What are the size standards for a small business concern in patent applications?
Source: FAQ (MPEP-Based)BlueIron Update: 2024-09-09
This page is an FAQ based on guidance from the Manual of Patent Examining Procedure. It is provided as guidance, with links to the ground truth sources. This is information only: it is not legal advice.
The size standards for a small business concern in patent applications are determined by the Small Business Administration (SBA). According to MPEP 509.02:
“For the purpose of paying reduced patent fees, a small business concern is one:
- (i) Whose number of employees, including affiliates, does not exceed 500 persons; and
- (ii) Which has not assigned, granted, conveyed, or licensed (and is under no obligation to do so) any rights in the invention to any person who made it and could not be classified as an independent inventor, or to any concern which would not qualify as a small business concern or a nonprofit organization under this section.”
It’s important to note that these size standards are specific to patent applications and may differ from SBA size standards used for other purposes. Businesses must meet both the employee count criterion and the rights assignment criterion to qualify as a small business concern for patent fee purposes.
Topics:
MPEP 500 - Receipt and Handling of Mail and Papers
Patent Law
Patent Procedure