USPTO Oversight Hearing — Patent, Trademark & Innovation Policy

00:00CHAIR

Thom Tillis, Chair, Senate Judiciary IP Subcommittee00:02APOLOGIZE FOR BEING A FEW MINUTES LATE. WE WANT TO START BY THANKING DIRECTOR SQUIRES FOR HIS WORK. I REALLY DO APPRECIATE GETTING AN UPDATE UPDATE. I WANT TO THANK YOU FOR YOUR ACCESSIBILITY OVER THE COURSE OF YOUR TIME IN THAT ROLE.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee00:02IT HAS BEEN GREAT TO BE ABLE TO TEXT BACK AND FORTH AS YOU CONTINUE TO DO WHAT I BELIEVE IS A GREAT JOB. AS I'VE SAID MANY TIMES IN THE SUBCOMMITTEE, STRONG AND PREDICTABLE PATENT AND TRADEMARK PROTECTIONS OF THE BEDROCK OF AMERICAN INNOVATION, MANUFACTURING AND INVESTMENT.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee00:02HELP INVENTORS BRING TECHNOLOGY TO THE MARKET, CREATE JOBS AND SUSTAIN OUR GLOBAL ECONOMIC LEADERSHIP. BUT OUR SYSTEM IS NOT PERFECT. WE MUST CONTINUE IMPROVING IT, ESPECIALLY WHEN AMERICAN INTELLECTUAL PROPERTY IS UNDER ATTACK AT HOME AND ABROAD.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee00:47FAITH IN OUR PATENT SYSTEM MUST EXIST THROUGHOUT THE PATENT LIFECYCLE. FROM EXAMINATION TO POTENTIAL LITIGATION. THAT IS WHY I INTRODUCED THE PATENT ELIGIBILITY AND RESTORATION ACT. THE U.S. PATENT ELIGIBILITY LAW HAS BECOME CONFUSED, CONSTRICTED AND UNCLEAR.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee00:47THAT UNCERTAINTY HAS PRODUCED INCONSISTENT DECISIONS, DISCOURAGED INVESTMENT AND GENERATED UNPREDICTABLE BUSINESS OUTCOMES. AFTER PURSUING MULTIPLE AVENUES FOR REFORM, IT IS CLEAR CONGRESS MUST PROVIDE A DURABLE LEGISLATIVE FRAMEWORK. -- FOR IMPORTANT INVENTIONS IN FIELDS SUCH AS MEDICAL DIAGNOSTICS DIAGNOSTICS, BIOTECHNOLOGY, PERSONALIZED MEDICINE, ARTIFICIAL INTELLIGENCE, 5G AND BLOCK CHAIN.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee01:33IT'LL HELP ENSURE THE UNITED STATES REMAINS THE WORLD'S INNOVATION LEADER IN THESE FIELDS AND ONES WE AREN'T EVEN TALKING ABOUT YET. I ALSO JOINED SENATOR COONS IN THE PREVAIL ACT. WHEN PROPERLY ADMINISTERED, THE PATENT TRIAL AND APPEAL BOARD CAN MAINTAIN STRONG RELIABLE AND PREDICTABLE PATENT RIGHTS.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee01:33BUT IT ALSO HAS BEEN OPEN TO ABUSE AND GAMESMANSHIP. ADMINISTRATIVE POLICIES MAY ADDRESS THOSE PRACTICES TEMPORARILY, BUT THEY CAN CHANGE WITH EACH NEW DIRECTOR. LEGISLATION IS NECESSARY TO CODIFY LASTING REFORMS, PROVIDE STABILITY AND CERTAINTY CERTAINTY.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee02:22FINALLY, THERE IS AI. PATENTS HAVE ENCOURAGED THE TECHNOLOGIES THAT MAKE AI POSSIBLE. WHILE TRADEMARKS HELP CONSUMERS IDENTIFY BUSINESSES AND PRODUCTS YOU CAN TRUST TRUST. AS WE COMPETE WITH CHINA, WE CANNOT ENTER A RACE TO THE BOTTOM THAT WEAKENS IP RIGHTS, RESPONSIBLE FOR AMERICA'S SUCCESS.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee02:22WE MUST ALSO ALLOW AI TO SUPPORT INVENTION, IMPROVE PATENT EXAMINATION AND HELP LEGITIMATE BUSINESSES GROW WHILE PROTECTING BRAND OWNERS AND CONSUMERS FROM MISUSE, COUNTERFEITING AND FRAUD. THANKFULLY THE SENATE IS NOT ALONE. THE U.S.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee03:08PATENT AND TRADEMARK OFFICE AND DIRECTOR JOHN SQUIRES HAVE BEEN VALUABLE PARTNERS IN MAINTAINING AMERICA'S ECONOMIC LEADERSHIP AND STRENGTHENING OUR PATENT AND TRADEMARK SYSTEMS. I WOULD ALSO LIKE TO THANK U.S. PTO AND DIRECTOR SQUIRES FOR THEIR COMMITMENT TO THESE ISSUES AND ANNOUNCING THAT RALEIGH WILL BE HOME TO THE SOUTHEAST LOCATION OF THE COMMUNITY ENGAGEMENT OFFICE.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee03:08THIS OFFICE WILL GREATLY BENEFIT NORTH CAROLINIANS AND INVENTORS AS WELL AS PTO. WITH THAT, I WILL TURN TO MY RANKING MEMBER BOOKER -- TO MY RANKING MEMBER FOR OPENING COMMENTS. RANKING MEMBER SCHIFF: I DON'T

Adam Schiff, U.S. Senator03:58KNOW IF WE WILL HAVE A HEARING DURING THE LAME-DUCK SESSION. THIS MAY BE THE LAST OPPORTUNITY TO THANK YOU FOR THE WAY YOU HAVE LED THIS SUBCOMMITTEE UNTIL YOU WHAT A JOY IT HAS BEEN, SERVING WITH YOU.

Adam Schiff, U.S. Senator04:00THANK YOU FOR BEING HERE. WE APPRECIATE YOU JOINING US TODAY. TO DISCUSS THE OPERATIONS, POLICIES AND STRATEGIC VISION OF THE U.S. PATENT AND TRADEMARK OFFICE. IT PROVIDES CRITICAL INCENTIVES FOR GROUNDBREAKING RESEARCH OFFICE. IT PROVIDES CRITICAL INCENTIVES FOR GROUNDBREAKING RESEARCH, IT PROTECTS OUR CREATIVE INDUSTRIES AND SUPPORTS MILLIONS OF HIGH-PAYING JOBS ACROSS CALIFORNIA AND THE NATION.

Adam Schiff, U.S. Senator04:00IT RELIES ON A DELICATE BALANCE, GRANTING ROBUST RELIABLE IP RIGHTS THAT REWARD INNOVATION WHILE ENSURING THE PUBLIC IN AN INDEPENDENT INVENTORS RETAIN THE FREEDOM TO COMPETE, COLLABORATE AND BUILD UPON EXISTING IDEAS. TODAY'S HEARING COMES AT A PIVOTAL TIME FOR NEW TECHNOLOGIES AROUND THE QUICKLY EVOLVING CAPABILITIES OF ARTIFICIAL INTELLIGENCE, BIOTECHNOLOGY AND ADVANCED SOFTWARE.

Adam Schiff, U.S. Senator04:46IT IS CRITICAL THAT PATENT QUALITY REMAIN PARAMOUNT. THE USPTO HAS LONG FACED CHALLENGES REGARDING TIME CONSTRAINTS AND THE NEED FOR RIGOROUS OVERSIGHT OF AGENCY PROGRAMS. THE USPTO IS NAVIGATING A DOUBLE EDGED SWORD OF AI, IMPLEMENTING TOOLS TO STREAMLINE AND INVENT -- EXAMINATION WHILE ESTABLISHING CLEAR POLICY BOUNDARIES FOR AI ASSISTED INVENTOR SHIP AND SUBJECT MATTER ELIGIBILITY.

Adam Schiff, U.S. Senator05:31THE OFFICE MUST MAINTAIN VIGILANCE IN PROTECTING THE TRADEMARK SYSTEM FROM AN INFLUX OF FRAUDULENT BAD-FAITH APPLICATIONS ORIGINATING OVERSEAS THAT THREATEN CONSUMER SAFETY AND BRAND INTEGRITY. CONGRESS HAS A DUTY TO ENSURE THE USPTO HAS THE RESOURCES, ADMINISTRATIVE FRAMEWORKS AND -- NECESSARY TO MEET THESE CHALLENGES.

Adam Schiff, U.S. Senator05:31I LOOK FORWARD TO HEARING YOUR PERSPECTIVE ON THESE ISSUES AND LEARNING HOW THE OFFICE PLANS TO FOSTER A PREDICTABLE AND TRANSPARENT IP ECOSYSTEM. THANK YOU, AND I YELLED BACK. -- AND I YIELD BACK.

Adam Schiff, U.S. Senator05:31CHAIR TILLIS: I ALSO WANT TO THANK SARAH -- SENATOR HIRONO

Thom Tillis, Chair, Senate Judiciary IP Subcommittee06:20AND A NUMBER OF OTHER MEMBERS. WHAT I FIND MOST REWARDING IS THE NUMBER OF PEOPLE WHO ARE INTERESTED IN THIS COMMITTEE COMMITTEE. IT IS VERY UNCOMMON TO SEE A SUBCOMMITTEE PACKED WITH SPECTATORS. THAT HAS BECOME COMMON, AND WE APPRECIATE THE ENGAGEMENT OF A LOT OF STAKEHOLDERS I SEE IN THE ROOM.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee06:20MY PRIOR CHAIRMANSHIP DRINKING RELATIONSHIP WITH KUNZ, BUT I ALSO BELIEVE SENATOR HIRONO MAY GET THE HIGHEST PARTICIPATION AWARD, IF I WERE TO GO BACK AND SEE HOW MANY PEOPLE CAME IN AND ACTUALLY SPOKE.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee07:05HOPEFULLY WE WILL BE ABLE TO CARRY ON THE TRADITION OF HARD WORK AND CHECKING THE IDEOLOGICAL JERSEYS AT THE DOOR SO WE CAN CONTINUE TO DO THE GOOD WORK. DID ANY MEMBER WISH TO SPEAK?

Thom Tillis, Chair, Senate Judiciary IP Subcommittee07:05>> I MIGHT. OVER MANY CONGRESSES, WE HAVE WORKED VERY CLOSELY TOGETHER AND I APPRECIATE YOU AND WILL DEEPLY MISS YOU IN THE NEXT CONGRESS. THANK YOU TO DIRECTOR SQUIRES FOR YOUR HARD WORK WORK, AND I LOOK FORWARD TO YOUR TESTIMONY.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee07:05CHAIR TILLIS: SENATOR HIRONO. SEN. HIRONO: WE KNOW THE JUDICIARY COMMITTEE CAN BE

Mazie Hirono, U.S. Senator07:47EXCITING AT TIMES, BUT I'M GLAD THAT THIS SUBCOMMITTEE WITH YOUR LEADERSHIP, REGARDLESS OF WHETHER THIS COMMITTEE HAS BEEN LED BY A DEMOCRAT OR REPUBLICAN, IT HAS BEEN A PLEASURE TO WORK IN A BIPARTISAN WAY ON ISSUES THAT MATTER TO OUR BUSINESSES BUSINESSES.

