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Small Entity vs. Micro Entity (view source)
Revision as of 13:09, 23 June 2016
, 13:09, 23 June 2016no edit summary
The United States Patent and Trademark Office (USPTO) requires patent holders to pay filing, application, and maintenance fees. In order to encourage smaller firms to apply and hold patents, the USPTO provides for discounts on required fees to small and micro entities, as defined by the Code of Federal Regulations. Definitions are provided by the [http://www.uspto.gov/web/offices/pac/mpep/s509.html| USPTO]. Small or micro-entity status must be verified and asserted prior to paying reduced fees. Small entities receive a 50% reduction on fees and micro entities receive up to a 75% reduction on fees. <ref name="paymentoffees" />
==Small Entity Status==
Under Title 37, Code of Federal Regulations: Patents, Trademarks, and Copyrights, a small entity can be considered a person, a small business concern, or a nonprofit organization. <ref name="CFR" /> Certain standards must be met to be considered any of the three.
To be considered a small entity, a nonprofit organization will not nor has previously shared rights to their patents with a company or person that does not qualify as a small entity as well. Any institution of higher education, located in the US or abroad, are considered can be considered for small entity status. Also, as specified in the Internal Revenue Code of 1986, any corporation or organization working only for "religious, charitable, scientific, testing for public safety, literary, or educational purposes" as well as for amateur sports may be considered for small entity status. A nonprofit organization may not contribute to political campaigns, personal profit, or lobbying efforts. <ref name="IRC" />
==Micro Entity Status==
To be considered for micro entity status, the applicant must first qualify as a small entity. Subsequently, the following standards must be met:
For the full definition of micro entity, consult the United States code Title 35 - Patents, Section 123. <ref name="USC35" />
==References==
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