Patent Law FAQ
This FAQ answers all your questions about patent law, patent procedure, and the patent examination process.
Here’s the complete FAQ:
MPEP 500 - Receipt and Handling of Mail and Papers (4)
To establish micro entity status on the gross income basis, an applicant must meet the following requirements as outlined in 37 CFR 1.29(a)(1)-(4):
- Qualify as a small entity
- Not have been named as an inventor on more than four previously filed patent applications
- Not have a gross income exceeding three times the median household income in the preceding calendar year
- Not have assigned, granted, or conveyed, and not be under an obligation to do so, a license or ownership interest to an entity exceeding the gross income limit
The MPEP states: “Because each inventor and each non-inventor applicant (e.g., assignee-applicant) must separately meet the requirements under 37 CFR 1.29(a)(1)-(4), it would not be appropriate to file a micro entity certification under 37 CFR 1.29(a) for the application if there were more than one applicant or inventor and not all of the applicants and inventors qualified as micro entities under 35 U.S.C. 123(a).“
To learn more:
For micro entity status, gross income is determined as follows:
- Based on the calendar year preceding the year a fee is paid
- Uses the definition of gross income in section 61(a) of the Internal Revenue Code
- Compared to three times the median household income as reported by the Bureau of the Census
- For non-US income, converted using the average currency exchange rate for the relevant calendar year
The USPTO website provides the current maximum qualifying gross income limit.
When calculating gross income for micro entity status involving foreign currency, the USPTO provides specific guidelines:
- If an applicant’s, inventor’s, or entity’s gross income in the preceding calendar year is not in U.S. dollars, the average currency exchange rate reported by the Internal Revenue Service (IRS) for that calendar year must be used for conversion.
- For income received partially in U.S. dollars and partially in foreign currency, the foreign portion must be converted to U.S. dollars and added to the U.S. dollar amount.
The MPEP states: “If an applicant’s, inventor’s, joint inventor’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, inventor’s, joint inventor’s, or entity’s gross income exceeds the threshold specified in 37 CFR 1.29(a)(3) or (a)(4).“
The IRS provides yearly average currency exchange rates on its website, which should be used for these calculations.
To learn more:
Can international applicants claim micro entity status based on gross income?
Yes, international applicants can claim micro entity status based on gross income, provided they meet the eligibility criteria. The MPEP 509.04(a) clarifies:
“For purposes of micro entity status, the gross income (instead of median household income) is used to determine entitlement to reduced patent fees.”
International applicants must:
- Calculate their gross income in U.S. dollars
- Meet the same income threshold as U.S. applicants
- Certify their eligibility under oath
The USPTO uses the World Bank’s gross national income (GNI) per capita figures for the applicant’s country of residence to determine the income threshold. Applicants should refer to the most recent World Bank data when assessing their eligibility.
To learn more:
MPEP 509 - Payment of Fees (1)
For micro entity status, gross income is determined as follows:
- Based on the calendar year preceding the year a fee is paid
- Uses the definition of gross income in section 61(a) of the Internal Revenue Code
- Compared to three times the median household income as reported by the Bureau of the Census
- For non-US income, converted using the average currency exchange rate for the relevant calendar year
The USPTO website provides the current maximum qualifying gross income limit.
Patent Law (4)
To establish micro entity status on the gross income basis, an applicant must meet the following requirements as outlined in 37 CFR 1.29(a)(1)-(4):
- Qualify as a small entity
- Not have been named as an inventor on more than four previously filed patent applications
- Not have a gross income exceeding three times the median household income in the preceding calendar year
- Not have assigned, granted, or conveyed, and not be under an obligation to do so, a license or ownership interest to an entity exceeding the gross income limit
The MPEP states: “Because each inventor and each non-inventor applicant (e.g., assignee-applicant) must separately meet the requirements under 37 CFR 1.29(a)(1)-(4), it would not be appropriate to file a micro entity certification under 37 CFR 1.29(a) for the application if there were more than one applicant or inventor and not all of the applicants and inventors qualified as micro entities under 35 U.S.C. 123(a).“
To learn more:
For micro entity status, gross income is determined as follows:
- Based on the calendar year preceding the year a fee is paid
- Uses the definition of gross income in section 61(a) of the Internal Revenue Code
- Compared to three times the median household income as reported by the Bureau of the Census
- For non-US income, converted using the average currency exchange rate for the relevant calendar year
The USPTO website provides the current maximum qualifying gross income limit.
