NOTE 14. Commitments and Contingencies
Commitments
In addition to the future lease commitments discussed in Note 8, the
USPTO is obligated for the purchase of goods and services that have been
ordered, but not yet received. Total undelivered orders for all of the
USPTO’s activities were $281,995 thousand and $214,546 thousand
as of September 30, 2005 and 2004, respectively. Of these amounts, $273,635
thousand and $203,014 thousand, respectively, 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
may ultimately result in settlements or decisions against the federal
government. As of September 30, 2005, management expects it is reasonably
possible that three cases involving employment or labor relations claims
may ultimately result in an adverse decision and require payment of awards
or damages where the outcomes are expected to be less than $825 thousand.
In addition, a discrimination class action suit outcome is considered
reasonably possible, but a range of outcomes cannot be determined. In
September 2005, a grievance was ruled in favor of a terminated employee.
The employee has returned to work. The USPTO will be liable for lost wages
offset by outside earnings. Information is not available to prepare an
estimate, however the liability will not exceed $350 thousand.
Additionally, the USPTO may be required to make contributions to the
Judgment Fund. For the years ended September 30, 2005 and 2004, there
were no payments made on the USPTO’s behalf from the Judgment Fund.
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