When is a Small Business not a Small Entity?
Generally, patent attorneys and patent agents are aware that under its regulations, the Patent and Trademark Office (USPTO) allows certain parties, such as small businesses (referred to generally as "small entities"), to pay reduced fees. This can be a big benefit to small businesses and individual inventors, many of whom have only limited funds with which to prosecute a patent. Most attorneys and agents evaluate a client for small entity status based on the "500 employee rule" — if the client has fewer than 500 employees, they are a small entity. This rule serves well for a quick "ball park" determination and the elimination of large clients from eligibility, however determining whether a party truly qualifies as a small entity is more complicated. For example, in certain circumstances, a company that qualifies as a small business under the Small Business Administration's (SBA) guidelines might not necessarily qualify as a small entity for the purpose of paying reduced USPTO fees. Improperly claiming small entity status can open the patent to attack during litigation, and the cost of defending against such a claim can easily exceed the savings on government fees.
Need Help?
- Prefer an IP authenticated environment? Request a transition or call 800-756-8993.
- Need other assistance? email Customer Service or call 1-877-256-2472.
MOST POPULAR STORIES
- Processes, Challenges and Solutions In Lateral Partner IntegrationTips and shared advice from lateral integration professionals provide creative, practical and streamlined solutions to law firm marketers involved in the lateral integration process.Read More ›
- Constructive Exuberance: Planning for the Regulation and Enforcement of Privacy, Cybersecurity, and Advanced Technologies In 2025While change is a constant in the privacy, security and technology arena, 2025 is poised to be a landmark year. New technologies will continue to radiate through the economy — and our lives — while the new Trump Administration is likely to emphasize innovation over protection, reward maximization over risk minimization, and incentivizing over enforcing.Read More ›
- FOIA In 2025: Beat the Backlog, Avoid Lawsuits and Reduce Cyber RiskThe Freedom of Information Act (FOIA) stands at a critical juncture heading into 2025. Federal agencies are grappling with mounting backlogs, increasingly complex data landscapes, and rising cybersecurity threats. As a new administration takes office, the urgency to adopt innovative, effective solutions has never been greater.Read More ›
- FOIA In 2025: Beat the Backlog and Avoid LawsuitsThe Freedom of Information Act (FOIA) stands at a critical juncture heading into 2025. Federal agencies are grappling with mounting backlogs, increasingly complex data landscapes, and rising cybersecurity threats. As a new administration takes office, the urgency to adopt innovative, effective solutions has never been greater.Read More ›
- Navigating the VUCA World: Why Firms Must Innovate and Reevaluate Legal OperationsIn the legal industry, volatility, uncertainty, complexity and ambiguity (VUCA) (originally a military concept) have reshaped how law firms operate, requiring legal administrators to adapt to a rapidly evolving work environment. Navigating this VUCA landscape involves balancing hybrid work models, evolving return-to-office strategies, and significant workforce challenges, especially in administrative support.Read More ›