When calculating gross income for micro entity status involving foreign currency, the USPTO provides specific guidelines:
- If an applicant’s, inventor’s, or entity’s gross income in the preceding calendar year is not in U.S. dollars, the average currency exchange rate reported by the Internal Revenue Service (IRS) for that calendar year must be used for conversion.
- For income received partially in U.S. dollars and partially in foreign currency, the foreign portion must be converted to U.S. dollars and added to the U.S. dollar amount.
The MPEP states: “If an applicant’s, inventor’s, joint inventor’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, inventor’s, joint inventor’s, or entity’s gross income exceeds the threshold specified in 37 CFR 1.29(a)(3) or (a)(4).“
The IRS provides yearly average currency exchange rates on its website, which should be used for these calculations.
To learn more:
Can international applicants claim micro entity status based on gross income?
Yes, international applicants can claim micro entity status based on gross income, provided they meet the eligibility criteria. The MPEP 509.04(a) clarifies:
“For purposes of micro entity status, the gross income (instead of median household income) is used to determine entitlement to reduced patent fees.”
International applicants must:
- Calculate their gross income in U.S. dollars
- Meet the same income threshold as U.S. applicants
- Certify their eligibility under oath
The USPTO uses the World Bank’s gross national income (GNI) per capita figures for the applicant’s country of residence to determine the income threshold. Applicants should refer to the most recent World Bank data when assessing their eligibility.
To learn more:
Patent Procedure (4)
To establish micro entity status on the gross income basis, an applicant must meet the following requirements as outlined in 37 CFR 1.29(a)(1)-(4):
- Qualify as a small entity
- Not have been named as an inventor on more than four previously filed patent applications
- Not have a gross income exceeding three times the median household income in the preceding calendar year
- Not have assigned, granted, or conveyed, and not be under an obligation to do so, a license or ownership interest to an entity exceeding the gross income limit
The MPEP states: “Because each inventor and each non-inventor applicant (e.g., assignee-applicant) must separately meet the requirements under 37 CFR 1.29(a)(1)-(4), it would not be appropriate to file a micro entity certification under 37 CFR 1.29(a) for the application if there were more than one applicant or inventor and not all of the applicants and inventors qualified as micro entities under 35 U.S.C. 123(a).“
To learn more:
For micro entity status, gross income is determined as follows:
- Based on the calendar year preceding the year a fee is paid
- Uses the definition of gross income in section 61(a) of the Internal Revenue Code
- Compared to three times the median household income as reported by the Bureau of the Census
- For non-US income, converted using the average currency exchange rate for the relevant calendar year
The USPTO website provides the current maximum qualifying gross income limit.
When calculating gross income for micro entity status involving foreign currency, the USPTO provides specific guidelines:
- If an applicant’s, inventor’s, or entity’s gross income in the preceding calendar year is not in U.S. dollars, the average currency exchange rate reported by the Internal Revenue Service (IRS) for that calendar year must be used for conversion.
- For income received partially in U.S. dollars and partially in foreign currency, the foreign portion must be converted to U.S. dollars and added to the U.S. dollar amount.
The MPEP states: “If an applicant’s, inventor’s, joint inventor’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, inventor’s, joint inventor’s, or entity’s gross income exceeds the threshold specified in 37 CFR 1.29(a)(3) or (a)(4).“
The IRS provides yearly average currency exchange rates on its website, which should be used for these calculations.
To learn more:
Can international applicants claim micro entity status based on gross income?
Yes, international applicants can claim micro entity status based on gross income, provided they meet the eligibility criteria. The MPEP 509.04(a) clarifies:
“For purposes of micro entity status, the gross income (instead of median household income) is used to determine entitlement to reduced patent fees.”
International applicants must:
- Calculate their gross income in U.S. dollars
- Meet the same income threshold as U.S. applicants
- Certify their eligibility under oath
The USPTO uses the World Bank’s gross national income (GNI) per capita figures for the applicant’s country of residence to determine the income threshold. Applicants should refer to the most recent World Bank data when assessing their eligibility.
To learn more: