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Congress

Patent Reform Coalition Calls for the End of Fee Diversion

WASHINGTON June 13, 2011 – The Coalition for 21st Century Patent Reform, the Coalition for Patent Fairness, the Innovation Alliance along with a group of universities sent a joint letter to Congress Monday recommending that any patent reform legislation end the diversion of user fees from the U.S. Patent and Trademark Office (USPTO).

In early March, the Senate passed the Patent Reform Act of 2011. The America Invents Act, a House companion to the Senate bill, is currently up for debate in the lower house. The bills would update many of the operations of the USPTO.

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WASHINGTON June 13, 2011 – The Coalition for 21st Century Patent Reform, the Coalition for Patent Fairness, the Innovation Alliance along with a group of universities sent a joint letter to Congress Monday recommending that any patent reform legislation end the diversion of user fees from the U.S. Patent and Trademark Office (USPTO).

In early March, the Senate passed the Patent Reform Act of 2011. The America Invents Act, a House companion to the Senate bill, is currently up for debate in the lower house. The bills would update many of the operations of the USPTO.

To bolster the operations of the PTO the bill would end the diversion of user fees from the USPTO budget into the general U.S. budget.

“Unlike most other federal agencies, the USPTO earns fees paid by inventors, companies, research institutions, and universities that can offset every taxpayer dollar appropriated for its operations,” the letter stated in part.

During the last 20 years, more than $875 million in user fees were redirected from the PTO for use by other agencies. A review by the Congressional Budget Office showed that by allowing the PTO to keep its entire user fees, direct funding by the federal government to the PTO would decrease by $725 million over the next 10 years.

The coalition fears that under the current budget climate the USPTO will lose more of the fees it collects, making it difficult for the agency to continue its operations at the current pace.

“We are very concerned that USPTO will continue to earn significantly more fees than the funds it is allocated.  That will render the agency less and less able to cope with the demands of the modern U.S. economy, increase the backlog and patent pendency, and ultimately surrender America’s lead in innovation to other economies.”

The group calls the re-direction of user fees a “hidden tax on innovation”.

The letter goes on to say that, “the funding of the USPTO via user fees is part of the implicit bargain between our nation and innovators wherein inventors make details about their inventions publicly available for the common good in exchange for a limited but exclusive intellectual property right.”

A full copy of the letter can be found here.

Rahul Gaitonde has been writing for BroadbandBreakfast.com since the fall of 2009, and in May of 2010 he became Deputy Editor. He was a fellow at George Mason University’s Long Term Governance Project, a researcher at the International Center for Applied Studies in Information Technology and worked at the National Telecommunications and Information Administration. He holds a Masters of Public Policy from George Mason University, where his research focused on the economic and social benefits of broadband expansion. He has written extensively about Universal Service Fund reform, the Broadband Technology Opportunities Program and the Broadband Data Improvement Act

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House of Representatives

Silicon Valley Rep. Anna Eshoo Will Not Seek Reelection

The lawmaker’s Silicon Valley seat will be open for the first time in decades.

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Screenshot of Rep. Eshoo at a House Energy and Commerce Committee hearing on October 19.

WASHINGTON, November 22, 2023 – Representative Anna Eshoo, D-Calif., announced on Tuesday that she will not seek reelection in 2024.

Eshoo’s retirement will leave up for grabs California’s 16th Congressional District, which includes Silicon Valley and parts of Santa Clara and San Mateo counties. The San José Spotlight reported that multiple local Democrats are eyeing the solid blue seat

Her departure will also open up a spot on the House Energy and Commerce Committee, whose purview includes telecommunications, tech and energy policy, public health, and food and drug safety.

The 80-year-old legislator was the first woman to represent her district and spent over 30 years in Congress. She sponsored bills on tech policy, including Section 230 changes and efforts to accelerate broadband build outs.

Eshoo touted her long legislative career in a video announcing her retirement, including 66 bills signed into law over five presidential administrations. 

“For three decades, you’ve given me your trust,” she said of her constituents. “I’ve given every fiber of my being to live up to that sacred trust.”

The lawmaker joins more than 30 lawmakers on Capitol Hill who have also announced plans to step down after their current terms. She will serve through January 2025.

