NOTE 12. COMMITMENTS AND CONTINGENCIES

Commitments

In addition to the future lease commitments discussed in Note 7, the USPTO is obligated for the purchase of goods and services that had been ordered but not yet received. Total undelivered orders for all of the USPTO’s activities were $224,535 thousand and $175,231 thousand as of September 30, 2001 and 2000, respectively. Of these amounts, $218,207 thousand and $170,695 thousand were unpaid.

Contingencies

The USPTO is a party to various routine administrative proceedings, legal actions, and claims brought by or against it, including threatened or pending litigation involving labor relations claims, some of which ultimately may result in settlements or decisions against the federal government. Management expects that as of September 30, 2001, it is reasonably possible that from $228 thousand to $668 thousand may be owed for awards or damages involving labor relations claims and $623 thousand may be owed for awards or damages involving other claims. In addition, $3,590 thousand was accrued for claims where an adverse outcome is probable. Although the ultimate disposition of any potential Judgment Fund proceedings cannot be determined, management expects that $590 thousand of the liability will be paid out of the Judgment Fund.

	PONTIAC EMBLEM design owned by General Motors Corporation Application Serial No. 78048590 for motor land vehicles, namely, automobiles, sport utility vehicles, trucks, vans, engines thereof and structural parts thereof
	MR. CLEAN design owned by Procter & Gamble Company Application Serial No. 78014557 for posters
		Application Serial No. 75910296 filed by Avon Products, Inc. for cosmetics, fragrances, and toiletries, namely, fragrance spray, fragrance in solid form, body cream, body lotion, body powder, skin softener, shower gel, aerosol body spray, and roll-on deodorant
	CHEVROLET EMBLEM design owned by General Motors Corporation Application Serial No. 78075441 for belt buckles, charms, clocks, coins, cuff-links, earrings, ingots, lapel pins, money clips, pendants, rings, tie clips, tie tacks, watches