Patent what is small entity

Note that there is an exception to this filing status: If you are obligated to license or assign the patent to a bigger entity that does not qualify as a small entity, such as a multinational corporation, then you could not claim small entity status. A common example of this situation is when someone licenses a patent to a large company such as Microsoft or Apple. Improperly claiming small entity status would be considered inequitable conduct and could result in the loss of patent rights. To qualify as a Micro Entity, the filer must be a Small Entity and must also meet the following criteria:.

How do you determine micro-entity status for multiple inventors? The rules apply individually to each joint inventor. So, no joint inventor can have been named as an inventor on more than four applications, and no joint inventor can have a gross income as defined by the IRS exceeding three times the median household income for the preceding calendar year.

If preparing your application is taking many months, be sure to track the current fee schedules. USPTO fees often increase annually, so you'll want to verify figures at the website when crafting your patent application budget.

The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. If large entity fees were mistakenly paid for an entity that was in fact a small entity, a request for the refund must be filed within three months of the date of the full fee payment [see 37 CFR 1.

This three-month period for requesting a refund is not extendable. The issue here is whether or not such an error occurred in good faith. If the erroneous payment s were in good faith, the patent owner may attempt to cure the prior deficient payments by submitting the balance due. If the erroneous payments were not made in good faith, the result may be an unenforceable patent due to inequitable conduct. A false declaration of small entity status with strong evidence of a high level of intent to deceive may lead to a finding of inequitable conduct.

Large Entity When providing a quote for a patent filing, whether it be a national stage or direct priority or standalone, it is always helpful to know upfront whether the applicant is a small or large entity since USPTO patent filing fees are dictated by the size of the applicant.

What is a Large Entity? What is a Small Entity? Case-by-case determination: same applicant can be both small entity and large entity Entity status is determined on a case-by-case basis with respect to each particular patent application.

An applicant who is neither a small entity nor a micro-entity is considered to be a large entity and must pay standard fees. The savings resulting from small entity or micro entity status can be substantial. Also, in order to maintain a patent in effect, the owner must pay maintenance fees at the 3.

These costs can become significant over time. Small entity or micro entity status can help reduce those costs. Small and micro entities also can take advantage of certain fee waivers and deadline extensions that are currently available to patent applicants who are adversely affected by the COVID crisis. However, the consequences of mis-declaring entity status can be severe.

In cases where courts have found applicants paid the small entity fee without a good faith basis for considering themselves to be small entities, the courts have invalidated the affected patent. Fortunately, entity status can be easily corrected by paying the increased fee amounts and making appropriate certifications about lack of deceptive intent.

A single enterprise may have different status for different patents or applications, so determining the correct status for each case can be tricky.