Mazie Hirono, U.S. Senator07:47THANK YOU FOR YOUR LEADERSHIP. CHAIR TILLIS: I APPRECIATE THAT.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee08:13MR. SQUIRES SERVES AS THE UNDER SECRETARY OF COMMERCE FOR INTELLECTUAL PROPERTY, IP AND DIRECTOR OF THE U.S. PATENT AND TRADEMARK OFFICE. HE WAS CONFIRMED IN DECEMBER OF 2025. MR. SQUIRES LEADS USPTO, ONE OF THE LARGEST IP OFFICES IN THE WORLD, WITH ALMOST $5 BILLION IN OPERATING BUDGET, AND OVER 14,000 EMPLOYEES, LOCATED ACROSS 50 STATES AND PUERTO RICO.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee08:16MR. SQUIRES ADVISES THE EXECUTIVE BRANCH ON IP MATTERS THROUGH THE SECRETARY OF COMMERCE. PRIOR TO HIS CONFIRMATION, HE SERVED AS PARTNER AND CHAIR OF THE IP AND ENGINEERING COMPANIES PRACTICE AT -- AND AS AN ADJUNCT LAW PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA SCHOOL OF LAW.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee09:01WELCOME. WE WILL ADMINISTER THE OATH. DO YOU AFFIRM THAT THE TESTIMONY YOU ARE ABOUT TO GIVE BEFORE THE COMMITTEE WILL BE THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH? THANK YOU, YOU MAY BE SEATED AND BEGIN WITH YOUR OPENING STATEMENT.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee09:01HON.

John A. Squires, Director, U.S. Patent and Trademark Office09:29THANK YOU VERY MUCH CHAIRMAN TILLIS, RANKING MEMBER SCHIFF, CHAIRMAN GRASSLEY , RANKING MEMBER DURBIN AND MEMBERS OF THE SUBCOMMITTEE. THANK YOU FOR TODAY'S OPPORTUNITY TO DISCUSS AMERICA'S INNOVATION AND SAFETY WITH THE USPTO. LET ME THANK PRESIDENT TRUMP FOR HIS CONFIDENCE IN ME, HIS STEADFAST COMMITMENT TO INTELLECTUAL PROPERTY AND HIS CLARION CALL TO USHER IN A GOLDEN AGE OF AMERICAN INNOVATION.

John A. Squires, Director, U.S. Patent and Trademark Office09:33I AM TREMENDOUSLY THANKFUL TO SEC. LUTNICK FOR TRANSFORMING THE DEPARTMENT OF COMMERCE COMMERCE. HIS UNPARALLELED VISION, WITH AN ONION -- HE HIMSELF HAVING BEING INVENTOR ON OVER 500 PATENTS. THANK YOU TO OUR AMAZING AND TALENTED USPTO TEAM TEAM.

John A. Squires, Director, U.S. Patent and Trademark Office10:20ALMOST 14,000 STRONG, FOR YOUR DEDICATION, COMMITMENT AND SERVICE. I SAY THEY ARE THE BEST IN THE WORLD AT WHAT THEY DO BECAUSE QUITE SIMPLY, THEY ARE AND THEY PROVE IT EVERY DAY. ASCRIBED ATOP THE BUILDING IS THE FAMOUS LINCOLN QUOTE QUOTE, THAT THE PATENT SYSTEM AS A FUEL OF INTEREST TO THE FIRES OF GENIUS.

John A. Squires, Director, U.S. Patent and Trademark Office10:20HE REFERS TO THE EXCLUSIVITY INCENTIVE OUR FOUNDERS INSCRIBED , THE FIRST IN THE HISTORY OF NATIONS IS THE ONLY INDIVIDUAL RIGHT IN THE SEVEN ARTICLES OF THE CONSTITUTION PROPER. AMERICAN EXCEPTIONALISM WAS BORN STRONG.

John A. Squires, Director, U.S. Patent and Trademark Office10:20AS PRESIDENT LINCOLN EXPLAINED, BEFORE THEN, ANY MAN MIGHT INSTANTLY USE WHAT ANOTHER HAD MEANT -- HAD INVENTED SO THE INVENTOR HAD NO SPECIAL ADVANTAGE. THE PATENT SYSTEM CHANGED THIS. THIS YEAR WE CELEBRATED AMERICA'S 250TH, STARTING WITH AMERICA'S FIRST PATENT, SIGNED IN 1790 BY GEORGE WASHINGTON.

John A. Squires, Director, U.S. Patent and Trademark Office11:05AROUND THIS TIME NEXT SUMMER I WILL BE PROBABLY PRESENTING PATENT 13 MILLION AND TRADEMARK REGISTRATION 9 MILLION TO PRESIDENT TRUMP FOR HIS SIGNATURE. EACH CELEBRATION WAS A FRESH REMINDER THAT STRONG IP PROTECTION AFFORDS GREATNESS.

John A. Squires, Director, U.S. Patent and Trademark Office11:05WE CELEBRATED ALEXANDER GRAHAM BELL TELEPHONE PATENT AND WHAT THE WORLD MADE OF HIS GENIUS. IN CHAPEL HILL AT THE G20, WE CELEBRATED HENRY BESSEMER'S SUCCESS, WHICH HE FOUND ONLY ON AMERICA'S SHORES AFTER RECEIVING A U.S.

John A. Squires, Director, U.S. Patent and Trademark Office11:50PATENT. NOT LOST ON US AS WE SIGNED THE CAROLINA PRINCIPLES IN PERSON WAS THAT THE MARVEL OF HUMAN FLIGHT INVENTED BY TWO IRREPRESSIBLE AMERICAN BROTHERS 123 YEARS EARLIER LITERALLY BROUGHT OUR NATIONS TOGETHER. PRESIDENT TRUMP IS CALLING FOR A GOLDEN AGE OF INNOVATION.

John A. Squires, Director, U.S. Patent and Trademark Office11:50AMERICA'S INNOVATION AGENCY IS ANSWERING THAT CALL WITH THE URGENCY OF NOW. ATOP THE BROAD SHOULDERS OF OUR GENIUS GIANTS, WE REDEDICATE OURSELVES TO AMERICAN EXCEPTIONALISM SO AMERICAN INGENUITY CAN STAND TALL AGAIN. TODAY I AM PROUD TO TELL YOU THAT WE HAVE TURNED THE CORNER, INHERITING AN UNHEARD OF BACKLOG CRISIS.

John A. Squires, Director, U.S. Patent and Trademark Office12:36NOW FOR THE FIRST TIME IN 10 YEARS, OUTPUT EXCEEDS INTAKE AND WE HAVE ACHIEVED A THREE YEAR LOW ON BACKLOGS. QUALITY HAS IMPROVED AND ASSETS ARE GETTING TO MARKET FASTER. WE ARE AVID SI ADOPTERS, GENERATING THOUSANDS OF APPLICATIONS AND WITH AGENTS, SLICING THROUGH MONTHS OF RED TAPE IN SECONDS WITH NEARLY HALF A MILLION CASES ANALYZED IN UNDER SIX MONTHS.

John A. Squires, Director, U.S. Patent and Trademark Office12:36OUR DOORS ARE WIDE OPEN, JUST AS THEY WERE 186 YEARS AGO. WE'VE LOOKED AT BACKEND CHALLENGES TO IMPROVE FRONT-END QUALITY AND RESTORE -- AS A FAIR LITIGATION ALTERNATIVE. -- AND GIVEN HUNGRY AMERICANS A LEG UP IN GLOBAL STANDARD SETTING.

John A. Squires, Director, U.S. Patent and Trademark Office13:21WITH NEW LOCAL ENGAGEMENT OFFICES, OUR NATIONWIDE FOOTPRINT IS MORE NIMBLE AND INCLUDES A GROUND BREAKING PARTNERSHIP WITH HBCU'S HBCU'S. WE ARE 100% USER -- AND WE HAVE BEEN RECOGNIZED AGAIN AS DEPENDABLE FINANCIAL STEWARDS.

John A. Squires, Director, U.S. Patent and Trademark Office13:21I SINCERELY THANK CONGRESS FOR EXTENDING OUR AUTHORITY TO DECEMBER 11 AND I'M LOOKING FORWARD TO WORKING TOGETHER TO EXTEND IT FAR INTO THE FUTURE. IN CLOSING, WHILE WE HAVE MUCH MORE TO DO, WE ARE NOTCHING WINS.

John A. Squires, Director, U.S. Patent and Trademark Office14:07FOR IP INTENSIVE INDUSTRIES, THAT MEANS JOBS. NOW WE ARE RAPIDLY SCALING TO DELIVER ON PRESIDENT TRUMP'S GOLDEN AGE, AND WE ARE ALL IN TO FIRE UP AMERICA'S GENIUS FULL THROTTLE. THANK YOU. CHAIR

Thom Tillis, Chair, Senate Judiciary IP Subcommittee14:39THANK YOU MR. SQUIRES. FIRST, I REALLY APPRECIATE THE WAY THAT YOU PROACTIVELY COMMUNICATED COMMUNICATED, AS WE HAVE GONE THROUGH THE PROCESS. ONE OF YOUR VERY WELL RECEIVED COMMUNICATIONS WAS WHEN THE DECISION WAS MADE ABOUT THE PUBLIC ENGAGEMENT OFFICE IN RALEIGH.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee14:42THE MERE FACT THAT MR. SQUIRES CONTACTED ME TO CONFIRM THAT PROVES THAT I WASN'T DOING THE LOBBYING. GIVE ME ANY IDEA -- AN IDEA OF WHY YOU MADE THE DECISIONS YOU MADE ABOUT CERTAIN LOCATIONS.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee14:42HON. SQUIRES: THIS IS ONE OF THE

John A. Squires, Director, U.S. Patent and Trademark Office15:21MOST EXCITING THINGS PRESENTLY GOING ON AT THE USPTO. BEING AT THE TOP OF THE FUNNEL WITH UNIVERSITIES, STARTUPS, ECOSYSTEMS, WE HAD RFC PROCESSES WHERE WE'VE ASKED FOR ENGAGEMENT, RECEIVED AMAZING PROPOSALS, AND WE ARE LOOKING TO MIRROR LOCAL INNOVATION SYSTEMS AND THEIR PERSONALITIES.

John A. Squires, Director, U.S. Patent and Trademark Office15:22SO WE HAVE A COMMUNITY ENGAGEMENT OFFICE AT MONTANA STATE. WE HAVE ONE AT NC STATE NORTH CAROLINA. WE HAVE THE HBCU PARTNERSHIPS. AS WELL, THE UNIVERSITY OF UTAH. WE ARE THIS CLOSE TO SIGNING AN ENGAGEMENT AT THE UNIVERSITY OF COLORADO BOULDER FOR NIL, WHICH THE COACH THAT REPORTS TO COACH PRIME WILL BE VERY EXCITING.

John A. Squires, Director, U.S. Patent and Trademark Office16:08>> WE SHOULD PROBABLY CONTINUE OUR DISCUSSION. NORTH CAROLINA IS HOME TO -- SECOND ONLY TO ALABAMA IN TERMS OF HBCU'S HBCU'S. IN COLLABORATION WITH GREENSBORO, THERE IS A LOT OF GOOD THINGS WE CAN BUILD ON, STARTING WITH THE GREAT CHOICE OF NC STATE.

John A. Squires, Director, U.S. Patent and Trademark Office16:08I'M NOT GOING TO GO THROUGH A HEARING WITH YOU AT THE TABLE -- ONE OF THE THINGS THAT WE'VE TRIED TO EXPLAIN TO PEOPLE. IT'S NOT REALLY GUARANTEEING THAT ANY PATENT IS GOING TO BE AWARDED.

John A. Squires, Director, U.S. Patent and Trademark Office16:53IT IS OPENING THE APERTURE FOR ELIGIBILITY. IN YOUR OPINION, A QUICK SLOT ON WHAT WE NEED TO DO TO GET IT RIGHT, WHAT THE DEPARTMENT THINKS ABOUT IT NOW NOW, AND HOW WOULD YOU DESCRIBE THE BENEFITS IF YOU AGREE WE ARE GOING IN THE RIGHT DIRECTION?

John A. Squires, Director, U.S. Patent and Trademark Office16:53HON. SQUIRES: THANK YOU VERY MUCH. THE ADMINISTRATION HAS NOT TAKEN A POSITION BUT THE WORK BEING DONE IS ADDRESSED TO AN AREA THAT IS IN DIRE NEED OF CLARIFICATION. -- MY FIRST FULL DAY IN OFFICE WERE CRYPTO PATENTS AS WELL AS A MEDICAL DIAGNOSTICS PATENT.

