35 U.S.C. § 123 — Micro entity defined (MPEP Coverage Index) – BlueIron IP
35 U.S.C. § 123 Micro entity defined
Source: Patent Statute (35 U.S.C.)BlueIron Update:
This page consolidates MPEP guidance interpreting 35 U.S.C. § 123, including 72 rules from the Manual of Patent Examining Procedure. It is provided as guidance, with links to the ground truth sources. This is information only, it is not legal advice.
Summary
Micro entity status provides a 60% reduction in certain USPTO patent-related fees for qualifying small inventors and educational institutions under specific legal criteria.
What this section covers
- Legal basis for reducing patent-related fees for micro entities under 35 U.S.C. 123.
- Types of patent fees eligible for reduction under micro entity status.
Key obligations
- Demonstrate eligibility through specific qualification criteria related to income, employment, or educational institution affiliation.
- Provide accurate and truthful certification when claiming micro entity status.
Conditions and exceptions
- Understand the specific requirements for micro entity status based on educational institution affiliation.
Practice notes
- Carefully verify and document eligibility before claiming micro entity status.
- Recognize the specific income and assignment criteria required for micro entity qualification.
Official MPEP § 123 — Micro entity defined
Source: USPTOLast Modified: 10/30/2024 08:50:22
35 U.S.C. 123 Micro entity defined.
- (a) IN GENERAL.—For purposes of this title, the term
“micro entity” means an applicant who makes a certification that the
applicant—
- (1) qualifies as a small entity, as defined in regulations issued by the Director;
- (2) has not been named as an inventor on more than 4 previously filed patent applications, other than applications filed in another country, provisional applications under section 111(b) , or international applications filed under the treaty defined in section 351(a) for which the basic national fee under section 41(a) was not paid;
- (3) did not, in the calendar year preceding the calendar year in which the applicable fee is being paid, have a gross income, as defined in section 61(a) of the Internal Revenue Code of 1986, exceeding 3 times the median household income for that preceding calendar year, as most recently reported by the Bureau of the Census; and
- (4) has not assigned, granted, or conveyed, and is not under an obligation by contract or law to assign, grant, or convey, a license or other ownership interest in the application concerned to an entity that, in the calendar year preceding the calendar year in which the applicable fee is being paid, had a gross income, as defined in section 61(a) of the Internal Revenue Code of 1986, exceeding 3 times the median household income for that preceding calendar year, as most recently reported by the Bureau of the Census.
- (b) APPLICATIONS RESULTING FROM PRIOR EMPLOYMENT.—An applicant is not considered to be named on a previously filed application for purposes of subsection (a)(2) if the applicant has assigned, or is under an obligation by contract or law to assign, all ownership rights in the application as the result of the applicant’s previous employment.
- (c) FOREIGN CURRENCY EXCHANGE RATE.—If an applicant’s or entity’s gross income in the preceding calendar year is not in United States dollars, the average currency exchange rate, as reported by the Internal Revenue Service, during that calendar year shall be used to determine whether the applicant’s or entity’s gross income exceeds the threshold specified in paragraphs (3) or (4) of subsection (a).
- (d) INSTITUTIONS OF HIGHER EDUCATION.—For purposes of
this section, a micro entity shall include an applicant who certifies
that—
- (1) the applicant’s employer, from which the applicant obtains the majority of the applicant’s income, is an institution of higher education as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)); or
- (2) the applicant has assigned, granted, conveyed, or is under an obligation by contract or law, to assign, grant, or convey, a license or other ownership interest in the particular applications to such an institution of higher education.
- (e) DIRECTOR’S AUTHORITY.—In addition to the limits imposed by this section, the Director may, in the Director’s discretion, impose income limits, annual filing limits, or other limits on who may qualify as a micro entity pursuant to this section if the Director determines that such additional limits are reasonably necessary to avoid an undue impact on other patent applicants or owners or are otherwise reasonably necessary and appropriate. At least 3 months before any limits proposed to be imposed pursuant to this subsection take effect, the Director shall inform the Committee on the Judiciary of the House of Representatives and the Committee on the Judiciary of the Senate of any such proposed limits.
- (f) PENALTY FOR FALSE CERTIFICATIONS.—In addition to any other penalty available under law, an entity that is found to have falsely made a certification under this section shall be subject to a fine, to be determined by the Director, the amount of which shall be not less than 3 times the amount that the entity failed to pay as a result of the false certification, whether the Director discovers the false certification before or after the date on which a patent has been issued.
(Added Sept. 16, 2011, Public Law 112-29, sec. 10(g), 125 Stat. 284; amended Public Law 112-29, sec. 20(j), 125 Stat. 284 and corrected Jan. 14, 2013, Public Law 112-274, sec. 1(m), 126 Stat. 2456; subsection (f) added Dec. 29, 2022, Public Law 117-328, division W, sec. 107(b)(2), 136 Stat. 4459.)
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| MPEP Section | Rules |
|---|---|
| MPEP § 509.02 | |
| MPEP § 509.04 | |
| MPEP § 509.04(a) | |
| MPEP § 509.04(b) | |
| MPEP § 509.04(d) |