developer, without regard to the date or dates appearing in such instrument, shall be deemed payment received by the invention developer on the date received for purposes of this section.

‘Sec. 53. Standard provisions for cover notice

    ‘(a) CONTENTS- Every contract for invention development services shall have a conspicuous and legible cover sheet attached with the following notice imprinted in boldface type of not less than 12-point size:

      ‘YOU HAVE THE RIGHT TO TERMINATE THIS CONTRACT. TO TERMINATE THIS CONTRACT, YOU MUST SEND A WRITTEN LETTER TO THE COMPANY STATING YOUR INTENT TO CANCEL THIS CONTRACT. THE LETTER OF TERMINATION MUST BE DEPOSITED WITH THE UNITED STATES POSTAL SERVICE ON OR BEFORE FIVE (5) BUSINESS DAYS AFTER THE DATE ON WHICH YOU OR THE COMPANY EXECUTE THE CONTRACT, WHICHEVER IS LATER.

      ‘THE TOTAL NUMBER OF INVENTIONS EVALUATED BY THE INVENTION DEVELOPER FOR COMMERCIAL POTENTIAL IN THE PAST FIVE (5) YEARS IS XXXXX. OF THAT NUMBER, XXXXX RECEIVED POSITIVE EVALUATIONS AND XXXXX RECEIVED NEGATIVE EVALUATIONS.

      ‘IF YOU ASSIGN EVEN A PARTIAL INTEREST IN THE INVENTION TO THE INVENTION DEVELOPER, THE INVENTION DEVELOPER MAY HAVE THE RIGHT TO SELL OR DISPOSE OF THE INVENTION WITHOUT YOUR CONSENT AND MAY NOT HAVE TO SHARE THE PROFITS WITH YOU.

      ‘THE TOTAL NUMBER OF CUSTOMERS WHO HAVE CONTRACTED WITH THE INVENTION DEVELOPER IN THE PAST FIVE (5) YEARS IS XXXXX. THE TOTAL NUMBER OF CUSTOMERS KNOWN BY THIS INVENTION DEVELOPER TO HAVE RECEIVED, BY VIRTUE OF THIS INVENTION DEVELOPER’S PERFORMANCE, AN AMOUNT OF MONEY IN EXCESS OF THE AMOUNT PAID BY THE CUSTOMER TO THIS INVENTION DEVELOPER IS XXXXXXX.

      ‘THE OFFICERS OF THIS INVENTION DEVELOPER HAVE COLLECTIVELY OR INDIVIDUALLY BEEN AFFILIATED IN THE LAST TEN (10) YEARS WITH THE FOLLOWING INVENTION DEVELOPMENT COMPANIES: (LIST THE NAMES AND ADDRESSES OF ALL PREVIOUS INVENTION DEVELOPMENT COMPANIES WITH WHICH THE PRINCIPAL OFFICERS HAVE BEEN AFFILIATED AS OWNERS, AGENTS, OR EMPLOYEES). YOU ARE ENCOURAGED TO CHECK WITH THE UNITED STATES PATENT AND TRADEMARK OFFICE, THE FEDERAL TRADE COMMISSION, YOUR STATE ATTORNEY GENERAL’S OFFICE, AND THE BETTER BUSINESS BUREAU FOR ANY COMPLAINTS FILED AGAINST ANY OF THESE COMPANIES.

      ‘YOU ARE ENCOURAGED TO CONSULT WITH AN ATTORNEY OF YOUR OWN CHOOSING BEFORE SIGNING THIS CONTRACT. BY PROCEEDING WITHOUT THE ADVICE OF AN ATTORNEY REGISTERED TO PRACTICE BEFORE THE PATENT AND TRADEMARK OFFICE, YOU COULD LOSE ANY RIGHTS YOU MIGHT HAVE IN YOUR IDEA OR INVENTION.’.

