1. Prepared by the Intellectual Property Owners Association (IPO) July 2010 Three-Track Examination Proposal: IPO’s Concerns Douglas K. Norman, IPO President Slide 1

2. Prepared by the Intellectual Property Owners Association (IPO) July 2010 Threshold Issues The “prioritized examination” option is premised on the PTO’s ability to collect fees that will cover the costs associated with examining prioritized applications The “foreign-based application” provisions would delay examination of applications that claim priority to a foreign application Slide 2

3. Prepared by the Intellectual Property Owners Association (IPO) July 2010 Prioritized Examination Setting fees Guarantees for prioritization Safeguards Refunds? Availability for foreign priority applications Effects on PPH Slide 3

4. Prepared by the Intellectual Property Owners Association (IPO) July 2010 Voluntary Delay of Original US Applications IPO opposes deferred examination Notice – effects on public and competitors PCT 30-month delay already available Alternatives for backlog reduction: partial refund for abandoned applications Slide 4

5. Prepared by the Intellectual Property Owners Association (IPO) July 2010 Mandatory Delay of Foreign-Based Applications Gaming potential Backlog effect would be temporary May provoke retaliatory measures by other patent offices Complicates prosecution strategies Slide 5

6. Prepared by the Intellectual Property Owners Association (IPO) July 2010 Patent Term Adjustment Unintended consequences Gaming potential Difficult to distinguish applicant delays from foreign patent office delays How to determine “aggregate average time” to first office action? Variation across Tech Centers, Group Art Units Will applicants be able to contest the baseline PTA? Slide 6

7. Prepared by the Intellectual Property Owners Association (IPO) July 2010 Optional IPGO Search USPTO should focus on its primary mission of searching and examining applications Concerns Search quality Independence of subsequent examiner search Inference of different tiers for examination quality/patent strength Slide 7