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The Failed Promise of User Fees: Empirical Evidence from the U.S. Patent and Trademark Office
Author(s) -
Frakes Michael D.,
Wasserman Melissa F.
Publication year - 2014
Publication title -
journal of empirical legal studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.529
H-Index - 24
eISSN - 1740-1461
pISSN - 1740-1453
DOI - 10.1111/jels.12051
Subject(s) - trademark , subsidy , business , balance (ability) , empirical evidence , finance , public economics , marketing , economics , law , political science , psychology , market economy , philosophy , epistemology , neuroscience
In an attempt to shed light on the impact of user‐fee financing structures on the behavior of administrative agencies, we explore the relationship between the funding structure of the Patent and Trademark Office ( PTO ) and its examination practices. We suggest that the PTO 's reliance on prior grantees to subsidize current applicants exposes the PTO to a risk that its obligatory costs will surpass incoming fee collections. When such risks materialize, we hypothesize, and thereafter document, that the PTO will restore financial balance by extending preferential examination treatment—that is, higher granting propensities and/or shorter wait times—to some technologies over others.