John A. Squires, Director, U.S. Patent and Trademark Office17:42WE IMPLEMENTED SEVERAL MECHANISMS TO TAKE IN MARKET INFORMATION AND HAVE THE APPLICANT EXPLAINED TO US HOW THEIR IDEAS APPLY AND HOW IT IS GOING TO IMPROVE THE SYSTEM. WE CREATED WHAT IS CALLED A SUBJECT MATTER ELIGIBILITY DECLARATION.

John A. Squires, Director, U.S. Patent and Trademark Office17:42THERE USED TO BE AN HONOR REQUIREMENT. I HAVE ON MY DESK THE REPLICA OF THOMAS EDISON'S INCANDESCENT LIGHTBULB. PROVIDING MODELS IS QUITE DIFFICULT WHEN YOU HAVE SOFTWARE OR AI BUT WE CAN TAKE THE DECLARATION FROM THE APPLICANT AND THAT TELLS US HOW THE CLAIMS MAKE THE SYSTEM BETTER.

John A. Squires, Director, U.S. Patent and Trademark Office18:28-- THE WELL-PLACED POINT THAT ELIGIBILITY IS DIFFERENT AND DISTINCT FROM PATENTABILITY. THERE ARE JUDICIAL EXCEPTIONS, THEY ARE NARROW AND PATENT ELIGIBILITY SHOULD NOT BE CONFUSED WITH PATENTABILITY. -- TO ENSURE THAT EXCLUSIVELY GRANTED IS ENABLED AND THEN WIN THE PATENT EXPIRES, -- CHAIR TILLIS: THE REMAINDER OF THIS CONGRESS, IF WE CAN GET

Thom Tillis, Chair, Senate Judiciary IP Subcommittee19:22SOME FEEDBACK ON OTHER PROPOSALS TO GET TO THE HEART OF WHAT WE ARE TRYING TO DO, WE WOULD APPRECIATE THAT FEEDBACK. HON. SQUIRES: THANK YOU SENATOR.

John A. Squires, Director, U.S. Patent and Trademark Office19:38WE WOULD WELCOME WORKING TOGETHER. MY BELIEF IS THAT POLICY CHANGES CAN BE EFFECTUATED THROUGH THE COURTS. I'M DELIGHTED TO HAVE JOINING ME MONDAY, PROFESSOR JOHN DUFFY FROM THE UNIVERSITY OF VIRGINIA SCHOOL OF LAW, ONE OF THE FOREMOST EXPERTS IN THE COUNTRY IN THE WORLD, INCLUDING PATENT ELIGIBILITY.

John A. Squires, Director, U.S. Patent and Trademark Office19:39WE HAD THE PRIVATE SECTOR PRIVILEGE OF WORKING TOGETHER AND BRINGING IN AN MILLAGE ABILITY CASE ON THE SUPREME COURT COURT, AND NOW THE BAND IS BACK TOGETHER AGAIN AND WE LOOK FORWARD TO WORKING WITH THEM.

John A. Squires, Director, U.S. Patent and Trademark Office19:39CHAIR TILLIS: SENATOR SCHIFF.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee20:16RANKING MEMBER SCHIFF: FOLLOWING A JANUARY 2025 BLANKET RETURN TO

Adam Schiff, U.S. Senator20:23OFFICE MANDATE, THE USPTO BEGAN SYSTEMATICALLY UNWINDING A VERY SUCCESSFUL REMOTE WORK MODEL THAT WAS IN PLACE BEFORE THE PANDEMIC. TO CIRCUMVENT COLLECTIVE BARGAINING AGREEMENTS THAT PROTECTED EXAMINER TELEWORK TELEWORK, THE AGENCY TOOK THE UNPRECEDENTED STEP OF ELIMINATING THE PATENT UNION REPRESENTATION ENTIRELY.

Adam Schiff, U.S. Senator20:23IN APRIL 2025, A REPORT INDICATED MANY PATENT EXAMINERS FELT PRESSURED TO PRIORITIZE EXAMINATION OUTPUT OVER THE THOROUGHNESS OF THEIR REVIEWS, DUE TO STRICT TIME LIMITATIONS AND COMPLEX TECHNOLOGIES. EXAMINERS SURVEYED CITED SIGNIFICANT HURDLES, INCLUDING STRICT TIME LIMITS, GROWING APPLICATION COMPLEXITY, RECEIVING ASSIGNMENTS OUTSIDE THEIR SPECIFIC AREAS OF EXPERTISE AND MORE.

Adam Schiff, U.S. Senator21:09GAO FOUND THAT HALF OF PTO PILOT PROGRAMS LACKED FORMALIZED VALUATIONS, TO DETERMINE WHETHER THEY SHOULD BE SCALED OR INTEGRATED INTEGRATED, AND THAT THE OFFICE WAS NOT TRACKING INDICATORS TO MEASURE THE ECONOMIC OR SCIENTIFIC VALUE OF PATENTS.

Adam Schiff, U.S. Senator21:09IN RESPONSE, THE USPTO COMMITTED TO SEVERAL CORRECTIVE STEPS INCLUDING ESTABLISHING FORMALIZED FRAMEWORKS TO EVALUATE PILOT PROGRAMS, UPDATING SUPERVISOR REVERED -- REVIEW GUIDELINES AND RANDOM SAMPLING AND SETTING AN OVERALL STATUTORY PATENT QUALITY COMPLIANCE GOAL.

Adam Schiff, U.S. Senator21:09HOWEVER, INTERNAL WORK CHANGES SINCE LAST YEAR, DRIVEN IN LARGE PART BY THE DOG DOGE AND ADMINISTRATION DIRECTIVES APPEAR TO CONTRADICT THESE GOALS. HISTORIC LAYOFFS, EXAMINER PRODUCTION QUOTAS AND STRICT LIMITATIONS OF THE TIME EXAMINERS ARE COMPENSATED.

Adam Schiff, U.S. Senator21:55WHAT CONCRETE STEPS HAS THE USPTO TAKEN, TO IMPLEMENT GAO RECOMMENDATIONS? HOW IS THE OFFICE ADJUSTING EXAMINER GOALS AND TIME ALLOCATIONS SO THAT VOLUME METRICS DO NOT COMPROMISE THE THOROUGHNESS AND QUALITY -- QUALITY OF PATENT REVIEWS?

Adam Schiff, U.S. Senator21:55HOW CAN YOU BE SURE THAT LAYING OFF STAFF STAFF, RAISING QUOTAS AND ELIMINATING REMOTE WORK WILL NOT EXACERBATE THE TIME CONSTRAINTS THE GA ROW REPORT -- THE GAO REPORT WHINED ABOUT? -- REPORT WARNED ABOUT?

Adam Schiff, U.S. Senator22:41IF YOU COULD ADDRESS THOSE QUESTIONS? HON. SQUIRES: THANK YOU SENATOR. WE HAVE QUALITY REVIEW BOARDS

John A. Squires, Director, U.S. Patent and Trademark Office23:02AND WE DO HAVE SEVERAL MECHANISMS MECHANISMS. WE CAN TAKE RANDOM SAMPLES WHICH I BELIEVE ARE THE RECOMMENDATIONS -- WHICH I BELIEVE WAS FROM 2021 TO 2024. WE ARE ALSO LOOKING AT A TRANSACTIONAL BASIS OF OFFICE ACTIONS.

John A. Squires, Director, U.S. Patent and Trademark Office23:02THE SAMPLING DONE AGAINST QUALITY MEASURES. OUR QUALITY HAS IMPROVED. OUR THROUGHPUT HAS IMPROVED. IN THE USE OF TOOLS IS HELPING GREATLY. I MENTIONED THAT WE HAVE OUR OFFICE DEPLOYED LLM'S INTERNALLY, AND WE'VE SEEN ALMOST 7000 EXAMINERS ORDER 120 THOUSAND APPLICATION SUMMARIES AT THIS POINT.

John A. Squires, Director, U.S. Patent and Trademark Office23:48I WOULD LIKE TO SHOW A CHART, THAT I CALL MY HEAD AND SHOULDERS CHART. THIS WAS THE ALL-TIME BACKLOG WE INHERITED. WALL STREET MIGHT RECOGNIZE THIS AS A TYPICAL HEAD AND SHOULDERS PEAK. I THINK IT IS A BULLISH SIGN BECAUSE OUTPUT HAS OVERTAKEN INTAKE.

John A. Squires, Director, U.S. Patent and Trademark Office23:48AND THE TREND IS UNMISTAKABLE AND WE ARE DRIVING THAT BACKLOG DOWN. RANKING MEMBER SCHIFF: YOU SAY

Adam Schiff, U.S. Senator24:33WITHOUT COMPROMISING QUALITY AND QUALITY HAS IMPROVED IMPROVED, BUT BY WHAT MEASURES? ONE OF THE THINGS THE GAO FOUND WAS THAT WITH RESPECT TO THE PILOT PROGRAMS, THERE WERE NOT FORMALIZED EVALUATIONS TO DETERMINE WHETHER THOSE PROGRAMS WERE WORKING.

Adam Schiff, U.S. Senator24:34SO BY WHAT MEASURE, ARE YOU MAKING THE REPRESENTATION THAT YOU HAVE IMPROVED QUALITY AT THE SAME TIME YOU LAID OFF PEOPLE, CURTAILED REMOTE WORK AND MORE? HON. SQUIRES: I WILL GIVE YOU AN EXAMPLE OF A PILOT PROGRAM WE

John A. Squires, Director, U.S. Patent and Trademark Office25:05IMPLEMENT IT CALLED ASAP, TO PROVIDE TOP 10 REFERENCES TO APPLICANTS BEFORE THE FIRST OFFICE ACTION SO THEY HAVE AGENCY IN WHAT THEY WANT TO DO. WE SET UP THE METRICS AROUND THAT AND WE DID TWO PHASES.

John A. Squires, Director, U.S. Patent and Trademark Office25:05WE LEARNED THAT THE EXAMINERS WERE NOT UTILIZING RECORDS GENERATED FOR THEM AND PROVIDING THE APPLICANT AS MUCH AS THEY HAD THEIR OWN FAVORED LIST. THE REASON WAS THE TOOL WAS NOT BEING ABLE TO GENERATE ART OFF THE CLAIMS.

John A. Squires, Director, U.S. Patent and Trademark Office25:05RANKING MEMBER SCHIFF: I AM OUT

Adam Schiff, U.S. Senator25:40OF TIME, AND I WILL ASK YOU TO RESPOND IN WRITING. THAT'S NOT REALLY AN ANSWER TO HOW YOU CAN BACK UP YOUR CLAIM THAT QUALITY HAS IMPROVED EVEN AS THE WORKFORCE HAS DECLINED AND THE SPEED HAS INCREASED.

Adam Schiff, U.S. Senator25:43I WOULD ASK FOR A RESPONSE IN WRITING. THANK YOU. SEN.

Mazie Hirono, U.S. Senator26:07THE P TABB WAS INTENDED TO PROVIDE A FASTER CHEAPER ALTERNATIVE TO GOING TO COURT. WHAT WE HAVE BEEN TOLD IS PATENTS ARE BEING CHALLENGED REPEATEDLY REPEATEDLY, ACROSS THE P TABB AND FEDERAL COURTS. THESE CONCERNS ABOUT HOW IT IS BEING USED IN THIS WAY -- MAYBE WE COULD HAVE SOME COMMON SENSE CHANGES CHANGES.

Mazie Hirono, U.S. Senator26:10I UNDERSTAND THAT P TABB IS PROPOSING A RULE TO ADDRESS SOME OF THE CONCERNS RELATED TO WHAT IS HAPPENING. DO YOU THINK -- I DON'T KNOW WHAT THE STATUS OF THE RULE, IS THAT GOING TO HAPPEN?

