PTO

3/09/2000

U.S. House of Representatives Judiciary Subcommittee on Courts and Intellectual Property

Good afternoon Chairman Coble and members of the House Judiciary Subcommittee on Courts and Intellectual Property. My name is Colleen Kelley. Since the last time you invited our Union to appear before this subcommittee, I was honored to have been elected National President of the National Treasury Employees Union (NTEU). I know this committee enjoyed an excellent relationship with my predecessor and I hope to continue that productive relationship. I also want to introduce two union leaders in the audience today, Melvin White, President of NTEU Chapter 243 and Howard Friedman, President of NTEU Chapter 245, our two units at PTO. We very much appreciate the Committee=s invitation to be here today to present our Union's views on the operation and proposed budget of the U.S. Patent and Trademark Office (PTO).

NTEU represents more than 2,700 employees in two bargaining units at the U.S. Patent and Trademark Office. The employees at NTEU Chapter 243 are involved in all phases of the patent and trademark application process -- from handling mail, to other tasks directly related to the adjudication of the patent and trademark applications. The Trademark Society, NTEU Chapter 245, represents the attorneys who process trademark applications.

As the Subcommittee is well aware, the Patent and Trademark Office plays a critical role in the development of new industries in our economy. PTO's employees perform the quasi-judicial function of adjudicating patent and trademark applications -- an inherently governmental function that appropriately belongs in the public domain and is of Constitutional authority. The American public and business community place great importance on the registration of patents and trademarks in the United States as a key to the protection of valuable intellectual property rights. The PTO's employees are vital to the successful operation of the Office and can and should play an important role in increasing efficiency and productivity.

PTO continues to receive an increasing number of patent and trademark applications and these applications are ones of increasing complexity. Agency management and the American public are very fortunate to have the young, progressive and innovative workforce represented in NTEU's bargaining units. They are extremely computer literate, professionally savvy and open to new ideas. In our testimony today, I want to outline some important issues that must be addressed if we are to obtain the high level of productivity and morale PTO needs in this demanding era.

Mr. Chairman, with the superb and hard working employees at PTO you might think this is a model federal agency. Instead, it is an agency in crisis. The Office is grossly understaffed for the growing workload it bears. Pendency for applications is at unacceptable levels. Turnover is at a magnitude that robs PTO of experienced workers and lengthens pendency because of the resources that must be diverted to new employee training. I am sad to report to you, Mr, Chairman, that this evening when our members at PTO go home from work, a good number of them will be updating and editing their resumes, looking for work elsewhere. This loss of good workers in not in our country's interest.

In other parts of government you might find offices and divisions that are in total morass with no apparent solution. You might find agencies that are underperforming with the wisest minds in government having no clue as how to motivate personnel, boost productivity, restore morale and achieve efficiency. At PTO, however, we have obvious solutions staring us in the face. All that is needed is for leadership from the Congress and the Executive Branch. In the current tight labor market, workers are not going to be attracted to or stay at PTO unless the agency is able to reduce workloads by expanding staff and better compensate its current staff. Both of these goals could be achieved by simply stopping the practice of diverting fees collected from PTO customers into general revenues. The Department of Commerce's PTO FY 2001 budget request has $368 million in fee collected revenue transferred to the General Fund. We find this an inappropriate use of user fees and something that is severely damaging to the operations of PTO. This rightful and needed revenue should be used to give PTO customers better service, to meet the growing challenges of the Office and to hire the additional staff that is so needed to handle both the backlog of applications and the continuing increases. The $368 million raid on PTO is unprecedented. Never before has this amount of money been taken away from the agency. Mr. Chairman it has to stop and it has to stop this year.

Mr. Chairman, let me make another proposal to you. In previous testimony before this committee, NTEU has asked the Congress and the Administration to have the courage we have to make the radical changes needed in personnel policies at PTO. We have recommended that legislation be passed to allow PTO to operate more like a private sector business with increased personnel flexibilities balanced with normal collective bargaining. Others have been fearful of this path and we were unable to move forward in last year's legislation. So I make to this committee a new proposal. Last year's legislation created new separation between the Trademark Office and the Patent Office. Leave the status quo in place at the Patent Office but on the Trademark side, where the employees are united in support for reform, give us normal labor relations including bargaining over pay such as NTEU represented employees at FDIC now have. This will allow the Trademark Office to respond to fluctuating labor market demands and bring in and retain the best and brightest.

Lastly, I wish to comment on NTEU's support for the planned PTO facilities in Alexandria. NTEU is in a partnership relationship with PTO management regarding space allocation and other issues concerning new space PTO will occupy after the year 2002. We are confident the new facilities will provide an environment in which our members can work efficiently, productively and safely. We have already come to agreement with management on important issues such as space allocation and look forward to the many benefits this new site will offer. We hope that no needless delays will obstruct this move.

Mr. Chairman, I appreciate the opportunity to testify today. I am happy to answer any questions you or the members of the committee may have. Thank you.