Federal Manager's Daily Report

The Postal Service could be vulnerable to being sued for patent infringement because it does not have formal written procedures for actively reviewing new products and services for potential infringement, according to an IG report.

Instead, it said, the USPS informally educates those departments most likely to be impacted by patent issues and relies on department managers to initiate reviews with its law department. After that review, a Postal Service vice president approves the investment for funding.

“In addition, the Postal Service does not always seek right-to-use opinions for new products because the reviews are costly,” it said.

“Without written processes, there is reduced assurance that new technology will be reviewed for potential infringement, which could lead to litigation and additional costs to the Postal Service. Further, as the Postal Service ventures into new technology and innovation, an effective control system consisting of well-defined procedures and records is critical to protecting its brand and goodwill,” it said.

The USPS does have a patent attorney on staff but since there is no formal written requirement for managers to seek this consultation, “there are concerns that inexperienced managers or those unfamiliar with the review process may not initiate contact with the patent attorney. There is also no guarantee that experienced managers who are retiring or leaving the Postal Service will tell new managers they need a patent attorney’s review of new products and services.”