On Thursday Acting USPTO Director TERESA REA sent a memorandum to all USPTO employees confirming that the agency faces significant spending reductions for the rest of fiscal year 2013, which ends September 30. Rea said the USPTO is taking immediate measures to limit all expenditures, including but not restricted to most hiring, travel, training, and IT modernization projects. She said the spending cuts are necessary because of “sequestration” and because fee collections are running lower than expected. It has been difficult to gauge fee collections because of the spike in collections that occurred just before key AIA provisions took effect in March. IPO will publish more information on sequestration as it becomes available. IPO believes strongly that the USPTO, a user fee-supported agency, should have access to 100 percent of its fees. Executive Director HERB WAMSLEY said, “Sequestration of user fees paid by IPO members and others to obtain USPTO services is terrible public policy.”