Can a subsidiary of a large entity qualify for small entity status?
The qualification of a subsidiary for small entity status depends on several factors. According to the MPEP:
A business concern or organization is affiliates of another concern or organization if, directly or indirectly, either one controls or has the power to control the other, or a third party or parties controls or has the power to control both.
This means that:
- If a subsidiary is controlled by a large entity, it generally cannot claim small entity status.
- The control can be direct (e.g., majority ownership) or indirect (e.g., through contractual arrangements).
- Even if the subsidiary meets the size standards on its own, affiliation with a large entity typically disqualifies it from small entity status.
However, there may be exceptions in complex corporate structures. It’s advisable to consult with a patent attorney to evaluate your specific situation and determine eligibility for small entity status.
To learn more:
Topics:
MPEP 500 - Receipt and Handling of Mail and Papers,
Patent Law,
Patent Procedure