MPEP § 509 — MPEP § 509
Current through: 2022-07-01

509-Payment of Fees 
 
 

 
 
 
 
 
 
 
 

 

 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 

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 Manual of Patent Examining Procedure 

 Chapter 0500 

 Section 509 
 

 
 
 
 
 
 509 Payment of Fees [R-01.2024]

 The latest fee schedule is available by contacting the USPTO at
 1-800-PTO(786)-9199 or (571) 272-1000, or on the USPTO webpage at www.uspto.gov/Fees .
 

 
 37 CFR 1.22 Fees payable in advance. 

 
 (a) Patent fees and charges payable to the United States Patent and
 Trademark Office are required to be paid in advance; that is, at the time of
 requesting any action by the Office for which a fee or charge is payable with the
 exception that under § 1.53 applications for patent
 may be assigned a filing date without payment of the basic filing fee.
 

 (b) All fees paid to the United States Patent and Trademark Office
 must be itemized in each individual application, patent, or other proceeding in
 such a manner that it is clear for which purpose the fees are paid. The Office may
 return fees that are not itemized as required by this paragraph. The provisions of
 § 1.5(a) do not apply to the resubmission of fees returned
 pursuant to this paragraph.
 

 
 

 
 37 CFR 1.23 Method of payment. 

 
 (a) All payments of money required for United States Patent and
 Trademark Office fees, including fees for the processing of international
 applications ( § 1.445 ), shall be made in U.S. dollars and in the form of
 a cashier’s or certified check, Treasury note, national bank notes, or United
 States Postal Service money order. If sent in any other form, the Office may delay
 or cancel the credit until collection is made. Checks and money orders must be
 made payable to the Director of the United States Patent and Trademark Office.
 (Checks made payable to the Commissioner of Patents and Trademarks will continue
 to be accepted.) Payments from foreign countries must be payable and immediately
 negotiable in the United States for the full amount of the fee required. Money
 sent to the Office by mail will be at the risk of the sender, and letters
 containing money should be registered with the United States Postal Service.
 

 (b) Payments of money required for United States Patent and Trademark
 Office fees may also be made by credit card, except for replenishing a deposit
 account. Payment of a fee by credit card must specify the amount to be charged to
 the credit card and such other information as is necessary to process the charge,
 and is subject to collection of the fee. The Office will not accept a general
 authorization to charge fees to a credit card. If credit card information is
 provided on a form or document other than a form provided by the Office for the
 payment of fees by credit card, the Office will not be liable if the credit card
 number becomes public knowledge.
 

 (c) A fee transmittal letter may be signed by a juristic
 applicant or patent owner.
 

 
 

 
 37 CFR 1.26 Refunds. 

 
 (a) The Director may refund any fee paid by mistake or in excess of
 that required. A change of purpose after the payment of a fee, such as when a
 party desires to withdraw a patent filing for which the fee was paid, including an
 application, an appeal, or a request for an oral hearing, will not entitle a party
 to a refund of such fee. The Office will not refund amounts of twenty-five dollars
 or less unless a refund is specifically requested, and will not notify the payor
 of such amounts. If a party paying a fee or requesting a refund does not provide
 the banking information necessary for making refunds by electronic funds transfer
 (31 U.S.C. 3332 and 31 CFR part 208), or instruct the Office that refunds are to
 be credited to a deposit account, the Director may require such information, or
 use the banking information on the payment instrument to make a refund. Any refund
 of a fee paid by credit card will be by a credit to the credit card account to
 which the fee was charged.
 

 (b) Any request for refund must be filed within two years from the
 date the fee was paid, except as otherwise provided in this paragraph or in
 §
 1.28(a) . If the Office charges a deposit account by an
 amount other than an amount specifically indicated in an authorization
 ( §
 1.25(b) ), any request for refund based upon such charge must
 be filed within two years from the date of the deposit account statement
 indicating such charge, and include a copy of that deposit account statement. The
 time periods set forth in this paragraph are not extendable.
 

 (c) If the Director decides not to institute a reexamination
 proceeding in response to a request for reexamination or supplemental examination,
 fees paid with the request for reexamination or supplemental examination will be
 refunded or returned in accordance with paragraphs (c)(1) through (c)(3) of this
 section. The reexamination requester or the patent owner who requested a
 supplemental examination proceeding, as appropriate, should indicate the form in
 which any refund should be made ( e.g., by check, electronic funds transfer,
 credit to a deposit account). Generally, refunds will be issued in the form that
 the original payment was provided. 
 
 (1) For an ex parte 
 reexamination request, the ex parte reexamination filing
 fee paid by the reexamination requester, less the fee set forth in
 § 1.20(c)(7) , will be
 refunded to the requester if the Director decides not to institute an
 ex parte reexamination proceeding. 
 

 (2) For an inter partes 
 reexamination request, a refund of $7,970 will be made to the reexamination
 requester if the Director decides not to institute an inter
 partes reexamination proceeding. 
 

 (3) For a supplemental examination request, the fee
 for reexamination ordered as a result of supplemental examination, as set
 forth in § 1.20(k)(2) , will be
 returned to the patent owner who requested the supplemental examination
 proceeding if the Director decides not to institute a reexamination
 proceeding. 
 

 
 

 
 

 Where the Office has notified an applicant, in writing, that a fee is due
 and has specified a particular dollar amount for that fee, if the applicant timely submits
 the specified fee amount in response to the notice, the applicant should be considered to
 have complied with the notice so as to avoid abandonment of the application. If the fee
 paid by the applicant is insufficient, either because the notice specified an incorrect
 dollar amount for the fee or because of a fee increase effective after the mailing of the
 notice and before payment of the fee by the applicant, the applicant should be notified in
 writing by the Office of the fee insufficiency and given a new time period in which to
 submit the remaining balance. The written notification of the fee insufficiency should set
 forth the reason (i.e., the fee amount indicated by the Office in the earlier notice was
 incorrect or the fees have increased since the earlier notice was mailed) why applicant is
 being required to submit an additional fee.
 

 I. ITEMIZATION AND APPLICATION OF FEES 37 CFR
 1.22(b) sets forth that fees must be itemized in such a manner
 that it is clear for which purpose fees are paid. The Office may return fees that are
 not itemized. The intent of the fee itemization requirement is to encourage a better
 explanation by applicants of how fees being paid are to be applied by the Office. This
 will allow Office employees to properly account for the fees being paid by applicants.
 It should be noted that the language of 37 CFR 1.22 is not intended to
 create a problem when it is clear what fee is needed. A reference to “filing fee(s)”
 would be sufficient to cover filing fees (including search and examination fees) of all
 different types of applications and all types of claims. Further, in a paper submitted
 on a date later than the actual filing date, the reference to “filing fee(s)” would also
 be sufficient to cover the surcharge under 37 CFR 1.16 , as the surcharge is
 also required to make the application complete. A reference to “any corresponding fee
 under 37 CFR
 1.16 ” would be sufficient to cover any fee (e.g., surcharge,
 application size fee, excess claims fees) under 37 CFR 1.16 . In a petition for an
 extension of time filed without a specifically itemized fee, but with a general
 authorization to charge a deposit account, it is clear that a fee for an extension of
 time is needed and the deposit account should be charged the appropriate extension of
 time fee.
 

 In situations in which a payment submitted for the fees due on filing in
 a nonprovisional application filed under 35 U.S.C. 111(a) is insufficient and
 the applicant has not specified the fees to which the payment is to be applied, the
 Office will apply the payment in the following order until the payment is expended:
 

 
 (1) the basic filing fee ( 37 CFR 1.16(a), (b), (c), or
 (e) );
 

 (2) the non-electronic filing fee ( 37 CFR
 1.16(t) );
 

 (3) the non-DOCX fee ( 37 CFR
 1.16(u) )
 

 (4) the application size fee ( 37 CFR 1.16(s) );
 

 (5) the late filing surcharge ( 37 CFR 1.16(f) );
 

 (6) the processing fee for an application filed in a language other
 than English ( 37 CFR 1.17(i) );
 

 (7) the search fee ( 37 CFR 1.16(k), (l), (m), or
 (n) );
 

 (8) the examination fee ( 37 CFR 1.16(o), (p), (q), or
 (r) ); and 
 

 (9) the excess claims fee ( 37 CFR 1.16(h), (i), and
 (j) ).
 

 
 In situations in which a payment submitted for the fees due on filing in
 a provisional application filed under 35 U.S.C. 111(b) is insufficient and
 the applicant has not specified the fees to which the payment is to be applied, the
 Office will apply the payment in the following order until the payment is expended:
 

 
 (1) the basic filing fee ( 37 CFR 1.16(d) );
 

 (2) the application size fee ( 37 CFR 1.16(s) ); and 
 

 (3) the late filing surcharge ( 37 CFR 1.16(g) ).
 

 
 See also MPEP § 607 .
 

 37 CFR 1.492 specifies the required
 fees for international applications entering the national stage under 35 U.S.C. 371 . The
 basic national fee must be paid prior to the expiration of 30 months from the priority
 date to avoid abandonment of the international application as to the United States. This
 time period is not extendable. 37 CFR 1.495(a) - (b) . This is
 distinguished from U.S. national application filings under 35 U.S.C. 111(a) 
 in which the basic filing fee due on filing may be later accepted with a surcharge.
 Accordingly, in situations in which a payment of fees has been made in a national stage
 application prior to the expiration of 30 months from the priority date, but the
 applicant has not specified a sufficient amount for the payment of the basic national
 fee, the Office will apply the payment first to the basic national fee regardless of
 whether the applicant specified the fees to which the payment is to be applied.
 

 II. PAYMENT BY CREDIT CARD 37 CFR
 1.23 permits payment of any patent process fee, trademark process
 fee, or information product fee by credit card, subject to actual collection of the fee.
 The Office currently accepts charges to the following credit cards: AMERICAN EXPRESS®,
 DISCOVER®, MASTER CARD®, and VISA®. 
 

 Individual credit card payments to the Office, as well as
 multiple credit card payments made to U.S. Government entities on the same day, may not
 exceed the transaction maximum imposed by the Department of the Treasury. Effective June
 1, 2015, the credit card transaction maximum is $24,999.99 as specified in section 7045
 of the “Treasury Financial Manual.” Any credit card payment exceeding the transaction
 maximum may be rejected. This transaction maximum applies only to credit cards; there is
 no daily limit for debit cards, deposit account charges, or other forms of payment
 accepted by the Office. The currently applicable credit card transaction maximum is
 stated on the Credit Card Payment Form (PTO-2038).
 

 Credit Card Payment Form (PTO-2038) should be used when paying a patent
 process or trademark process fee (or the fee for an information product) by credit card,
 unless the payment is being made using the USPTO patent electronic filing system. The
 credit card payment form is not required (and should not be used) when making a credit
 card payment via the USPTO patent electronic filing system. Form PTO-2038 may be
 downloaded at www.uspto.gov/PatentForms . The Office will not include the Credit
 Card Payment Form (PTO-2038) among the records open to public inspection in the file of
 a patent, trademark registration, or other proceeding. The Office does not 
 require customers to use this form when paying a patent process or trademark process fee
 by credit card. If a customer provides a credit card charge authorization in another
 form or document (e.g., a communication relating to the patent or trademark), the credit
 card information may become part of the record of an Office file that is open to public
 inspection. Thus, failure to use the Credit Card Payment Form (PTO-2038) when submitting
 a credit card payment may result in the credit card information becoming part of the
 record of an Office file that is open to public inspection.
 

 35 U.S.C.
 42(d) and 37 CFR 1.26 (which concern refund of
 patent and trademark fees) also apply to requests for refund of fees paid by credit
 card. Any refund of a fee paid by credit card will be by a credit to the credit card
 account to which the fee was charged. See 37 CFR 1.26(a) .
 

 See MPEP §
 607.02 for returnability of fees.
 

 Any payment of a patent process or trademark process fee by credit card
 must be in writing (see 37 CFR 1.2 ), and preferably
 submitted via the USPTO patent electronic filing system, or if filed in paper, on the
 Credit Card Payment Form (PTO-2038). If a Credit Card Payment Form or other document
 authorizing the Office to charge a patent process or trademark process fee to a credit
 card does not contain the information necessary to charge the fee to the credit card,
 the customer must submit a revised Credit Card Payment Form or document containing the
 necessary information. Office employees will not accept oral (telephonic)
 instructions to complete the Credit Card Payment Form or otherwise charge a patent
 process or trademark process fee (as opposed to information product or service fees) to
 a credit card. 
 

 Credit card payment submissions made on the USPTO website at
 www.uspto.gov must include
 the 3-digit or 4-digit security code associated with the credit card in addition to the
 credit card number. The security code will not be required when the paper Credit Card
 Payment Form (PTO-2038) or other written authorization is submitted. 
 

 The security code is part of an authentication procedure established by
 credit card companies to further efforts towards reducing fraudulent or unauthorized
 credit card use for Internet payment transactions. The security code must be entered at
 the time of the Internet payment transaction to verify that the physical card is in the
 cardholder’s possession. The security code appears on all major credit cards and is not
 part of the credit card number itself. Each credit card company has its own name for the
 security code (such as CVV, CVV2, CVC2 or CID), but it functions the same for all major
 card types.
 

 On DISCOVER®, MASTERCARD®, and VISA® credit cards, the security codes is
 a 3-digit code that is printed on the back of the card, often following the credit card
 number digits. For AMERICAN EXPRESS® credit cards, the security code is a 4-digit code
 that is printed on the front of the cards. If you cannot read the security code, you
 will have to contact the financial institution that issued your credit card. 
 

 

 

 

 
 509.01 Deposit Accounts [R-01.2024]

 
 37 CFR 1.25 Deposit accounts. 

 
 (a) For the convenience of attorneys, and the general public in
 paying any fees due, in ordering services offered by the Office, copies of
 records, etc., deposit accounts may be established in the Patent and Trademark
 Office upon payment of the fee for establishing a deposit account
 §
 1.21(b)(1) . A minimum deposit of $1,000 is required for
 paying any fee due or in ordering any services offered by the Office. However,
 a minimum deposit of $300 may be paid to establish a restricted subscription
 deposit account used exclusively for subscription order of patent copies as
 issued. At the end of each month, a deposit account statement will be rendered.
 A remittance must be made promptly upon receipt of the statement to cover the
 value of items or services charged to the account and thus restore the account
 to its established normal deposit value. An amount sufficient to cover all
 fees, services, copies, etc., requested must always be on deposit. Charges to
 accounts with insufficient funds will not be accepted. A service charge
 ( §
 1.21(b)(2) ) will be assessed for each month that the
 balance at the end of the month is below $1,000. For restricted subscription
 deposit accounts, a service charge ( § 1.21(b)(3) ) will be
 assessed for each month that the balance at the end of the month is below
 $300.
 

