Elimination of fee diversion and full funding of the United States Patent and Trademark Office

(a) Patent and Trademark Office funding Section 42 of title 35, United States Code, is amended— (1) in subsection (a), by striking (a) All fees and inserting (a) In general.— Fees; (2) in subsection (b)— (A) by striking (b) All fees and inserting (b) Credit of fees.— Fees; and (B) by striking Patent and Trademark Office Appropriation Account and inserting United States Patent and Trademark Office Innovation Promotion Fund; (3) in subsection (c)— (A) by striking (1) To the extent and all that follows through fees and inserting (c) Use of fees.— (1) Fees; (B) in paragraph (1), by striking shall be collected by and shall, subject to paragraph (3), be available to the Director and inserting shall be collected by the Director and shall be available to the Director until expended; (C) by striking paragraph (2); and (D) by redesignating paragraph (3) as paragraph (2); (4) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; and (5) by inserting after subsection (c) the following: (d) Revolving fund (1) Definitions In this subsection: (A) Fund The term Fund means the United States Patent and Trademark Office Innovation Promotion Fund established under paragraph (2). (B) Trademark Act of 1946 The term Trademark Act of 1946 means the Act entitled An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes, approved July 5, 1946 (15 U.S.C. 1051 et seq.) (commonly referred to as the Trademark Act of 1946 or the Lanham Act). (2) Establishment There is established in the Treasury a revolving fund to be known as the United States Patent and Trademark Office Innovation Promotion Fund. (3) Derivation of resources There shall be deposited into the Fund any fees collected under— (A) this title; or (B) the Trademark Act of 1946. (4) Expenses Amounts deposited into the Fund under paragraph (3) shall be available, without fiscal year limitation, to cover— (A) all expenses to the extent consistent with the limitation on the use of fees set forth in subsection (c), including all administrative and operating expenses, determined in the discretion of the Director to be ordinary and reasonable, incurred by the Director for the continued operation of all services, programs, activities, and duties of the Office relating to patents and trademarks, as such services, programs, activities, and duties are described under— (i) this title; and (ii) the Trademark Act of 1946; and (B) all expenses incurred pursuant to any obligation, representation, or other commitment of the Office.; (6) in subsection (e), as so redesignated, by striking The Director and inserting Refunds. — The Director; and (7) in subsection (f), as so redesignated, by striking The Secretary and inserting Report. — The Secretary. (b) Effective date; transfer from and termination of obsolete funds (1) Effective date The amendments made by subsection (a) shall take effect on the first day of the first fiscal year that begins on or after the date of the enactment of this Act. (2) Remaining balances There shall be deposited in the Fund, on the effective date described in paragraph (1), any available unobligated balances remaining in the Patent and Trademark Office Appropriation Account, and in the Patent and Trademark Fee Reserve Fund established under section 42(c)(2) of title 35, United States Code, as in effect on the day before the effective date. (3) Termination of reserve fund Upon the payment of all obligated amounts in the Patent and Trademark Fee Reserve Fund under paragraph (2), the Patent and Trademark Fee Reserve Fund shall be terminated.