How does assigning ownership rights affect micro entity status?

Assigning ownership rights can significantly affect micro entity status. The MPEP provides the following guidance:

• An applicant is disqualified from micro entity status if they transfer, or are obligated to transfer, any ownership interest to an entity that exceeds the gross income limit.
• If an inventor assigns all rights to an employer that exceeds the gross income limit, micro entity status cannot be claimed.
• Even if rights are later transferred back to the inventor or to another person who doesn’t exceed the gross income limit, micro entity status cannot be regained.

The MPEP states: “Once an assignee or licensee exceeding the gross income limit receives the ownership interest, the 37 CFR 1.29(a)(4) certification requirement can no longer be met – even if the assignee or licensee retransfers rights and no longer holds any ownership interest in the application.“

It’s important to note that this applies to both actual transfers and obligations to transfer ownership rights.

To learn more:

• micro entity
• ownership rights
• patent assignment
• gross income limit
• USPTO