 (b) Filing, issue, appeal, international-type search report,
 international application processing, international design application fees,
 petition, and post-issuance fees may be charged against these accounts if
 sufficient funds are on deposit to cover such fees. A general authorization to
 charge all fees, or only certain fees, set forth in §§ 1.16 
 through 1.18 to a deposit account containing sufficient funds
 may be filed in an individual application, either for the entire pendency of
 the application or with a particular paper filed. A general authorization to
 charge fees in an international design application set forth in
 § 1.1031 will only be effective for the transmittal fee
 ( § 1.1031(a) ). An authorization to charge fees under
 §
 1.16 in an international application entering the
 national stage under 35 U.S.C. 371 will be
 treated as an authorization to charge fees under § 1.492 .
 An authorization to charge fees set forth in § 1.18 to
 a deposit account is subject to the provisions of §
 1.311(b) . An authorization to charge to a deposit account
 the fee for a request for reexamination pursuant to § 1.510 
 or 1.913 and any other fees required in a reexamination
 proceeding in a patent may also be filed with the request for reexamination,
 and an authorization to charge to a deposit account the fee for a request for
 supplemental examination pursuant to §
 1.610 and any other fees required in a supplemental
 examination proceeding in a patent may also be filed with the request for
 supplemental examination. An authorization to charge a fee to a deposit account
 will not be considered payment of the fee on the date the authorization to
 charge the fee is effective as to the particular fee to be charged unless
 sufficient funds are present in the account to cover the fee.
 

 (c) A deposit account holder may replenish the deposit account by
 submitting a payment to the United States Patent and Trademark Office. A
 payment to replenish a deposit account must be submitted by one of the methods
 set forth in paragraphs (c)(1), (c)(2), (c)(3), or (c)(4) of this section.
 
 (1) A payment to replenish a deposit account may be submitted
 by electronic funds transfer through the Federal Reserve Fedwire System,
 which requires that the following information be provided to the deposit
 account holder’s bank or financial institution:
 
 (i) Name of the Bank, which is Treas NYC
 (Treasury New York City);
 

 (ii) Bank Routing Code, which is 021030004;

 (iii) United States Patent and Trademark Office account
 number with the Department of the Treasury, which is 13100001;
 and
 

 (iv) The deposit account holder’s company name and
 deposit account number.
 

 
 

 (2) A payment to replenish a deposit account may be submitted
 by electronic funds transfer over the Office’s Internet website
 ( www.uspto.gov ). 

 (3) A payment to replenish a deposit account may be addressed
 to: Mail Stop Deposit Accounts, Director of the United States Patent and
 Trademark Office, P.O. Box 1450, Alexandria, Virginia 22313-1450.
 

 
 

 
 

 An overdrawn account will be immediately suspended and no charges will
 be accepted against it until a proper balance is restored, together with a payment of
 $10 ( 37 CFR
 1.21(b)(1) ) to cover the work done by the U.S. Patent and
 Trademark Office incident to suspending and reinstating the account and dealing with
 charges which may have been made in the meantime.
 

 If there is an authorization to charge the basic filing fee
 ( 37 CFR 1.16(a),
 (b), (c), (d), or (e) ) to a deposit account which is overdrawn or
 has insufficient funds, a surcharge ( 37 CFR 1.16(f) ) is required in
 addition to payment of the basic filing fee ( 37 CFR 1.16(a), (b), (c), (d), or
 (e) ). For applications filed on or after July 1, 2005, which have
 been accorded a filing date under 37 CFR 1.53(b) or (d) , if there is
 an authorization to charge any of the basic filing fee, the search fee, or the
 examination fee to a deposit account which is overdrawn or has insufficient funds, a
 surcharge under 37 CFR
 1.16(f) is required in addition to payment of the required fee(s).
 Failure to timely pay the filing fee and surcharge will result in abandonment of the
 application.
 

 It is expected, however, that reasonable precautions will be taken in
 all cases to avoid overdrafts, and if an account is suspended repeatedly it will be
 closed.
 

 Similarly, because of the burden placed on the U.S. Patent and Trademark
 Office incident to the operation of deposit accounts, a charge of $10 ( 37 CFR 1.21(b)(1) )
 will be made for opening each new account.
 

 I. DEPOSIT ACCOUNT AUTHORIZATIONS 37 CFR
 1.25(b) states that: 
 

 
 A general authorization to charge all fees, or only certain fees,
 set forth in §§
 1.16 to 1.18 to a deposit account
 containing sufficient funds may be filed in an individual application, either for
 the entire pendency of the application or with respect to a particular paper
 filed.
 

 
 Authorized users for a deposit account must be listed
 in Financial Manager as authorized fee payers. Office personnel will accept obvious
 variations of the given name (first name or middle name) provided that the last or
 family name matches the authorized fee payer’s last name. Where the fee payer’s last
 name in a signed fee authorization document does not match any of the authorized fee
 payers for the deposit account which is being relied upon to pay a fee, the fee
 payment may be delayed or rejected.
 

 Many applications contain broad language authorizing
 any additional fees which might have been due to be charged
 to a deposit account. The U.S. Patent and Trademark Office will interpret such broad
 authorizations to include authorization to charge to a deposit account fees set forth
 in 37 CFR
 1.16 , and 1.17 . Fees under
 37 CFR
 1.19 , 1.20 , and 1.21 will not
 be charged as a result of a general authorization under 37 CFR 1.25 
 except to cover the processing fee under 37 CFR 1.21(m) in the event a
 check or credit card payment is refused or charged back by a financial institution.
 Fees under 37 CFR
 1.18 will not be charged as a result of a preauthorization of
 issue fee payment.
 

 An authorization to charge fees relating only to a specific paper,
 could read “The Director is hereby authorized to charge any fees under
 37 CFR
 1.16 and 1.17 which may be required by
 this paper to Deposit Account No.________.” Such an authorization would cover
 situations in which a check to cover a filing and/or a processing fee under
 37 CFR
 1.16 and 1.17 was omitted or was for an
 amount less than the amount required. An authorization covering any omission or
 deficiency in a check or credit card payment applies to the processing fee under
 37 CFR
 1.21(m) in the event a check or credit card payment is refused
 or charged back by a financial institution, regardless of whether such deposit
 account authorization is limited to other fees (e.g., fees under 37 CFR 1.16 and
 1.17 ). If a check or credit card payment for the issue fee is
 refused or charged back by a financial institution, the application may be held
 abandoned for failure to pay the issue fee within the statutory period for reply. See
 MPEP §
 1306 .
 

 It is extremely important that the authorization be clear and
 unambiguous. If applicants file authorizations which are ambiguous and deviate from
 the usual forms of authorizations, the Office may not interpret the authorizations in
 the manner applicants intend and may return the fees. As a result, applicants could
 be subject to further expenses, petitions, etc. in order to have a particular fee
 charged to a deposit account (which was not charged as intended) or to resubmit a
 fee(s) due to an ambiguous authorization.
 

 The Office will treat a deposit account authorization to charge
 
 "the filing fee"
 
 
 as an
 authorization to charge the following applicable fees under 37 CFR 1.16 :
 basic filing fee; search fee; examination fee; any excess claims fees; any
 application size fee; and any non-electronic filing fee (see 37 CFR
 1.16(t) ). The Office will treat a deposit account authorization
 to charge 
 "the basic filing
 fee"
 
 
 as an authorization to charge the following applicable
 fees under 37 CFR
 1.16 : basic filing fee; search fee; and examination fee. Any
 deposit account authorization to charge the filing fee but not the search fee or
 examination fee must specifically limit the authorization by reference to one or more
 paragraphs (a) - (e) of 37 CFR 1.16 .
 

 37 CFR
 1.25(b) provides that an authorization to charge fees under
 37 CFR
 1.16 (which relates to national application filing fees) in an
 application filed under 35 U.S.C. 371 will be treated as
 an authorization to charge fees under 37 CFR 1.492 (which relates to
 national stage fees). Papers filed for the purpose of entering the national stage
 under 35 U.S.C.
 371 and 37 CFR 1.495 that include an
 authorization to charge fees under 37 CFR 1.16 are treated by the
 Office as an authorization to charge fees under 37 CFR 1.492 since: (1) timely
 payment of the appropriate national fee under 37 CFR 1.492 is necessary to
 avoid abandonment of the application as to the United States; and (2) the basic
 filing fee under 37
 CFR 1.16 is not applicable to such papers or applications.
 

 37 CFR
 1.25(b) sets forth that fees in an international design
 application may be charged to a deposit account. A general authorization to charge
 fees in an international design application set forth in 37 CFR
 1.1031 will only be effective for the transmittal fee
 ( 37
 CFR 1.1031(a) ). The international fees set forth in
 37 CFR
 1.1031 , other than the transmittal fee set forth in
 37 CFR
 1.1031(a) , are not required to be paid to the Office as an
 office of indirect filing. See 37 CFR 1.1031(d) . 
 

 As provided in 37 CFR 1.311(b) , an authorization
 to charge the issue fee ( 37 CFR 1.18 ) to a deposit account
 may be filed in an individual application only after the mailing of the notice of
 allowance. 37 CFR
 1.25(b) also makes clear that a general authorization made
 prior to the mailing of a notice of allowance does not apply to issue fees under
 37 CFR
 1.18 . 
 

 In addition, a general authorization does not apply to document
 supply fees under 37 CFR 1.19 , such as those required for certified copies, to
 post issuance fees under 37 CFR 1.20 , such as those
 required for maintenance fees, or to miscellaneous fees and charges under
 37 CFR
 1.21 , such as assignment recording fees.
 

 II. DEPOSIT ACCOUNT REPLENISHMENTS 37 CFR
 1.25(c) specifies how a deposit account holder may submit a
 payment to the Office to replenish the deposit account. A payment to replenish a
 deposit account may be submitted by:
 

 
 (A) making the payment by electronic funds transfer through the
 Federal Reserve Fedwire System. Deposit account holders who use the Federal
 Reserve Fedwire System must provide the following information to their bank or
 financial institution: (1) Name of the Bank, which is Treas NYC (Treasury New
 York City); (2) Bank Routing Code, which is 021030004; (3) United States Patent
 and Trademark Office account number with the Department of Treasury, which is
 13100001; and (4) the deposit account holder’s company name and deposit account
 number. The deposit account holder should inform his or her bank or financial
 institution to use due care to ensure that all pertinent account numbers are
 listed on the transaction because the failure to include the proper deposit
 account number will delay the processing of the replenishment; 
 

 (B) electronic funds transfer over the Office’s Internet website
 ( www.uspto.gov );
 or
 

 (C) mailing the payment to: Mail Stop Deposit Accounts, Director of
 the United States Patent and Trademark Office, P.O. Box 1450, Alexandria,
 Virginia 22313-1450.
 

 For deposit account replenishments to be delivered
 by mail to the USPTO by a delivery service (e.g., Federal Express (FedEx), UPS,
 DHL, Laser, Action, Purolator, etc.), rather than by the United States Postal
 Service (USPS), the deposit account replenishments should be addressed to the
 Customer Service Window (see MPEP § 501 , subsection III) with
 “Mail Stop Deposit Accounts” included in the address.
 

 
 In the event a payment to replenish a deposit account is refused
 (e.g., for insufficient funds or due to a stop payment order), the fee under
 37 CFR
 1.21(m) for processing the payment refusal will be charged to
 the deposit account. Further information on deposit account replenishment may be
 obtained from the Office’s Internet website or by contacting the Deposit Account
 Division at (571) 272-6500.
 

 III. REFUNDS TO A DEPOSIT ACCOUNT For refunds to a deposit account, see
 MPEP §
 607.02 .
 

 

 
 509.02 Small Entity Status — Definitions [R-01.2024]

 Under 35 U.S.C. 41(h)(1) , fees charged under 35 U.S.C. 41(a) ,
 (b) and (d)(1) shall be reduced by 60
 percent with respect to their application to any small business concern as defined under
 section 3 of the Small Business Act, and to any independent inventor or nonprofit
 organization as defined in regulations issued by the Director. Effective March 19, 2013,
 the availability of the small entity discount was extended to certain other fees not
 contained in 35 U.S.C.
 41(a) , (b) and (d)(1) , but which
 are included among fees “for filing, searching, examining, issuing, appealing, and
 maintaining patent applications and patents” as authorized by the Leahy-Smith America
 Invents Act (AIA), Public Law 112-29, sec. 10(b), 125 Stat. 284 (September 16, 2011).
 Effective January 1, 2014, the small entity discount also became available to certain
 “filing, searching, [and] examining” fees for international applications under the
 Patent Cooperation Treaty (PCT). Effective December 29, 2022, the small entity discount
 was increased from 50 percent to 60 percent for most fees by the Unleashing American
 Innovators Act of 2022, Public Law 117-328, division W, sec. 107, 136 Stat. 4459
 (December 29, 2022). Note that if applicant qualifies as a small entity under
 37 CFR
 1.27 , applicant may also qualify for “Micro Entity Status” under
 35 U.S.C.
 123 . See 37 CFR 1.29 and
 MPEP §
 509.04 et seq. for the requirements to establish micro entity status for the
 purpose of paying micro entity fees.
 

 As of December 29. 2022, the following fees are reduced by 60 percent
 for small entities: patent application filing fees including the basic filing fee,
 search fee, examination fee, application size fee, and excess claims fees
 ( 37 CFR
 1.16 ); extension of time fees, revival fees, certain petition
 fees, and the fee for submitting an information disclosure statement in certain time
 frames ( 37 CFR 1.17 ); patent issue fees ( 37 CFR 1.18 );
 maintenance fees on patents and request for reexamination fees ( 37 CFR 1.20 ); and
 appeals fees ( 37 CFR
 41.20 ). The increase in the small entity discount for the search
 fee and the supplemental search fee for international applications under the PCT applies
 to applications having a receipt date on or after April 1, 2023 ( 37 CFR 1.445(a)(2) 
 and (a)(3) ). Additionally, the increase in the small entity discount
 for the late furnishing of a sequence listing fee ( 37 CFR
 1.445(a)(5) ) and the international preliminary examination and
 processing fees for international applications under the PCT ( 37 CFR 1.482(a) )
 became effective on April 1, 2023. The increase in the small entity discount fee for
 international design applications under the Hague Agreement applies to applications
 having a date of international registration on or after May 1, 2023 ( 37 CFR
 1.18(b)(1) ).
 

 Fees which are not reduced include document supply fees
 ( 37 CFR
 1.19 ), certificate of correction fees ( 37 CFR 1.20(a) ),
 and most miscellaneous fees and charges ( 37 CFR 1.21 ), fees for lengthy
 sequence listings under 37 CFR 1.21(o) are reduced. There is
 only one fee for which a small entity discount was offered prior to March 19, 2013 that
 is now ineligible for a small entity discount – the fee for a statutory disclaimer under
 37 CFR
 1.20(d) .
 

 The Consolidated Appropriations Act, 2005, provides that the filing fee
 charged under 35
 U.S.C. 41(a)(1)(A) shall be reduced by 75 percent with respect to
 its application to any small entity 
 "if the
 application is filed by electronic means as prescribed by the
 Director"
 
 
 ( 35 U.S.C. 41(h)(3) ). This fee
 reduction was increased to 80 percent in the Unleashing American Innovators Act of 2022.
 Therefore, the filing fee for a nonprovisional original utility application filed on or
 after December 29, 2022 by a small entity in compliance with the USPTO patent electronic
 filing system is reduced by 80 percent. See 37 CFR 1.16(a) . The 80 percent
 reduction set forth in 35 U.S.C. 41(h)(3) does not apply to design applications, plant
 applications, reissue applications, or provisional applications.
 

 35 U.S.C.
 41(h)(1) gives the Director the authority to establish regulations
 defining independent inventors and nonprofit organizations. The Small Business
 Administration was given authority to establish the definition of a small business
 concern. A small entity for purposes of paying reduced fees is defined in
 37 CFR
 1.27(a) as a person, a small business concern, or a nonprofit
 organization. The term “person” rather than “independent inventor” is used since
 individuals who are not inventors but who have received some rights in the invention are
 intended to be covered by 37 CFR 1.27 .
 

