EPO Introduced a 30% Fee Reduction for Micro-Entities

The European Patent Office (EPO) has recently introduced a fee reduction scheme for micro-entities under Rule 7a(3) EPC and it entered into force on 1 April 2024.

The objective of this fresh scheme is to promote micro-entities to boost economic growth and innovation across a range of sectors. Also, it will facilitate micro-entities' access to the European patent system and promote their growth and development. 

Who can apply for fee reductions?

A company (micro-entity) that employs less than ten employees and has an annual turnover of fewer than two million euros is eligible for a fee reduction.

In order to qualify for a 30% fee reduction, the micro-entity needs to meet the following requirements:

• Should be a micro-entity, natural person, non-profit organization, university, or public research organization.
• Should have filed fewer than five patent applications  with the EPO over the past five years.

What are language-related fee reductions?

Apart from the above-mentioned reductions, there are also language-related fee reductions and to qualify for a 30% reduction in the filing and/or examination fee you need to:

1. Be considered a “small entity”;
2. Be based in Europe contracting state with an official language other than English, French, or German or be a national of that state living abroad; and
3. Submit the application documents or the request for examination in such a language.

These language-related fee reductions have been in force since 1 April 2014 and will continue to be available unchanged. Also, the new fee reduction scheme is available to micro entities and can even be combined with the existing reductions.

Which fees are reduced?

The 30% fee reduction applies to:

• The filing fee ;
• The search fee;
• The examination fee;
• The designation fee;
• The fee for the grant;
• The renewal fee.

In cases where the European Patent Office acts as the International Searching Authority, the reduction is also allowed for certain Euro-PCT fees.

What are the eligibility and requirements for qualifying fee reductions?

In order to be eligible for these new fee reductions, an applicant must meet the following criteria:

1. The applicant must be a micro-entity, natural person, non-profit organization, university, or public research organization;
2. The applicant must have filed fewer than five patent applications with the EPO over the past five years; and
3. Where there are multiple applicants for the patent application, all of the applicants must fulfill the requirements (1) and (2).

What are the consequences of incorrect status or number of previous applications?

There are consequences for claiming incorrect status or the number of previously filed applications:

• The cap on fewer than five prior applications is monitored by the EPO. A reduced fee payment that does not meet the requirements usually results in an invitation to the applicant to pay the difference within two months.
• Incorrect declaration results in the fee shall be deemed not to have been paid and the application shall be considered withdrawn. There are no other options available for dealing with this defect other than the current legal remedies for the loss of rights.
• In case of transfer of rights, if the new applicant does not comply with the requirement and takes benefit of fee reductions, then the EPO issues notification of an official communication informing on the loss of rights. The new applicant has the option to reply to such communication with the missing amount within two months. The fee paid prior to the transfer's registration date remains unaffected by the transfer of the rights.

Recommendation:

In light of the above-mentioned risk of an irreversible loss of rights, the applicant should immediately inform the EPO if there is any change to the micro-entity status or number of applications.

Author:

Vishal Bhardwaj - Patent Attorney, Founding Partner at Anuation Research & Consulting LLP