The report calls for sweeping changes in the leadership and structure of the patent office.
"Prevailing perceptions within the patent community are that the quality of patents issued is declining at a precipitous rate," the report said. "The U.S. economy simply cannot prosper without a viable patent system."
Within the last ten years the report says that the backlog at the office has grown from 268,000 to 750,000 applications. Waiting time for action on an application has stretched from 20 to 32 months over the same period.
Meanwhile, the patent office now employs more than 9,000 people, many of them with less than five years experience examining patents. From 2002 through 2006 the office lost one examiner for every new hire, the report said.