Small and Micro Entities Pursuing Patents

Obtaining a patent can enable an inventor to profit significantly from an invention. However, the process of applying for a patent is expensive, which can be difficult for individuals and small businesses. The fee schedule of the United States Patent and Trademark Office specifies the standard fees. These include filing fees, provisional patent application fees, additional fees for patents with more than three claims, and patent search fees. Fees can quickly add up to thousands of dollars. To encourage people and businesses with limited resources to seek patent protection, the USPTO offers significantly reduced fees if certain requirements are met.

• Small Entity Requirements

The USPTO defines a small entity as an individual, a company with fewer than 500 employees, a non-profit formed under Section 501(c)(3), or a university. If you fall into one of these categories, the USPTO will halve your fees. With their fee, applicants must submit a declaration establishing their status in one of the categories. You do not qualify as a small entity if you licenced or assigned the patent to a non-qualifying entity.

• Micro Entity Requirements

These are the most basic types of entities. In 2013, the America Invents Act included this status to allow new inventors to protect their rights. They may be eligible for fee reductions of up to 60 percent or 75 percent.

In addition to additional criteria, the same criteria as for a small entity apply. A patent applicant must demonstrate that they are not the named inventor on more than four patents, which may include design patents, utility patents, and plant patents. Provisional patent applications, as well as some types of international patents and patents owned by an inventor's previous employer, do not count towards the total.