 
 37 CFR 1.27 Definition of small entities and establishing status as a small entity to
 permit payment of small entity fees; when a determination of entitlement to small
 entity status and notification of loss of entitlement to small entity status are
 required; fraud on the Office. 

 
 (a) Definition of small entities. A small entity as used in this
 chapter means any party (person, small business concern, or nonprofit
 organization) under paragraphs (a)(1) through (a)(3) of this section.
 
 (1) Person. A person, as used in paragraph (c) of this
 section, means any inventor or other individual ( e.g., 
 an individual to whom an inventor has transferred some rights in the
 invention) who has not assigned, granted, conveyed, or licensed, and is
 under no obligation under contract or law to assign, grant, convey, or
 license, any rights in the invention. An inventor or other individual who
 has transferred some rights in the invention to one or more parties, or
 is under an obligation to transfer some rights in the invention to one or
 more parties, can also qualify for small entity status if all the parties
 who have had rights in the invention transferred to them also qualify for
 small entity status either as a person, small business concern, or
 nonprofit organization under this section.
 

 (2) Small business concern. A small business concern, as
 used in paragraph (c) of this section, means any business concern
 that:
 
 (i) Has not assigned, granted, conveyed,
 or licensed, and is under no obligation under contract or law to
 assign, grant, convey, or license, any rights in the invention to
 any person, concern, or organization which would not qualify for
 small entity status as a person, small business concern, or
 nonprofit organization; and
 

 (ii) Meets the size standards set forth in
 13 CFR 121.801 through 121.805 to be eligible for reduced patent
 fees. Questions related to standards for a small business concern
 may be directed to: Small Business Administration, Size Standards
 Staff, 409 Third Street, SW., Washington, DC 20416.
 

 
 

 (3) Nonprofit Organization. A nonprofit organization, as
 used in paragraph (c) of this section, means any nonprofit organization
 that:
 
 (i) Has not assigned, granted, conveyed, or
 licensed, and is under no obligation under contract or law to
 assign, grant, convey, or license, any rights in the invention to
 any person, concern, or organization which would not qualify as a
 person, small business concern, or a nonprofit organization;
 and
 

 (ii) Is either:
 
 (A) A university or other institution of higher
 education located in any country;
 

 (B) An organization of the type described in
 section 501(c)(3) of the Internal Revenue Code of 19 86 (26
 U.S.C. 501(c)(3)) and exempt from taxation under section
 501(a) of the Internal Revenue Code (26 U.S.C. 501(a));
 

 (C) Any nonprofit scientific or educational
 organization qualified under a nonprofit organization statute
 of a state of this country ( 35 U.S.C.
 201(i) ); or
 

 (D) Any nonprofit organization located in a
 foreign country which would qualify as a nonprofit
 organization under paragraphs (a)(3)(ii)(B) of this section
 or (a)(3)(ii)(C) of this section if it were located in this
 country.
 

 
 

 
 

 (4) Federal Government Use License Exceptions. In a patent
 application filed, prosecuted, and if patented, maintained at no expense
 to the Government, with the exception of any expense taken to deliver the
 application and fees to the Office on behalf of the applicant: 
 
 (i) For persons under paragraph (a)(1)
 of this section, claiming small entity status is not prohibited
 by:
 
 (A) A use license to the
 Government resulting from a rights determination under
 Executive Order 10096 made in accordance with §501.60 of this
 title;
 

 (B) A use license to the
 Government resulting from Federal agency action pursuant to
 15 U.S.C. 3710d(a) allowing the Federal employee-inventor to
 obtain or retain title to the invention; or 
 

 (C) A use license to a Federal
 agency resulting from retention of rights under
 35 U.S.C.
 202(d) by an inventor employed by a
 small business concern or nonprofit organization contractor,
 provided the license is equivalent to the license under
 35 U.S.C.
 202(c)(4) the Federal agency would have
 received had the contractor elected to retain title, and all
 the conditions applicable under § 401.9 of this title to an
 employee/ inventor are met. 
 

 
 

 (ii) For small business concerns and
 nonprofit organizations under paragraphs (a)(2) and (3) of this
 section, a use license to a Federal agency resulting from a funding
 agreement with that agency pursuant to 35 U.S.C.
 202(c)(4) does not preclude claiming small
 entity status, provided that:.
 
 (A) The subject invention was made
 solely by employees of the small business concern or
 nonprofit organization; or
 

 (B) In the case of a Federal
 employee co-inventor, the Federal agency employing such
 co-inventor took action pursuant to 35 U.S.C.
 202(e)(1) to exclusively license or
 assign whatever rights currently held or that it may acquire
 in the subject invention to the small business concern or
 nonprofit organization, subject to the license under
 35 U.S.C.
 202(c)(4) . 
 

 
 

 (iii) For small business concerns and
 nonprofit organizations under paragraphs (a)(2) and (3) of this
 section that have collaborated with a Federal agency laboratory
 pursuant to a cooperative research and development agreement
 (CRADA) under 15 U.S.C. 3710a(a)(1), claiming small entity status
 is not prohibited by a use license to the Government pursuant
 to:
 
 (A) 15 U.S.C. 3710a(b)(2) that
 results from retaining title to an invention made solely by
 the employee of the small business concern or nonprofit
 organization; or 
 

 (B) 15 U.S.C. 3710a(b)(3)(D),
 provided the laboratory has waived in whole any right of
 ownership the Government may have to the subject invention
 made by the small business concern or nonprofit organization,
 or has exclusively licensed whatever ownership rights the
 Government may acquire in the subject invention to the small
 business concern or nonprofit organization. 
 

 
 

 (iv) ) Regardless of whether an exception
 under this paragraph (a)(4) applies, no refund under
 § 1.28(a) is
 available for any patent fee paid by the Government. 
 

 
 

 (5) Security Interest. A security interest does not
 involve an obligation to transfer rights in the invention for the
 purposes of paragraphs (a)(1) through (a)(3) of this section unless the
 security interest is defaulted upon.
 

 
 

 
 *****

 
 I. PERSON 37 CFR
 1.27(a)(1) defines a person as any inventor or other individual
 (e.g., an individual to whom an inventor has transferred some rights in the
 invention), who has not assigned, granted, conveyed, or licensed, and is under no
 obligation under contract or law to assign, grant, convey, or license, any rights in
 the invention. An inventor or other individual who has transferred some rights, or is
 under an obligation to transfer some rights in the invention to one or more parties,
 can also qualify for small entity status if all the parties who have had rights in
 the invention transferred to them also qualify for small entity status either as a
 person, small business concern, or nonprofit organization.
 

 II. SMALL BUSINESS CONCERN In order to be eligible for reduced patent fees as a “small business
 concern” under 37
 CFR 1.27(a)(2) , a business concern must meet the standards set
 forth in 13 CFR 121.801 through 121.805. Questions relating to standards for a small
 business concern may be directed to:
 

 Small Business Administration 
Office of Size Standards 
409 Third Street, S.W.
Washington, DC 20416
(202)205-6618
Email: sizestandards@sba.gov

 III. NONPROFIT ORGANIZATIONS 37 CFR
 1.27(a)(3) defines a nonprofit organization by utilizing and
 interpreting the definition contained in 35 U.S.C. 201(i) . The term
 “university or other institution of higher education” as used in 37 CFR
 1.27(a)(3)(ii)(A) means an educational institution which 
 

 
 (A) admits as regular students only persons having a certificate of
 graduation from a school providing secondary education, or the recognized
 equivalent of such a certificate, 
 

 (B) is legally authorized within the jurisdiction in which it
 operates to provide a program of education beyond secondary education, 
 

 (C) provides an educational program for which it awards a
 bachelor’s degree or provides not less than a 2-year program which is
 acceptable for full credit toward such a degree, 
 

 (D) is a public or other nonprofit institution, and 

 (E) is accredited by a nationally recognized accrediting agency or
 association, or if not so accredited, is an institution that has been granted
 preaccreditation status by such agency or association that has been recognized
 by the Secretary for the granting of preaccreditation status, and the Secretary
 has determined that there is satisfactory assurance that the institution will
 meet the accreditation standards of such an agency or association within a
 reasonable time. 
 

 
 The definition of “university or other institution of higher
 education” as set forth herein essentially follows the definition of “institution of
 higher education” contained in 20 U.S.C. 1000. Institutions which are strictly
 research facilities, manufacturing facilities, service organizations, etc., are not
 intended to be included within the term “other institution of higher education” even
 though such institutions may perform an educational function or publish the results
 of their work.
 

 Nonprofit organizations also include organizations of the type
 described in section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C.
 501(c)(3)) and which are exempt from taxation under 26 U.S.C. 501(a). Organizations
 described in 26 U.S.C. 501(c)(3) include corporations, and any community chest, fund,
 or foundation, organized and operated exclusively for religious, charitable,
 scientific, testing for public safety, literary, or educational purposes, or to
 foster national or international amateur sports competition (but only if no part of
 its activities involve the provision of athletic facilities or equipment), or for the
 prevention of cruelty to children or animals, no part of the net earnings of which
 inures to the benefit of any private shareholder or individual, no substantial part
 of the activities of which is carrying on propaganda, or otherwise attempting to
 influence legislation (limited exceptions may apply under 26 U.S.C. 501(h)) and which
 does not participate in, or intervene in (including the publishing or distributing of
 statements), any political campaign on behalf of (or in opposition to) any candidate
 for public office. 
 

 IV. LOCATION OF SMALL ENTITY Small entities may claim reduced fees regardless of the country in
 which they are located. There is no restriction requiring that the person, small
 business concern, or nonprofit organization be located in the United States. The same
 definitions apply to all applicants equally in accordance with the Paris Convention
 for the Protection of Industrial Property.
 

 V. RIGHTS IN THE INVENTION AND TRANSFER OF RIGHTS The “rights in the invention” under 37 CFR 1.27(a)(1), (a)(2)(i), and
 (a)(3)(i) are the rights in the United States. Rights in the
 invention include the right to exclude others from making, using, offering for sale,
 or selling the invention throughout the United States or importing the invention into
 the United States. Therefore, for example, status as a small entity is lost by an
 inventor who has transferred or has an obligation to transfer a shop right to an
 employer who could not qualify as a small entity.
 

 Individual inventors ( 37 CFR 1.27(a)(1) ), small
 business concerns ( 37 CFR 1.27(a)(2) ), and nonprofit organizations
 ( 37 CFR
 1.27(a)(3) ) can make an assignment, grant, conveyance, or
 license of partial rights in the invention to another individual(s), small business
 concern, or nonprofit organization who could qualify as a person ( 37 CFR
 1.27(a)(1) ), small business concern, or nonprofit organization.
 Under the circumstances described, the individual inventor, small business concern,
 or nonprofit organization could still qualify for small entity status. However, 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.
 

 With regard to transfer of rights in the invention, the rights in
 question are those in the United States to be covered by an application or patent.
 Transfer of rights to a Japanese patent, for example, would not affect small entity
 status if no rights in the United States to a corresponding patent were likewise
 transferred.
 

 The payment of reduced fees under 35 U.S.C. 41 is limited to those
 situations in which all of the rights in the invention are owned by small entities,
 i.e., persons, small business concerns, or nonprofit organizations. To do otherwise
 would be clearly contrary to the intended purpose of the legislation which contains
 no indication that fees are to be reduced in circumstances where rights are owned by
 non-small entities. For example, a non-small entity is not permitted to transfer
 patent rights to a small business concern which would pay the reduced fees and grant
 a license to the entity.
 

 If rights transferred to a non-small entity are later returned to a
 small entity so that all rights are held by small entities, reduced fees may be
 claimed.
 

 The term “license” in the definitions includes nonexclusive as well
 as exclusive licenses and royalty free as well as royalty generating licenses.
 Implied licenses to use and resell patented articles purchased from a small entity,
 however, will not preclude the proper claiming of small entity status. Likewise, an
 order by an applicant to a firm to build a prototype machine or product for the
 applicant’s own use is not considered to constitute a license for purposes of the
 definitions. A grant of a non-exclusive license to a non-small entity will disqualify
 applicant from claiming small entity status. See Ulead Systems, Inc. v. Lex
 Computer & Management Corp., 351 F.3d 1139, 1142, 69 USPQ2d 1097,
 1099 (Fed. Cir. 2003).
 

 A security interest does not involve an obligation to transfer rights
 in the invention for the purposes of 37 CFR 1.27(a)(1) through (a)(3) 
 unless the security interest is defaulted upon. See 37 CFR
 1.27(a)(5) . For example, an applicant or patentee may take out
 a loan from a large entity banking institution and the loan may be secured with
 rights in a patent application or patent of the applicant or patentee, respectively.
 The granting of such a security interest to the banking institution is not a
 currently enforceable obligation to assign, grant, convey, or license any rights in
 the invention to the banking institution. Only if the loan is defaulted upon will the
 security interest permit a transfer of rights in the application or patent to the
 banking institution. Thus, where the banking institution is a large entity, the
 applicant or patentee would not be prohibited from claiming small entity status
 merely because the banking institution has been granted a security interest, but if
 the loan is defaulted upon, there would be a loss of entitlement to small entity
 status. Pursuant to 37 CFR 1.27(g) , notification of the loss of entitlement due to
 default on the terms of the security interest would need to be filed in the
 application or patent prior to paying, or at the time of paying, the earliest of the
 issue fee or any maintenance fee due after the date on which small entity status is
 no longer appropriate. See MPEP § 509.03(b) , subsection I.
 

 Once small entity status is established in an
 application or patent, fees as a small entity may thereafter be paid in that
 application or patent without regard to a change in status until the issue fee is due
 or any maintenance fee is due. 37 CFR 1.27(g)(1) .
 37 CFR
 1.27(g)(2) requires that notification of any change in status
 resulting in loss of entitlement to small entity status be filed in the application
 or patent prior to paying, or at the time of paying, the earliest of the issue fee or
 any maintenance fee due after the date on which status as a small entity is no longer
 appropriate. 37
 CFR 1.27(g)(2) also requires that the notification of loss of
 entitlement to small entity status be in the form of a specific written assertion to
 that extent, rather than only payment of a non-small entity fee. For example, when
 paying the issue fee in an application that has previously been accorded small entity
 status and the required new determination of continued entitlement to small entity
 status reveals that status has been lost, applicant should not just simply pay the
 non-small entity issue fee or cross out the recitation of small entity status on Part
 B of the Notice of Allowance and Fee(s) Due (PTOL-85), but should (A) check the
 appropriate box on Part B of the PTOL-85 form to indicate that there has been a
 change in entity status and applicant is no longer claiming small entity status, and
 (B) pay the fee amount for a non-small entity.
 

 VI. RIGHTS HELD BY GOVERNMENT ORGANIZATIONS Although the Federal government agencies do not qualify as nonprofit
 organizations for paying reduced fees under the rules, a license to a Federal agency
 resulting from a funding agreement with the agency pursuant to 35 U.S.C.
 202(c)(4) will not preclude the proper claiming of small entity
 status. See 37
 CFR 1.27(a)(4)(ii) , which provides that:
 

 
 “For small business concerns and nonprofit
 organizations under paragraphs (a)(2) and (3) of this section, a use license to a
 Federal agency resulting from a funding agreement with that agency pursuant to
 35 U.S.C.
 202(c)(4) does not preclude claiming small entity status,
 provided that:
 

 
 (A) The subject invention was made solely by
 employees of the small business concern or nonprofit organization; or 
 

 (B) In the case of a Federal employee
 co-inventor, the Federal agency employing such co-inventor took action
 pursuant to 35 U.S.C. 202(e)(1) to exclusively license or assign whatever
 rights currently held or that it may acquire in the subject invention to the
 small business concern or nonprofit organization, subject to the license
 under 35
 U.S.C. 202(c)(4) .” 
 

