Inventor Tax Update

As many of you already know, the fee increase for the USPTO is official. As of last Wednesday, fees have increased again. That's two fee increases in a little over 2 months. President Bush signed the Consolidated Appropriations Act for 2005 on December 8, 2004, effective immediately.

Unfortunately for inventors, these fees will continue to fund non USPTO programs.

In a current lawsuit, one inventor claims this is unconstitutional. The U.S. Constitution states "The Congress shall have Power . . . To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." This inventor reasons that fee diversion is actually a tax on inventors, which fails to promote progress. Since the fees paid by inventors currently provide funding the general welfare, this is an interesting position.

For more information on the lawsuit (which was filed in 2001), click here.

For prior PHOSITA postings on the legislation and related issues, click on the appropriate link below:

• Inventor's Tax - November 18, 2004
• Another USPTO Fee Increase? - November 11, 2004
• Tech Lobbyists Spending Millions - May 20, 2004
• Patent Office Revised Fee Chart - May 3, 2004
• Senate Judiciary Committee Passes PTO Anti-Fee Diversion Bill - April 29, 2004
• Patent Office User Fee Diversion - March 8, 2004
• Higher Patent Office Fees? Interesting - February 23, 2004
• President Bush's Budget Patent Friendly - February 3, 2004