How does government funding affect small entity status?

How does government funding affect small entity status?

Government funding can impact small entity status, particularly for universities and small businesses. The MPEP 509.03 provides guidance:

A small business concern or nonprofit organization is not disqualified as a small entity because of a license to the Federal government pursuant to 35 U.S.C. 202(c)(4).

This means:

• Receiving government funding does not automatically disqualify an entity from small entity status.
• The government’s license rights under the Bayh-Dole Act do not negate small entity status.
• However, other types of government agreements or contracts might affect status.

It’s important to carefully review the terms of any government funding or agreements to determine if they impact small entity eligibility. When in doubt, consult with a patent attorney or the USPTO for clarification.

To learn more:

• small entity status
• government funding
• Bayh-Dole Act
• USPTO