 
 
 In addition, regarding a government use license
 arising from an obligation under a cooperative research and development agreement
 (CRADA) with a Federal Agency pursuant to 15 U.S.C. 3710a(b), 37 CFR
 1.27(a)(4)(iii) provides that:
 

 
 “For small business concerns and nonprofit
 organizations under paragraphs (a)(2) and (3) of this section that have
 collaborated with a Federal agency laboratory pursuant to a cooperative research
 and development agreement (CRADA) under 15 U.S.C. 3710a(a)(1), claiming small
 entity status is not prohibited by a use license to the Government pursuant to: 
 

 
 (A) (A) 15 U.S.C. 3710a(b)(2) that results from
 retaining title to an invention made solely by the employee of the small
 business concern or nonprofit organization; or 
 

 (B) (B) 15 U.S.C. 3710a(b)(3)(D), provided the
 laboratory has waived in whole any right of ownership the Government may
 have to the subject invention made by the small business concern or
 nonprofit organization, or has exclusively licensed whatever ownership
 rights the Government may acquire in the subject invention to the small
 business concern or nonprofit organization.”
 

 
 
 Furthermore, as provided in 37 CFR
 1.27(a)(4)(i) , the following situations do not constitute a
 license so as to prohibit claiming small entity status by a person under
 37 CFR
 1.27(a)(1) :
 

 
 1. a use license to the Government resulting from a
 rights determination under Executive Order 10096 , made in accordance with 35
 U.S.C. 501.6; 
 

 2. a use license to the Government resulting from
 Federal agency action pursuant to 15 U.S.C. 3710d(a) allowing the Federal
 employee inventor to obtain or retain title to the invention; or 
 

 3. a use license to a Federal agency resulting from
 retention of rights by the inventor under 35 U.S.C. 202(d) , provided
 the conditions under 35 U.S.C. 401.9 for retention of rights by an inventor
 employed by a small business concern or nonprofit organization contractor are
 met, and the license is equivalent to the license the Federal agency would have
 received had the contractor elected to retain title 
 

 
 Government organizations as such, whether domestic or foreign, cannot
 qualify as nonprofit organizations as defined in 37 CFR 1.27(a)(3) . Thus, for
 example, a government research facility or other government-owned corporation could
 not qualify. 37 CFR
 1.27(a)(3) was based upon 35 U.S.C. 201(i) , as established
 by Public Law 96-517. The limitation to “an organization of the type described in
 section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) and
 exempt from taxation under section 501(a) of the Internal Revenue Code (26 U.S.C.
 501(a))” would by its nature exclude the U.S. government and its agencies and
 facilities, including research facilities and government corporations. State and
 foreign governments and governmental agencies and facilities would be similarly
 excluded. 37 CFR
 1.27(a)(3) is not intended to include within the definition of
 a nonprofit organization government organizations of any kind located in any country.
 A university or other institution of higher education located in any country would
 qualify, however, as a “nonprofit organization” under 37 CFR
 1.27(a)(3) even though it has some government affiliation since
 such institutions are specifically included.
 

 A wholly owned subsidiary of a nonprofit organization or of a
 university is considered a part of the nonprofit organization or university and is
 not precluded from qualifying for small entity status. 
 

 

 
 509.03 Claiming Small Entity Status [R-01.2024]

 
 37 CFR 1.27 Definition of small entities and establishing status as a small entity to
 permit payment of small entity fees; when a determination of entitlement to small
 entity status and notification of loss of entitlement to small entity status are
 required; fraud on the Office. 

 *****

 
 (b) Establishment of small entity status permits payment of reduced
 fees. 
 (1) A small entity, as defined in paragraph (a)
 of this section, who has properly asserted entitlement to small entity
 status pursuant to paragraph (c) of this section will be accorded small
 entity status by the Office in the particular application or patent in
 which entitlement to small entity status was asserted. Establishment of
 small entity status allows the payment of certain reduced patent fees
 pursuant to 35 U.S.C.
 41(h)(1) .
 

 (2) Submission of an original utility
 application in compliance with the USPTO patent electronic filing system
 by an applicant who has properly asserted entitlement to small entity
 status pursuant to paragraph (c) of this section in that application
 allows the payment of a reduced filing fee pursuant to 35 U.S.C.
 41(h)(3) .
 

 
 

 
 
 (c) Assertion of small entity status. Any party (person, small
 business concern or nonprofit organization) should make a determination,
 pursuant to paragraph (f) of this section, of entitlement to be accorded small
 entity status based on the definitions set forth in paragraph (a) of this
 section, and must, in order to establish small entity status for the purpose of
 paying small entity fees, actually make an assertion of entitlement to small
 entity status, in the manner set forth in paragraphs (c)(1) or (c)(3) of this
 section, in the application or patent in which such small entity fees are to be
 paid.
 
 (1) Assertion by writing. Small entity status
 may be established by a written assertion of entitlement to small entity
 status. A written assertion must:
 
 (i) Be clearly identifiable;

 (ii) Be signed (see paragraph (c)(2) of
 this section); and
 

 (iii) Convey the concept of entitlement to
 small entity status, such as by stating that applicant is a small
 entity, or that small entity status is entitled to be asserted for
 the application or patent. While no specific words or wording are
 required to assert small entity status, the intent to assert small
 entity status must be clearly indicated in order to comply with the
 assertion requirement.
 

 
 

 
 

 
 *****

 
 
 
 
 
 (3) Assertion by payment of the small entity basic filing,
 basic transmittal, basic national fee, international search fee,
 or individual designation fee in an international design
 application. The payment, by any party, of the exact
 amount of one of the small entity basic filing fees set forth in
 § 1.16(a), (b), (c), (d), or
 (e) , the small entity transmittal fee set
 forth in § 1.445(a)(1) 
 or § 1.1031(a) ,
 the small entity international search fee set forth in
 § 1.445(a)(2) 
 to a Receiving Office other than the United States Receiving Office
 in the exact amount established for that Receiving Office pursuant
 to PCT Rule 16 , or
 the small entity basic national fee set forth in §
 1.492(a) , will be treated as a written
 assertion of entitlement to small entity status even if the type of
 basic filing, basic transmittal, or basic national fee is
 inadvertently selected in error. The payment, by any party, of the
 small entity first part of the individual designation fee for the
 United States to the International Bureau ( §
 1.1031 ) will be treated as a written
 assertion of entitlement to small entity status.
 
 (i) If the Office accords small
 entity status based on payment of a small entity basic filing
 or basic national fee under paragraph (c)(3) of this section
 that is not applicable to that application, any balance of
 the small entity fee that is applicable to that application
 will be due along with the appropriate surcharge set forth in
 §
 1.16(f) , or §
 1.16(g). 

 (ii) The payment of any small entity
 fee other than those set forth in paragraph (c)(3) of this
 section (whether in the exact fee amount or not) will not be
 treated as a written assertion of entitlement to small entity
 status and will not be sufficient to establish small entity
 status in an application or a patent.
 

 
 

 
 
 (4) Assertion required in related, continuing, and reissue
 applications. Status as a small entity must be
 specifically established by an assertion in each related,
 continuing and reissue application in which status is appropriate
 and desired. Status as a small entity in one application or patent
 does not affect the status of any other application or patent,
 regardless of the relationship of the applications or patents. The
 refiling of an application under §
 1.53 as a continuation, divisional, or
 continuation-in-part application (including a continued prosecution
 application under § 1.53(d)) , or
 the filing of a reissue application, requires a new assertion as to
 continued entitlement to small entity status for the continuing or
 reissue application.
 

 
 

 
 

 
 
 (d) When small entity fees can be paid. Any fee,
 other than the small entity basic filing fees and the small entity national
 fees of paragraph (c)(3) of this section, can be paid in the small entity
 amount only if it is submitted with, or subsequent to, the submission of a
 written assertion of entitlement to small entity status, except when refunds
 are permitted by § 1.28(a) .
 

 (e) Only one assertion required. 
 (1) An assertion of small entity status need
 only be filed once in an application or patent. Small entity status, once
 established, remains in effect until changed pursuant to paragraph (g)(1)
 of this section. Where an assignment of rights or an obligation to assign
 rights to other parties who are small entities occurs subsequent to an
 assertion of small entity status, a second assertion is not required.
 

 (2) Once small entity status is withdrawn
 pursuant to paragraph (g)(2) of this section, a new written assertion is
 required to again obtain small entity status.
 

 (f) Assertion requires a determination of entitlement to pay small
 entity fees. Prior to submitting an assertion of entitlement
 to small entity status in an application, including a related,
 continuing, or reissue application, a determination of such entitlement
 should be made pursuant to the requirements of paragraph (a) of this
 section. It should be determined that all parties holding rights in the
 invention qualify for small entity status. The Office will generally not
 question any assertion of small entity status that is made in accordance
 with the requirements of this section, but note paragraph (h) of this
 section.
 

 
 

 (g)
 
 (1) New determination of entitlement to small entity status is
 needed when issue and maintenance fees are due. Once status
 as a small entity has been established in an application or patent, fees
 as a small entity may thereafter be paid in that application or patent
 without regard to a change in status until the issue fee is due or any
 maintenance fee is due.
 

 (2) Notification of loss of entitlement to small entity status is
 required when issue and maintenance fees are due. 
 Notification of a loss of entitlement to small entity status must be
 filed in the application or patent prior to paying, or at the time of
 paying, the earliest of the issue fee or any maintenance fee due after
 the date on which status as a small entity as defined in paragraph (a) of
 this section is no longer appropriate. The notification that small entity
 status is no longer appropriate must be signed by a party identified in
 §
 1.33(b) . Payment of a fee in other than the small
 entity amount is not sufficient notification that small entity status is
 no longer appropriate.
 

 
 

 (h) Fraud attempted or practiced on the Office. 
 (1) Any attempt to fraudulently establish
 status as a small entity, or pay fees as a small entity, shall be
 considered as a fraud practiced or attempted on the Office.
 

 (2) Improperly, and with intent to deceive,
 establishing status as a small entity, or paying fees as a small entity,
 shall be considered as a fraud practiced or attempted on the Office.
 

 
 

 
 

 
 37 CFR 1.4 Nature of correspondence and signature requirements. 

 *****

 
 (d)
 
 *****

 (4) Certifications. 
 (i) Certification as to the paper
 presented. The presentation to the Office (whether by signing,
 filing, submitting, or later advocating) of any paper by a party,
 whether a practitioner or non-practitioner, constitutes a
 certification under § 11.18(b) of
 this subchapter. Violations of § 11.18(b)(2) 
 of this subchapter by a party, whether a practitioner or
 non-practitioner, may result in the imposition of sanctions under
 § 11.18(c) of
 this subchapter. Any practitioner violating §
 11.18(b) of this subchapter may also be
 subject to disciplinary action. See §
 11.18(d) of this subchapter.
 

 (ii) Certification as to the signature.
 The person inserting a signature under paragraph (d)(2) or (d)(3)
 of this section in a document submitted to the Office certifies
 that the inserted signature appearing in the document is his or her
 own signature. A person submitting a document signed by another
 under paragraph (d)(2) or (d)(3) of this section is obligated to
 have a reasonable basis to believe that the person whose signature
 is present on the document was actually inserted by that person,
 and should retain evidence of authenticity of the signature.
 Violations of the certification as to the signature of another or a
 person’s own signature as set forth in this paragraph may result in
 the imposition of sanctions under § 11.18(c) and
 (d) of this chapter.
 

 
 

 
 

 
 *****

 

 
 37 CFR 11.18 Signature and certificate for correspondence filed in the Office. 

 *****

 
 (b) By presenting to the Office or hearing officer in a
 disciplinary proceeding (whether by signing, filing, submitting, or later
 advocating) any paper, the party presenting such paper, whether a practitioner
 or non-practitioner, is certifying that— 
 
 (1) All statements made therein of the party’s own knowledge
 are true, all statements made therein on information and belief are
 believed to be true, and all statements made therein are made with the
 knowledge that whoever, in any matter within the jurisdiction of the
 Office, knowingly and willfully falsifies, conceals, or covers up by any
 trick, scheme, or device a material fact, or knowingly and willfully
 makes any false, fictitious, or fraudulent statements or representations,
 or knowingly and willfully makes or uses any false writing or document
 knowing the same to contain any false, fictitious, or fraudulent
 statement or entry, shall be subject to the penalties set forth under
 18
 U.S.C. 1001 and any other applicable criminal
 statute, and violations of the provisions of this section may jeopardize
 the probative value of the paper; and 
 

 (2) To the best of the party’s knowledge, information and
 belief, formed after an inquiry reasonable under the circumstances, 
 
 (i) The paper is not being presented for any improper
 purpose, such as to harass someone or to cause unnecessary delay or
 needless increase in the cost of any proceeding before the Office;
 
 

 (ii) The other legal contentions therein are warranted
 by existing law or by a nonfrivolous argument for the extension,
 modification, or reversal of existing law or the establishment of
 new law; 
 

 (iii) The allegations and other factual contentions have
 evidentiary support or, if specifically so identified, are likely
 to have evidentiary support after a reasonable opportunity for
 further investigation or discovery; and 
 

 (iv) The denials of factual contentions are warranted on
 the evidence, or if specifically so identified, are reasonably
 based on a lack of information or belief. 
 

 
 

 
 

 
 *****

 

 In order to establish small entity status for the purpose of paying
 small entity fees, any party (person, small business concern or nonprofit organization)
 must make an assertion of entitlement to small entity status in the manner set forth in
 37 CFR
 1.27(c)(1) or (c)(3) , in the application or patent
 in which such small entity fees are to be paid. Under 37 CFR 1.27 , as
 long as all of the rights remain in small entities, the fees established for a small
 entity can be paid. This includes circumstances where the rights were divided between a
 person, a small business concern, and a nonprofit organization, or any combination
 thereof.
 

 Under 37 CFR 1.4(d)(4) , an assertion of entitlement to small entity
 status, including the mere payment of an exact small entity basic filing fee, inherently
 contains a certification under 37 CFR 11.18(b) . It is not required
 that an assertion of entitlement to small entity status be filed with each fee paid.
 Rather, once status as a small entity has been established in an application or patent,
 fees as a small entity may thereafter be paid in that application or patent without
 regard to a change in status until the issue fee is due or any maintenance fee is due.
 37 CFR
 1.27(g)(1) . Notification of a loss of entitlement to small entity
 status must be filed in the application or patent prior to paying, or at the time of
 paying, the earliest of the issue fee or any maintenance fee due after the date on which
 status as a small entity is no longer appropriate. 37 CFR 1.27(g)(2) .
 

 Status as a small entity may be established in a provisional application
 by complying with 37
 CFR 1.27 .
 

 Status as a small entity must be specifically established in each
 application or patent in which the status is available and desired. Status as a small
 entity in one application or patent does not affect any other application or patent,
 including applications or patents which are directly or indirectly dependent upon the
 application or patent in which the status has been established. The filing of an
 application under 37
 CFR 1.53 as a continuation-in-part, continuation or division
 (including a continued prosecution application under 37 CFR 1.53(d) for design
 applications), or the filing of a reissue application requires a new assertion as to
 continued entitlement to small entity status for the continuing or reissue application.
 Submission of a request for continued examination (RCE) under 37 CFR 1.114 does
 not require a new determination or assertion of entitlement to small entity status since
 it is not a new application.
 