Mazie Hirono, U.S. Senator26:56WHAT IS THE TIMEFRAME FOR THE RULE? HON. SQUIRES: THE RULE RIGHT NOW , WE RECEIVED OVER 11,000

John A. Squires, Director, U.S. Patent and Trademark Office27:15COMMENTS. 2800 WHICH WERE UNIQUE. WE'VE BEEN THROUGH THE COMMENTS COMMENTS, AND THAT RULE NOW SITS OVER THE PROCESS. SEN.

Mazie Hirono, U.S. Senator27:32WHAT KIND OF TIMEFRAME ARE YOU LOOKING AT, TO COME UP WITH A FINAL RULE? HON. SQUIRES: OUR REVIEW HAS BEEN DONE, SO WE ARE WAITING FOR

John A. Squires, Director, U.S. Patent and Trademark Office27:40OMB TO COME BACK BACK, AND WE WILL SEE WHAT KIND OF COMMENTS THEY HAVE. SEN.

Mazie Hirono, U.S. Senator27:48HAVE YOU REVEALED THE PREVAIL ACT? HON. SQUIRES: HAVE I REVIEWED IT?

John A. Squires, Director, U.S. Patent and Trademark Office27:54NO. WHAT THE INTENTION AS I UNDERSTAND IT IS TO LIMIT THE CHALLENGES, TO HAVE -- THE RULE IS INTENDED TO ACHIEVE THAT AND CODIFY IT IT. SEN.

Mazie Hirono, U.S. Senator28:30I WOULD SAY THAT LEGISLATION IS PROBABLY A WAY TO PROCEED. WE WILL KEEP TRACK OF HOW THE RULE IS PROCEEDING, BECAUSE THERE ARE ISSUES THAT NEED TO BE RESOLVED REGARDING THE PROCESS. I WANT TO TALK ABOUT THE PTO FEE SETTING AUTHORITY, WHICH IS SET TO EXPIRE DECEMBER 11.

Mazie Hirono, U.S. Senator28:39I DON'T KNOW IF YOU ARE CONTEMPLATE -- I ASSUME WE WE AUTHORIZE THE AUTHORITY, THAT YOU ARE GOING TO NEED TO DECIDE WHAT YOU ARE GOING TO DO DO, WHAT KIND OF FEES YOU WILL PUT IN PLACE.

Mazie Hirono, U.S. Senator28:39WHAT IS YOUR VIEW VIEW, ABOUT THE FEES BEING JUST ENOUGH TO PAY FOR PTO OPERATIONS VERSUS CHARGING MORE MORE. LET ME JUST SHARE YOU MY VIEW, THAT THE FEE SHOULD BE IN LINE WITH WHAT IT COSTS TO ACTUALLY RUN PTO.

Mazie Hirono, U.S. Senator29:25HON.

John A. Squires, Director, U.S. Patent and Trademark Office29:47UNDER SECTION 10 OF THE AUTHORITY UNDER SECTION 10 OF THE AUTHORITY, IT IS BASED ON OPERATIONS AND WE LOOK FORWARD TO WORKING WITH MEMBERS MEMBERS. I WOULD LOVE TO SEE NOTHING MORE THAN A PERMANENT FEE SETTING AUTHORITY, BUT THAT MIGHT BE A LOT TO ASK.

John A. Squires, Director, U.S. Patent and Trademark Office29:54I'M ALSO LOOKING TO HAVE SOMETHING IN THE WAY OF WHAT WAS DONE IN 2002, WITH THE PAY PERRY ACT WITH THE SECURITIES AND EXCHANGE COMMISSION. WE PROVIDE GREAT INCENTIVES FOR OUR EXAMINERS AND THEY ARE EARNING MONEY MONEY, BUT THEN THEY REACH THE CAMP AND WE START TO RUN OUT OF INCENTIVES.

John A. Squires, Director, U.S. Patent and Trademark Office29:54THE PAY PARITY ACT IN 2002 RECOGNIZE WALL STREET -- SEC WAS COMPETING WITH WALL STREET. WE ARE COMPETING WITH STEM, THE LEGAL MARKET, BUT TO ANSWER YOUR QUESTION, BIANNUALLY, WE EVALUATE WHAT OUR FEE POSTURE IS.

John A. Squires, Director, U.S. Patent and Trademark Office30:39THERE ARE AT IT -- THERE ARE DISCUSSIONS THAT NEED TO BE HAD. WE HAVE SEEN AN INCREASE IN AI APPLICATIONS OF PATENTS. PATENT TECHNOLOGY CYCLES QUICKLY SO WE MIGHT NOT SEE MAINTENANCE FEES OUT IN THE YEARS.

John A. Squires, Director, U.S. Patent and Trademark Office30:39SEN. HIRONO: I HAVE A RELATIVELY

Mazie Hirono, U.S. Senator31:14SHORT QUESTION BUT I AM RUNNING. IT IS IMPORTANT TO SOME OF MY CONSTITUENTS. THIS HAS TO DO WITH PROTECTING TRADEMARKS FOR INDIGENOUS COMMUNITIES. WHAT HAPPENS IS THE TRADEMARK APPLICATIONS DOES NOT REQUIRE APPLICANTS TO INDICATE THE ORIGINAL LANGUAGE OF A MARK.

Mazie Hirono, U.S. Senator31:19THERE ARE A LOT OF HAWAIIAN WORDS THAT CAN BE SUBMITTED FOR TRADEMARK PROTECTION, BUT ALL THE APPLICANT NEEDS TO DO IS PROVIDE A DEFINITION. THIS MAKES IT HARD HARD, FOR HAWAIIAN CORPORATIONS TO CHECK TO SEE IF NAMES THEY ARE INTERESTED IN OUR TRADEMARK.

Mazie Hirono, U.S. Senator31:19WOULD YOU WORK WITH MY OFFICE, TO ADDRESS SOME OF THE CONCERNS THAT INDIGENOUS COMMUNITIES HAVE, WITH REGARD TO THE USE OF INDIGENOUS WORDS WITHOUT ANY IDENTIFYING IDENTIFYING? WOULD YOU WORK WITH US TO ADDRESS THIS ISSUE AND SEE WHAT WE CAN COME UP WITH WITH, THAT MAKES SENSE?

Mazie Hirono, U.S. Senator32:05HON. SQUIRES: ABSOLUTELY. WE WOULD BE DELIGHTED TO WORK

John A. Squires, Director, U.S. Patent and Trademark Office32:33WITH YOU IN THAT REGARD. THERE ARE SOME THINGS THAT COULD BE DONE. I LOOKED INTO IT QUITE A BIT AND I'VE BEEN TOLD THERE ARE PROBLEMS WITH FORMS. IT IS SOLVABLE. SEN.

Mazie Hirono, U.S. Senator32:45AND I ASSUME WE ADDRESS THIS AT ADMINISTRATIVE LEVEL. THANK YOU MR. CHAIRMAN. CHAIR

Thom Tillis, Chair, Senate Judiciary IP Subcommittee32:50SENATOR BRITT. SEN. BRITT: THANK YOU FOR HOLDING THIS HEARING.

Katie Britt, U.S. Senator32:57I WANT TO DISCUSS HOW ARTIFICIAL INTELLIGENCE IS IMPACTING U.S. PTO AND THE PATENT SYSTEM MORE BROADLY. I KNOW YOU HAVE IMPLEMENTED SEVERAL AI FRAUD DETECTION TOOLS TO SPEED UP THE REVIEW PROCESS PROCESS, AND TO QUICKLY ELIMINATE GROUNDLESS FILINGS.

Katie Britt, U.S. Senator32:57YOU RECENTLY ANNOUNCED THAT THE TECHNOLOGY HELPED U.S. PTO FIND ABOUT 70,000 BASELESS FILINGS, AND I THINK THAT IS EXCELLENT WORK. ONE OF MY CONCERNS IS HOW AI CAN BE USED TO UNDERMINE THE PATENT SYSTEM, PARTICULARLY WHEN IT COMES TO PHARMACEUTICAL INNOVATION.

Katie Britt, U.S. Senator32:57THAT ENTIRE SPACE, I WORRY ABOUT GENERATIVE AI BEING USED BY FOREIGN ADVERSARIES ADVERSARIES, MASS-PRODUCING FILINGS AT LITTLE COST, ESSENTIALLY UNDERMINING THE WORK YOU'VE DONE TO ADDRESS THIS PATENT BACKLOG AND POTENTIALLY PREEMPTING REAL INNOVATION FROM AMERICAN COMPANIES.

Katie Britt, U.S. Senator33:43COULD YOU TALK ABOUT BOTH THIS PRACTICE, WHAT YOU ARE SEEING AND OBVIOUSLY HOW IT IS UNDERMINING AMERICAN EVENT -- AMERICAN INVENTORS AND WHAT YOU ARE SEEING ON THE GROUND AS FAR AS AI GENERATED FILINGS.

Katie Britt, U.S. Senator33:43HON. SQUIRES: THANK YOU.

John A. Squires, Director, U.S. Patent and Trademark Office34:20WE ARE CONFRONTING A MAJOR ISSUE, WITH THE ABILITY OF AI TO GENERATE MASSIVE AMOUNTS OF FILINGS AT LOW COST. ONE OF THE ISSUES THAT HAS COME TO OUR ATTENTION IS SO-CALLED SCRAPING SCRAPING. SCRAPING IS A PROBLEM BECAUSE WHEN AN APPLICATION IS PUBLISHED, AI IS UTILIZED TO GENERATE MANY ADDITIONAL APPLICATIONS AND FILINGS.

John A. Squires, Director, U.S. Patent and Trademark Office34:24OFTEN THEY WILL TRY TO HAVE THEM GO INTO COUNTRIES -- SO IT IS A PROBLEM PROBLEM. I HAVE APPOINTED A TASK FORCE TO ANALYZE THAT, AND WE ARE EVALUATING SCRAPING ISSUES, MEETING WITH STAKEHOLDERS AND ONE OF THE WAYS WE ARE LOOKING AT COMBATING IT IS WITH INVENTOR REQUIREMENTS.

John A. Squires, Director, U.S. Patent and Trademark Office35:10THE OTHER WAY WE CAN TRY TO GET TO THE PROBLEM IS IF WE GET PATENTS SOONER. -- SEN.

Katie Britt, U.S. Senator35:34HOW YOU WILL -- SEN. BRITT: HOW YOU WILL IMPLEMENT THAT AND WHAT THAT LOOKS LIKE. HON.

John A. Squires, Director, U.S. Patent and Trademark Office35:38THOSE ARE THINGS WE CAN DO ON OUR OWN. ESPECIALLY THE LEADERSHIP COMPONENT. THERE ARE NUMBER OF APPLICATIONS THAT HAVE LISTED SEVEN OR MORE INVENTORS. NOT THAT THERE IS ANYTHING WRONG WITH THAT, BUT BECAUSE THE AVERAGE NUMBER OF INVENTORS IN AN APPLICATION IS 3.2 3.2, WE HAVE TWO STANDARD DEVIATIONS -- SEN. BRITT: IF AND WHEN YOU

Katie Britt, U.S. Senator36:05IMPLEMENT THIS, WHICH I HOPE WE CAN FIND A PATHWAY TO MAKE SURE WE ARE SHOWING THIS AREA UP UP, BUT IS THERE A DOWNSIDE TO DOING THAT? HON. SQUIRES: THERE IS ALWAYS BALANCING TO BE DONE.

John A. Squires, Director, U.S. Patent and Trademark Office36:23WE DON'T WANT FOR EXAMPLE TO BE TOO BROAD AND HAVE APPLICATIONS NOT GET THROUGH, BUT WE ALSO DON'T WANT TO HAVE THE SCRAPING AND OTHER PRACTICES GOING ON. SEN. BRITT: YOU SAID DOING THIS

Katie Britt, U.S. Senator36:43SOONER IS SOMETHING YOU CAN DO INTERNALLY? HON. SQUIRES: YES, WE ARE DRIVING DOWN THAT BACKLOG.