    ‘(b) OTHER REQUIREMENTS FOR COVER NOTICE- The cover notice shall contain the items required under subsection (a) and the name, primary office address, and local office address of the invention developer, and may contain no other matter.

    ‘(c) DISCLOSURE OF CERTAIN CUSTOMERS NOT REQUIRED- The requirement in the notice set forth in subsection (a) to include the ‘TOTAL NUMBER OF CUSTOMERS WHO HAVE CONTRACTED WITH THE INVENTION DEVELOPER IN THE PAST FIVE (5) YEARS’ need not include information with respect to customers who have purchased trade show services, research, advertising, or other nonmarketing services from the invention developer, nor with respect to customers who have defaulted in their payments to the invention developer.

‘Sec. 54. Reports to customer required

    ‘With respect to every contract for invention development services, the invention developer shall deliver to the customer at the address specified in the contract, at least once every 3 months throughout the term of the contract, a written report that identifies the contract and includes--

      ‘(1) a full, clear, and concise description of the services performed to the date of the report and of the services yet to be performed and names of all persons who it is known will perform the services; and

      ‘(2) the name and address of each person, firm, corporation, or other entity to whom the subject matter of the contract has been disclosed, the reason for each such disclosure, the nature of the disclosure, and complete and accurate summaries of all responses received as a result of those disclosures.

‘Sec. 55. Mandatory contract terms

    ‘(a) MANDATORY TERMS- Each contract for invention development services shall include in boldface type of not less than 12-point size--

      ‘(1) the terms and conditions of payment and contract termination rights required under section 52;

      ‘(2) a statement that the customer may avoid entering into the contract by not making a payment to the invention developer;

      ‘(3) a full, clear, and concise description of the specific acts or services that the invention developer undertakes to perform for the customer;

      ‘(4) a statement as to whether the invention developer undertakes to construct, sell, or distribute one or more prototypes, models, or devices embodying the invention of the customer;

      ‘(5) the full name and principal place of business of the invention developer and the name and principal place of business of any parent, subsidiary, agent, independent contractor, and any affiliated company or person who it is known will perform any of the services or acts that the invention developer undertakes to perform for the customer;

      ‘(6) if any oral or written representation of estimated or projected customer earnings is given by the invention developer (or any agent, employee, officer, director, partner, or independent contractor of such invention developer), a statement of that estimation or projection and a description of the data upon which such representation is based;

      ‘(7) the name and address of the custodian of all records and correspondence relating to the contracted for invention development services, and a statement that the invention developer is required to maintain all records and correspondence relating to performance of the invention development services for such customer for a period of not less than 2 years after expiration of the term of such contract; and

      ‘(8) a statement setting forth a time schedule for performance of the invention development services, including an estimated date in which such performance is expected to be completed.

    ‘(b) INVENTION DEVELOPER AS FIDUCIARY- To the extent that the description of the specific acts or services affords discretion to the invention developer with respect to what specific acts or services shall be performed, the invention developer shall be deemed a fiduciary.

    ‘(c) AVAILABILITY OF INFORMATION- Records and correspondence described under subsection (a)(7) shall be made available after 7 days written notice to the customer or the representative of the customer to review and copy at a reasonable cost on the invention developer’s premises during normal business hours.

‘Sec. 56. Remedies

    ‘(a) IN GENERAL- (1) Any contract for invention development services that does not comply with the applicable provisions of this chapter shall be voidable at the option of the customer.

    ‘(2) Any contract for invention development services entered into in reliance upon any material false, fraudulent, or misleading information, representation, notice, or advertisement of the invention developer (or any agent, employee, officer, director, partner, or independent contractor of such invention developer) shall be voidable at the option of the customer.

    ‘(3) Any waiver by the customer of any provision of this chapter shall be deemed contrary to public policy and shall be void and unenforceable.

    ‘(4) Any contract for invention development services which provides for filing for and obtaining utility, design, or plant patent protection shall be voidable at the option of the customer unless the invention developer offers to perform or performs such act through a registered patent attorney or agent.

