USPTO CUTS MAY BE LOOMINGFebruary 28, 2025

A joint memo dated February 26, 2025, from the U.S. Office of Management Budget and the U.S. Office of Personnel Management may lead to staff reductions at the United States Patent and Trademark Office.  The memo provides guidance to the Department of Government Efficiency Workforce Optimization Initiative. 

The memo begins by acknowledging that the federal government is costly, inefficient, deeply in debt, and not providing results for the American public.

So, by March 13, the USPTO (and all government agencies) must develop and Agency Reorganization Plan.  The plan should achieve the following:

1. Better service for the American people;
2. Increased productivity;
3. A significant reduction in the number of full-time equivalent (FTE) positions by eliminating positions that are not required;
4. A reduced real property footprint; and
5. Reduced budget topline.

The memo directs agencies, including the USPTO, to focus on elimination of functions that are not statutorily mandated. As further explained, “Agencies should also seek to consolidate areas of the agency organization chart that are duplicative; consolidate management layers where unnecessary layers exist; seek reductions in components and positions that are non-critical; implement technological solutions that automate routine tasks while enabling staff to focus on higher-value activities; close and/or consolidate regional field offices to the extent consistent with efficient service delivery; and maximally reduce the use of outside consultants and contractors.”

The primary statutory function of the USPTO is to examine patent and trademark applications. In fiscal year 2024, there were over 700,000 new patent applications filed, and more than 450,000 new trademark applications filed. 

Also, the USPTO is unlike most other agencies, in that the Patent and Trademark Office is financially supported by user fees, rather than funding appropriated by Congress. The USPTO also has had employees working remotely for about 30 years, and approximately 95% being currently remote. Thus, there is no place for them to come back to the office. 

As patent and trademark lawyers in a 101-year-old boutique firm, we are all anxious about what may be coming and changing at the USPTO. Improved productivity and efficiency will be welcome, but how to do that with a potentially reduced work force is a big question. We’ll know a lot more in two weeks. 

Kirk Hartung is a member of the Mechanical Patent Practice Group at McKee, Voorhees & Sease, PLC. For additional information please visit  www.ipmvs.com or contact Kirk directly via email at kirk.hartung@ipmvs.com.