Micro entity status

Some applicants and patent owners can benefit from an 80% reduction on most fees charged by the United States Patent and Trademark Office (USPTO) if they qualify and file the appropriate papers in their application or patent.  To benefit from this fee reduction, applicants and patentees must establish “micro entity status” according to the USPTO Regulation - 37 CFR 1.29.  Micro entity status may be available if you have limited income and have never or have rarely filed a patent application.  This page explains your options for establishing micro entity status and gives details about application filing and income limits. You will also find information about how different work situations can affect your eligibility.

 

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1.  General information

1.1 Establishing micro entity status

An application or patent may qualify for micro entity status if:

    (1) Each applicant, each inventor, and every other party with an ownership interest in the application or patent application is a small entity

    (2) The additional requirements of the micro entity gross income basis or institution of higher education basis are satisfied; and

    (3) The applicant or patentee files a micro entity certification in the application or patent for which micro entity status is desired.

Most applications and patents that qualify for micro entity status do so under the gross income basis, which requires that additional limits on gross income and the number of previously filed applications be met. Go to the Gross income basis section for more information. Some applications and patents may qualify for the institution of higher education basis, if certain limits on the applicant’s employer or on the ownership of the application or patent are met. Go to the Institution of higher education basis section for more information for establishing micro entity status.

You must establish micro entity status prior to paying, or at the time of paying, a fee in the micro entity amount. To establish micro entity status on the gross income basis, the applicant or patentee should file form SB/15A in the application or patent. To establish micro entity status on the institution of higher education basis, the applicant or patentee should file form SB/15B in the application or patent. These forms, along with all other USPTO patent-related forms can be found on our Patents Forms page.

For more information on small and micro entities, see MPEP sections 509.02-509.04

1.2 Micro entity status must be reevaluated every time a fee is paid

After micro entity status has been established in an application or patent, it will remain in effect until it is changed. However, the applicant or patentee must re-evaluate whether or not the application or patent still qualifies for micro entity status each and every time a fee is paid to the USPTO in that application or patent. This is particularly important if the application or patent qualified under the gross income basis, because (1) the income limit changes every year (usually in September or October) and (2) the gross income of any applicant, inventor or other person with an ownership interest in the patent or application will likely change from year to year. For more information concerning the income limit, see section 2.3 Maximum qualifying gross income.

If the applicant or patentee determines that the application or patent still qualifies for micro entity status, then the fee may be paid in the micro entity amount. There is no need to re-file the micro entity certification form every time a payment is made.

If an application or patent no longer qualifies for micro entity status, for example because the income limit for the gross income basis is no longer met, then the applicant or patentee must file a notification of a loss of entitlement to micro entity status in the application or patent. The “Notification of Loss of Entitlement to Micro Entity Status” form (Form SB/460) may be used to notify the USPTO of loss of entitlement to micro entity status. Information about how to notify the USPTO of loss on entitlement to micro entity status can be found in MPEP sections 509.04(e), 509.04(f) and 2550(II) (maintenance fees). If micro entity status is no longer applicable, the fee should be paid in either the small entity or undiscounted amount.

1.3  What to do when micro entity status was established by mistake

If status as a micro entity is established in good faith in an application or patent, and fees as a micro entity are paid in good faith in the application or patent, and it is later discovered that such micro entity status either was established in error, or that the Office was not notified of a loss of entitlement to micro entity status through error, the error will be excused upon compliance with the separate submission and itemization requirements of 37 CFR 1.29(k)(1) and the deficiency payment requirement of 37 CFR 1.29(k)(2).

 The “Notification of Loss of Entitlement to Micro Entity Status” form (Form SB/460) may be used to notify the USPTO of loss of entitlement to micro entity status, and to submit the required itemization and deficiency payments. Information about how to correct micro entity status that was established by mistake can be found in MPEP section 509.04(f).

 

 

 

4.  Reminders regarding micro entity status

  • To receive the micro entity reduced fees, you must file a form with your application showing that you meet the requirements as indicated above. These forms must be filed with every application for which you qualify and wish to receive the micro entity discount. Filers qualifying on the gross income basis should use form SB/15A. For filers qualifying on the institution of higher education basis, use form SB/15B. These forms, along with all other USPTO patent-related forms can be found on our Patents Forms page.

  • Please remember that if you file a nonprovisional utility application in paper, you are subject to two surcharges in addition to the normal fees associated with filing a nonprovisional application. The surcharges do not apply to reissue, design, plant, or provisional applications, and can be avoided by filing electronically in DOCX format using Patent Center, the USPTO's automated online solution for patent filing. Visit our Patent Center information page to learn more.
    • The first surcharge is for “non-electronic filings.” There is no micro entity discount for this surcharge. That means if you are filing as a micro entity using a paper application, you will be required to pay the small entity non-electronic filing surcharge of $200.
    • The second surcharge is for filing an application where the specification, claims, and/or abstract do not conform to the USPTO requirements for submission in DOCX format. There is a micro entity discount for this surcharge. This surcharge applies to applications filed on or after January 17, 2024.