Preface
This brief note is not legal advice and is for educational purposes only.
Discussion
The USPTO charges different fees for each patent application depending mainly upon your entity size. For example, if a large entity fee is $1000, the small entity fee is $500, and the micro entity fee is $250. Yes, I know you all want to be in the micro entity group. Entity size changes can only occur at specific times in patent prosecution and later (ask your attorney). This whole entity determination, particularly for micro can get complicated so if any situation might apply to you – talk to your attorney.
Here are the main requirements for each entity.
Micro entity (37 CFR 1.29)
- Application Filing Limit – The applicant or inventor can’t be on four or more previously filed U.S. patent applications.
- Gross Income Limit On Applicants And Inventors – Neither the applicant nor the inventor nor a joint inventor, in the calendar year preceding the calendar year in which the applicable fee is being paid, had a gross income, as defined in section 61(a) of the Internal Revenue Code of 1986 (26 U.S.C. 61(a)), exceeding the “Maximum Qualifying Gross Income” reported on the USPTO Web site at http://www.uspto.gov/patents/law/micro_entity.jsp which is equal to three times the median household income for that preceding calendar year, as most recently reported by the Bureau of the Census.
- Gross Income Limit On Parties With An “Ownership Interest” – You can’t be under or have an obligation to assign, grant, or convey an ownership interest in the application other than to another micro entity.
Small entity (37 CFR 1.27)
This is mainly defined by the SBA (13 CFR 121.801 – 805) mainly:
- No more than 500 employees, including affiliates.
- Has not, and is under no obligation, to assign, grant, convey, or license any rights in the invention to any person who made it and could not be classified as an independent inventor, or to any concern which would not qualify as a non-profit organization or a small business concern.
Large entity – if you’re not micro or small.
Summary
Consult an attorney for micro entity OR if you’re under an obligation to license or assign any rights OR if you’re a non-profit. It’s safer to just pay the small entity fee if you’re not sure you’re a micro
