1. Trademark Fee Cost Analysis Status Update for TPAC November 2009

2. 2 Agenda Trademark Fee Cost Analysis - Objective ­ Timeframe ­ Project Plan Overview ­ Accomplishments ­ Status ­ Information Available ­ Sample Display ­ Challenges ­ Next Steps ­ Questions

3. 3 Trademark Fee Cost Analysis - Objective The Trademark Fee Cost Analysis is a joint effort between CFO and Trademarks to identify the actual cost of work performed for Trademark and TTAB Processing Fees. OMB Circular A-25 requires Fee Studies Objectives: ­ Revise existing Trademark and TTAB models to provide better cost information to support management decision making. ­ Develop a method for determining the cost per fee for all Trademark and TTAB processing fee codes, including both direct and indirect costs. ­ Use cost information for making management decisions including future fee setting.

4. 4 Current Timeframe - Revised Executive level kick-off – January 2009 Formal cost study team kick-off – March 2009 Costing model complete – September 2009 1 st, 2 nd, and 3 rd iterations of fee calculation – October 2009 Fee Cost Analysis complete – November 2009 Other costing requirements – September-TBD

5. 5 Step 1A Project Initiation Establish team Identify functional, process, data and shared service SMEs Kick-off Meeting Define methodology including Pilbara input Hold facilitation sessions with Trademark Process Owners & Shared service SMEs Map PPA codes to ABI activities and fee codes Step 1B Methodol- ogy Produce initial set of results and displays Review and revise Step 2B Cost Allocation Develop draft fee unit cost calculations oValidation of unit cost results oFinalize fee unit costs Step 2C Workload Data Step 2A Activity Dictionary Finalize rules for indirect & secondary cost allocation Finalize workload data Finalize model hierarchy Gain Pilbara input Incorporate work in process oDevelop additional cost displays Step 2D New ABI Model Project management, communication, and interim validations Trademark Project Plan Overview Phase 1: Project Initiation & Planning Phase 3: Fee Cost Analysis Phase 2: Model RevisionPhase 4: Other Costing Step 3A Collect Fee Data Step 3B Results & Displays Step 3C Review & Validate Step 4A Work in Process Legend: Completed o In process

6. 6 Accomplishments (since August meeting) Successfully built the revised Trademark ABI model with cost and workload information Incrementally refined method to allocate IT systems costs to Trademark organizations, activities, and fee codes Developed multiple displays to present/validate data Produced three rounds of model revisions based on validation review over six-week period Developed and tested hypothesis for check-sum validation of aggregate fee costs

7. 7 Current Status The ABI team produced the first displays of the initial fee cost model at the end of September. The displays provided total and unit fee cost breakdowns at various levels. The Trademark team identified corrections/changes and updates to mappings, workload and driver data. The ABI model was updated for a second time and revised results reviewed; more corrections/refinements proposed. The ABI team is in the process of completing the third version of the fee cost model incorporating requested changes. Updated displays will be provided to the Trademark team for final review before sending to Executives for comment.

8. 8 Types of information available Full and unit cost of Trademark activities Full and unit cost of Trademark processing fees Full and unit cost of Fees by contributing: ­ Trademark activity (e.g., Process Trademark Mail, Review and classify new application, Examine Statement of Use) ­ CIO managed system (e.g., TRAM, TICRS, TRADEUPS) ­ Other allocated cost such as Rent, OPM, and costs from support organizations (e.g., CFO, CAO and Policy) Comparison between fee revenue and cost per fee Comparison of paper and electronic activities by fee code

9. 9 Fee Unit Cost – Sample Display

10. 10 Fee Unit Cost Detail – Sample Display

11. 11 Challenges Detailed revision of the model required mapping process, activity, IT and shared services costs to individual fee codes Sensitivity between the allocation rules and the unit cost results led to further corrections/changes Complexity of the model, level of detail needed to develop drivers to separate activity costs Developing methodology to address partially completed work to establish appropriate unit cost rates Ensuring that unit cost results can be validated

12. 12 Next Steps Develop final set of fee unit cost results Finalize check sum methodology Review and validate Develop briefing packages for broader review and executive presentations Revise model as needed – November 30 th Begin 2009 fee cost analysis – November 9 th (4 week duration) Begin 2007 fee cost analysis – December Provide recommendations for management action – December/January 2010

13. 13 Questions… Thank you!