USPTO Fraud Detection & Threat Mitigation Efforts
The updates from the US Patent and Trademark Office continue this week with the announcement of a new group, “The USPTO Patent Fraud Detection and Mitigation Working Group.” The group is being created to address and reduce threats to the US patent system. The creation of the group is an expansion of the agency’s efforts to combat improprieties and decrease application pendency, and is seen as part of a greater objective of reducing backlog and time to examination.
The group will focus on fraud detection to prevent filing scams and instituting systemic protections at the Office. A priority will be monitoring suspicious filings, which might include duplicate applications or bulk filings, and validating entity status and fee legitimacy. A new public webpage is available and promises to be a centralized resource in quickly publishing fraud alerts and sharing relevant data and updates.
As their new webpage notes, 3,900 applications have been flagged with identified issues, including signature authenticity. We certainly support routing out fraud whenever possible. However, a best practice priority will be to ensure no proceedings are terminated, no administrative sanctions are instituted, and no applicants lose their filing rights erroneously, so it is important that all mandatory signature requirements are met. Although there are narrow exceptions for physical incapacity, a personal signature is mandatory, and no delegation of signature authority will be permitted.
Another area of focus will concern misrepresentation of Entity Status (Small Entity/Micro Entity), which influences potential discounts in fees. If criteria are found to not have been met, for example a Small Entity must have less than 500 employees and a Micro Entity must have income below $241,830 and is limited to 5 counted applications, then these improper assertions will be considered fraud and penalties of 3 times the improperly paid fees are a minimum punishment. Additional sanctions may be possible. At this time, the USPTO will continue to issue fee deficiency notices and applicants will have the opportunity to pay any deficiencies or rebut the allegations with evidence.
The attorneys at Renner Otto will continue to monitor this and other changes at the USPTO. We strive to be authorities in all matters concerning the ever-evolving landscape of Intellectual Property; however, the information provided on our website is not intended to be legal advice, nor does it create an attorney-client relationship.