 Examiners may use the following form paragraph to notify applicant that
 they may qualify for small entity status.
 

 ¶ 5.05 Small Entity Status

 This application may qualify for “Small Entity Status” and, therefore,
 applicant may be entitled to the payment of reduced fees. In order to establish small entity
 status for the purpose of paying small entity fees, applicant must make a determination of
 entitlement to small entity status under 37 CFR 1.27(f) and make an assertion of
 entitlement to small entity status in the manner set forth in 37 CFR 1.27(c)(1) or
 37 CFR
 1.27(c)(3) . Accordingly, if applicant meets the requirements of
 37 CFR
 1.27(a) , applicant must submit a written assertion of entitlement to
 small entity status under 37
 CFR 1.27(c) before fees can be paid in the small entity amount. See
 37 CFR
 1.27(d) . The assertion must be signed, clearly identifiable, and convey
 the concept of entitlement to small entity status. See 37 CFR 1.27(c)(1) . No particular form is
 required. If applicant qualifies as a small entity under 37 CFR 1.27 ,
 applicant may also qualify for “Micro Entity Status” under 35 U.S.C. 123 .
 See 37 CFR
 1.29 for the requirements to establish micro entity status for the
 purpose of paying micro entity fees.
 

 
 I. ASSERTION BY WRITING Small entity status may be established by the submission of a simple
 written assertion of entitlement to small entity status. The assertion must be
 signed, clearly identifiable, and convey the concept of entitlement to small entity
 status. 37 CFR
 1.27(c)(1) . The written assertion is not required to be
 presented in any particular form. Written assertions of small entity status or
 references to small entity fees will be liberally interpreted to represent the
 required assertion. The written assertion can be made in any paper filed in or with
 the application and need be no more than a simple sentence or a box checked on an
 application transmittal letter. 
 

 II. PARTIES WHO CAN ASSERT AND SIGN AN ENTITLEMENT TO SMALL ENTITY STATUS BY
 WRITING 

 A. Applications Filed On or After September 16, 2012 
 37 CFR 1.27 Definition of small entities and establishing status as a small entity
 to permit payment of small entity fees; when a determination of entitlement to
 small entity status and notification of loss of entitlement to small entity
 status are required; fraud on the Office. 

 *****

 
 (c) Assertion of small entity status. Any party
 (person, small business concern or nonprofit organization) should make a
 determination, pursuant to paragraph (f) of this section, of entitlement
 to be accorded small entity status based on the definitions set forth in
 paragraph (a) of this section, and must, in order to establish small
 entity status for the purpose of paying small entity fees, actually make
 an assertion of entitlement to small entity status, in the manner set
 forth in paragraphs (c)(1) or (c)(3) of this section, in the application
 or patent in which such small entity fees are to be paid. 
 
 (1) Assertion by writing. Small entity
 status may be established by a written assertion of entitlement to
 small entity status. A written assertion must: 
 
 (i) Be clearly identifiable; 

 (ii) Be signed (see paragraph (c)(2)
 of this section); and 
 

 (iii) Convey the concept of
 entitlement to small entity status, such as by stating that
 applicant is a small entity, or that small entity status is
 entitled to be asserted for the application or patent. While
 no specific words or wording are required to assert small
 entity status, the intent to assert small entity status must
 be clearly indicated in order to comply with the assertion
 requirement. 
 

 
 

 (2) Parties who can sign and file the written
 assertion. The written assertion can be signed by: 
 
 (i) The applicant ( §
 1.42 or §
 1.421 ); 
 

 (ii) A patent practitioner of record
 or a practitioner acting in a representative capacity under
 § 1.34 ;
 
 

 (iii) The inventor or a joint
 inventor, if the inventor is the applicant; or 
 

 (iv) The assignee. 

 
 

 (3) Assertion by payment of the small entity basic filing,
 basic transmittal, basic national fee, or international search
 fee, or individual designation fee in an international design
 application. The payment, by any party, of the exact
 amount of one of the small entity basic filing fees set forth in
 §§ 1.16(a) ,
 1.16(b) ,
 1.16(c) ,
 1.16(d) ,
 1.16(e) , the
 small entity transmittal fee set forth in §
 1.445(a)(1) , the small entity international
 search fee set forth in § 1.445(a)(2) 
 to a Receiving Office other than the United States Receiving Office
 in the exact amount established for that Receiving Office pursuant
 to PCT Rule 16 , or
 the small entity basic national fee set forth in §
 1.492(a) , will be treated as a written
 assertion of entitlement to small entity status even if the type of
 basic filing, basic transmittal, or basic national fee is
 inadvertently selected in error. The payment, by any party, of the
 small entity first part of the individual designation fee for the
 United States to the International Bureau ( §
 1.1031 ) will be treated as a written
 assertion of entitlement to small entity status.
 
 (i) If the Office accords small
 entity status based on payment of a small entity basic filing
 or basic national fee under paragraph (c)(3) of this section
 that is not applicable to that application, any balance of
 the small entity fee that is applicable to that application
 will be due along with the appropriate surcharge set forth in
 §
 1.16(f) , or §
 1.16(g) . 
 

 (ii) The payment of any small entity
 fee other than those set forth in paragraph (c)(3) of this
 section (whether in the exact fee amount or not) will not be
 treated as a written assertion of entitlement to small entity
 status and will not be sufficient to establish small entity
 status in an application or a patent. 
 

 
 

 
 

 
 *****

 

 For applications filed on or after September 16,
 2012, the written assertion of entitlement to small entity status can be signed
 by: (1) the applicant ( 37 CFR 1.42 or
 1.421 ); (2) a patent practitioner of record or acting in a
 representative capacity under 37 CFR 1.34 ; (3) the inventor
 or a joint inventor, if the inventor is the applicant; or (4) the assignee. See
 37 CFR
 1.27(c)(2) . The change to 37 CFR
 1.27 for applications filed on or after September 16, 2012,
 is for consistency with the change in practice concerning who is the applicant for
 patent in 37
 CFR 1.42 . The applicant as defined in 37 CFR
 1.42 (or 37 CFR 1.421 ) can sign a
 written assertion of small entity status. Thus, the assignee, the person to whom
 the inventor is under an obligation to assign the invention, or the person who
 otherwise shows sufficient proprietary interest in the matter, who is applying for
 a patent under 37 CFR 1.46 can sign the
 written assertion of small entity status. In addition, if there are joint
 inventors who are the applicant, then one of the joint inventors can sign a
 written assertion of small entity status and thereby establish small entity status
 for the application (but see MPEP § 509.03(a) ). The assignee
 can sign a written assertion of small entity status even if the assignee is not
 the applicant or is a juristic entity.
 

 B. Applications Filed Before September 16, 2012 
 37 CFR 1.27 (pre-AIA) Definition of small entities and establishing status as a small entity
 to permit payment of small entity fees; when a determination of entitlement to
 small entity status and notification of loss of entitlement to small entity
 status are required; fraud on the Office. 

 *****

 
 (c) Assertion of small entity status. Any party (person,
 small business concern or nonprofit organization) should make a
 determination, pursuant to paragraph (f) of this section, of entitlement
 to be accorded small entity status based on the definitions set forth in
 paragraph (a) of this section, and must, in order to establish small
 entity status for the purpose of paying small entity fees, actually make
 an assertion of entitlement to small entity status, in the manner set
 forth in paragraphs (c)(1) or (c)(3) of this section, in the application
 or patent in which such small entity fees are to be paid.
 
 (1) Assertion by writing. Small entity status may be
 established by a written assertion of entitlement to small entity
 status. A written assertion must:
 
 (i) Be clearly identifiable;

 (ii) Be signed (see paragraph (c)(2) of
 this section); and
 

 (iii) Convey the concept of entitlement to
 small entity status, such as by stating that applicant is a
 small entity, or that small entity status is entitled to be
 asserted for the application or patent. While no specific
 words or wording are required to assert small entity status,
 the intent to assert small entity status must be clearly
 indicated in order to comply with the assertion
 requirement.
 

 
 

 (2) Parties who can sign and file the written
 assertion. The written assertion can be signed by:
 
 (i) One of the parties identified in
 § 1.33(b) 
 ( e.g., an attorney or agent registered
 with the Office), § 3.73(b) 
 of this chapter notwithstanding, who can also file the
 written assertion;
 

 (ii) At least one of the individuals
 identified as an inventor (even though a §
 1.63 executed oath or declaration has
 not been submitted), notwithstanding §
 1.33(b)(4), who can also file the
 written assertion pursuant to the exception under
 § 1.33(b) 
 of this part; or
 

 (iii) An assignee of an undivided part
 interest, notwithstanding §§
 1.33(b)(3) and 3.73(b) of this chapter, but the
 partial assignee cannot file the assertion without resort to
 a party identified under § 1.33(b) 
 of this part.
 

 
 

 (3) Assertion by payment of the small entity basic filing or
 basic national fee. The payment, by any party, of the
 exact amount of one of the small entity basic filing fees set forth
 in §§ 1.16(a) ,
 1.16(b) ,
 1.16(c) ,
 1.16(d) ,
 1.16(e) , or the
 small entity basic national fee set forth in §
 1.492(a) , will be treated as a written
 assertion of entitlement to small entity status even if the type of
 basic filing or basic national fee is inadvertently selected in
 error.
 
 (i) If the Office accords small entity
 status based on payment of a small entity basic filing or
 basic national fee under paragraph (c)(3) of this section
 that is not applicable to that application, any balance of
 the small entity fee that is applicable to that application
 will be due along with the appropriate surcharge set forth in
 §
 1.16(f) , or §
 1.16(g). 

 (ii) The payment of any small entity fee
 other than those set forth in paragraph (c)(3) of this
 section (whether in the exact fee amount or not) will not be
 treated as a written assertion of entitlement to small entity
 status and will not be sufficient to establish small entity
 status in an application or a patent.
 

 
 

 (4) Assertion required in related, continuing, and reissue
 applications. Status as a small entity must be
 specifically established by an assertion in each related,
 continuing and reissue application in which status is appropriate
 and desired. Status as a small entity in one application or patent
 does not affect the status of any other application or patent,
 regardless of the relationship of the applications or patents. The
 refiling of an application under §
 1.53 as a continuation, divisional, or
 continuation-in-part application (including a continued prosecution
 application under § 1.53(d)) , or
 the filing of a reissue application, requires a new assertion as to
 continued entitlement to small entity status for the continuing or
 reissue application.
 

 
 

 
 *****

 

 For applications filed before September 16, 2012, the parties who
 can assert entitlement to small entity status by writing include all parties
 permitted by pre-AIA 37 CFR 1.33(b) to file a paper in an application,
 including a registered practitioner. Pre-AIA 37 CFR 1.27(c)(2)(i) .
 Additionally, one of the individuals identified as an inventor, or a partial
 assignee, can also sign the written assertion. Pre-AIA 37 CFR 1.27(c)(2)(ii) and
 (iii) . By way of example, in the case of three pro
 se inventors for a particular application, one of the three inventors
 upon filing the application can submit a written assertion of entitlement to small
 entity status and thereby establish small entity status for the application, (but
 see MPEP § 509.03(a) ). Where rights are divided between a
 person, small business concern, and nonprofit organization, or any combination
 thereof, only one party is required to assert small entity status. For example,
 where one of two inventors has assigned their rights in the invention, it is
 sufficient if either of the two inventors or the assignee asserts entitlement to
 small entity status. 
 

 Any inventor is permitted to submit a written assertion of small
 entity status, including individuals identified as inventors but who are not
 officially named of record as an executed oath or declaration under
 pre-AIA
 37 CFR 1.63 has not yet been submitted. See
 pre-AIA
 37 CFR 1.41(a)(1) . Where an application is filed without an
 executed oath or declaration pursuant to pre-AIA 37 CFR 1.53(f) , the
 Office will accept the written assertion of an individual who has merely been
 identified as an inventor on filing of the application
 (e.g . , application transmittal letter) as opposed to
 having to be named as an inventor by the filing of an executed oath or declaration
 under pre-AIA 37
 CFR 1.63 ( pre-AIA 37 CFR 1.41(a)(1) ).
 Pre-AIA 37
 CFR 1.4(d)(4) and 37 CFR 11.18(b) are seen as
 sufficient basis to permit any individual to provide a written assertion so long
 as the individual identifies himself or herself as an inventor. An actual inventor
 who has not been identified as an inventor (e.g., by way of application
 transmittal letter) or named as an inventor (i.e., executed pre-AIA 37
 CFR 1.63 oath or declaration) in the file record may not
 file a written assertion as to small entity entitlement. 
 

 Where an oath or declaration under pre-AIA 37 CFR
 1.63 is later filed, any original written assertion as to
 small entity status (which has been previously appropriately submitted to the
 Office) will remain unless changed by an appropriate party under 37
 CFR 1.27(g)(2) . Where a later-filed oath or declaration
 under pre-AIA
 37 CFR 1.63 sets forth an inventive entity that does not
 include the person who initially was identified as an inventor and who asserted
 small entity status, small entity status will also remain.
 

 An assignee asserting small entity status is not required to
 submit a pre-AIA
 37 CFR 3.73(b) certification whether the assignee is a
 partial assignee or an assignee of the entire right, title, and interest, (but see
 paragraph III. below). 
 

 III. PARTIES WHO CAN FILE THE WRITTEN ASSERTION ONCE SIGNED For applications filed before September 16, 2012, a distinction
 exists as to who can file a written assertion of entitlement to small entity status
 once the written assertion is signed. Pre-AIA 37 CFR 1.27(c)(2)(ii) and
 pre-AIA 37 CFR
 1.33(b) permit one of several inventors to file as well as to
 sign a written assertion. The same is not true for a partial assignee.
 Pre-AIA 37 CFR
 1.27(c)(2)(iii) . While a partial assignee may sign a written
 assertion, the written assertion must be filed by an appropriate party under
 pre-AIA 37 CFR
 1.33(b) .
 

 IV. ASSERTION BY PAYMENT OF SMALL ENTITY BASIC FILING. BASIC NATIONAL FEE, OR
 INDIVIDUAL DESIGNATION FEE The payment of an exact small entity basic filing ( 37 CFR 1.16(a) ,
 (b) , (c) , (d) , or
 (e) ), basic national fee ( 37 CFR 1.492(a) ), or individual
 designation fee in an international design application ( 37 CFR
 1.1031 ) is also considered to be a sufficient assertion of
 entitlement to small entity status. 37 CFR 1.27(c)(3) . An applicant
 filing a patent application and paying an exact small entity basic filing, basic
 national fee, or individual designation fee automatically establishes small entity
 status for the application even without any other assertion of small entity status.
 This is so even if an applicant inadvertently selects the wrong type of small entity
 basic filing or basic national fee for the application being filed
 ( e.g., the exact small entity basic filing fee for a design
 application is selected but the application is a utility application). If small
 entity status was not established when the basic filing or basic national fee was
 paid, such as by payment of a non-small entity basic filing, basic national fee,
 individual designation fee, a later claim to small entity status requires a written
 assertion under 37
 CFR 1.27(c)(1) . Payment of a small entity fee other than a
 small entity basic filing, basic national fee, or individual designation fee (e.g.,
 extension of time fee, issue fee, or reexamination filing fee) without inclusion of a
 written assertion is not sufficient. 
 

