How does licensing affect small entity status for patent fees?

Licensing can significantly impact small entity status for patent fees. The MPEP provides specific guidance on this matter:

Rights conveyed by an applicant or patentee to a Government agency are not considered to be license for purposes of this paragraph. A Government agency includes any agency of the Federal Government or military department of the Government.

This means that licensing to a government agency does not affect small entity status. However, licensing to other entities can impact your status:

• If you license rights to a large entity, you may lose your small entity status.
• Exclusive licenses to large entities typically disqualify you from small entity status.
• Non-exclusive licenses may not affect your status, depending on the terms.

It’s crucial to review any licensing agreements carefully and consult with a patent attorney to determine how they might affect your small entity status.

To learn more:

• licensing
• small entity status
• patent fees
• government agency