    ‘(b) CIVIL ACTION- (1) Any customer who is injured by a violation of this chapter by an invention developer or by any material false or fraudulent statement or representation, or any omission of material fact, by an invention developer (or any agent, employee, director, officer, partner, or independent contractor of such invention developer) or by failure of an invention developer to make all the disclosures required under this chapter, may recover in a civil action against the invention developer (or the officers, directors, or partners of such invention developer) in addition to reasonable costs and attorneys’ fees, the greater of--

      ‘(A) $5,000; or

      ‘(B) the amount of actual damages sustained by the customer.

    ‘(2) Notwithstanding paragraph (1), the court may increase damages to not more than 3 times the amount awarded.

    ‘(c) REBUTTABLE PRESUMPTION OF INJURY- For purposes of this section, substantial violation of any provision of this chapter by an invention developer or execution by the customer of a contract for invention development services in reliance on any material false or fraudulent statements or representations or omissions of material fact shall establish a rebuttable presumption of injury.

‘Sec. 57. Records of complaints

    ‘(a) RELEASE OF COMPLAINTS- The Commissioner shall make all complaints received by the Patent and Trademark Office involving invention developers publicly available, together with any response of the invention developers.

    ‘(b) REQUEST FOR COMPLAINTS- The Commissioner may request complaints relating to invention development services from any Federal or State agency and include such complaints in the records maintained under subsection (a), together with any response of the invention developers.

‘Sec. 58. Fraudulent representation by an invention developer

    ‘Whoever, in providing invention development services, knowingly provides any false or misleading statement, representation, or omission of material fact to a customer or fails to make all the disclosures required under this chapter, shall be guilty of a misdemeanor and fined not more than $10,000 for each offense.

‘Sec. 59. Rule of construction

    ‘Except as expressly provided in this chapter, no provision of this chapter shall be construed to affect any obligation, right, or remedy provided under any other Federal or State law.’.

SEC. 403. TECHNICAL AND CONFORMING AMENDMENT.

    The table of chapters for part I of title 35, United States Code, is amended by adding after the item relating to chapter 4 the following:

51’.

SEC. 404. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 60 days after the date of the enactment of this Act.

TITLE V--PATENT REEXAMINATION REFORM

SEC. 501. SHORT TITLE.

    This title may be cited as the ‘Patent Reexamination Reform Act of 1996’.

SEC. 502. DEFINITIONS.

    Section 100 of title 35, United States Code, is amended by adding at the end the following new subsection:

    ‘(e) The term ‘third-party requester’ means a person requesting reexamination under section 302 of this title who is not the patent owner.’.

SEC. 503. REEXAMINATION PROCEDURES.

    (a) REQUEST FOR REEXAMINATION- Section 302 of title 35, United States Code, is amended to read as follows:

‘Sec. 302. Request for reexamination

    ‘Any person at any time may file a request for reexamination by the Office of a patent on the basis of any prior art cited under the provisions of section 301 of this title or on the basis of the requirements of section 112 of this title except for the requirement to set forth the best mode of carrying out the invention. The request must be in writing, must include the identity of the real party in interest, and must be accompanied by payment of a reexamination fee established by the Commissioner pursuant to the provisions of section 41 of this title. The request must set forth the pertinency and manner of applying cited prior art to every claim for which reexamination is requested or the manner in which the patent specification or claims fail to comply with the requirements of section 112 of this title. Unless the requesting person is the owner of the patent, the Commissioner promptly shall send a copy of the request to the owner of record of the patent.’.

    (b) DETERMINATION OF ISSUE BY COMMISSIONER- Section 303 of title 35, United States Code, is amended to read as follows:

‘Sec. 303. Determination of issue by Commissioner

    ‘(a) REEXAMINATION- Not later than 3 months after the filing of a request for reexamination under the provisions of section 302 of this title, the Commissioner shall determine whether a substantial new question of patentability affecting any claim of the patent concerned is raised by the request, with or without consideration of other patents or printed publications. On the Commissioner’s initiative, at any time, the Commissioner may determine whether a substantial new question of patentability is raised by patents and publications or by the failure of the patent specification or claims to comply with the requirements of section 112 of this title except for the best mode requirement described in section 302.

