What steps should be taken to determine small entity status for a business?

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.

To determine small entity status for a business, several steps should be taken:

• Review whether the business meets the definition of a small business concern under section 3 of the Small Business Act.
• Check if the business meets the size standards in 13 CFR 121.801 through 121.805 for eligibility for reduced patent fees.
• Investigate if the business has assigned, granted, conveyed, or licensed any rights in the invention to others.
• If rights have been transferred, conduct the same review for each other entity involved.

The MPEP 509.03(a) emphasizes: “If small entity status is desired on the basis that the entity is a small business concern, the investigation should include a review of whether the business is a small business concern as defined by section 3 of the Small Business Act.”