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Senate

Experts Suggest Measures to Protect Affordable Connectivity Program at Senate Hearing

Under consideration: Opening the Universal Service Fund to contributions from broadband and Big Tech companies.

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WASHINGTON, September 28, 2023 – A broadband association asked Congress last week to open the Universal Service Fund to contributions from broadband and Big Tech revenues to allow the umbrella fund to absorb and support the Affordable Connectivity Program.

The industry is concerned that the $14-billion ACP program, which discounts monthly services for low-income Americans and those on tribal lands, is going to run out of money by early next year. Meanwhile, it is universally agreed that the Universal Service Fund, which includes four high-cost broadband programs, is struggling to maintain its roughly $8-billion annual pace without a diversification of its revenue sources.

Jonathan Spalter, president and CEO of USTelecom, told the Communications and Technology subcommittee studying the future of rural broadband on September 21 that Congress could both support the sustainability of the USF and the ACP by forcing contributions from broadband and Big Tech revenues.

The idea is that the extra revenue would solve the USF sustainability question by allowing the fund to continue to support the existing four programs under its purview, while also allowing it to adopt the ACP program, hence removing that program from reliance on Congress for money.

“We can have Congress give the FCC the authorities that it requires to be able to expand the contribution base, integrating the ACP within USF program, and thereby allowing the potentially out of control contribution factor that will potentially bog down the viability and longevity of the Universal Service Fund mechanisms to go down,” Spalter said.

“And in so doing it can expand the contribution base sufficiently to allow not only broadband but importantly the dominant Big Tech companies to participate so that we would effectively fuse the Affordable Connectivity Program with [high-cost program] Lifeline and do so in a way that would actually not require appropriated dollars from Congress.”

The ACP currently has around 21 million Americans signed up, but the FCC says many more are eligible. The commission has been allocating money to outreach groups to market the subsidy program.

While some have argued that the Federal Communications Commission could unilaterally expand the contribution base of the USF, the commission has elected to wait for Congress to make the requisite legislative reforms to give it that authority.

Forcing Big Tech companies, which rely on the internet to deliver their products, has been an idea tossed around by experts and promoted by Federal Communications Commissioner Brendan Carr. Meanwhile, forcing broadband revenues to contribute to the fund has also received good support.

The concern for the ACP program is that the internet service providers rely on the $14 billion to continue to offer discounts.

“With funding set to be depleted early next year, initial notices of service termination could be out during the height of the holiday season in December – that’s a present none of our constituents deserve to receive,” said Congresswoman Doris Matsui, D-Calif.  

“Poverty is everywhere, but higher in rural America, in our region the reason most people can’t adopt service is due to lack of affordability, this impacts more households than lack of infrastructure alone,” said Sara Nichols, senior planner of the Land of Sky Regional Council of Government.

“It’s a program we simply can’t afford to lose,” added Nichols.

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Rural Utilities Service

White House Nominates Basil Gooden as Rural Development Chief at USDA

Gooden would be responsible for overseeing the activities of the Rural Utilities Services, an important broadband funding agency.

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Photo of Basil Gooden from Virginia Tech's web site.

WASHINGTON, September 11, 2023 – The White House on Monday announced the nomination of Basil Gooden for Under Secretary of Agriculture for Rural Development in the U.S. Department of Agriculture.

Agriculture Secretary Tom Vilsack touted the nomination in a statement, saying that Gooden “is a widely-respected, accomplished champion for affordable housing, community advancement, and economic development. His public service career is informed by a lifelong commitment to agriculture and rural development.”

Gooden is the current director of state operations for rural development at USDA.

If confirmed for the position, Gooden would be responsible for overseeing the activities of the Rural Utilities Services, which encompasses the Water and Environment Programs, the Electric Program, and the Telecommunications Program, which is dedicated to improving the quality of life for rural Americans through providing funds to deploy rural telecommunications infrastructure.

The administration may seek additional funding for broadband through the department. RUS Administrator Andy Berke, the former mayor of Chatanooga, Tenn., who also served as a Commerce Department official with the title, “special representative for broadband.”

Running USDA’s Rural Utilities Service Isn’t Andy Berke’s First Act in Broadband

If selected for the position, Gooden would fill the void left behind by Xochitl Torres Small, who resigned from the role and was later confirmed by the Senate as deputy secretary of agriculture this past July.

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