    ‘(b) RECORD- A record of the Commissioner’s determination under subsection (a) shall be placed in the official file of the patent, and a copy shall be promptly given or mailed to the owner of record of the patent and to the third-party requester, if any.

    ‘(c) FINAL DECISION- A determination by the Commissioner pursuant to subsection (a) shall be final and nonappealable. Upon a determination that no substantial new question of patentability has been raised, the Commissioner may refund a portion of the reexamination fee required under section 302 of this title.’.

    (c) REEXAMINATION ORDER BY COMMISSIONER- Section 304 of title 35, United States Code, is amended to read as follows:

‘Sec. 304. Reexamination order by Commissioner

    ‘If, in a determination made under the provisions of section 303(a) of this title, the Commissioner finds that a substantial new question of patentability affecting a claim of a patent is raised, the determination shall include an order for reexamination of the patent for resolution of the question. The order may be accompanied by the initial action of the Patent and Trademark Office on the merits of the reexamination conducted in accordance with section 305 of this title.’.

    (d) CONDUCT OF REEXAMINATION PROCEEDINGS- Section 305 of title 35, United States Code, is amended to read as follows:

‘Sec. 305. Conduct of reexamination proceedings

    ‘(a) IN GENERAL- Subject to subsection (b), reexamination shall be conducted according to the procedures established for initial examination under the provisions of sections 132 and 133 of this title. In any reexamination proceeding under this chapter, the patent owner shall be permitted to propose any amendment to the patent and a new claim or claims, except that no proposed amended or new claim enlarging the scope of the claims of the patent shall be permitted.

    ‘(b) RESPONSE- (1) This subsection shall apply to any reexamination proceeding in which the order for reexamination is based upon a request by a third-party requester.

    ‘(2) With the exception of the reexamination request, any document filed by either the patent owner or the third-party requester shall be served on the other party.

    ‘(3) If the patent owner files a response to any Patent and Trademark Office action on the merits, the third-party requester shall have 1 opportunity to file written comments within a reasonable period not less than 1 month after the date of service of the patent owner’s response. Written comments provided under this paragraph shall be limited to issues covered by the Patent and Trademark Office action or the patent owner’s response.

    ‘(c) SPECIAL DISPATCH- Unless otherwise provided by the Commissioner for good cause, all reexamination proceedings under this section, including any appeal to the Board of Patent Appeals and Interferences, shall be conducted with special dispatch within the Office.’.

    (e) APPEAL- Section 306 of title 35, United States Code, is amended to read as follows:

‘Sec. 306. Appeal

    ‘(a) PATENT OWNER- The patent owner involved in a reexamination proceeding under this chapter--

      ‘(1) may appeal under the provisions of section 134 of this title, and may appeal under the provisions of sections 141 through 144 of this title, with respect to any decision adverse to the patentability of any original or proposed amended or new claim of the patent; and

      ‘(2) may be a party to any appeal taken by a third-party requester pursuant to subsection (b) of this section.

    ‘(b) THIRD-PARTY REQUESTER- A third-party requester--

      ‘(1) may appeal under the provisions of section 134 of this title, and may appeal under the provisions of sections 141 through 144 of this title, 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 be a party to any appeal taken by the patent owner, subject to subsection (c) of this section.

    ‘(c) PARTICIPATION AS PARTY- (1) A third-party requester who, under the provisions of sections 141 through 144 of this title, files a notice of appeal or who participates as a party to an appeal by the patent owner is estopped from asserting at a later time, in any forum, the invalidity of any claim determined to be patentable on appeal on any ground which the third-party requester raised or could have raised during the reexamination proceedings.

