How does transferring rights affect small entity status?
Transferring rights in an invention can affect small entity status. According to MPEP 509.02:
If the individual inventor, small business concern, or nonprofit organization assigned, granted, conveyed, or licensed, or came under an obligation to assign, grant, convey, or license, any rights to the invention to any individual, small business concern, or nonprofit organization which would not qualify as a small entity (37 CFR 1.27(a)), then the inventor, small business concern, or nonprofit organization would no longer qualify for small entity status.
However, transferring partial rights to another small entity does not disqualify the original entity from small entity status. It’s important to note that rights in question are those in the United States. Transferring rights to a foreign patent does not affect small entity status if no U.S. rights are transferred.
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