Patent and Trademark Office Needs To Better Manage Automation of Its Trademark Operations

GAO reviewed the automation of trademark operations at the Department of Commerce's Patent and Trademark Office (PTO), focusing on: (1) system user requirements; (2) a 1982 trademark automation cost/benefit analysis; and (3) contracting practices and procedures for acquiring the automated trademark systems.

GAO found that, in its 1982 Automation Master Plan, PTO established major goals for its trademark automation system that included improved registration quality, cost-effectiveness, and reduced application processing time. PTO acquired its automatic data processing (ADP) services and equipment through monetary procurements; however, it acquired the associated databases through nonmonetary arrangements, called exchange agreements, with firms that provide trademark-related services. Management problems have hindered PTO in reaching its goals, because it did not: (1) thoroughly analyze or develop the functional requirements for the use of its three automated systems; (2) adequately assess the costs and benefits of the automated systems; (3) properly manage the three systems; and (4) fully test the search and retrieval system before accepting it from the contractor. Although PTO has attempted to correct some problems through exchange agreement renegotiation, GAO is concerned that PTO may choose to execute future exchange agreements without complying with applicable procurement regulations and, therefore, evade the procedures designed to ensure maximum competitiveness and cost-effectiveness in its procurement actions.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Melroy D. Quasney Team: General Accounting Office: Information Management and Technology Division Phone: (202) 275-4659