DEPARTMENT OF COMMERCE
                   United States Patent and Trademark Office
                                 37 CFR Part 1
                                 RIN 0651-AB01
                 Revision of Patent Fees for Fiscal Year 2001


AGENCY: United States Patent and Trademark Office, Commerce.

ACTION: Final Rule.

SUMMARY: The United States Patent and Trademark Office (USPTO) is
amending the rules of practice in patent cases, Part 1 of title 37, Code
of Federal Regulations, to adjust certain patent fee amounts to reflect
fluctuations in the Consumer Price Index (CPI). The USPTO is also
amending the description of two fees to reflect current business
practice.

EFFECTIVE DATE: October 1, 2000.

FOR FURTHER INFORMATION CONTACT: Matthew Lee by telephone at (703)
305-8051, by fax at (703) 305-8007, or by e-mail at
matthew.lee@uspto.gov.

SUPPLEMENTARY INFORMATION: This final rule adjusts our fees in
accordance with the applicable provisions of title 35, United States
Code, as amended by the Consolidated Appropriations Act, Fiscal Year
2000 (which incorporated the Intellectual Property and Communications
Omnibus Reform Act of 1999) (Public Law 106-113).

BACKGROUND:

Statutory Provisions

Patent fees are authorized by 35 U.S.C. 41 and 35 U.S.C. 376. A fifty
percent reduction in the fees paid under 35 U.S.C. 41(a)xn and (b) by
independent inventors, small business concerns, and nonprofit
organizations who meet prescribed definitions is required by 35 U.S.C.
41(h)(1).

Subsection 41(f) of title 35, United States Code, provides that fees
established under 35 U.S.C. 41(a) and (b) may be adjusted on October 1,
1992, and every year thereafter, to reflect fluctuations in the CPI over
the previous twelve months.

Subsection 41(d) of title 35, United States Code, authorizes the
Director to establish fees for all other processing, services, or
materials related to patents to recover the average cost of providing
these services or materials, except for the fees for recording a
document affecting title, for each photocopy, for each black and white
copy of a patent, and for library services.

Section 376 of title 35, United States Code, authorizes the Director to
set fees for patent applications filed under the Patent Cooperation
Treaty (PCT).

Subsection 41(g) of title 35, United States Code, provides that new fee
amounts established by the Director under section 41 may take effect
thirty days after notice in the Federal Register and the Official
Gazette of the United States Patent and Trademark Office.

Fee Adjustment Level

The patent statutory fees established by 35 U.S.C. 41(a) and (b) will be
adjusted on October 1, 2000, to reflect any fluctuations occurring
during the previous twelve months in the Consumer Price Index for all
urban consumers (CPI-U). In calculating these fluctuations, the Office
of Management and Budget (OMB) has determined that the USPTO should use
CPI-U data as determined by the Secretary of Labor. In accordance with
previous fee-setting methodology, the USPTO uses the Administration's
projected CPI-U for the twelve-month period ending September 30, 2000,
which is 2.68 percent. Based on this projection, patent statutory fees
will be adjusted by 2.68 percent.

Certain patent processing fees established under 35 U.S.C. 41(d),
132(b), 376, and Public Law 103-465 (the Uruguay Round Agreements Act)
will be adjusted to reflect fluctuations in the CPI.

Four patent service fees that are set by statute will not be adjusted.
The four fees that are not being adjusted are the assignment recording
fee, printed patent copy fee, photocopy charge fee, and library service
fee.

The fee amounts were rounded by applying standard arithmetic rules so
that the amounts rounded would be convenient to the user. Fees of $100
or more were rounded to the nearest $10. Fees between $2 and $99 were
rounded to an even number so that any comparable small entity fee would
be a whole number.

General Procedures

Any fee amount that is paid on or after the effective date of the fee
increase will be subject to the new fees then in effect. For purposes of
determining the amount of the fee to be paid, the date of mailing
indicated on a proper Certificate of Mailing or Transmission, where
authorized under 37 CFR 1.8, will be considered to be the date of
receipt in our office. A Certificate of Mailing or Transmission under
1.8 is not proper for items which are specifically excluded from the
provisions of    1.8. Items for which a Certificate of Mailing or
Transmission under    1.8 are not proper include, for example, for
filing of Continued Prosecution Applications (CPAs) under    1.53(d) and
other national and international applications for patents. See 37 CFR
1.8(a)(2).

Under 37 CFR    1.10(a), any correspondence delivered by the "Express
Mail Post Office to Addressee" service of the United States Postal
Service (USPS) is considered filed or received in our office on the date
of deposit with the USPS. The date of deposit with the USPS is shown by
the "date-in" on the "Express Mail" mailing label or other official USPS
notation.

To ensure clarity in the implementation of the new fees, a discussion of
specific sections is set forth below.

Discussion of Specific Rules

37 CFR 1.16 National application filing fees.

Section 1.16, paragraphs (a), (b), (d), and (f) through (i), are revised
to adjust fees established therein to reflect fluctuations in the CPI.

