Large, small and micro-entity patent Fees

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Posted on: December 29th, 2011 by James Yang

Most governmental patent fees are based on whether the applicant is a large entity or a small entity. Small entities are entitled to a 50% discount of the large entity fee. Under the America Invents Act, Congress created an additional category of entities identified as micro-entities which are entitled to a 75% discount of the large entity fee. Current USPTO Fee Schedule.

Large entity

By default all applicants for patent are considered to be a large entity unless otherwise claimed.

Small entity

A small entity is a business that has less than 500 employees. 13 CFR 121.801 through 121.805. If you are on the borderline, it is safer to pay the large entity fee and not worry about whether you are satisfying the definition of a small entity. Moreover, even if you have less than 500 employees, you could still be considered a large entity, if you are licensing the patent pending technology to a company that has more than 500 employees. You are also considered a small entity if you are university or non profit organization under Section 501(c)(3) of the Internal Revenue Code.

Micro-entity

Under the America Invents Act, Congress allowed for a micro entity defined as an entity that has not previously filed more than four patent applications and has a adjusted gross income of less than 3 times the median income which is about $150,000. If you are near the cut off, it is better to file as a small entity than jeopardize validity of your patent. Micro entity fee schedule is still not in effect.

Change of status

The patent applicant’s status as a micro, small or large entity may change during pendency of the patent application or term of the patent. At the time of filing the patent application, the patent applicant may be considered a small or micro entity. However, if the patented technology is licensed to a large entity or small entity, then for the purposes paying governmental fees for the patent application or patent, the patent applicant or patentee is considered to be a large or small entity and must pay the higher fee set forth by Congress.

I invite you to contact me with your patent questions at (949) 433-0900 or James@OCPatentLawyer.com. Please feel free to forward this article to your friends. As an Orange County Patent Attorney, I serve Orange County, Irvine, Los Angeles, San Diego and surrounding cities.

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