Micro Entity Status: What is our firm’s policy?

Why does micro entity status matter?

USPTO patent fees are generally proportionate to the size of the applicant. A large entity with over 500 employees must pay the full rate. A small entity pays 50% of the full rate. A micro entity pays only 25% of the full rate, which is a 75% discount off the full rate, and half the rate paid by a small entity.

What is a micro entity?

A micro entity must meet certain criteria, which includes specific income requirements and limits on patent filings, namely, no more than four previous US patent filings. As of 2021, the Maximum Qualifying Gross Income limit was in the low $200,000’s range.

The cap of 4 prior US patent applications does not include provisional patent applications or any US patent applications where the applicant assigned all ownership rights as a result of the applicant’s previous employment.

Can your status change to a small entity?

Even if an applicant is sure that they qualify as a micro entity upon the initial filing, circumstances can easily bump up its status to a small entity. This can happen in one of two ways.

First, an applicant’s income for a particular may increase and exceed the maximum qualifying gross income. Since incomes fluctuate from year to year, particularly for entrepreneurs working in a startup, certain vigilance is required to ensure that an applicant’s income remains under the cap every year while a patent application is pending or when maintenance fees are due.

Second, an applicant may file additional patent applications. Once the total number of patent applications, excluding provisionals, hits 6 or more, the applicant can no longer be micro.

What are the risks of incorrectly paying USPTO fees?

If an applicant has paid micro entity USPTO fees when in fact the applicant does not qualify for this status, the consequences of such wrong payments will depend upon the good faith of the applicant at the time of the payment(s). If made with an intent to deceive, then such discounted payments may be considered as a fraud practiced or attempted on the USPTO. [see 37 CFR 1.29(j)].

If prior erroneous payments were paid in good faith, then the applicant must promptly file a notification of loss of micro entity status along with itemized requirements of 37 CFR 1.29(k)(1).

What is our firm’s policy on micro entity cases?

Our firm believes the risks of patent invalidity or unenforceability due to wrong micro entity payments outweigh the cost savings of USPTO fees. If a pending application was previously filed as a micro entity, our firm might be willing to take over representation on a case-by-case basis.

For micro entity clients that transfer their pending patent applications to our firm, we may require that all new patent filings be filed under small entity status to err on the side of caution.

Keep in mind our patent team adheres to flat-fee billing for patent prosecution matters as much as reasonably possible. Fixed rates for patent prosecution and other IP matters are made possible by efficient processes that avoid the churning of unnecessary back-and-forth communications with clients.

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Frenda Williams
Frenda Williams
2023-02-21
I have had the pleasure of working with Vic and his team at Innovation Capital Law Group on Trademark creation and contracts. As a solo and non-tech founder, the assistance, guidance and recommendations from Vic and his team have been INVALUABLE. And, with the knowledge that I have a Solid, well versed and caring legal team I can turn to, I have the confidence I need to navigate the intricacies of the tech industry as a solo founder. With that being said, If you’re a startup and you’re looking for a legal team that speaks your language, knows the industry and makes you feel like family…. Innovation Capital Law Group is a Perfect fit for you, your company and your team. Five out of Five Stars… don’t let their brilliance blind you 😁
Shiwei Liu
Shiwei Liu
2023-02-20
Excellent service and quick response. Lots of informative documents on its website.
Chang Chien Michael
Chang Chien Michael
2023-02-20
I have worked with iCap for more than 7 years. I am very glad with his professional knowledge that 7 utility patents were granted by USPTO. Vic and his team are very efficient and knowledgeable. Every time he can transcribe my design idea perfectly in two weeks and file it with no rejection from USPTO. The other service including the granted patent following up is always in time to remind me to take actions. That is why I still stick on iCap as my first priority when I want to file a US patent.
Mats Johansson
Mats Johansson
2023-02-20
We have been happy client for 10+ years. Awesome Patent Law Firm!
Hanson Chang
Hanson Chang
2023-02-16
Glad to write a review for Innovation Capital Law Group. We previously worked with a big law firm (2200 employees) on our patents, and decided to shift over to Innovation Capital. It was a great decision, this team got our patents done faster, more effectively, at a lower cost, and with broader claims. Win all around
Genevieve Springer
Genevieve Springer
2022-09-09
Clear, discernible tools and strategies couched within a business conceived from a genuine interest in doing right by founders.
InPlay Inc
InPlay Inc
2022-06-30
Vic and his team have been providing us with the best patent application experiences we could ever have in our entire career life! Their professionalism and technical knowledge have really saved us a lot of communication effort and time on the applications. Definitely highly recommend if anyone is looking for help with IP protection for their business.
Meg Crowley
Meg Crowley
2022-03-05
After working with Vic and his team at Innovation Capital Law Group, our organization is confident our trademarks were solid and protected. Thank you team.
Andy Dong
Andy Dong
2022-02-28
I have been using Innovation Capital Law Group for a few years and continue to use them. They have provided an excellent services on our legal issues including intellectual properties and patents . They are very responsive, easy to work with and very competent . I highly recommend them.

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