37 CFR 1.17 Patent application processing fees.

Section 1.17, paragraphs (a)(2) through (a)(5), (b) through (e), (m),
(r), and (s), are revised to adjust fees established therein to reflect
fluctuations in the CPI.

37 CFR 1.18 Patent issue fees.

Section 1.18, paragraphs (a) through (c), are revised to adjust fees
established therein to reflect fluctuations in the CPI.

37 CFR 1.20 Post-issuance fees.

Section 1.20, paragraphs (e) through (g), are revised to adjust fees
established therein to reflect fluctuations in the CPI.

37 CFR 1.21 Miscellaneous fees and charges.

Section 1.21, paragraph (a)(6), is revised to amend the description to
reflect current business practices.

37 CFR 1.492 National stage fees.

Section 1.492, paragraphs (a), (b), and (d), are revised to adjust fees
established therein to reflect fluctuations in the CPI.

Other Considerations

 This final rule contains no information collection within the meaning
of the Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq. This
final rule has been determined to be not significant for purposes of
Executive Order 12866. This final rule does not contain policies with
Federalism implications sufficient to warrant preparation of a
Federalism Assessment under Executive Order 13132 (August 4, 1999).

Prior notice and opportunity for public comment for patent fee changes
are not required by the Patent Statute or the Administrative Procedure
Act. While the Patent Statute specifically requires that changes to
patent fees shall not take effect "until at least 30 days after notice
of the fee has been published in the Federal Register and in the
Official Gazette of the United States Patent and Trademark Office," 35
U.S.C. 41(g), the statute does not require any additional publication of
proposed fee changes. In addition, changes in patent fees are exempted
from the notice of proposed rulemaking requirements of the
Administrative Procedure Act under 5 U.S.C. 553(a)(2), as the
establishment of fee amounts is a matter related to agency management.

As prior notice and an opportunity for public comment are not required
pursuant to 5 U.S.C. 553, or any other law, the analytical requirements
of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., are
inapplicable.

A comparison of existing and new fee amounts is included as an Appendix
to this final rule.

Lists of Subjects

37 CFR Part 1

Administrative practice and procedure, Inventions and patents, Reporting
and record keeping requirements, Small businesses.

For the reasons set forth in the preamble, the USPTO is amending title
37 of the Code of Federal Regulations, Part 1, as set forth below.
                  Part 1 - Rules of Practice in Patent Cases

1. The authority citation for 37 CFR Part 1 continues to read as follows:

Authority: 35 U.S.C. 2(b)(2), unless otherwise noted.

2. Section 1.16 is amended by revising paragraphs (a), (b), (d), and (f)
through (i) to read as follows:

   1.16 National application filing fees.

(a) Basic fee for filing each application for an original patent, except
provisional, design, or plant applications:

By a small entity (   1.9(f))                                       $355.00
By other than a small entity                                        $710.00

(b) In addition to the basic filing fee in an original application,
except provisional applications, for filing or later presentation of
each independent claim in excess of 3:

By a small entity (   1.9(f))                                        $40.00
By other than a small entity                                         $80.00

*****

(d) In addition to the basic filing fee in an original application,
except provisional applications, if the application contains, or is
amended to contain, a multiple dependent claim(s), per application:

By a small entity (   1.9(f))                                       $135.00
By other than a small entity                                        $270.00

*****

(f) Basic fee for filing each design application:

By a small entity (   1.9(f))                                       $160.00
By other than a small entity                                        $320.00

(g) Basic fee for filing each plant application, except provisional
applications:

By a small entity (   1.9(f))                                       $245.00
By other than a small entity                                        $490.00

(h) Basic fee for filing each reissue application:

By a small entity (   1.9(f))                                       $355.00
By other than a small entity                                        $710.00

(i) In addition to the basic filing fee in a reissue application, for
filing or later presentation of each independent claim which is in
excess of the number of independent claims in the original patent:

By a small entity (   1.9(f))                                        $40.00
By other than a small entity                                         $80.00

*****

3. Section 1.17 is amended by revising paragraphs (a)(2) through (a)(5),
(b) through (e), (m), (r), and (s) to read as follows:

   1.17 Patent application processing fees.

(a)***

   (1)***

   (2) For reply within second month:

   By a small entity (   1.9(f))                                    $195.00
   By other than a small entity                                     $390.00

   (3) For reply within third month:

   By a small entity (   1.9(f))                                    $445.00
   By other than a small entity                                     $890.00

   (4) For reply within fourth month:

   By a small entity (   1.9(f))                                    $695.00
   By other than a small entity                                   $1,390.00

   (5) For reply within fifth month:

   By a small entity (   1.9(f))                                    $945.00
   By other than a small entity                                   $1,890.00

*****

(b) For filing a notice of appeal from the examiner to the Board of
Patent Appeals and Interferences:

By a small entity (   1.9(f))                                       $155.00
By other than a small entity                                        $310.00

(c) In addition to the fee for filing a notice of appeal, for filing a
brief in support of an appeal:

By a small entity (   1.9 (f))                                      $155.00
By other than a small entity                                        $310.00

