Can an applicant with a license agreement qualify for micro entity status?

Can an applicant with a license agreement qualify for micro entity status?

Yes, an applicant with a license agreement can potentially qualify for micro entity status, but there are specific conditions that must be met. The MPEP provides guidance on this:

“An applicant is not considered to have been named on a previously filed application if the applicant has assigned, or is under an obligation to assign, all ownership rights in the application as the result of the applicant’s previous employment.” (MPEP 509.04(a))

However, it’s important to note that:

• The license agreement must not transfer all substantial rights in the invention to a non-micro entity.
• If the licensee is not a micro entity, the applicant may lose their micro entity status.
• The applicant must still meet all other micro entity criteria, including income limitations and the four-application limit.

Applicants with license agreements should carefully review the terms of their agreements and consult with a patent attorney to determine if they still qualify for micro entity status.

To learn more:

• micro entity
• license agreement
• patent application