John A. Squires, Director, U.S. Patent and Trademark Office36:49SEN. BRITT: CAN I GET YOUR

Katie Britt, U.S. Senator36:51COMMITMENT TO WORK ON THOSE THINGS? HON. SQUIRES: YES. SEN. BRITT: IS THERE ANY COST

John A. Squires, Director, U.S. Patent and Trademark Office36:58ASSOCIATED WITH EITHER ONE OF

Katie Britt, U.S. Senator36:58THOSE THINGS? WOULD YOU NEED ADDITIONAL INVESTMENTS IN THE TECHNOLOGY OR PERSONNEL TO COMBAT THOSE BAD FILINGS OR YOU ARE ABLE TO DO THIS WITHOUT ANYTHING FROM US? HON. SQUIRES: I THINK WE ARE ABLE TO DO IT WITHOUT ADDITIONAL

John A. Squires, Director, U.S. Patent and Trademark Office37:17RESOURCES. WE HAVE -- BECAUSE WE GET TO RUN OURSELVES LIKE A BUSINESS, WE GET TO GO WHERE THE PUCK IS GOING TO GO. SEN.

Katie Britt, U.S. Senator37:31EXCELLENT. IN MY LAST 20 SECONDS, COULD YOU SPEAK TO WHAT YOU HAVE SEEN, WITH BIOPHARMACEUTICALS, AND ANYTHING YOU ARE CONCERNED ABOUT? I'VE HEARD SOME ANECDOTAL STORIES THAT GIVE ME GREAT PAUSE ABOUT THE WORK WE ARE GETTING DONE HERE HERE.

Katie Britt, U.S. Senator37:35WHAT SCRAPING IS DOING AND HOW THESE BAD ACTORS ARE GETTING AHEAD IN OTHER AREAS AND OTHER COUNTRIES. I DIDN'T KNOW IF YOU HAD ANYTHING YOU COULD SHARE. HON. SQUIRES: WE DO.

John A. Squires, Director, U.S. Patent and Trademark Office38:07WE ARE WORKING ON AI TOOLS WE DO. WE ARE WORKING ON AI TOOLS, IT GENERALLY TAKES ABOUT FIVE MINUTES, DOWN TO FIVE SECONDS. QUALITY DECISIONS SOONER, MORE ROBUST AND NEGOTIATION ANALYSIS DONE WITH THE APPLICANT.

John A. Squires, Director, U.S. Patent and Trademark Office38:12THESE ARE THE TYPE OF THINGS WHERE WE THINK AI WHILE IT IS ABLE TO GENERATE PROBLEMS AT A GREAT RATE AND LOW COST, IT ALSO HELPS US WITH DATA PROTECTION AND TOOLS, TO ASSIST OUR EXAMINERS TO GET TO MARKET FASTER.

John A. Squires, Director, U.S. Patent and Trademark Office38:12SEN.

Katie Britt, U.S. Senator38:48THANK YOU SO MUCH. CHAIR TILLIS: SENATOR COONS. SEN. COONS: THANK YOU DIRECTOR

Thom Tillis, Chair, Senate Judiciary IP Subcommittee38:57SQUIRES.

Chris Coons, U.S. Senator38:59I APPRECIATE THE UPDATE ON YOUR LEADERSHIP AT PTO. A NUMBER OF TOPICS IF I CAN. I AGREE WITH SENATOR BRITT THAT IN THE AGE OF AI AND GIVEN THE CRITICAL NATURE OF OUR COMPETITION WITH CHINA, IT IS ESSENTIAL THAT THE PTO UTILIZE AI EFFECTIVELY.

Chris Coons, U.S. Senator38:59I HAD SOME QUESTIONS ABOUT HOW YOU ARE BALANCING THE PATENT REVIEWING BACKLOG WHILE MAINTAINING QUALITY EXAMINATION EXAMINATION. I COMMEND YOU ON REDUCING THE BACKLOG BUT HAD SOME QUESTIONS ABOUT STAFFING AND AI. IF YOU COULD BRIEFLY, HOW ARE YOU REDUCING THE BACKLOG AND WAIT TIME AND WHAT IS THE ROLE OF AI?

Chris Coons, U.S. Senator38:59HON. SQUIRES: OUR MANTRA IS EXAMINERS NEED TOOL SUPPORT.

John A. Squires, Director, U.S. Patent and Trademark Office39:47EXAMINATION IS ONE OF THE HARDEST JOBS IN GOVERNMENT. WE COULD BRING UP ALBERT EINSTEIN AND HE WOULD TELL YOU THAT. BY PROVIDING THE BEST IN THE WORLD WITH -- I WHAT THEY DO WITH THE TOOLS, IT FREES UP MUCH INFORMATION.

John A. Squires, Director, U.S. Patent and Trademark Office39:47WE DO PATTERN DETECTION AND ALMOST 75% OF OUR EXAMINING CORPS HAS UTILIZED A LARGE LANGUAGE MODEL MODEL. THEY GET TO SELECT WHAT THEY LIKE FROM AVAILABLE MODELS, TO PREPARE 120,000 APPLICATION SUMMARIES. YOU GET AN APPLICATION THAT IS 150 PAGES, IT WILL SUMMARIZE FOR THEM, THEY KNOW WHERE TO LOOK, TO DO THEIR JOBS.

John A. Squires, Director, U.S. Patent and Trademark Office39:47SEN. COONS: SOMETHING SENATOR

Chris Coons, U.S. Senator40:34HIRONO ASKED ABOUT. IT IS MY HOPE THAT AFTER DECEMBER 11 THAT WE WILL EXTEND IT, THE FEE AUTHORITY. I THINK WE NEED TO BE CLEAR THAT WE WILL REJECT THE VALUE-BASED FEE MODEL THAT WAS RUMORED THAT I BELIEVE BOTH YOU AND THE SECRETARY HAVE REJECTED AS A POSSIBLE MODEL.

Chris Coons, U.S. Senator40:36I HAVE SOME CONCERNS ABOUT THE PATENT AND TRADEMARK PUBLIC ADVISORY COMMITTEE AND THE PPAC PPAC. THEY BOTH HAVE VACANCIES. THE SECRETARY FIRED THOSE MEMBERS A YEAR AND A HALF AGO IN MARCH OF 2025.

Chris Coons, U.S. Senator40:36TO GET FEE SETTING MOVING, HOW WILL YOU CONSULT WITH THEM IF THEY ARE NOT FULLY STAFFED? WHAT IS THE PATH FORWARD FOR HAVING A FULL COMPLEMENT OF MEMBERS AT PPAC AND TPAC TPAC? HON.

Chris Coons, U.S. Senator41:21SQUIRES: OUR PLAN IS TO MAKING SURE -- IS TO MAKE SURE

John A. Squires, Director, U.S. Patent and Trademark Office41:37THOSE VACANCIES ARE FILLED. LIKE A MERCK -- MY PERSONAL COMMITMENT TO OUR STAKEHOLDERS WILL NOT -- IS THAT THESE BOARDS WILL BE FILLED AND READY TO GO. SEN. COONS: I LOOK FORWARD TO

Chris Coons, U.S. Senator41:50SEEING WHO YOU WILL CHOOSE. YOU HAVE A LIMITED NUMBER OF CHANGES TO PROCEEDINGS TO MAKE THEM MORE CLEAR AND EFFICIENT. I WANT TO MAKE SURE THAT THOSE CHANGES YOU IMPLEMENTED END UP BEING IN RULE OR STATUTE.

Chris Coons, U.S. Senator41:52ARE YOU CONSIDERING IMPLEMENTING FURTHER IMPROVEMENTS TO THE PROCESS? HON. SQUIRES: WE HAVE MADE SOME CHANGES, WE INSTITUTED WHAT I

John A. Squires, Director, U.S. Patent and Trademark Office42:24CALL THE LOOP PROGRAM WHICH TAKES BACKEND LEARNINGS AND INJECTS THEM IN THE FRONT-END. WE HAVE THE JUDGES AND EXAMINERS SITTING TOGETHER ON CERTAIN CASES. WE HAD A GREAT UPTICK WITH THAT. OVER 86% OF THE PEOPLE WHO GOT THE TRAINING, THREE MODULES AND EACH HAVE SAID THIS IS FANTASTIC.

John A. Squires, Director, U.S. Patent and Trademark Office42:24MORE DIRECTLY, AS YOU KNOW, I CONSOLIDATED THE DISCRETIONARY DECISIONS INTO THE DIRECTORS CHAIR, WHICH IS OUR READ -- WHAT WE ARE CONSIDERING DOING IS I WOULD MAINTAIN THE DISCRETIONARY PORTION OF IT. -- WE DON'T HAVE A SIGNALING PROBLEM PROBLEM, WE HAVE TRAINED UP ALL -- WE SPENT A YEAR LONG ON A PROGRAM CALLED P TAP STRONG, TO UNDERSTAND WHAT IT WAS ABOUT WHEN IT WAS ENACTED.

John A. Squires, Director, U.S. Patent and Trademark Office43:09JUDGES, ACADEMICS, AND WE ALSO TRAIN OURSELVES ON THE STANDARDS, WHICH ARE DIFFICULT. YOU HAVE DISTRICT COURT STANDARD, PGR STANDARD WHICH IS DIFFERENT THANIPR STANDARD. WE HAVE ALL GONE THROUGH THE TRAINING, MYSELF INCLUDED. FOLKS IN THE OFFICE, GENERAL COUNSEL.

John A. Squires, Director, U.S. Patent and Trademark Office43:55WE FEEL LIKE WE ARE READY TO GO GO. SEN.

Chris Coons, U.S. Senator44:04IS THERE ANYTHING WE COULD DO TO LIBERATE THAT FROM THE CLUTCHES OF OMB? THE STUDIED REVIEW REVIEW, THE HANDLING BY OMB OMB, WE'VE BEEN COSPONSORS OF PREVAIL FOR SEVERAL CONGRESS IS NOW. IT WOULD BE WONDERFUL TO SEE IT MOVE FORWARD FORWARD.

Chris Coons, U.S. Senator44:07ANYTHING MORE YOU THINK WE COULD DO, SO THAT OMB LIGHT SET AT LIBERTY? HON. SQUIRES: I APPRECIATE THE COMMENTS PROVIDED IN SUPPORT OF

John A. Squires, Director, U.S. Patent and Trademark Office44:43THE RULE. MY UNDERSTANDING IS WITH OMB'S PROCESS, THERE HAVE BEEN MANY MEETINGS AND THEY ARE TAKING ALL INPUT. I AM HOPEFUL IT WILL COME BACK TO US BUT TO BE HONEST, I AM NOT QUITE SURE.

John A. Squires, Director, U.S. Patent and Trademark Office44:43I DO KNOW IT IS BEING WORKED ON. SEN.

Chris Coons, U.S. Senator45:05FEEL FREE TO CONVEY OUR URGENT INTEREST. I WILL CLOSE BY THANKING SENATOR TILLIS FOR HIS LEADERSHIP. I DO THINK PATENTABILITY IS SOMETHING THAT DESPERATELY NEEDS LEGISLATIVE ACTION. THANK YOU VERY MUCH. CHAIR

Thom Tillis, Chair, Senate Judiciary IP Subcommittee45:22SENATOR BLACKBURN. SEN. BLACKBURN: THANK YOU SO MUCH MR. CHAIRMAN.

Marsha Blackburn, U.S. Senator45:29THANK YOU FOR BEING HERE. AS THE SENATOR FROM TENNESSEE, WE ALWAYS HAVE PEOPLE THAT ARE CURIOUS ABOUT WHAT IS HAPPENING WITH THE PATENT AND TRADEMARK OFFICE. I WANTED TO TALK ABOUT GETTING ARTISTS PAID, AM/FM RADIO.

