Appendix A: Performance and Resource Tables

STRATEGIC OBJECTIVE 2.2

Protect intellectual property and improve the patent and trademark system

OBJECTIVE 2.2 RESOURCES
*(Dollars in Millions)*
	FY 2002 Actual	FY 2003 Actual	FY 2004 Actual	FY 2005 Actual¹
Total Funding	$1,144.0	$1,190.9	$1,233.0	$1,508.4
FTE – Full-Time Equivalent	6,593	6,581	6,627	6,825
¹ Actuals as of September 17, 2005. Funding numbers by goal represent a preliminary distribution which is subject to revision. (back)

PERFORMANCE GOAL: Improve the quality of patent products and services and optimize patent processing time (USPTO)

PERFORMANCE GOAL RESOURCES (USPTO)
*(Dollars in Millions)*
	FY 2002 Actual	FY 2003 Actual	FY 2004 Actual	FY 2005 Actual¹
Total Funding	N/A	$1,019.6	$1,059.0	$1,179.2
FTE – Full-Time Equivalent	N/A	5,815	5,832	6,021
¹ Actuals as of September 17, 2005. Funding numbers by goal represent a preliminary distribution which is subject to revision. (back)

PERFORMANCE GOAL MEASURES (USPTO)
MEASURE	FY 2002 Actual	FY 2003 Actual	FY 2004 Actual	FY 2005 Target	FY 2005 Actual¹	FY 2005 Met/Not Met
Patent allowance error rate	4.2%	4.4%	5.3%	4.0	4.6%
Performance was not met, because: USPTO did not implement a second review2 process until the second half of the fiscal year. Therefore, the error rates were well above the target for the first half leading to not making the year target. Strategies for Improvement: USPTO has implemented quality initiatives to address the current shortcomings. These initiatives are already making an impact; the error rate for the second half of FY 2005 improved significantly. USPTO anticipates further long-term quality improvements in 2006.
Patent in-process examination compliance rate	N/A	N/A	82%	84%	86.2%
Patent first action pendency (months)	16.7	18.3	20.2	21.3	21.1
Patent total pendency (months)	24.0	26.7	27.6	31.0	29.1
Patent efficiency²	$3,376	$3,329	$3,556	$4,122	$3,877
¹ The FY 2005 data provided for all measures for this performance goal are FY 2005 actual projection. (back) ² This measure is calculated by dividing total annual USPTO costs associated with the examination and processing of patents, including associated overhead and support expenses, by annual volumes (production units). (back)

PERFORMANCE GOAL: Improve the quality of trademark products and services and optimize trademark processing time (USPTO)

PERFORMANCE GOAL RESOURCES (USPTO)
*(Dollars in Millions)*
	FY 2002 Actual	FY 2003 Actual	FY 2004 Actual	FY 2005 Actual¹
Total Funding	N/A	$119.4	$112.0	$124.1
FTE – Full-Time Equivalent	N/A	719	693	730
¹ Actuals as of September 17, 2005. Funding numbers by goal represent a preliminary distribution which is subject to revision. (back)

PERFORMANCE GOAL MEASURES (USPTO)
MEASURE	FY 2002 Actual	FY 2003 Actual	FY 2004 Actual	FY 2005 Target	FY 2005 Actual¹	FY 2005 Met/Not Met
Trademark final action deficiency rate	4.3%	5.3%	5.8%	5.0%	5.9%
Performance was not met, because: In FY 2005 USPTO focused on first improving first action quality, which is intended to result in a high quality initial examination of applications. In FY 2005 USPTO exceeded the first action deficiency rate by over 60 percent in FY 2005. The Office believes that building quality at the beginning of the process will yield higher quality throughout the process. Strategies for Improvement: USPTO plans on meeting this goal next year as it has implemented quality initiatives to address the current shortcomings. These initiatives are already making an impact; the error rate for the second half of FY 2005 was significantly lower than the error rate at the start of the year. USPTO anticipates further long-term quality improvements in 2006.
Trademark first action pendency (months)	4.3	5.4	6.6	6.4	6.3
Trademark average total pendency (months)	19.9	19.8	19.5	20.3	19.6
Trademark first action deficiency rate	N/A	N/A	7.9%	7.5%	4.7%
Trademark efficiency²	$487	$433	$539	$701	$677
¹ The FY 2005 data provided for all measures for this performance goal are FY 2005 actual projection. (back) ² This measure is calculated by dividing total USPTO costs associated with the examination and processing of trademarks, including associated overhead and support expenses, by volumes (office disposals). (back)

PERFORMANCE GOAL: Create a more flexible organization through transitioning patent and trademark operations to an e-government environment and advancing intellectual property development worldwide (USPTO)

PERFORMANCE GOAL RESOURCES (USPTO)
*(Dollars in Millions)*
	FY 2002 Actual¹	FY 2003 Actual	FY 2004 Actual	FY 2005 Actual²
Total Funding	N/A	$51.9	$62.0	$205.1
FTE – Full-Time Equivalent	N/A	47	102	74
¹ The funding and FTE amounts for FY 2002 reflect the e-commerce and enhanced telecommunications and information services portion of this goal. (back) ² Actuals as of September 17, 2005. Funding numbers by goal represent a preliminary distribution which is subject to revision. (back)

PERFORMANCE GOAL MEASURES (USPTO)
MEASURE	FY 2002 Actual	FY 2003 Actual	FY 2004 Actual	FY 2005 Target	FY 2005 Actual¹	FY 2005 Met/Not Met
Patent applications filed electronically	N/A	1.3%	1.5%	4.0%	2.2%
Performance was not met, because: The FY 2005 target of 4.0 percent was aggressive given the FY 2003 actual of 1.3 percent and FY 2004 actual of 1.5 percent. USPTO did continue to rise to 2.2 percent. The lower actual reflected a reluctance to file electronically. We anticipate that this actual will continue to rise since the Agency held multiple forums to identify specific components of patent applicants’ reluctance to file electronically. Strategies for Improvement: For next year’s target we are implementing user-community suggested changes to increase acceptance of our electronic filing system.
Patent applications managed electronically	N/A	Baseline	88%	90%	96.7%
Trademark applications filed electronically	38%	57.5%	73%	70%	88%
Trademark applications managed electronically	N/A	Baseline	98%	99%	99%
Technical assistance activities completed	N/A	N/A	Baseline	80	59
Performance was not met, because: While the raw number of activities extracted for this measure was lower than the target, many activities were regional or consolidated, involving multiple countries. This multiplier effect is evidenced by the fact the internal measure of the number of countries involved greatly exceeded that target. Strategies for Improvement: USPTO plans on meeting our goal next year by offering technical advice and assistance in the form of our technical experts providing a review of developing countries’ intellectual property laws and legal system (patents, trademarks, copyrights, enforcement of IP rights through criminal penalties, customs requirements and prosecutorial and judicial training) for compliance with the international trade standard of the World Trade Organization (WTO) Trade Related Aspects of Intellectual Property (TRIPS). USPTO feels this proactive technical assistance will help the Agency achieve its goal.
¹ The FY 2005 data provided for all measures for this performance goal are FY 2005 actual projection. (back)

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