 Even though applicants can assert small entity status only by payment
 of an exact small entity basic filing, basic national fee, or individual designation
 fee in an international design application, the Office encourages applicants to also
 file a written assertion of small entity status as well as to pay the exact amount of
 the small entity basic filing, basic national fee, or individual designation fee. The
 Office’s application transmittal forms include a check box that can be used to submit
 a written assertion of small entity status. A written assertion will provide small
 entity status should applicant fail to pay the exact small entity basic filing, basic
 national fee, or individual designation fee. The provision providing for small entity
 status by payment of an exact small entity basic filing, basic national fee, or
 individual designation fee is intended to act as a safety net to avoid possible
 financial loss to inventors or small businesses that qualify for small entity
 status.
 

 Even though small entity status is accorded where the wrong type of
 small entity basic filing fee, basic national fee, or individual designation fee in
 an international design application is selected but the exact amount of the fee is
 paid, applicant still needs to pay the correct small entity amount for the basic
 filing, basic national fee, or individual designation fee in an international design
 application where selection of the wrong type of fee results in a deficiency. While
 an accompanying general authorization to charge any additional fees suffices to pay
 the balance due of the proper small entity basic filing, basic national fee or
 individual designation fee, specific authorizations to charge fees under
 37
 CFR 1.17 or extension of time fees do not suffice to pay any
 balance due of the proper small entity basic filing, basic national fee, or
 individual designation fee because they do not actually authorize payment of small
 entity amounts. If payment is attempted of the proper type of basic filing, basic
 national fee, or individual designation fee (applicant correctly identifies the type
 of fee for the type of application being filed), but the amount of the fee paid is
 not the exact small entity fee required (an incorrect fee amount is supplied) and a
 written assertion of small entity status is not present, small entity status will not
 be accorded. The Office will mail a notice of insufficient basic filing, basic
 national fee, or individual designation fee in an international design application
 with a surcharge due if an authorization to charge the basic filing or basic national
 fee is not present. The Office does not consider a basic filing or basic national fee
 submitted in an amount above the correct fee amount, but below the non-small entity
 fee amount, as a request to establish small entity status unless an additional
 written assertion is also present. The submission of a basic filing or basic national
 fee below the correct fee amount also does not serve to establish small entity
 status.
 

 Where an application is originally filed by a party, who is in fact a
 small entity, with an authorization to charge fees (including basic filing fee, basic
 national fee, or individual designation fee) and there is no indication (assertion)
 of entitlement to small entity status present, that authorization is not sufficient
 to establish small entity status unless the authorization is specifically directed to
 small entity basic filing, basic national, or individual designation fees. The
 general authorization to charge fees will continue to be acted upon immediately and
 the full (not small entity) basic filing, basic national, or individual designation
 fees will be charged. Applicant will have three months under 37 CFR 1.28 to
 request a refund by asserting entitlement to small entity status. This is so even if
 the application is a continuing application where small entity status had been
 established in the prior application.
 

 V. PARTIES WHO CAN ASSERT AND FILE SMALL ENTITY STATUS BY PAYMENT Where small entity status is sought by way of payment of the basic
 filing fee, basic national fee, or individual designation fee, any party (including a
 third party), may submit payment, such as by check, and small entity status will be
 accorded.
 

 
 509.03(a) Duty to Investigate Entitlement to Claim
 Small Entity Status [R-10.2019]
 

 While small entity status is not difficult to obtain, it should be
 clearly understood that applicants need to do a complete and thorough investigation
 of all facts and circumstances before making a determination of actual entitlement to
 small entity status. 37 CFR 1.27(f) . Where entitlement
 to small entity status is uncertain, it should not be claimed.
 

 The assertion of small entity status (e.g., even by mere payment of
 the exact small entity basic filing fee) is not appropriate until such an
 investigation has been completed. For example, where there are three pro
 se inventors, before one of the inventors pays the small entity basic
 filing, basic national, or individual designation fee to establish small entity
 status, the single inventor asserting entitlement to small entity status should check
 with the other two inventors to determine whether small entity status is
 appropriate.
 

 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 (Public Law 85-536 as amended by Public Law 106-50). Review of whether the
 business concern meets the size standards set forth in 13 CFR 121.801 through 121.805
 to be eligible for reduced patent fees is also appropriate. Additionally, if the
 business has assigned, granted, conveyed or licensed (or is under an obligation to do
 so) any rights in the invention to others directly or indirectly, the same review for
 each other entity would also be appropriate. 
 

 Furthermore, once status as a small entity has been established in an
 application, a new determination of entitlement to small entity status is needed in
 the application or patent (1) when the issue fee is due and (2) when any maintenance
 fee is due. If an ex parte reexamination is requested for a
 patent, the requester must affirmatively state in the reexamination request that it
 is entitled to small entity in order for a requester to pay the small entity filing
 fees. For example, requester can affirmatively assert small entity status by checking
 the appropriate box in line 3 on the transmittal form (PTO/SB/57). It should be
 appreciated that the costs incurred in appropriately conducting the initial and
 subsequent investigations may outweigh the benefit of claiming small entity status.
 For some applicants it may be desirable to file as a non-small entity (by not filing
 a written assertion of small entity status and by submitting non-small entity fees)
 rather than undertaking the appropriate investigations which may be both difficult
 and time-consuming and which may be cost effective only where several applications
 are involved. 
 

 The intent of 37 CFR 1.27 is that the person
 making the assertion of entitlement to small entity status is the person in a
 position to know the facts about whether or not status as a small entity can be
 properly established. That person, thus, has a duty to investigate the circumstances
 surrounding entitlement to small entity status to the fullest extent. It is important
 to note that small entity status must not be claimed unless the person or persons can
 unequivocally make the required self-certification. 
 

 The U.S. Patent and Trademark Office does not give advisory opinions
 as to whether or not a specific individual or organization qualifies as a small
 entity. In establishing reduced fees for persons, small business concerns, and
 nonprofit organizations, the Congressional consideration of the legislation which
 became Public Law 97-247 indicated an intent that the U.S. Patent and Trademark
 Office rely exclusively on a self-certification that a patent applicant qualifies as
 an independent inventor (now person), small business concern, or nonprofit
 organization. In addition, it was also stated during Congressional consideration of
 the legislation that no additional resources would be required to administer the
 system whereby fees would be reduced for small entities.
 

 In view of the intent expressed during Congressional consideration of
 the legislation, it would be inappropriate for the U.S. Patent and Trademark Office
 to give advisory opinions as to entitlement to small entity status. Accordingly, any
 individual seeking to establish status as a small entity for purposes of paying the
 fee in an application or patent must file the assertion required by 37 CFR 1.27 and
 in so doing is self-certifying entitlement to small entity status. 
 

 Consistent with 37 CFR 1.4(d)(4) , the payment of
 a small entity basic filing or national fee constitutes a certification under
 37
 CFR 11.18(b) . Thus, a simple payment of the small entity basic
 filing, basic national, or individual designation fee, without a specific written
 assertion, activates the provisions of 37 CFR 1.4(d)(4) and, by that,
 invokes the self-certification requirement set forth in 37 CFR
 11.18(b) , regardless of whether the party is a practitioner or
 non-practitioner.
 

 

 
 509.03(b) Change or Correction of Status [R-10.2019]
 I. REMOVAL OF STATUS Once small entity status is established in an application or
 patent, fees as a small entity may thereafter be paid in that application or
 patent without regard to a change in status until the issue fee is due or any
 maintenance fee is due. 37 CFR 1.27(g)(1) .
 37 CFR
 1.27(g)(2) requires that notification of any change in
 status resulting in loss of entitlement to small entity status be filed in the
 application or patent prior to paying, or at the time of paying, the earliest of
 the issue fee or any maintenance fee due after the date on which status as a small
 entity is no longer appropriate. 37 CFR 1.27(g)(2) also
 requires that the notification of loss of entitlement to small entity status be in
 the form of a specific written assertion to that extent, rather than only payment
 of a non-small entity fee. For example, when paying the issue fee in an
 application that has previously been accorded small entity status and the required
 new determination of continued entitlement to small entity status reveals that
 status has been lost, applicant should not just simply pay the non-small entity
 issue fee or cross out the recitation of small entity status on Part B of the
 Notice of Allowance and Fee(s) Due (PTOL-85), but should (A) check the appropriate
 box on Part B of the PTOL-85 form to indicate that there has been a change in
 entity status and applicant is no longer claiming small entity status, and (B) pay
 the fee amount for a non-small entity. 
 

 For correcting errors in small entity status, see subsection IV
 below.
 

 II. IMPROPERLY ESTABLISHING SMALL ENTITY STATUS 37 CFR
 1.27(h) indicates that any attempt to fraudulently establish
 status as a small entity or pay fees as a small entity will be considered as a
 fraud practiced or attempted on the Office. Applicants should not rely on any oral
 advice inadvertently given by an Office employee as to entitlement to small entity
 status. In addition, improperly and with intent to deceive establishing status as
 a small entity or paying fees as a small entity will be considered as a fraud
 practiced or attempted on the Office. Normally, the Office will not question a
 claim to status as a small entity. 
 

 III. REFUNDS BASED ON LATER ESTABLISHMENT OF SMALL ENTITY STATUS 
 37 CFR 1.28 Refunds when small entity status is
 later established; how errors in small entity status are excused. 

 
 (a) Refunds based on later establishment of small entity
 status. A refund pursuant to §
 1.26 , based on establishment of small entity
 status, of a portion of fees timely paid in full prior to establishing
 status as a small entity may only be obtained if an assertion under
 §
 1.27(c) and a request for a refund of the excess
 amount are filed within three months of the date of the timely payment
 of the full fee. The three-month time period is not extendable under
 §
 1.136 . Status as a small entity is waived for any
 fee by the failure to establish the status prior to paying, at the time
 of paying, or within three months of the date of payment of, the full
 fee.
 

 (b) Date of payment. 
 (1) The three-month period for requesting a refund,
 pursuant to paragraph (a) of this section, starts on the date that
 a full fee has been paid;
 

 (2) The date when a deficiency payment is paid in full
 determines the amount of deficiency that is due, pursuant to
 paragraph (c) of this section.
 

 
 

 
 *****

 

 37 CFR
 1.28(a) provides a three-month time period for requesting a
 refund of a portion of a non-small entity fee based on later establishment of
 small entity status. The start date of the three-month refund period of
 37 CFR
 1.28(a) is the date the full fee has been paid. See
 37 CFR
 1.28(b)(1) . Payment by authorization to charge a deposit
 account is treated for refund purposes the same as payments by other means (e.g.,
 check or credit card authorizations), with each being treated as paid (for refund
 purposes) on the date of receipt in the Office as defined by 37 CFR 1.6 .
 Thus, the date of receipt of an authorization to charge fees starts the
 three-month period for refunds under 37 CFR 1.28(a) , not the date
 of debit of the fee to a deposit account. If a payment is mailed with a
 Certificate of Mailing under 37 CFR 1.8 , the three month
 period for requesting a refund will start on the actual date of receipt of the
 payment in the Office, and not the Certificate of Mailing date. If a payment is
 filed by Priority Mail Express ® under 37 CFR 1.10 ,
 the date of deposit with the United States Postal Service (shown by the “date
 accepted” on the Priority Mail Express ® mailing label
 or other official USPS notation) is the date of receipt of the payment by the
 Office under 37
 CFR 1.10(a) and the three month period for requesting a
 refund starts on the date shown by the “date accepted” on the Priority Mail
 Express ® mailing label rather than the date when the
 payment actually reaches the Office.
 

 Request for refunds, along with the assertions under
 37 CFR
 1.27(c) , should be addressed to Mail Stop 16, Director of
 the U.S. Patent and Trademark Office, P.O. Box 1450, Alexandria, VA
 22313-1450.
 

 IV. CORRECTING ERRORS IN SMALL ENTITY STATUS 
 37 CFR 1.28 Refunds when small entity status is
 later established; how errors in small entity status are excused. 

 *****

 
 (c) How errors in small entity status are excused. If
 status as a small entity is established in good faith, and fees as a
 small entity are paid in good faith, in any application or patent, and it
 is later discovered that such status as a small entity was established in
 error, or that through error the Office was not notified of a loss of
 entitlement to small entity status as required by §
 1.27(g)(2) , the error will be excused upon:
 compliance with the separate submission and itemization requirements of
 paragraphs (c)(1) and (c)(2) of this section, and the deficiency payment
 requirement of paragraph (c)(2) of this section:
 
 (1) Separate submission required for each application or
 patent. Any paper submitted under this paragraph must
 be limited to the deficiency payment (all fees paid in error),
 required by paragraph (c)(2) of this section, for one application
 or one patent. Where more than one application or patent is
 involved, separate submissions of deficiency payments
 ( e.g., checks) and itemizations are required
 for each application or patent. See §
 1.4(b) .
 

 (2) Payment of deficiency owed. The deficiency owed,
 resulting from the previous erroneous payment of small entity fees,
 must be paid.
 
 (i) Calculation of the deficiency owed. The
 deficiency owed for each previous fee erroneously paid as a
 small entity is the difference between the current fee amount
 (for other than a small entity) on the date the deficiency is
 paid in full and the amount of the previous erroneous (small
 entity) fee payment. The total deficiency payment owed is the
 sum of the individual deficiency owed amounts for each fee
 amount previously erroneously paid as a small entity. Where a
 fee paid in error as a small entity was subject to a fee
 decrease between the time the fee was paid in error and the
 time the deficiency is paid in full, the deficiency owed is
 equal to the amount (previously) paid in error;
 

 (ii) Itemization of the deficiency payment. An
 itemization of the total deficiency payment is required. The
 itemization must include the following information:
 
 (A) Each particular type of fee that was
 erroneously paid as a small entity,
 ( e.g., basic statutory filing
 fee, two-month extension of time fee) along with the
 current fee amount for a non-small entity;
 

 (B) The small entity fee actually paid, and
 when. This will permit the Office to differentiate, for
 example, between two one-month extension of time fees
 erroneously paid as a small entity but on different
 dates;
 

 (C) The deficiency owed amount (for each
 fee erroneously paid); and
 

 (D) The total deficiency payment owed,
 which is the sum or total of the individual deficiency
 owed amounts set forth in paragraph (c)(2)(ii)(C) of
 this section.
 

 
 

 
 

 (3) Failure to comply with requirements. If the
 requirements of paragraphs (c)(1) and (c)(2) of this section are
 not complied with, such failure will either: be treated as an
 authorization for the Office to process the deficiency payment and
 charge the processing fee set forth in §
 1.17(i) , or result in a requirement for
 compliance within a one-month non-extendable time period under
 § 1.136(a) to
 avoid the return of the fee deficiency paper, at the option of the
 Office.
 

 
 

 (d) Payment of deficiency operates as notification of loss of
 status. Any deficiency payment (based on a previous
 erroneous payment of a small entity fee) submitted under paragraph (c) of
 this section will be treated under § 1.27(g)(2) as a
 notification of a loss of entitlement to small entity status.
 

 
 *****

 

 37 CFR
 1.28(c) provides that if small entity status is established
 in good faith and the small entity fees are paid in good faith, and it is later
 discovered that such status as a small entity was established in error or through
 error the Office was not notified of a change of status, the error will be excused
 upon compliance with the separate submission and itemization requirements of
 37 CFR
 1.28(c)(1) and (c)(2) , and the deficiency
 payment requirement of 37 CFR 1.28(c)(2) . The
 deficiency amount owed under 37 CFR 1.28(c) is calculated
 using the date on which the deficiency was paid in full. See 37 CFR
 1.28(b)(2) .
 