Marsha Blackburn, U.S. Senator45:29IT IS AMAZING TO ME THAT WE ARE THE ONLY DEMOCRATIC COUNTRY THAT DOES NOT PAY THAT ROYALTY. WE ARE OUT HERE IN THE COMPANY OF CHINA -- WELL CHINA PAYS A LITTLE BIT. CUBA, IRAN AND NORTH KOREA DON'T.

Marsha Blackburn, U.S. Senator45:29-- DON'T PAY A PERFORMANCE RIGHT. I KNOW YOU HAVE WRITTEN A LETTER OF SUPPORT, FOR PAYING OUR ARTISTS. I THINK IT IS IMPORTANT TO DO. THE AMERICAN MUSIC FAIRNESS ACT WOULD BRING US IN LINE, SO THAT OUR ARTISTS ARE BEING PAID PAID, IN LINE WITH OTHER STREAMING SERVICES.

Marsha Blackburn, U.S. Senator46:15RIGHT NOW, THEY ARE NOT NOT, OVER TERRESTRIAL RADIO AND THESE PLATFORMS. TALK A LITTLE BIT, ABOUT WHY IT IS SO CRITICAL FOR CONGRESS TO TAKE THIS ACTION ACTION? AND FOLLOW THAT UP WITH WHY THE PATENT AND TRADEMARK OFFICE HAS HISTORICALLY FOLLOWED THROUGH WITH SUPPORTING A RIGHT FOR OUR ARTISTS TO BE PAID.

Marsha Blackburn, U.S. Senator47:00HON. SQUIRES: THANK YOU.

John A. Squires, Director, U.S. Patent and Trademark Office47:12IT COULD NOT BE MORE IMPORTANT, ESPECIALLY IN THE DAYS WHERE TECHNOLOGY AND CHANNELS GET DISPERSED. THERE IS A GAPING HOLE WHERE ARTISTS DON'T GET PAID FOR PERFORMANCES. IT WAS NOT ON MY DANCE CARD, I WILL SAY, WHEN I TOOK THE OATH OF OFFICE.

John A. Squires, Director, U.S. Patent and Trademark Office47:15BUT HAVING THE PORTFOLIO OF INTELLECTUAL PROPERTY AND MY DUTY TO ADVISE THE PRESIDENT AND THE SECRETARY OF COMMERCE, IT WAS AN HONOR TO WRITE THE LETTER IN SUPPORT OF THE LEGISLATION. FOR ARTISTS, WITH THE RECENT PASSING OF DOLLY PARTON, I THINK SHE SAID IT BEST.

John A. Squires, Director, U.S. Patent and Trademark Office48:00SHE SAID HER MUSIC MUSIC, SHE TREATS THEM LIKE HER CHILDREN. THEY NEED TO BE ABLE TO TAKE CARE OF HER, AND HER OUT YEARS. -- IN HER OUT YEARS. SEN. BLACKBURN: WE WOULD LIKE TO GET THAT HOLE CLOSED AND MAKE

Marsha Blackburn, U.S. Senator48:22SURE ARTISTS ARE GETTING PAID. I WANT TO TALK A LITTLE BIT ABOUT CHINA OUTPACING US IN PATENT FILINGS. THE TREND WE HAVE SEEN HAS BEEN QUITE DISTURBING TO ME. FROM 2003 TO 2007, WE LED IN 60 OF THE 64 CRITICAL TECHNOLOGIES TECHNOLOGIES.

Marsha Blackburn, U.S. Senator48:22CHINA WAS LEADING IN THREE WHEN IT CAME TO PATENT FILINGS. TODAY, CHINA LEADS IN 57 OF THE 64 TECHNOLOGIES. SO THEY ARE GOING AFTER THESE THESE, AND I INTRODUCED THE LEADERSHIP IN CRITICAL AND EMERGING TECHNOLOGIES ACT ACT, SO THAT WE CAN EXPEDITE 15,000 PATENT APPLICATIONS IN CERTAIN CRITICAL TECHNOLOGIES.

Marsha Blackburn, U.S. Senator49:08I WOULD LIKE TO GET YOUR THOUGHTS ON HOW WE CAN ENSURE THAT OUR INNOVATORS ARE GOING TO BE ABLE TO HAVE PROPER CONSIDERATION OF THESE PATENT FILINGS. HON.

John A. Squires, Director, U.S. Patent and Trademark Office49:31THESE ARE AREAS OF CRITICAL IMPORTANCE FOR AMERICAN INGENUITY. ON THE INTAKE SIDE, I MADE CLEAR IN PRESSING THE CASE -- THAT UNDERSCORES THAT AI INNOVATIONS THAT IMPROVE THE FUNCTIONING FUNCTIONING, BRING THEM TO THE U.S.

John A. Squires, Director, U.S. Patent and Trademark Office49:35PATENT OFFICE. THEY CAN BE PROTECTED AND YOU CAN HAVE A HARD EDGE PROPERTY RIGHT. OTHERWISE, PEOPLE MAY SAY IT WOULDN'T BE ELIGIBLE, WE WON'T EVEN SEE WHAT WE ARE MISSING. SO THE TOP OF THE FINAL HAS TO BE WIDE.

John A. Squires, Director, U.S. Patent and Trademark Office49:35AND THEN WE NEED TO HELP THEM ALONG THE JOURNEY JOURNEY. MY COMMITMENT HAS TO HAVE PATENTS TIMELY AND STRONG. WE ARE LOOKING AT DIFFERENT AREAS OF ACCELERATING EXAMINATION, BECAUSE GETTING TO MARKET IS CRITICAL.

John A. Squires, Director, U.S. Patent and Trademark Office50:20THE WAY AI AND TECHNOLOGY CYCLES, YOU'VE MISSED IT. I LOOK FORWARD TO WORKING WITH YOU ON THAT VERY IMPORTANT AREA BECAUSE IT IS CRITICAL. WE SAW FIRSTHAND FIRSTHAND, HOW IMPORTANT IP PROTECTION IS IS.

John A. Squires, Director, U.S. Patent and Trademark Office50:20WE CAN'T MISS THE BOAT. SEN.

Marsha Blackburn, U.S. Senator51:05ARE YOU TRAINING YOUR STAFF, CHANGING YOUR STAFF OR THE REVIEW PROCESS SO THAT THEY ARE ABLE TO EXPEDITE WHAT KIND OF PROCESS CHANGES YOU ARE MAKING? I WILL GIVE THAT TO YOU AS SOMETHING FOR THE RECORD RECORD, BECAUSE THAT IS THE FRUSTRATION OF PEOPLE WHO ARE FILING FILING.

Marsha Blackburn, U.S. Senator51:09THEY FEEL LIKE THEY GET INTO A BLACK HOLE AND CAN'T GET A RESPONSE. HON.

John A. Squires, Director, U.S. Patent and Trademark Office51:38YES, TWO AREAS. ONE IS THAT WE HAD A PILOT CALLED ASAP. SO THEY CAN COME IN READY READY. SECONDLY, -- LOOKING AT PRE-APPLICATION SERVICES, SO THAT FOR EXAMPLE, AN APPLICATION COULD BE FILED, YOU CAN GET THE DATE, BUT WE HAVEN'T AI GENERATED SI TOOL, THAT WOULD POINT OUT -- AND HAVE THE APPLICANT MAKE SURE THEY GIVE US THE QUALITY PRODUCT PRODUCT.

John A. Squires, Director, U.S. Patent and Trademark Office51:40I THINK PRE-APPLICATION SERVICES ARE A GREAT WAY TO ENGAGE AND WE ARE LOOKING AT DEPLOYING AI AGENTS. SEN.

Marsha Blackburn, U.S. Senator52:22THANK YOU. CHAIR TILLIS: SENATOR WELCH. SEN. WELCH: THANK YOU AND I

Thom Tillis, Chair, Senate Judiciary IP Subcommittee52:31ENJOYED YOUR OPENING STATEMENT.

Peter Welch, U.S. Senator52:31IT IS NICE TO SEE SOMEONE WHO IS ENTHUSIASTIC ABOUT THEIR JOB. ONLY TWO PEOPLE WHO ARE MORE EXCITED THAN YOU AND IT IS SENATOR TILLIS AND SENATOR COONS. PATENTS ARE GREAT. THEY ARE ESSENTIAL TO INNOVATORS , SO THEY HAVE THE CONFIDENCE THAT THE INVENTION INVENTION, THAT THEY WILL GET REWARDED FOR IT.

Peter Welch, U.S. Senator52:31BUT THEY CAN BE ABUSED. AND THEY HAVE BEEN. ONE AREA WHERE THAT ABUSE HAS HAD AN IMMENSE IMPACT IS WITH DRUG PATENTS. COMPANIES THAT INVENT DRUGS ARE ENTITLED TO THE PATENT, BUT THEN WHEN THEY DO MANEUVERS TO EXTEND THE LIFE OF THE PATENT, TO STIFLE COMPETITION AND MAINTAIN THAT EXCLUSIVE MARKET PRICE, IT IS A RIPOFF OF THE AMERICAN PEOPLE.

Peter Welch, U.S. Senator53:18BIG BRAND DRUG MANUFACTURERS HAVE TRIPLED THE NUMBER OF PATENTS PER MEDICINE, IN THE LAST TWO DECADES. SOME PRODUCTS HAVE ACCUMULATE MORE THAN 100 PATENTS, A SINGLE PRODUCT. UP TO 80% OF WHICH RESEARCH HAS FOUND TO BE JUST A DUPLICATE.

Peter Welch, U.S. Senator53:18PATENT MAKERS -- DRUGMAKERS HAVE FOUND WAYS TO GAIN THE SYSTEM. THE POINT IS TO MAKE IT IMPOSSIBLE FOR COMPETITORS TO ENTER THE MARKET. PAY FOR DELAY SETTLEMENTS AND PATENT TICKETS HAVE BEEN COMMON PRACTICES.

Peter Welch, U.S. Senator54:05C1 AB V' AS PENN WAS IMPROVED IN 2002, BUT PRIOR TO THE EXPIRATION, THEY FILED LATE STAGE PATENTS, AND BY ONE MEASURE ULTIMATELY PEAKED BETWEEN 105 AND 132 PATENTS RELATED TO THIS PRODUCT. THAT IS A PROBLEM.

Peter Welch, U.S. Senator54:05MY QUESTION TO YOU, BECAUSE YOU HAVE A ROLE TO PLAY IN THIS, YOU DEFINITELY WANT TO ISSUE PATENTS LEGITIMATELY, BUT I DON'T THINK YOU WANT TO EXTEND PATENTS ILLEGITIMATELY. WOULD YOU AGREE THAT EVERY PART OF THE FEDERAL GOVERNMENT, PARTICULARLY THE PATENT OFFICE, SHOULD BE DOING EVERYTHING THEY CAN TO REIN IN THE ABUSE OF THE PATENT SYSTEM?

Peter Welch, U.S. Senator54:51HON. SQUIRES: THANK YOU, SENATOR.

John A. Squires, Director, U.S. Patent and Trademark Office55:06YES, THERE IS NO PLACE FOR ABUSES IN THE SYSTEM. THE ISSUE DOES GET COMPLEX WITH PRESIDENT LINCOLN'S QUOTE, THE INCENTIVE BRINGS THE INVENTION IN THE FIRST PLACE, AND THEN YOU HAVE THE PHARMA -- THE ISSUES BECOME BECOME, AND WE ARE EQUIPPING OUR EXAMINERS TO DO THE JOB, YOU ARE ENTITLED TO A PATENT, BUT WHAT THAT INCREMENT IS IS OFTEN UNCLEAR.

