How does licensing affect small entity status?

How does licensing affect small entity status?

Licensing can significantly impact small entity status. According to MPEP 509.03:

An applicant or patentee is not considered a small entity if any rights in the invention have been assigned, granted, conveyed, or licensed to an entity that would not qualify for small entity status.

This means:

• If a small entity licenses rights to a large entity, small entity status is lost.
• Exclusive licenses generally result in loss of small entity status.
• Non-exclusive licenses may not affect status if they don’t convey all significant rights.

It’s crucial to review all licensing agreements before claiming small entity status. Any change in licensing that affects status must be reported to the USPTO promptly.

To learn more:

• small entity status
• patent licensing
• USPTO fees