Small Entity vs. Micro Entity
The USPTO offers discounts for small businesses and individual inventors. As you can see here, the fees for “small entities” are about half the normal amount, and the fees for “micro entities” are one fourth the usualy amount (half the small entity amount).
But what is a “small entity”? And what is a “micro entity”?
Small Entity
There are three kinds of small entities:
- An individual inventor (i.e., no inventor is under an obligation to assign their invention)
- A business with fewer than 500 employees.
- A qualifying non-profit organization.
If you fall into one of these categories, you are eligible to pay the reduced fees associated with a small entity.
Micro Entity
If you fall into one of the categories of small entity, you should then check to see if you qualify as a micro entity.
Then primary way to qualify as a micro entity is if each inventor (or business owner):
- has an income for the previous year under $189,537 (This amount changes periodically, so you can double check the threshold here); and
- hasn’t been named on more than 4 previous applications.
Alternatively, you can be a micro entity if the majority of your income is from an institution of higher learning (e.g., a university) or if you are under an obligation to assign your invention to an institution of higher learning