Difference between revisions of "Small Entity vs. Micro Entity"
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<ref name="CFR" >[https://www.law.cornell.edu/cfr/text/37/1.27] '37 CFR 1.27 - Definition of small entities', ''Code of Federal Regulations'', Cornell University Law School. </ref> | <ref name="CFR" >[https://www.law.cornell.edu/cfr/text/37/1.27] '37 CFR 1.27 - Definition of small entities', ''Code of Federal Regulations'', Cornell University Law School. </ref> | ||
| + | <ref name="IRC" >[https://www.law.cornell.edu/uscode/text/26/501] '26 U.S. Code 501 - Exemption from tax on corporations, certain trusts, etc.', ''U.S. Code'', Cornell University Law School. </ref> | ||
Revision as of 11:21, 23 June 2016
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 USPTO. Small or micro-entity status must be verified and asserted prior to paying reduced fees.
Contents
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. [1] Certain standards must be met to be considered any of the three.
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
A small business concern has not nor will not share rights to its patent with a company that is not also a small entity. Additionally, a business can have no more than 500 employees. Size status is reviewed by Small Business Administration officials, and questions regarding size standards can be addressed to: Small Business Administration, Size Standards Staff, 409 Third Street, SW., Washington, DC 20416.
Nonprofit Organization
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. [2]
Micro Entity Status
Benefits
References
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