    ‘(2) A third-party requester is deemed not to have participated as a party to an appeal by the patent owner unless, not later than 20 days after the patent owner has filed notice of appeal, the third-party requester files notice with the Commissioner electing to participate.’.

    (f) REEXAMINATION PROHIBITED- (1) Chapter 30 of title 35, United States Code, is amended by adding at the end the following new section:

‘Sec. 308. Reexamination prohibited

    ‘(a) ORDER FOR REEXAMINATION- Notwithstanding any provision of this chapter, once an order for reexamination of a patent has been issued under section 304 of this title, neither the patent owner nor the third-party requester, if any, nor privies of either, may file a subsequent request for reexamination of the patent until a reexamination certificate is issued and published under section 307 of this title, unless authorized by the Commissioner.

    ‘(b) FINAL DECISION- Once a final decision has been entered against a party in a civil action arising in whole or in part under section 1338 of title 28 that the party has not sustained its burden of proving the invalidity of any patent claim in suit, then neither that party nor its privies may thereafter request reexamination of any such patent claim on the basis of issues which that party or its privies raised or could have raised in such civil action, and a reexamination requested by that party or its privies on the basis of such issues may not thereafter be maintained by the Office, notwithstanding any other provision of this chapter.’.

    (2) The table of sections for chapter 30 of title 35, United States Code, is amended by adding at the end the following:

      ‘308. Reexamination prohibited.’.

SEC. 504. CONFORMING AMENDMENTS.

    (a) BOARD OF PATENT APPEALS AND INTERFERENCES- The first sentence of section 6(b) of title 35, United States Code, as amended by section 117 of this Act, is amended to read as follows: ‘The Board of Patent Appeals and Interferences shall, on written appeal of an applicant, or a patent owner or a third-party requester in a reexamination proceeding, review adverse decisions of examiners upon applications for patents and decisions of examiners in reexamination proceedings, and shall determine priority and patentability of invention in interferences declared under section 135(a) of this title.’.

    (b) PATENT FEES; PATENT AND TRADEMARK SEARCH SYSTEMS- Section 41(a)(7) of title 35, United States Code, is amended to read as follows:

      ‘(7) On filing each petition for the revival of an unintentionally abandoned application for a patent, for the unintentionally delayed payment of the fee for issuing each patent, or for an unintentionally delayed response by the patent owner in a reexamination proceeding, $1,250, unless the petition is filed under sections 133 or 151 of this title, in which case the fee shall be $110.’.

    (c) APPEAL TO THE BOARD OF PATENT APPEALS AND INTERFERENCES- Section 134 of title 35, United States Code, is amended to read as follows:

‘Sec. 134. Appeal to the Board of Patent Appeals and Interferences

    ‘(a) PATENT APPLICANT- An applicant for a patent, any of whose claims has been twice rejected, may appeal from the decision of the primary examiner to the Board of Patent Appeals and Interferences, having once paid the fee for such appeal.

    ‘(b) PATENT OWNER- A patent owner in a reexamination proceeding may appeal from the final rejection of any claim by the primary examiner to the Board of Patent Appeals and Interferences, having once paid the fee for such appeal.

    ‘(c) THIRD-PARTY- A third-party requester may appeal to the Board of Patent Appeals and Interferences from the final decision of the primary examiner favorable to the patentability of any original or proposed amended or new claim of a patent, having once paid the fee for such appeal.’.

    (d) APPEAL TO COURT OF APPEALS FOR THE FEDERAL CIRCUIT- Section 141 of title 35, United States Code, is amended by amending the first sentence to read as follows: ‘An applicant, a patent owner, or a third-party requester, dissatisfied with the final decision in an appeal to the Board of Patent Appeals and Interferences under section 134 of this title, may appeal the decision to the United States Court of Appeals for the Federal Circuit.’.

