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Washington D.C.—In order to ensure stable and adequate funding for the U.S. Patent and Trademark Office (PTO), the National Treasury Employees Union (NTEU) today urged Congress to allow the agency to retain the fees it collects.

In a statement submitted to the House Judiciary Committee, NTEU President Colleen M. Kelley called for PTO to be allowed to retain fees paid by applicants for patents and trademarks. In addition, Kelley called for the PTO to be given the authority to set its own fee schedule.

“These actions would give the PTO the operating efficiency it needs,” President Kelley said. “The strength and vitality of the American economy directly depends on a PTO that is able to encourage and protect American business and technological innovation and advancement."

While PTO, which performs the quasi-judicial function of adjudicating patent and trademark applications, is funded by user fees, it does go through the appropriations process. In years past, substantial PTO funds have been siphoned off to general revenues, making it difficult for the agency to engage in effective long-term planning.

“NTEU opposes the diversion of fees collected by the PTO to the general treasury,” Kelley said. “We fear that there are increasing pressures to take a portion of the fees that trademark applicants pay for processing their applications and diverting it to general revenue.”

NTEU is also concerned about the movement of funds from one operation to another. Such a move could force one part of PTO to make damaging cuts and even furlough employees due to a failure to address problems in an operation other than its own. “The resulting practical and employee morale problem would simply make everyone a loser,” President Kelley said.

Last year PTO was granted authority by Congress to move funds from the trademark side to support patent operations. “NTEU was opposed to this authority and I am grateful to PTO Director David Kappos for assuring me that he does not intend to exercise that authority,” said Kelley.

In her statement, Kelley noted that the Obama administration supports NTEU’s position of giving PTO fee-setting authority, as well as allowing for an interim patent fee increase to cover an expected rise in expenses.

In providing PTO with new authorities, President Kelley said that NTEU will continue to stand vigilant in ensuring that agency funds are put to good use. She cited the highly-successful telework program involving trademark attorneys as an initiative that has saved PTO millions while simultaneously boosting employee retention, recruitment, morale and productivity.

“The best way to accrue savings is to maintain a highly-skilled and stable staff,” said Kelley. “High turnover and the costs of training new employees is a waste of funds. PTO needs to have personnel practices that attract and retain the best and brightest employees.”

Not only does telework help boosts employee morale and productivity, it also helps to maintain critical government functions in the event of an emergency, President Kelley added. “As the winter snowstorms in the Washington, D.C., region demonstrated, telework can be an important tool for ensuring the continuity of government services in times of crisis,” she said.

NTEU is the largest independent federal union, representing some 150,000 employees in 31 agencies and departments, including more than 2,300 workers at PTO.