John A. Squires, Director, U.S. Patent and Trademark Office55:06BUT EVERY PATENT TESTED MEET THE SAME STATUTORY -- SEN. WELCH: YEAH, WHEN AN EVENT,

Peter Welch, U.S. Senator55:44ONE PATENT. DON'T YOU AGREE THAT IF YOU HAVE A PATENT, IT GIVES YOU TOTAL PRICING POWER FOR THE PERIOD OF EXCLUSIVITY, THEN YOU ARE IN THE WORLD OF COMPETITION. ISN'T THAT WHERE YOU BELONG AFTER THE CASH HON.

John A. Squires, Director, U.S. Patent and Trademark Office56:01IT HAS GOTTEN COMPLEX AS TECHNOLOGY HAS CONVERGED WITH TECHNOLOGY AND LIFE SCIENCES. SEN.

Peter Welch, U.S. Senator56:07IT HAS GOTTEN EXPENSIVE. THERE WAS AN INCREDIBLE INCENTIVE FOR THE MANUFACTURE OF A DRUG THAT CAN SAVE A PERSON'S LIFE OR ALLEVIATE THE PAIN PAIN, TO HAVE THAT PATENT BE EXTENDED. BUT THAT IS ABSOLUTELY AGAINST THE PUBLIC INTEREST.

Peter Welch, U.S. Senator56:08BOTTOM LINE HERE HERE, "IT'S GOTTEN COMPLEX" -- IT HAS NOT GOTTEN COMPLEX, IT'S SIMPLE. THE FOLKS FOREVER FOREVER. WE NEED A PATENT OFFICE TO STAND UP TO IT AND PROTECT THE CONCEPT OF COMPETITION.

Peter Welch, U.S. Senator56:08SO WHAT I AM ASKING YOU TO DO, URGING YOU TO DO, SAYING I THINK IT IS THE RESPONSIBILITY OF THE PATENT OFFICE TO DO IS YES, BE PROMPT IN ISSUING THOSE PATENTS AND TO BE VERY SEVERE IN OPPOSITION TO THE ILLEGITIMATE EXTENSION OF PATENTS THROUGH THINGS LIKE PATENT TICKETS THAT ARE A MANEUVER TO MAKE IT LITIGIOUS FOR A BIO SIMILAR FOR A GENERIC TO COME ONLINE.

Peter Welch, U.S. Senator56:54HON. SQUIRES: WE HAVE TOOLS IN

John A. Squires, Director, U.S. Patent and Trademark Office57:22OUR TOOLKIT. OUR EXAMINERS TO PLAY THEM WELL. WE HAVE DOCUMENTS OF DISCLAIMERS. IF THE CLAIMS ARE INAPPLICABLE, WE ALSO HAVE DOCTRINES CALLED OBVIOUSNESS-TYPE DOUBLE PATENTING, WHICH IS A COMPLEX AREA. WE RECENTLY ISSUED A DECISION ASKING FOR THE FEDERAL CIRCUIT TO PROVIDE CLARIFICATION ON THAT.

John A. Squires, Director, U.S. Patent and Trademark Office57:23THE OTHER MATTER THAT IS GOOD FOR INNOVATORS BUT MAKES IT DIFFICULT TO EXAMINE, ALTHOUGH OUR PEOPLE GET IT RIGHT ALMOST ALL THE TIME TIME, IS THE NOTION THAT NEW USES OF KNOWN MANUFACTURERS OF MOLECULES ARE THE DEFINITION OF PROCESS AND THEREFORE ELIGIBLE.

John A. Squires, Director, U.S. Patent and Trademark Office58:08SO YOU CAN HAVE THE EFFECTS OF GLP AND INJECTION BUT ALSO NOW A PILL CAN BE DIFFERENT DIFFERENT, AS LONG AS THEY MEET THE PATENTABLE INCREMENT INCREMENT, THE PATENT SHOULD ISSUE. IF IT IS GOING TO BUMP INTO SOMETHING THAT IS INDISTINCT, THEN IT SHOULD BE REJECTED OR A DISCLAIMER FILED.

John A. Squires, Director, U.S. Patent and Trademark Office58:08SEN. WELCH: THANK YOU I YIELD

Peter Welch, U.S. Senator58:37BACK. CHAIR TILLIS: THANK YOU, SENATOR

Thom Tillis, Chair, Senate Judiciary IP Subcommittee58:40WELCH. I HAVE A FEW QUESTIONS, AND IF YOU DO, SENATOR SCHIFF, YOU ARE WELCOME TO JOIN IN. I THINK IT WOULD BE HELPFUL, DIRECTOR SQUIRES, NOT IMMEDIATELY, BUT I WOULD LIKE TO GET TO THE FACT -- IT WOULD BE INTERESTING -- I KNOW OFTEN TIMES WE TALK AS IF THE -- [INAUDIBLE] METHOD IS JUST RAMPANT, THAT THIS IS THE WAY THAT WE ARE LETTING THE INITIAL INVENTOR CONTINUED TO ENJOY THE RESTRICTIONS ASSOCIATED WITH THE PATENT.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee58:41I LIKE TO KNOW THE FACTS. I WOULD LIKE TO FIND IF WE CAN GET A TOTAL NOT JUST IN YOUR ADMINISTRATION, BUT LET'S DO A LOOK BACK AND SEE IF THIS IS A REAL THING OR SOMETHING THAT ADVOCATES OF EITHER ANTI-PHARMACEUTICALS OR ANTI-BIOTECH ARE AMPLIFYING.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee59:27IF IT IS THAT, IT IS JUST THAT. IF IT IS A REAL THING, WE SHOULD PROBABLY HAVE A HEARING DEDICATED TO IT. IT IS A REAL CHALLENGE. BASED ON MY REVIEW, IT DOES NOT SEEM TO BE, BUT I WOULD LIKE TO GET TO THE FACTS AND STIPULATE THAT SENATOR WELCH IS RIGHT, BUT LET'S GET TO THE DATA.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee59:27YOU HAVE BEEN IN PLACE SINCE SEPTEMBER OF LAST YEAR, SO YOU HAVE INHERITED SOME OF THE ORGANIZATIONAL CHANGES THAT OCCURRED UNDER DOGE DOGE. IN REALITY ORGANIZATIONAL CHANGES THAT OCCURRED UNDER DOGE. IN REALITY, AS I DID IN MY DAY JOB, I HAVE SEEN SOME GOOD OUTCOMES FROM DOGE AND SOME UNFORCED ERRORS FROM DOGE.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee59:27TO GO BACK TO SENATOR SCHIFF'S QUESTION, I HAD NOT THOUGHT ABOUT ASKING ABOUT THE BUSINESS OF THE U.S. PTO, BUT I THINK IT WOULD BE HELPFUL, NOT NECESSARILY HERE AND UNLESS YOU'VE GOT A QUICK EXAMPLES, BUT I'M ASSUMING SOME OF THE WORK FROM HOME POLICIES WERE ARTIFACTS FROM THE COVID ERA, OR WERE THEY PART OF A WELL THOUGHT OUT PLAN BEFORE THAT?

Thom Tillis, Chair, Senate Judiciary IP Subcommittee60:12WHAT IS THE FUTURE FOR TELEWORKING? YOU HAVE 14,000 PEOPLE. SOME OF THEM PROBABLY HAVE JOBS THAT LEND THEMSELVES TO TELEWORKING. I CAME FROM A PROFESSIONAL SERVICES ORGANIZATION. I HATE TELEWORKING BECAUSE THE DELIMITER RATES -- BECAUSE IT ELIMINATES ALL THE COLLABORATION, PARTICULARLY IN THE AGE OF AI, HAVING PEOPLE SHARE IDEAS.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee60:12HOW DO YOU PLAN ON MOVING FORWARD IN TERMS OF JUST THE BUSINESS OF THE USPTO? ANY ARTIFACTS THAT NEED TO BE UPDATED UPDATED? HOW ARE YOU GOING TO MANAGE THIS ASPECT OF THE WORKFORCE, CONSISTENT WITH WHAT WE SEE?

Thom Tillis, Chair, Senate Judiciary IP Subcommittee60:57TELEWORKING IS VERY PERVASIVE IN THE PRIVATE SECTOR IN JOBS THAT LEND THEMSELVES TO IT, BUT GIVE ME AN IDEA OF WHAT YOUR FORWARD VISION LOOKS LIKE. AND MAYBE WHERE TOES WERE STUBBED WITH DOGE'S DECISIONS THAT PREDATED YOU.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee60:57HON. SQUIRES: THIS YEAR BE JUST

John A. Squires, Director, U.S. Patent and Trademark Office61:28HIRED OVER 900 NEW EXAMINERS -- WE JUST HIRED OVER 900 NEW EXAMINERS. SO WE ARE HIRING, ONE OF THE FEW AGENCIES DOING THAT. WE ARE MEETING THE WORKLOAD. WE ARE REVAMPING OUR TRAINING ACADEMIES TO BE AVAILABLE SO THE PEOPLE ARE TRAINED WITH THE LATEST IN NEW TOOLS.

John A. Squires, Director, U.S. Patent and Trademark Office61:31AND WE HAVE A PATCHWORK, IF YOU WILL, AS I MENTIONED, OUR EXAMINERS ARE OIL DRILLERS. WELL, THERE IS A TELEWORK PROGRAM THAT OVERLAYS WITH RETURN TO OFFICE DEPENDING ON IF WE HAVE A REGIONAL OFFICE WITHIN 50 MILES MILES, AND THAT HAS WORKED VERY WELL.

John A. Squires, Director, U.S. Patent and Trademark Office61:31WE HAVE HAD RETURNED TO OFFICE, OUR CAMP CAMPU CAMPUS IS FULL, ALIVE. WE HAVE NEW NEIGHBORS IN THE NATIONAL RESEARCH FOUNDATION IN ALEXANDRIA. WE ALSO HAVE PEOPLE IN ALL 50 STATES DOING THEIR JOB.

John A. Squires, Director, U.S. Patent and Trademark Office62:16SO THERE IS A PLAN. IT LOOKS LIKE THE PLAN IS WORKING, AND WE ARE ALWAYS TRYING TO HIRE AND COMPETE WITH THE PRIVATE SECTOR FOR THE LATEST TALENT IN STEM AND ALSO IN LEGAL MARKETS.

John A. Squires, Director, U.S. Patent and Trademark Office62:16CHAIR TILLIS: BY THE WAY, I

Thom Tillis, Chair, Senate Judiciary IP Subcommittee62:39THINK SENATOR SCHIFF RAISED A GOOD QUESTION. WHEN WE ARE TALKING ABOUT QUALITY MEASURES AND IMPROVING QUALITY MEASURES, YOU JUST REPORT BACK TO THE COMMITTEE BUT BASELINE IS USED TO MEASURE AGAINST THAT. I'M SURE YOU'VE GOT THAT INTERNALLY.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee62:39I THINK THAT WOULD BE HELPFUL IN RESPONSE TO SENATOR SCHIFF'S QUESTION, A GOOD QUESTION THAT I THINK THE COMMUNITY -- THE COMMITTEE WOULD BENEFIT FROM. SENATOR SCHIFF, DO YOU HAVE ANY OTHER QUESTIONS? RANKING MEMBER SCHIFF: JUST A COUPLE REMAINING QUESTIONS.

Adam Schiff, U.S. Senator63:05WHILE THE USPTO SERVES AS THE FINAL AUTHORITY FOR GRANTING PATENTS AND TRADEMARKS, EFFECTIVE IP PROTECTION REQUIRES A LOT OF INTERAGENCY EXECUTION AS WELL. THE IPAQ POST HAS BEEN VACANT WITHOUT A SENATE CONFIRMED LEADER SINCE JANUARY 2020 ONE.

Adam Schiff, U.S. Senator63:05THIS HAS ALWAYS BEEN A PROBLEM UNDER ADMINISTRATIONS OF BOTH PARTIES. I REMEMBER ADMINISTRATIONS HAVING THE SAME PROBLEM GETTING PEOPLE APPOINTED TO THIS POSITION. MY QUESTION IS, WHAT IS UP WITH THIS? WHY DOES IT NOT SEEM TO BE A PRIORITY FOR EITHER PARTY TO FILL THIS POSITION?

