NOTE 3. Non-Entity Assets

Non-entity assets consist of amounts held on deposit for the convenience of the USPTO customers and fees collected on behalf of the World Intellectual Property Organization (WIPO) and the European Patent Office (EPO). Customers have the option of maintaining a deposit account at the USPTO to facilitate the order process. Customers can draw from their deposit account when they place an order and can replenish their deposit account as desired. Funds maintained in customer deposit accounts are not available for the USPTO use until an order has been placed. Once an order has been placed, the funds are reclassified to entity funds. Also, in accordance with the Patent Cooperation Treaty and the Madrid Protocol Implementation Act, the USPTO collects international fees on behalf of the WIPO and the EPO.

Non-Entity Assets as of September 30, 2007 and 2006 (Dollars in Thousands) 2007 2006 Fund Balance with Treasury:     Intragovernmental Deposit Accounts $  4,779 $ 4,498 Other Customer Deposit Accounts   86,206  78,224 Patent Cooperation Treaty Account    8,928   8,158 Madrid Protocol Account      447     279 Total Fund Balance with Treasury  100,360  91,159 Cash:     Other Customer Deposit Accounts      884       — Patent Cooperation Treaty Account      134     542 Madrid Protocol Account        3       — Accounts Receivable:     Other Customer Deposit Accounts        —   1,085 Patent Cooperation Treaty Account    4,655      46 Total Non-Entity Assets $106,036 $92,832

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