Small Entity Status
Qualifying as a "small entity" before the USPTO entitles the "small entity" to a fee reduction of 50% . This benefit is availabe to a company if it fullfills certain requirements:
Small Entity Status for Businesses before the USPTO
A business concern can qualify as a small entity under 37 CFR §1.27(a)(2) if the number of employees at the business concern, including affiliates, does not exceed 500 and if it has not assigned, granted, conveyed, or licensed, or is under an obligation under contract or law to assign, grant, convey, or license rights in the invention to a large entity. The above number of employees is calculated from the average number of employees employed by the business concern for each of the pay periods for the past twelve months and includes part-time and temporary employees. For small entity status purposes, a business concern is affiliated with another if one concern can control or has the power to control the other.
The U.S. Patent Office recently clarified that a security interest does not involve an obligation to transfer rights in an invention unless the security interest is defaulted upon.
Asserting small entity status without a basis can and, if detected, will lead to the invalidation of the resulting patent. Thus, a thorough investigation as to whether or not a business is entitled to small entity status is imperative.
While an applicant does not have to constantly reevaluate whether or not the business still qualifies for small entity status, applicant is required to do so before paying the issue fee for a patent that results from an application. If the business no longer qualifies, large entity fees have to be paid. Similarly, applicant is also required to check whether or not the business still qualifies as a small entity before maintenance fee payments on the patent are made.
For a full list of the current US patent fees for both small and large entities, as well as trademark fees, visit the U.S. Patent Office’s website: http://www.uspto.gov/about/offices/cfo/finance/fees.jsp.
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