What is the USPTO?

What is the USPTO and what purpose does it serve in the modern economy?



The United States Patent and Trademark Office (USPTO) is a federal agency under the executive branch that is responsible with registering U.S. trademarks and granting patents. With regards to the granting patents, the USPTO was created to fulfill the mandate of Article I, Section 8, Clause 8, of the Constitution that the legislative branch "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" (emphasis added). In other words, the Constitution requires Congress to secure the exclusive right to inventors to use and monetize their inventions for a limited time, hence the need for the USPTO to grant (or deny) patent rights.


In addition to granting patents, the USPTO is also given the mandate to process trademark applications and reject them or approve them for trademark registration. For trademark owners, their are many additional benefits given to federal trademark registrations, making trademark registration highly desirable for entrepreneurs and both small and large businesses. The trademark office has authority to grant or refuse trademarks based on the Commerce Clause of the Constitution, located in Article I, Section 8, Clause 3.


Under the patent and trademark system operated by the USPTO, American industries have flourished, and demand for patent grants and trademark registrations continues to grow. Much of the economic growth of the country relies on is based on new ideas and investments in innovation, which is why it is important for the USPTO to protect patent rights of inventors and their investors, along with the brands and product names they create that are protected under the federal trademark registration system.


In addition to reviewing and registering trademark applications or granting patent applications, the USPTO advises other executive branch agencies, including the president of the United States and the Secretary of Commerce, on intellectual property rights, policy, protection and enforcement to help promote and maximize the strength of the United States economy. In addition to advising the government domestically, the USPTO also advocates for effective and stronger intellectual property protection across the globe. The goal of promoting stronger and uniform patent and trademark rights globally is to protect U.S. inventors, innovators, and entrepreneurs from having their intellectual property rights infringed in foreign nations by bad actors who take advantage of systems that do not respect intellectual property rights the same way the U.S. does.


A unique aspect of the USPTO compared to nearly all other federal government agencies is that it is completely self funded by fees collected by applications for patent grants or trademark registrations and does not rely on any taxpayer dollars to operate. In fact, the USPTO is structured like a business by offering services, namely, patent grants and trademark registrations for successful applications, in exchange for fees to cover the costs of the application review process. The USPTO runs so well it is often left with a year end budget surplus, which is often “diverted” into the general treasury of the United States.


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