(d) For filing a request for an oral hearing before the Board of Patent
Appeals and Interferences in an appeal under 35 U.S.C. 134:

By a small entity (   1.9(f))                                       $135.00
By other than a small entity                                        $270.00

(e) To request continued examination pursuant to    1.114:

By a small entity (   1.9(f))                                       $355.00
By other than a small entity                                        $710.00

*****

(m) For filing a petition for the revival of an unintentionally
abandoned application or the unintentionally delayed payment of the
issue fee under 35 U.S.C. 41(a)(7) (   1.137(b)):

By a small entity (   1.9(f))                                       $620.00
By other than a small entity                                      $1,240.00

*****

(r) For entry of a submission after final rejection under    1.129(a):

By a small entity (   1.9(f))                                       $355.00
By other than a small entity                                        $710.00

(s) For each additional invention requested to be examined under
1.129(b):

By a small entity (   1.9(f))                                       $355.00
By other than a small entity                                        $710.00

4. Section 1.18 is revised to read as follows:
   1.18 Patent issue fees.

(a) Issue fee for issuing each original or reissue patent, except a
design or plant patent:

By a small entity (   1.9(f))                                       $620.00
By other than a small entity                                      $1,240.00

(b) Issue fee for issuing a design patent:

By a small entity (   1.9(f))                                       $220.00
By other than a small entity                                        $440.00

(c) Issue fee for issuing a plant patent:

By a small entity (   1.9(f))                                       $300.00
By other than a small entity                                        $600.00

5. Section 1.20 is amended by revising paragraphs (e) through (g) to
read as follows:

   1.20 Post issuance fees.

*****

(e) For maintaining an original or reissue patent, except a design or
plant patent, based on an application filed on or after December 12,
1980, in force beyond four years; the fee is due by three years and six
months after the original grant:

By a small entity (   1.9(f))                                       $425.00
By other than a small entity                                        $850.00

(f) For maintaining an original or reissue patent, except a design or
plant patent, based on an application filed on or after December 12,
1980, in force beyond eight years; the fee is due by seven years and six
months after the original grant:

By a small entity (   1.9(f))                                       $975.00
By other than a small entity                                      $1,950.00

(g) For maintaining an original or reissue patent, except a design or
plant patent, based on an application filed on or after December 12,
1980, in force beyond twelve years; the fee is due by eleven years and
six months after the original grant:

By a small entity (   1.9(f))                                     $1,495.00
By other than a small entity                                      $2,990.00

*****

6. Section 1.21 is amended by revising paragraph (a)(6) to read as
follows:

   1.21 Miscellaneous fees and charges.

(a) ***

*****

   (6) For requesting regrading of an examination under    10.7(c):

      (i) Regrading of seven or fewer questions                     $230.00
      (ii) Regrading of eight or more questions                     $460.00

*****

 7. Section 1.492 is amended by revising paragraphs (a), (b), and (d) to
read as follows:

   1.492 National stage fees.

*****

(a) The basic national fee:

   (1) Where an international preliminary examination fee as set forth
in    1.482 has been paid on the international application to the United
States Patent and Trademark Office:

   By a small entity (   1.9(f))                                    $345.00
   By other than a small entity                                     $690.00

(2) Where no international preliminary examination fee as set forth in
 1.482 has been paid to the United States Patent and Trademark Office,
but an international search fee as set forth in    1.445(a)(2) has been
paid on the international application to the United States Patent and
Trademark Office as an International Searching Authority:

   By a small entity (   1.9(f))                                    $355.00
   By other than a small entity                                     $710.00

(3) Where no international preliminary examination fee as set forth in
 1.482 has been paid and no international search fee as set forth in
1.445(a)(2) has been paid on the international application to the United
States Patent and Trademark Office:

   By a small entity (   1.9(f))                                    $500.00
   By other than a small entity                                   $1,000.00

(4) Where an international preliminary examination fee as set forth in
 1.482 has been paid to the United States Patent and Trademark Office,
and the international preliminary examination report states that the
criteria of novelty, inventive step (non-obviousness), and industrial
applicability, as defined in PCT Article 33 (1) to (4) have been
satisfied for all the claims presented in the application entering the
national stage (see    1.496(b)):

   By a small entity (   1.9(f))                                     $50.00
   By other than a small entity                                     $100.00

(5) Where a search report on the international application has been
prepared by the European Patent Office or the Japanese Patent Office:

   By a small entity (   1.9(f))                                    $430.00
   By other than a small entity                                     $860.00

(b) In addition to the basic national fee, for filing or later
presentation of each independent claim in excess of 3:

By a small entity (   1.9(f))                                        $40.00
By other than a small entity                                         $80.00

*****

(d) In addition to the basic national fee, if the application contains,
or is amended to contain, a multiple dependent claim(s), per application:

By a small entity (   1.9(f))                                       $135.00
By other than a small entity                                        $270.00

*****

July 14, 2000                                             Q. TODD DICKINSON
                                            Under Secretary of Commerce for
                                  Intellectual Property and Director of the
                                  United States Patent and Trademark Office