Small Entity vs. Micro Entity
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 has distinguished between small entities and micro entities and provided discounts on required fees to both. Definitions are provided by the USPTO. Small or micro-entity status must be verified and asserted prior to paying reduced fees.
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. Certain standards must be met to be considered any of the three. For exact definitions see the full text of Title 37 CFR 1.27.
Person
A person refers to the inventor of a patent or anyone with rights to the patent that has no obligation to nor has previously shared rights to the patent. A person who has shared or is under obligation to share rights to the patent may still qualify for small-entity status if those who will or have received rights also qualify as small entities.
Small Business Concern
(2) Small business concern. A small business concern, as used in paragraph (c) of this section,
means any business concern that:
(i) Has not assigned, granted, conveyed, or licensed, and is under no obligation under contract or law to assign, grant, convey, or license, any rights in the invention to any person, concern, or organization which would not qualify for small entity status as a person, small business concern, or nonprofit organization; and (ii) Meets the size standards set forth in 13 CFR 121.801 through 121.805 to be eligible for reduced patent fees. Questions related to standards for a small business concern may be directed to: Small Business Administration, Size Standards Staff, 409 Third Street, SW., Washington, DC 20416.