 37 CFR
 1.28(c)(1) requires that a deficiency paper be limited to
 one application or patent file. Where, for example, the same set of facts has
 caused errors in payment in more than one application and/or patent file, a
 separate paper must be submitted in each file for which an error is to be
 excused.
 

 37 CFR
 1.28(c)(2) requires that for each fee that was erroneously
 paid as a small entity, the deficiencies owed must be paid, and the payment of the
 deficiencies must be itemized. The deficiency owed for each previous fee
 erroneously paid as a small entity is the difference between the current fee
 amount (for other than a small entity) on the date the deficiency is paid in full
 and the amount of the previous erroneous (small entity) fee payment. Where there
 has been a fee decrease, the deficiency owed is equal to the amount (previously)
 paid in error, not the difference between the amount (previously) paid in error
 and the new lower non-small entity fee. 37 CFR 1.28(c)(2)(ii) requires
 the following itemizations: (A) the particular fee involved (e.g., basic filing
 fee, extension of time fee); (B) the small entity fee amount actually paid and
 when (for example, distinguishing between two one-month extension of time fees
 erroneously paid on two different dates); (C) the actual deficiency owed for each
 fee previously paid in error; and (D) the total deficiency owed (i.e., the sum of
 the individual deficiencies owed).
 

 Under 37 CFR 1.28(c)(3) , the failure
 to comply with the requirements of 37 CFR 1.28(c)(1) and
 (c)(2) permits the Office at its option to either charge a
 processing fee ( 37 CFR 1.17(i) ) to process the
 paper or require compliance within a one-month non-extendable time period to avoid
 return of the paper. 
 

 Any paper submitted under 37 CFR 1.28(c) is treated as a
 notification of loss of small entity status under 37 CFR
 1.27(g)(2) . See 37 CFR 1.28(d) .
 

 A maintenance fee improperly paid as a small entity where small
 entity status has been established but is no longer appropriate will be treated as
 a matter under 37 CFR 1.28(c) and will not be considered to involve
 expiration of the patent under 37 CFR 1.378 . On the other
 hand, payment of a maintenance fee in the small entity amount where small entity
 status has not been established would result in the expiration of the patent under
 37 CFR
 1.378 unless the full maintenance fee due or a written
 assertion of small entity status is timely filed. 
 

 

 

 
 509.04 Micro Entity Status — Definitions [R-01.2024]

 
 35 U.S.C. 123 
 Micro entity defined. 

 
 (a) IN GENERAL.—For purposes of this title, the
 term "micro entity" means an applicant who makes a certification that the
 applicant— 
 
 (1) qualifies as a small entity, as defined
 in regulations issued by the Director;
 

 (2) has not been named as an inventor on
 more than 4 previously filed patent applications, other than applications
 filed in another country, provisional applications under
 section 111(b) , or international applications
 filed under the treaty defined in section 351(a) for
 which the basic national fee under section 41(a) was not
 paid;
 

 (3) did not, in the calendar year preceding
 the calendar year in which the applicable fee is being paid, have a gross
 income, as defined in section 61(a) of the Internal Revenue Code of 1986,
 exceeding 3 times the median household income for that preceding calendar
 year, as most recently reported by the Bureau of the Census; and
 

 (4) has not assigned, granted, or conveyed,
 and is not under an obligation by contract or law to assign, grant, or
 convey, a license or other ownership interest in the application
 concerned to an entity that, in the calendar year preceding the calendar
 year in which the applicable fee is being paid, had a gross income, as
 defined in section 61(a) of the Internal Revenue Code of 1986, exceeding
 3 times the median household income for that preceding calendar year, as
 most recently reported by the Bureau of the Census.
 

 
 

 (b) APPLICATIONS RESULTING FROM PRIOR
 EMPLOYMENT.—An applicant is not considered to be named on a previously filed
 application for purposes of subsection (a)(2) if the applicant has assigned, or
 is under an obligation by contract or law to assign, all ownership rights in
 the application as the result of the applicant’s previous employment.
 

 (c) FOREIGN CURRENCY EXCHANGE RATE.—If an
 applicant’s or entity’s gross income in the preceding calendar year is not in
 United States dollars, the average currency exchange rate, as reported by the
 Internal Revenue Service, during that calendar year shall be used to determine
 whether the applicant’s or entity’s gross income exceeds the threshold
 specified in paragraphs (3) or (4) of subsection (a).
 

 (d) INSTITUTIONS OF HIGHER EDUCATION.—For
 purposes of this section, a micro entity shall include an applicant who
 certifies that—
 
 (1) the applicant’s employer, from which
 the applicant obtains the majority of the applicant’s income, is an
 institution of higher education as defined in section 101(a) of the
 Higher Education Act of 1965 (20 U.S.C. 1001(a)); or
 

 (2) the applicant has assigned, granted,
 conveyed, or is under an obligation by contract or law, to assign, grant,
 or convey, a license or other ownership interest in the particular
 applications to such an institution of higher education.
 

 
 

 (e) DIRECTOR’S AUTHORITY.—In addition to the
 limits imposed by this section, the Director may, in the Director’s discretion,
 impose income limits, annual filing limits, or other limits on who may qualify
 as a micro entity pursuant to this section if the Director determines that such
 additional limits are reasonably necessary to avoid an undue impact on other
 patent applicants or owners or are otherwise reasonably necessary and
 appropriate. At least 3 months before any limits proposed to be imposed
 pursuant to this subsection take effect, the Director shall inform the
 Committee on the Judiciary of the House of Representatives and the Committee on
 the Judiciary of the Senate of any such proposed limits. 
 

 (f) PENALTY FOR FALSE CERTIFICATIONS.—In addition to
 any other penalty available under law, an entity that is found to have falsely
 made a certification under this section shall be subject to a fine, to be
 determined by the Director, the amount of which shall be not less than 3 times
 the amount that the entity failed to pay as a result of the false
 certification, whether the Director discovers the false certification before or
 after the date on which a patent has been issued.
 

 
 

 

 The Leahy-Smith America Invents Act (AIA), Public Law
 112-29, sec. 10(b), 125 Stat. 284 (September 16, 2011) added 35 U.S.C.
 123 to define a “micro entity”, and established micro entity
 discounts which became available on March 19, 2013. The Unleashing American Innovators
 Act of 2022, Public Law 117-328, , division W, sec. 107, 136 Stat. 4459 (December 29,
 2022) increased the micro entity discounts from 75 percent to 80 percent, with most
 discounts becoming effective on December 29, 2022. The increase in the micro entity
 discounts for the issue fee for international design applications under the Hague
 Agreement applies to applications having a date of international registration on or
 after May 1, 2023 ( 37 CFR 1.18(b)(1) ). The increase in
 the micro entity discounts for the search fee and the supplemental search fee for
 international applications under the Patent Cooperation Treaty (PCT) applies to
 applications having a receipt date on or after April 1, 2023 ( 37 CFR 1.445(a)(2) 
 and (a)(3) ). Also, the increase in the micro entity discounts for the
 sequence listing late furnishing fee and the international preliminary examination and
 processing fees for international applications under the PCT took effect on April 1,
 2023 ( 37
 CFR 1.445(a)(5) and 37 CFR 1.482 ).
 

 The fees which are reduced by 80 percent for micro
 entities include filing fees (nonprovisional and provisional), search fees, examination
 fees, issue fees, and appeal fees for utility, design, plant, and reissue patent
 applications. Also included are patent maintenance fees including the maintenance fee
 grace period surcharges as well as the surcharge for a petition to accept a delayed
 maintenance fee payment in order to reinstate an expired patent. Included within the
 ambit of filing fees subject to the micro entity discount are excess claims fees,
 application size fees, non-DOCX filing surcharge required by 37 CFR
 1.16(u) , and the surcharge required by 37 CFR 1.16(f) ,
 when applicable. Included within the ambit of examination fees subject to the micro
 entity discount are the fees for requesting prioritized examination under
 37 CFR
 1.102(e) , ex parte reexamination under
 37 CFR
 1.510 (only if the request is filed by the patent owner), and
 supplemental examination under 37 CFR 1.601 . Included within the
 ambit of appeal fees subject to the micro entity discount are the fees for filing notice
 of appeal, forwarding an appeal to the PTAB, and requesting an oral hearing. 
 

 I. REQUIREMENT FOR A CERTIFICATION 35 U.S.C.
 123 requires a certification as a condition for an applicant to
 be considered a micro entity. The certification must be in writing and must be filed
 prior to or at the time a fee is first paid in the micro entity amount in an
 application or patent. Status as a micro entity in one application or patent does not
 affect the status of any other application or patent. The refiling of an application
 under 37 CFR
 1.53 as a continuation or divisional, or continuation-in-part
 application (including a continued prosecution application under 37 CFR
 1.53(d) (design applications only)), or the filing of a reissue
 application, requires a new certification of entitlement to micro entity status in
 the continuing or reissue application. See 37 CFR
 1.29(e) . A fee may be paid in the micro entity amount only if
 it is submitted with, or subsequent to, the submission of a certification of
 entitlement to micro entity status. See 37 CFR 1.29(f) . The micro entity
 provisions of 37 CFR 1.29 apply to applications
 filed before, on, and after March 19, 2013. A micro entity certification may be filed
 in pending applications, reexamination proceedings (for patent owners only), and
 supplemental examination proceedings at any time during prosecution and in patents
 prior to or concurrent with a maintenance fee payment.
 

 Any attempt to fraudulently establish status or pay
 fees as a micro entity shall be considered as a fraud practiced or attempted on the
 Office. Improperly, and with intent to deceive, establishing status or paying fees as
 a micro entity shall be considered as a fraud practiced or attempted on the Office.
 See 37 CFR
 1.29(j) .
 

 II. BASES FOR ESTABLISHING MICRO ENTITY STATUS There are two separate bases for establishing micro
 entity status referred to as the “gross income basis” under 35 U.S.C.
 123(a) and the “institution of higher education basis” under
 35
 U.S.C. 123(d) . 37 CFR 1.29(a) implements the
 gross income basis for establishing micro entity status, and 37 CFR
 1.29(d) implements the institution of higher education basis
 for establishing micro entity status. The Office’s micro entity certification forms
 are form PTO/SB/15A (gross income basis)(see MPEP §
 509.04(a) ) and form PTO/SB/15B (institution of higher
 education basis)(see MPEP § 509.04(b) ). No evidence such
 as a copy of a tax return need accompany the certification form(s). In addition, the
 certification form(s) need not be notarized. The certification form(s) must, however,
 identify the application or patent to which it pertains and it must be signed by an
 authorized party as set forth in MPEP § 509.04(c) . For new
 application filings not previously assigned a patent application number, providing
 the first named inventor and the title of the invention at the top of the
 certification form(s) in the spaces provided will be sufficient to identify the
 application. It is strongly recommended that the following document descriptions be
 used as appropriate:
 

 
 • Certification of Micro Entity (Gross Income
 Basis)
 

 
 
 • Certification of Micro Entity (Education
 Basis)
 

 
 
 509.04(a) Gross Income Basis for Micro Entity
 Status [R-07.2022]
 

 35 U.S.C.
 123(a) provides that the term ‘‘micro entity’’ means an
 applicant who makes a certification that the applicant: (1) qualifies as a small
 entity as defined in 37 CFR 1.27 ; (2) has not been
 named as an inventor on more than four previously filed patent applications, other
 than applications filed in another country, provisional applications under
 35 U.S.C.
 111(b) , or international applications for which the basic
 national fee under 35 U.S.C. 41(a) was not paid; (3) did not, in the calendar
 year preceding the calendar year in which the applicable fee is being paid, have a
 gross income, as defined in section 61(a) of the Internal Revenue Code of 1986 (26
 U.S.C. 61(a)), exceeding three times the median household income for that preceding
 calendar year, as most recently reported by the Bureau of the Census; and (4) has not
 assigned, granted, or conveyed, and is not under an obligation by contract or law to
 assign, grant, or convey, a license or other ownership interest in the application
 concerned to an entity that, in the calendar year preceding the calendar year in
 which the applicable fee is being paid, had a gross income, as defined in section
 61(a) of the Internal Revenue Code of 1986, exceeding three times the median
 household income for that preceding calendar year, as most recently reported by the
 Bureau of the Census. 37 CFR 1.29(a)(1)-(4) implements
 the requirements under 35 U.S.C. 123(a)(1)-(4) for
 establishing micro entity status on the gross income basis.
 

 The income level that is three times the median
 household income for the preceding calendar year, as most recently reported by the
 Bureau of the Census (i.e., the income threshold set forth in 35 U.S.C.
 123(a)(3) and (a)(4) ) is referred to as the
 “gross income limit” or the “maximum qualifying gross income.” The Office’s micro
 entity status certification form PTO/SB/15A refers to the official Web page address
 providing the up-to-date maximum qualifying gross income. Each inventor and each
 non-inventor applicant (e.g., an assignee-applicant) must individually meet the gross
 income limit. The gross income limit applies to the assignee (if any) regardless of
 whether the assignee is identified as the applicant. Under 37 CFR
 1.29(a)(4) , the gross income limit applies to each party with
 an ownership interest in the application including any party(ies) to whom an
 ownership interest obligation is owed. Accordingly, each assignee, licensee, and
 inventor must individually meet the gross income limit. 
 

 35 U.S.C.
 123(b) provides that an applicant is not considered to be named
 on a previously filed application for purposes of 35 U.S.C.
 123(a)(2) if the applicant has assigned, or is under an
 obligation by contract or law to assign, all ownership rights in the previously filed
 application as the result of the applicant’s previous employment. 37 CFR
 1.29(b) implements the provisions of 35 U.S.C.
 123(b) .
 

 35 U.S.C.
 123(c) provides that if an applicant’s or entity’s gross income
 in the preceding calendar year is not in United States dollars, the average currency
 exchange rate, as reported by the Internal Revenue Service, during that calendar year
 shall be used to determine whether the applicant’s or entity’s gross income exceeds
 the gross income limit specified in 35 U.S.C. 123(a)(3) or (4) .
 37 CFR
 1.29(c) implements the provisions of 35 U.S.C.
 123(c) . 
 

 I. SECTION 1.29(a) – GROSS INCOME BASIS REQUIREMENTS 
 37 CFR 1.29 Micro entity status. 

 
 (a) To establish micro entity status under this
 paragraph, the applicant must certify that:
 
 (1) The applicant qualifies as a small
 entity as defined in § 1.27 without
 relying on a government use license exception under
 §
 1.27(a)(4) ;
 

 (2) Neither the applicant nor the inventor
 nor a joint inventor has been named as the inventor or a joint
 inventor on more than four previously filed patent applications,
 other than applications filed in another country, provisional
 applications under 35 U.S.C.
 111(b) , or international applications for
 which the basic national fee under 35 U.S.C.
 41(a) was not paid;
 

 (3) Neither the applicant nor the inventor
 nor a joint inventor, in the calendar year preceding the calendar
 year in which the applicable fee is being paid, had a gross income,
 as defined in section 61(a) of the Internal Revenue Code of 1986
 (26 U.S.C. 61(a)), exceeding three times the median household
 income for that preceding calendar year, as most recently reported
 by the Bureau of the Census; and
 

 (4) Neither the applicant nor the
 inventor nor a joint inventor has assigned, granted, or conveyed,
 nor is under an obligation by contract or law to assign, grant, or
 convey, a license or other ownership interest in the application
 concerned to an entity that, in the calendar year preceding the
 calendar year in which the applicable fee is being paid, had a
 gross income, as defined in section 61(a) of the Internal Revenue
 Code of 1986, exceeding three times the median household income for
 that preceding calendar year, as most recently reported by the
 Bureau of the Census.
 

