United States – Reduced Patent and Design Fees for Small Entity

 In the US, a “small entity” may qualify for a fee reduction of 60%. A “small entity” is one of the following: 

1)an independent inventor or design creator.

Exception: if the inventor or the design creator has assigned or is under obligation by law to assign the proprietary rights in the United States, or is under obligation by law to grant a license in the United States, in respect of the invention or the design to anyone that is not classified as a “small entity”;

2)an individual not being the inventor or the design creator, but being e.g. an assignee (new proprietor). The exception under Item (1) above is valid also here;

3)small companies where the number of employees normally does not exceed 500 (N.B. including employees of branch offices, parent or subsidiary companies, and the like). The exception under Item (1) above is valid also here;

4)a non-profit organisation, such as a university, college or foundation.

In order to obtain a fee reduction, the applicant must, in each particular case, declare under penalty of the law, that he meets the “small entity” requirements. A wilful false statement may jeopardise the validity of the application or of any patent or design issued thereon. 

Any change of status regarding the classification as a “small entity” must be reported to the US Patent Office. Failure to do so at the appropriate time may jeopardise the validity of the application or of the patent or design issued thereon. This applies during the entire prosecution and life of the patent/design. 

There is also a “micro entity” status, which is available to persons who qualify as small entity, who have been named inventors on less than four previous patent applications and who have a gross income of less than three times the US median household income (i.e. about 210,000 USD in 2022). Micro entity status provides a reduction of most fees by 80 %. 

We, AWA, release ourselves from any liability due to an incorrectly paid reduced fee if we have not been informed of a change of status regarding the classification.