How is the gross income limit for micro entity status determined?

The gross income limit for micro entity status is determined as follows:

• It is set at three times the median household income for the preceding calendar year, as reported by the Bureau of the Census.
• The USPTO publishes the current maximum qualifying gross income on their website.
• This limit applies to each applicant, inventor, and joint inventor individually.

The MPEP clarifies: “At the time any fee is to be paid in the micro entity amount, it is required that no inventor and no non-inventor applicant (if any) have a preceding calendar year’s gross income exceeding the ‘maximum qualifying gross income’ posted on the USPTO website.“

It’s important to note that gross income means total income, not adjusted gross income. The MPEP states: “‘Gross income’ and ‘adjusted gross income’ are not the same thing. Adjusted gross income is defined as gross income minus adjustments to income. For purposes of micro entity status it is ‘gross income’ – not ‘adjusted gross income’ that matters.“

To learn more:

• micro entity
• gross income limit
• patent fees
• USPTO
• median household income