Micro Entities Overview

Objectives to know about Micro Entities specific to the AIA

• Understand the AIA’s definition of a micro entity
• Identify the key laws and rules (37 CFR and 35 USC) pertaining to micro entities specific to the AIA
• Apply the laws and rules pertaining to micro entities specific to the AIA to real-world scenarios

Key Laws and Rules (37 CFR and 35 USC) pertaining to Micro Entities specific to the AIA

• 35 U.S.C. § 123: Micro entity defined
• 37 CFR § 1.29: Micro entity status

Comprehensive, detailed, e-learning module content for Micro Entities specific to the AIA

Module 1: Introduction to Micro Entities

This module will introduce micro entities. It will discuss the AIA’s definition of a micro entity, the benefits of micro entity status, and the requirements for establishing micro entity status.

AIA’s definition of a micro entity

The AIA defines a micro entity as an independent inventor, a small business concern, or a non-profit organization that meets certain requirements.

Benefits of micro entity status

Micro entities are eligible for reduced patent fees. For example, micro entities pay half the amount of filing fees and search fees that large entities pay.

Requirements for establishing micro entity status

To establish micro entity status, an applicant must file a certification with the USPTO. The certification must state that the applicant meets the requirements for micro entity status.

Module 2: Applying the laws and rules pertaining to Micro Entities specific to the AIA to real-world scenarios

This module will discuss how to apply the laws and rules pertaining to micro entities specific to the AIA to real-world scenarios. It will cover common issues that arise in connection with micro entity status and how to address those issues.

Common issues

Some common issues that arise in connection with micro entity status include:

• Whether an applicant meets the requirements for micro entity status
• How to file a certification of micro entity status
• How to maintain micro entity status

Section 11 of the America Invents Act creates a new class of applicants, micro entities, which are distinct from small entities and are entitled to receive a 75% discount on all fees on which small entities receive a discount. 35 USC 123.

An applicant qualifies for micro-entity status if the applicant meets the following requirements. First, the applicant qualifies as a small entity. Second, the applicant has not been named as an inventor on more than four previously filed U.S. non-provisional patent applications. This does not include applications on which the applicant was an inventor but was under an obligation to assign all ownership rights to an employer. Third, the applicant did not have a gross income that exceeded three times the median household income in the calendar year preceding the calendar year in which the applicable fee is being paid. Fourth, the applicant has not and is under no obligation to assign, grant, or convey a license or other ownership interest to an entity with a gross income exceeding three times the median household income.

An applicant who is employed by an institution of higher education or who is under an obligation to assign, grant, or convey a license or other ownership interest to an institution of higher education also qualifies for micro-entity status.

To qualify as a micro entity, an applicant must meet all of the following criteria:

1. Qualify as a USPTO-defined small entity.
2. Not be named on more than four previously filed applications.*
3. Not have a gross income more than three times the median household income in the previous year from when the fee(s) is paid. For 2011, the most recent year that data is available, the median income was $50,054.
4. Not be under an obligation to assign, grant, or convey a license or other ownership to another entity that does not meet the same income requirements as the inventor.

If you meet the micro-entity requirements, you are eligible for a 75 percent reduction on most fees.

The cost of filing a nonprovisional patent application usually includes three components: the basic filing fee, the search fee, and the examination fee. Under the new fees, a small entity will pay $800 for filing a nonprovisional utility application while a micro entity will pay half that at just $400. These prices will remain until they are adjusted by the USPTO.

* The micro-entity definition states that applicants are not considered to be named on a previously filed application if he or she has assigned, or is obligated to assign, ownership rights as a result of previous employment. Applications filed in another country, provisional applications, or international applications for which the basic national fee was not paid do not count as previously filed application. The definition also includes applicants who are employed by an institute of higher education and have assigned or are obligated to assign, ownership to that institute of higher education.