    (e) PROCEEDINGS ON APPEAL- Section 143 of title 35, United States Code, is amended by amending the third sentence to read as follows: ‘In ex parte and reexamination cases, the Commissioner shall submit to the court in writing the grounds for the decision of the Patent and Trademark Office, addressing all the issues involved in the appeal.’.

    (f) CIVIL ACTION TO OBTAIN PATENT- Section 145 of title 35, United States Code, is amended in the first sentence by inserting ‘(a)’ after ‘section 134’.

SEC. 505. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect on the date that is 6 months after the date of the enactment of this Act and shall apply to all reexamination requests filed on or after such date.

TITLE VI--MISCELLANEOUS PATENT PROVISIONS

SEC. 601. PROVISIONAL APPLICATIONS.

    (a) ABANDONMENT- Section 111(b)(5) of title 35, United States Code, is amended to read as follows:

      ‘(5) ABANDONMENT- Notwithstanding the absence of a claim, upon timely request and as prescribed by the Commissioner, a provisional application may be treated as an application filed under subsection (a). If no such request is made, the provisional application shall be regarded as abandoned 12 months after the filing date of such application and shall not be subject to revival thereafter.’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) applies to any provisional application filed on or after June 8, 1995.

SEC. 602. INTERNATIONAL APPLICATIONS.

    Section 119 of title 35, United States Code, is amended--

      (1) in subsection (a), by inserting ‘or in a WTO member country’ after ‘or to citizens of the United States,’;

      (2) in subsection (b), as amended by section 203 of this Act, by striking ‘patent office of the foreign country’ and inserting ‘foreign intellectual property authority’; and

      (3) by adding at the end the following new subsections:

    ‘(f) APPLICATIONS FOR PLANT BREEDER’S RIGHTS- Applications for plant breeder’s rights filed in a WTO member country (or in a UPOV Contracting Party) shall have the same effect for the purpose of the right of priority under subsections (a) through (c) of this section as applications for patents, subject to the same conditions and requirements of this section as apply to applications for patents.

    ‘(g) DEFINITIONS- As used in this section--

      ‘(1) the term ‘WTO member country’ has the same meaning as the term is defined in section 104(b)(2) of this title; and

      ‘(2) the term ‘UPOV Contracting Party’ means a member of the International Convention for the Protection of New Varieties of Plants.’.

SEC. 603. PLANT PATENTS.

    (a) TUBER PROPAGATED PLANTS- Section 161 of title 35, United States Code, is amended by striking ‘a tuber propagated plant or’.

    (b) RIGHTS IN PLANT PATENTS- The text of section 163 of title 35, United States Code, is amended to read as follows: ‘In the case of a plant patent, the grant shall include the right to exclude others from asexually reproducing the plant, and from using, offering for sale, or selling the plant so reproduced, or any of its parts, throughout the United States, or from importing the plant so reproduced, or any parts thereof, into the United States.’.

    (c) EFFECTIVE DATE- The amendment made by subsection (a) shall apply on the date of the enactment of this Act. The amendment made by subsection (b) shall apply to any plant patent issued on or after the date of the enactment of this Act.

SEC. 604. JUST COMPENSATION FOR U.S. GOVERNMENT USE OF PATENTS.

    (a) COMPENSATION- Section 1498(a) of title 28, United States Code, is amended by adding at the end of the first paragraph the following: ‘Reasonable and entire compensation shall include the owner’s reasonable costs, including reasonable fees for expert witnesses and attorneys, in pursuing the action if the owner is an independent inventor, a nonprofit organization, or an entity that had no more than 500 employees at any time during the 5-year period preceding the use or manufacture of the patented invention by or for the United States.’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to actions under section 1498(a) of title 28, United States Code, that are pending on, or brought on or after, the date of the enactment of this Act.

SEC. 605. ELECTRONIC FILING.

    Section 22 of title 35, United States Code, is amended by striking ‘printed or typewritten’ and inserting ‘printed, typwritten, or on an electronic medium’.