How the Government Shutdown Is Affecting Federal IP Offices

Government shutdowns create widespread operational uncertainty. The impact on intellectual property agencies varies significantly because these offices are funded in different ways. For businesses, creators, and in-house counsel, understanding those distinctions is key to maintaining rights and avoiding preventable delays.

USPTO: Continuing Operations Under Fee-Funded Reserves

The U.S. Patent and Trademark Office (USPTO) remains open and operating normally. Unlike many federal agencies, the USPTO is not dependent on annual appropriations from Congress for most of its core functions. Instead, it is funded primarily through user fees—filing fees, maintenance fees, trademark renewals—and it keeps an Operating Reserve built up from those payments. That reserve allows the Office to continue processing submissions while other federal departments may be paused.

As a result, patent and trademark examination continues, PTAB and TTAB proceedings remain active, electronic filing systems are online, and all statutory deadlines still apply. Applicants must continue to respond to Office Actions, pay fees, and maintain docketing schedules exactly as they would under ordinary government operations.

In recent weeks, the USPTO has also announced internal resource adjustments, including the closure of its Rocky Mountain Regional Office in Denver. It is important to be clear about the cause: the closure was not triggered by the shutdown itself. The decision had been under review previously as part of an effort to streamline physical infrastructure and realign outreach functions. However, the uncertainty of operating during a shutdown did accelerate the timing and push the agency to move forward with that decision sooner than it otherwise might have. Core examination operations are not impacted by that closure, and the work of patent and trademark examiners continues uninterrupted.

For now, USPTO operations remain stable, and no examiner furloughs or prosecution slowdowns are anticipated in the near term. The only material risk arises if the shutdown becomes prolonged, because a lengthy shutdown would require the USPTO to continue drawing from its Operating Reserve without the ability to fully project future revenue and resource needs. If that were to occur, the agency could eventually slow non-critical initiatives, reduce hiring, or postpone modernization projects. But at this stage, those are contingencies, not current conditions.

Copyright Office: Significant Processing Delays

The situation is different at the U.S. Copyright Office, which is part of the Library of Congress and depends heavily on annual appropriations. Because those appropriations have lapsed during the shutdown, the Copyright Office has furloughed most of its staff. Online filing systems remain available, but filings are generally only being time-stamped. Registration applications are not actively being examined, certificates are not being issued, and recordation processing is delayed until funding is restored and full staffing resumes.

This can create practical challenges, especially for creators and businesses who may need to enforce rights quickly. For many infringement claims, a registration (or a refusal) is a prerequisite to filing suit. A shutdown-induced delay in processing can therefore delay enforcement itself. The longer the shutdown continues, the larger the processing backlog will become once the Copyright Office reopens.

Practical Guidance

Continue treating all USPTO deadlines as active. Nothing has been suspended automatically.

• File patent and trademark applications as normal. The USPTO is fully operational.

  
  

• If copyright enforcement may be needed, file registrations now. Do not wait, as the backlog will grow.

  
  

• Advise internal teams and clients about possible delays at the Copyright Office.

  
  

• Use this period to review renewal schedules, clean up docketing, and evaluate portfolio priorities.

Bottom Line

The USPTO is open and functioning, supported by fee reserves rather than Congressional funding. The Rocky Mountain Office closure reflects a cost-alignment decision that was already under review, though the shutdown accelerated the implementation. The Copyright Office is significantly slowed, and time-sensitive enforcement strategies should be adjusted accordingly.

The duration of the shutdown is the real factor to watch. The longer it continues, the more pressure builds—first at the Copyright Office, and eventually, if long enough, at the USPTO as well.