In what has become an all too common occurrence, the United States is on the brink of another potential federal government shutdown. It is unclear if a shutdown will happen or how long it will last, but any shutdown causes havoc across the country for individuals and businesses alike.
From furloughs of government employees to potential travel disruptions, the list of impacts is long, but beneath it all, some brand owners may be wondering what happens at the United States Patent and Trademark Office (USPTO)? Will the shutdown add time to the already agonizing wait for a trademark application to be reviewed or approved? What if there is a maintenance or renewal deadline that falls during the shutdown?
Thankfully, there is potentially good news on that front (and at least one lingering question). The USPTO is primarily funded by filing fees and does not rely on the same funding measures currently at issue in Congress. However, congressional action is needed to apportion the funds from those filing fees. In other words, the USPTO brings in funds, but Congress still needs to approve their use, for example, to pay Examining Attorneys.
The good news is that the USPTO places some of those funds in an Operating Reserve to maintain operations in the event of a government shutdown. As of this past June, the USPTO had a sufficient Operating Reserve to continue working as normal for approximately two to three months.
However, the USPTO does need congressional approval to use those operating funds, which has not yet happened. If the government shuts down, it is expected that Congress will approve use of the funds, but it remains an open question.
The Intellectual Property Group at Greenspoon Marder is monitoring events and determining how they may impact our clients. We understand that your trademarks are the lifeblood of your brand and your company, and we remain committed to providing any counsel or guidance you may need regarding these critical assets.