Adam Schiff, U.S. Senator63:05DESPITE HAVING A SENATE CONFIRMED PERSON IN THAT POSITION, HOW ARE YOU COORDINATING ACROSS THE FEDERAL GOVERNMENT TO MAKE SURE FEDERAL IP ENFORCEMENT STRATEGY IS UNIFIED AND PRODUCTIVE? HON. SQUIRES: THANK YOU, SENATOR.

John A. Squires, Director, U.S. Patent and Trademark Office63:59THE POSITION HAS BEEN VACANT. I'M NOT REALLY FAMILIAR WITH THE MOTIVATIONS AS TO WHY PEOPLE WOULD LIKE IT OR DON'T LIKE IT OTHER THAN I WOULD REFER THE POSITION I BELIEVE IS OVER AT THE WHITE HOUSE HOUSE, SO RESPECTIVELY WOULD SUBMIT THE QUESTION FOR THEM FILLING IT IF IT IS TO BE CONFIRMED THROUGH THE WHITE HOUSE WOULD BE ASKED THERE.

John A. Squires, Director, U.S. Patent and Trademark Office63:59HOWEVER, UNDER MY HAT AS UNDER SECRETARY OF COMMERCE TO ADVISE THE PRESIDENT THROUGH THE SECRETARY OF COMMERCE TO ADVISE THE PRESIDENT THROUGH THE SECRETARY OF COMMERCE, THAT IS WHERE THE COORDINATION ASPECT COMES IN.

John A. Squires, Director, U.S. Patent and Trademark Office63:59WE ARE TRYING TO BE INTEGRATED ACROSS ALL OF THE ADMINISTRATION , AND IN FACT, WE HAVE UNDERTAKEN WITH THE DEPARTMENT OF JUSTICE TO FILE STATEMENTS OF INTEREST IN CASES WHERE WE HAVE WANTED TO MAKE A POINT ABOUT THE STRENGTH OF IP.

John A. Squires, Director, U.S. Patent and Trademark Office64:46THREE INSTANCES, ONE IN A PERMANENT INJUNCTION CASE, ONE IN A PRELIMINARY INJUNCTION CASE, AND ONE IN AN INTERNATIONAL TRADE COMMISSION CASE. RANKING MEMBER SCHIFF: I HOPE WE

Adam Schiff, U.S. Senator65:06CAN GET A CANDIDATE FOR THAT POSITION TO GET THAT POSITION FILLED. I THINK IT IS VERY IMPORTANT AND HAS BEEN VACANT FOR FAR TOO LONG. ONE LAST QUESTION, WHAT WAS UP WITH THE APPLICATIONS FOR -- I GUESS IT WAS TRADEMARK FOR BOARD OF PEACE, THE NAME AND LOGO LOGO, TWO APPLICATIONS WERE FILED, ONE IN JANUARY OF THIS YEAR, ONE IN DECEMBER OF LAST YEAR YEAR?

Adam Schiff, U.S. Senator65:07WHY WOULD YOUR OFFICE BE INVOLVED IN THAT? HON. SQUIRES: THANK YOU. WE GOT INVOLVED BECAUSE IT WAS

John A. Squires, Director, U.S. Patent and Trademark Office65:44AN INSTANCE BEFORE THE INTERNATIONAL ORGANIZATION WAS STOOD UP OF CYBERSQUATTING CYBERSQUATTING, DOMAIN HIJACKING, CHOOSE THE NAME THAT YOU WILL FOR THAT, WHICH WE HAVE A LOT OF EXPERIENCE WITH THAT THE USPTO. RANKING MEMBER SCHIFF: WHY

Adam Schiff, U.S. Senator65:59WOULDN'T THE BOARD OF PEACE BE APPLYING? WHY DID YOU TAKE THAT ON? WHAT OTHER NAME AND LOGO TRADEMARK APPLICATIONS HAVE YOU MADE FOR OTHER ENTITIES? HON. SQUIRES: THE BOARD OF PEACE AT THAT POINT HAD NOT BEEN

John A. Squires, Director, U.S. Patent and Trademark Office66:13FORMED FORMED, AND THE DOMAIN NAME WAS NOT AVAILABLE TO IT. SO UNDER USC SECTION 2, 30 FIVE USC SECTION TWO AND THREE, TO ADVISE THE PRESIDENT ON MATTERS OF INTERNATIONAL AND DOMESTIC IP POLICY POLICY.

John A. Squires, Director, U.S. Patent and Trademark Office66:13TWO, ADMINISTERING THE TRADEMARK REGISTERED. WE HAVE SCAMMERS, SO WE TOOK ACTION TO AND WE HAVE DONE THIS FOR OUR MARKS OVER 741 TIMES SINCE WE HAVE FILED IN THESE CLASSES. THESE WERE INTENT TO USE APPLICATIONS.

John A. Squires, Director, U.S. Patent and Trademark Office66:13RANKING MEMBER SCHIFF: BUT YOU

Adam Schiff, U.S. Senator66:49FILED THESE FOR THIRD PARTIES? YOU ARE NOT THE BOARD OF PEACE. THE BOARD OF PEACE HAD NOT BEEN ESTABLISHED. HON. SQUIRES: WE FILED IT IN OUR

John A. Squires, Director, U.S. Patent and Trademark Office66:58OWN INSTANCE TO SHOW EDUCATION BUT ALSO CLASSIFICATION MISUSE AND ABUSE. WE HAVE PEOPLE IMPERSONATING THE USPTO. HERE WAS A MARK THAT WAS AWAITING MY CHANCE FOR US TO SHOW THESE TYPE OF ABUSE. IT IS THE SAME TYPE AS THE BUILD GETTING PUT FORWARD WERE DOMAIN NAMES GET HIJACKED, SMALL BUSINESSES CANNOT GET IN, THEY HAVE TO PAY FEES.

John A. Squires, Director, U.S. Patent and Trademark Office67:00RANKING MEMBER SCHIFF: WHO

Adam Schiff, U.S. Senator67:26REQUESTED YOU TO FILE THESE APPLICATIONS? HON. SQUIRES: THE THE REQUEST CAME UP OVER A YEAR AGO.

John A. Squires, Director, U.S. Patent and Trademark Office67:36I CAN'T RECALL EXACTLY, BUT THE ISSUE -- RANKING MEMBER SCHIFF: IF YOU

Adam Schiff, U.S. Senator67:42WOULD SUBMIT THAT TO US IN WRITING, WHO MADE THAT REQUEST, HOW IT CAME ABOUT FOR AN ENTITY THAT DID NOT EXIST, I WOULD APPRECIATE IT. HON. SQUIRES: SQUIRES:.

John A. Squires, Director, U.S. Patent and Trademark Office67:56. CHAIR TILLIS: ONE THING I WOULD LIKE THE UNANIMOUS CONSENT --

Thom Tillis, Chair, Senate Judiciary IP Subcommittee68:06THAT PREDOMINANTLY RELY ON INTELLECTUAL PROPERTY PROTECTION, INCLUDING PATENTS, TRADEMARKS, AND COPYRIGHTS. WITHOUT OBJECTION? AND I ALSO HAVE ANOTHER ONE HERE, WHICH IS SEPTEMBER 29, 2026, LETTER FROM THE U.S. CHAMBER OF COMMERCE SENIOR VICE PRESIDENT JONATHAN BURKS.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee68:06THE LETTER CONTINUES FOCUS ON THREE AREAS, MAINTAINING ADEQUATE AGENCY RESOURCES, STRENGTHENING EXAMINATION QUALITY, AND PRESERVING TRANSPARENCY AND ACCOUNTABILITY. THE LAST QUESTION I HAVE FOR YOU , MR. SQUIRES SQUIRES, IN YOUR OPENING STATEMENT, YOU MUST LIKE THE FEE SETTING AUTHORITY BECAUSE YOU PREFER FOR THEM TO BE PERMANENT, SO I DON'T HAVE TO ASK THAT QUESTION.

Thom Tillis, Chair, Senate Judiciary IP Subcommittee68:52WHAT HAPPENS IF WE DO NOT EXTEND FEE SETTING AUTHORITY ON OR BEFORE DECEMBER 11? HON. SQUIRES: OUR VIEW WOULD BE VERY DISRUPTIVE.

John A. Squires, Director, U.S. Patent and Trademark Office69:07WE WOULD BE GETTING BACK A DECADE OF GAINS IN PRODUCTIVITY SUPPORTING AMERICAN INGENUITY INGENUITY. OUR STAKEHOLDERS, I BELIEVE, WOULD BE VERY UPSET. TO GIVE YOU A QUICK EXAMPLE, WITH THE GOVERNMENT SHUTDOWN LAST YEAR, WE WERE ABLE TO RUN OUR BUSINESS LIKE A BUSINESS AND HAD SUFFICIENT RESERVES TO NOT MISS A BEAT DURING THE SHUTDOWN.

John A. Squires, Director, U.S. Patent and Trademark Office69:07AND TO THE DELIGHT OF OUR STAKEHOLDERS, THEY KNEW THEIR INTELLECTUAL PROPERTY WAS GETTING PROCESSED PROCESSED, AND WE NOT ONLY DID NOT MISS A BEAT IN OPERATIONS, WE ACCELERATED OUR ACCESS TO THEM. HON. SQUIRES: ONE THING I WOULD ENCOURAGE YOU TO DO, WE ARE WINDING DOWN TO SOMEWHERE AROUND 30 LEGISLATIVE DAYS BEFORE WE ARE OUT OF THIS CONGRESS, AND YOU ARE NINE WEEKS AWAY FROM THE LAPSING FEE SETTING AUTHORITY AUTHORITY.

John A. Squires, Director, U.S. Patent and Trademark Office69:49SO I WOULD SUGGEST THAT YOU MAY BE GET SECRETARY LUTNICK AND MEMBERS OF THE ADMINISTRATION TO AMPLIFY OUR VOICES, WHICH ARE THAT WE WOULD LIKE TO SEE THAT DONE IN EITHER A UC BASIS, OR IF WE CAN'T DO IT THROUGH UNANIMOUS CONSENT, GET IT THROUGH ONE OF THE VEHICLES THAT ARE LIKELY TO CROSS THE FLOOR AND GO TO THE PRESIDENT'S DESK.

John A. Squires, Director, U.S. Patent and Trademark Office69:49BUT NOW IS THE TIME TO BE ADVOCATING THAT. I WILL NOT SPEAK FOR SENATOR SCHIFF, BUT I BELIEVE MOST OF US WANT TO DO THAT. YOU HAVE TO WORK HARD TO MAKE IT A PARTISAN THING, TO BE HONEST.

John A. Squires, Director, U.S. Patent and Trademark Office69:49WE APPRECIATE YOU BEING HERE TODAY. I LOVE THE FACT THAT YOU ARE EXCITED ABOUT YOUR JOB. I LOVE THE ENERGY YOU ARE BRINGING TO THE ORGANIZATION. WE ARE GOING TO LEAVE THE RECORD OPEN FOR A WEEK FOR ANY SUPPLEMENTAL INFORMATION INFORMATION, IF YOU WOULD LIKE TO SUBMIT ANY INFORMATION ABOUT YOUR ORGANIZATION AND STRATEGY, IT CAN GO BEYOND THAT, BUT WE WOULD LIKE TO SEE THAT REPORTED BACK TO THE COMMITTEE.

John A. Squires, Director, U.S. Patent and Trademark Office70:35I WOULD ALSO LIKE TO ACKNOWLEDGE TWO OF MY FORMER STAFF THAT THE ADMINISTRATION'S HAD THE EXTRAORDINARY JUDGMENT TO BRING ON OUR TEAM IN THE AUDIENCE. BUT THANK YOU FOR YOUR TIME. THIS MEETING IS ADJOURNED.