 
 

 
 *****

 

 37 CFR
 1.29(a)(1)-(4) sets forth the requirements for establishing
 micro entity status on the gross income basis. If an application names more than
 one inventor, each inventor must meet the requirements of 37 CFR
 1.29(a)(1)-(4) to file a micro entity certification on the
 gross income basis in the application. If the applicant is other than the
 inventor(s) (e.g., an assignee-applicant), then each such non-inventor applicant
 as well as each inventor must meet the requirements of 37 CFR
 1.29(a)(1)-(4) to file a micro entity certification on the
 gross income basis in the application. If there is any assignee or licensee that
 received “ownership rights” from any inventor or non-inventor applicant, then the
 party(ies) with the “ownership interest” must also meet the gross income limit
 requirement.
 

 Because each inventor and each non-inventor
 applicant (e.g., assignee-applicant) must separately meet the requirements under
 37
 CFR 1.29(a)(1)-(4) , it would not be appropriate to file a
 micro entity certification under 37 CFR 1.29(a) for the
 application if there were more than one applicant or inventor and not all of the
 applicants and inventors qualified as micro entities under 35 U.S.C.
 123(a) : e.g., (1) an applicant or inventor exceeded the
 gross income limit; (2) an applicant or inventor had more than four other
 nonprovisional applications; or (3) an applicant or inventor had assigned,
 granted, or conveyed the application or was under an obligation to do so, to an
 entity that exceeds the gross income limit. Additionally, the gross income limit
 under 35 U.S.C. 123(a)(3) applies to each applicant’s and
 inventor’s income separately (i.e., the combined gross income of all of the
 applicants and inventors need not be below the income level in 35 U.S.C.
 123(a)(3) ). Further, the assignment requirement in
 37
 CFR 1.29(a)(4) applies to each applicant and inventor (i.e.,
 if an applicant or inventor assigns or is obligated to assign the invention to
 more than one assignee (e.g., half interest in the invention to two assignees),
 each of the assignees must meet the income limit specified in 37 CFR
 1.29(a)(4) ). Note also that in this context an inventor
 ordinarily should qualify as a small entity under 37 CFR
 1.29(a)(1) and 1.27(a)(1) . Under
 37 CFR
 1.27(a)(1) , an inventor generally is a small entity and
 retains such status even if the inventor assigns some rights to another small
 entity. Similarly, to obtain micro entity status, 37 CFR
 1.29(h) requires that any non-applicant assignee be a small
 entity.
 

 CERTIFICATION FORM – GROSS INCOME BASIS 

 The Office’s form PTO/SB/15A contains the
 certifications under 37 CFR 1.29(a)(1)-(4) that are
 required to establish micro entity status on the gross income basis. The form
 refers to the certification requirements as: (1) Small Entity Requirement, (2)
 Application Filing Limit, (3) Gross Income Limit on Applicants and Inventors, and
 (4) Gross Income Limit on Parties with an “Ownership Interest.”
 

 

 
 A. Small Entity Requirement In order to meet the small entity requirement,
 every party holding rights in the application must qualify as a small entity
 under 37
 CFR 1.27 . If any rights in the application are assigned,
 granted, conveyed, or licensed to a party that does not qualify as a small
 entity under 37 CFR 1.27 , the applicant
 cannot qualify for any patent fee discount. An obligation to assign, grant,
 convey, or license rights in the application to a party that does not qualify
 for small entity status would also disqualify the applicant from receiving any
 patent fee discount. In order to qualify for small entity status, and in order
 to meet the small entity requirement for micro entity status, there can be no
 party holding rights or obligated rights in the application that does not
 qualify as a small entity. See MPEP § 509.02 for a discussion
 of the requirements for small entity status.
 

 B. Application Filing Limit For purposes of establishing micro entity status
 under the “gross income” basis, the application filing limit as set forth in
 37 CFR 1.29(a)(2) includes: (i) previously filed U.S.
 nonprovisional applications (e.g., utility, design, plant, continuation, and
 divisional applications), (ii) previously filed U.S. reissue applications,
 (iii) previously filed U.S. national stage applications under the Patent
 Cooperation Treaty (PCT), and (iv) previously filed international design
 applications under the Hague agreement that designate the U.S. All such
 applications naming the inventor or a joint inventor are counted toward the
 application filing limit, whether the applications were filed before, on, or
 after March 19, 2013. A non-inventor applicant under 37 CFR
 1.46 who is a person that could also have been named as
 the inventor or a joint inventor in previously filed patent applications.
 Accordingly, any non-inventor applicant(s) who is a person rather than a
 corporation or other type of juristic entity, must also meet the application
 filing limit. Further, it does not matter how long ago the previous
 applications were filed or whether the previously filed applications are
 pending, patented, or abandoned; they are still included when counting to
 determine whether the application filing limit has been reached.
 

 The application filing limit does not include:
 (i) foreign applications; (ii) international (PCT) applications for which the
 basic U.S. national stage filing fee was not paid; and (iii) provisional
 applications. In addition, where an applicant, inventor, or joint inventor has
 assigned, or is under an obligation by contract or law to assign, all ownership
 rights in the application as the result of the applicant’s, inventor’s, or
 joint inventor’s previous employment the applicant, inventor or joint inventor
 is not considered to be named on the prior filed application for purposes of
 determining micro entity status. See 37 CFR
 1.29(b) and MPEP §
 509.04(a) , subsection II.
 

 Because the four application limit is a limit on
 previously filed U.S. nonprovisional applications, reissues applications, and
 national stage applications, the maximum number of applications in which fees
 can be paid at the micro entity discount rate can vary from 0 to 5 for any
 given inventor. For example, consider a person named as a sole inventor in five
 previously filed U.S. nonprovisional patent applications in which all ownership
 rights have remained with the sole inventor (i.e., no assignment or licensing
 of patent rights ever occurred). This person was not named as an inventor in
 any other application. Because all five applications count against the
 application filing limit, this person cannot be named as an inventor in any
 future-filed application entitled to micro entity status on the “gross income”
 basis under 37 CFR 1.29(a) . (However,
 the filing of a future sixth application will not jeopardize entitlement to
 micro entity status in any of the five applications already filed.) If the
 first two of the inventor’s five applications went abandoned prior to March 19,
 2013, then the inventor would not have had the opportunity to pay fees at the
 micro entity discount rate in those two applications. (The micro entity
 discount became available for the first time on March 19, 2013.) However if the
 third-filed application issued as a patent, then for purposes of paying
 maintenance fees, the applicant-turned-patentee (the sole inventor in this
 example) may establish entitlement to micro entity status on the “gross income”
 basis if all 4 requirements under 37 CFR 1.29(a) are met. If
 the fourth and fifth filed applications are still pending, then similarly, the
 inventor may establish entitlement to micro entity status on the “gross income”
 basis if the four requirements under 37 CFR
 1.29(a) are met.
 

 C. Gross Income Limit on Applicants and Inventors For purposes of qualifying for micro-entity
 status under 37 CFR 1.29(a) and paying
 fees at the micro entity discount, it is required that no inventor had a gross
 income exceeding the gross income limit in the calendar year preceding the time
 of fee payment. This gross income level requirement also applies to any
 applicant who is not an inventor (e.g., an assignee-applicant).
 35 U.S.C. 123(a)(3) and 37 CFR
 1.29(a)(3) define the gross income limit as “three times
 median household income for [the] preceding calendar year, as most recently as
 reported by the Bureau of the Census.” Based on that definition, the gross
 income limit is reported on the USPTO website at www.uspto.gov/patent/laws-and-regulations/
 micro-entity-status-gross-income-limit as the “maximum
 qualifying gross income.” 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 should be noted that “gross income” means total
 income. “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. Section 61(a) of the Internal Revenue Code of 1986 (26
 U.S.C. 61(a)) provides that: "[e]xcept as otherwise provided in this subtitle,
 gross income means all income from whatever source derived, including (but not
 limited to) the following items: (1) Compensation for services, including fees,
 commissions, fringe benefits, and similar items; (2) Gross income derived from
 business; (3) Gains derived from dealings in property; (4) Interest; (5) Rents;
 (6) Royalties; (7) Dividends; (8) Alimony and separate maintenance payments;
 (9) Annuities; (10) Income from life insurance and endowment contracts; (11)
 Pensions; (12) Income from discharge of indebtedness; (13) Distributive share
 of partnership gross income; (14) Income in respect of a decedent; and (15)
 Income from an interest in an estate or trust."
 

 With the coming of each new year, the “preceding
 calendar year” advances, and anyone’s preceding calendar year’s gross income
 may change as a result. Therefore, if the prosecution of an application under
 micro entity status extends across multiple calendar years, each applicant,
 inventor, and joint inventor must verify that the gross income limit for the
 requisite calendar year is met to maintain eligibility for the micro entity
 discount. If the gross income limit is no longer met, then a notification of
 loss of entitlement to micro entity status must be filed in the application to
 remove micro entity status. On the other hand, it is possible a small entity
 applicant not meeting the gross income limits specified in 37 CFR
 1.29(a)(3) and (4) in the calendar year in which the application was
 filed could meet the 37 CFR 1.29(a)(3) and
 (4) gross income limits in the calendar year in which
 the issue fee is paid, for example, due to a reduction in income. However, the
 applicant must still be a small entity at the time of issue fee payment, and
 the applicant must have met the application filing limit under
 37 CFR 1.29(a)(2) when the application was filed.
 

 The applicable “maximum qualifying gross income”
 that is reported on the USPTO website at www.uspto.gov/patent/laws-and-
 regulations/micro-entity-status-gross-income-limit is
 anticipated to change (increase or decrease) in September or October of each
 year. If the reported “maximum qualifying gross income” increases, then parties
 that met the gross income limit earlier that calendar year will continue to
 meet the gross income limit for the rest of the calendar year. There may also
 be additional parties that meet the gross income limit. If the reported
 “maximum qualifying gross income” decreases, however, some parties that met
 (e.g., barely met) the gross income limit earlier that calendar year might no
 longer meet the gross income limit for the remainder of the calendar year. In
 that event a notification of loss of entitlement to micro entity status must be
 filed as fees could not be paid in the micro entity amount in the relevant
 patent application or patent for the remainder of that calendar year. 
 

 For inventors who file tax returns jointly with
 their spouse, for example, determining the inventor’s gross income may not be
 readily apparent from the preceding calendar year’s joint tax return.
 Regardless of whether any inventor, or any person who is a non-inventor
 applicant (e.g., assignee-applicant), or any person with an “ownership
 interest” under 37 CFR 1.29(a)(4) actually
 filed a joint tax return rather than a separate tax return in the preceding
 calendar year, the gross income limit applies to the amount of income the
 person would have reported as gross income if that person were filing a
 separate tax return, which includes for example, properly accounting for that
 person’s portion of interest, dividends, and capital gains from joint bank or
 brokerage accounts.
 

 For filings on behalf of deceased inventors,
 gross income from the deceased inventor’s estate or trust does not count toward
 the gross income limit because the trust or decedent’s estate is considered a
 separate legal entity. However, the deceased inventor’s legal representative
 acting on behalf of the deceased inventor under 37 CFR
 1.43 is an “applicant” in terms of 37 CFR
 1.29(a) . Therefore the legal representative’s gross
 income in the preceding calendar year cannot exceed the gross income limit
 under 37 CFR 1.29(a)(3) in order
 to qualify for micro entity status. For example, if the deceased inventor has a
 surviving spouse who is named on the Application Data Sheet (ADS) as an
 applicant by virtue of being the legal representative of the deceased inventor,
 the surviving spouse’s gross income in the preceding calendar year cannot
 exceed the gross income limit in order to qualify for micro entity status. On
 the other hand, if the deceased inventor had assigned all rights in the
 application (or if subsequent to the inventor’s death, the legal representative
 assigned all rights in the application) AND the assignee that received all
 rights was named as an applicant (or the applicant), then it would be the
 assignee that would have to meet the gross income limit (under
 37 CFR 1.29(a)(4) ) and not the legal representative. In
 any event, each other joint inventor, assignee, and licensee (if any) would
 also have to meet the gross income limit in order to qualify for micro entity
 status.
 

 D. Gross Income Limit on Parties With an “Ownership Interest” Pursuant to 37 CFR
 1.29(a)(4) , the gross income limit extends to any party
 with an “ownership interest” from any applicant or inventor. Accordingly, for
 each inventor, applicant, and party with an “ownership interest,” gross income
 in the calendar year preceding the time of fee payment must not exceed the
 “maximum qualifying gross income.” Thus, the gross income limit applies to the
 assignee regardless of whether the assignee is identified as the applicant. For
 micro entity status, 37 CFR 1.29(a)(4) requires
 that the gross income limit be met by each assignee and licensee (if any) as
 well as by each inventor.
 

 An applicant is disqualified from micro entity
 status on the gross income basis if an inventor or an assignee-applicant
 transfers, or is obligated to transfer, any ownership interest in the patent
 application to an entity that exceeds the gross income limit. For example,
 consider a patent application with a sole inventor who does not exceed the
 gross income limit. If the inventor assigns, or is obligated to assign, all
 rights in the patent application to an employer that is, for example, a
 corporation having several million dollars in annual receipts, there can be no
 micro entity discount of patent fees. Depending on the size of the corporation,
 the small entity discount may be unavailable as well. If the corporation
 transfers all of its rights back to the inventor, or transfers all of its
 rights to some other person who does not exceed the gross income limit, such a
 retransfer will not result in qualification for micro entity status. The
 37 CFR 1.29(a)(4) certification requirement is that no
 ownership interest "has" been transferred, or is obligated to be transferred,
 to an assignee or licensee that exceeds the gross income limit. Once an
 assignee or licensee exceeding the gross income limit receives the ownership
 interest, the 37 CFR 1.29(a)(4) 
 certification requirement can no longer be met – even if the assignee or
 licensee retransfers rights and no longer holds any ownership interest in the
 application. 
 

 If prosecution of an application that is under
 37
 CFR 1.29(a) micro entity status extends into a new year,
 it is important to verify that no inventor, no non-inventor applicant, and no
 party with a 37 CFR 1.29(a)(4) 
 “ownership interest,” had a gross income in the new preceding calendar year
 that exceeds the “maximum qualifying gross income” reported on the USPTO
 website. If the coming of a new year results in the gross income limit not
 being met by any inventor, applicant or party with a 37 CFR
 1.29(a)(4) “ownership interest,” then a notification of
 loss of entitlement to micro entity status under 37 CFR
 1.29(i) must be filed in the application to remove micro
 entity status.
 

 II. SECTION 1.29(b) – PREVIOUSLY FILED PATENT APPLICATION EXCLUSION 

 
 37 CFR § 1.29 Micro entity status. 

 *****

 
 (b) An applicant, inventor, or joint
 inventor is not considered to be named on a previously filed
 application for purposes of paragraph (a)(2) of this section if the
 applicant, inventor, or joint inventor has assigned, or is under an
 obligation by contract or law to assign, all ownership rights in the
 application as the result of the applicant’s, inventor’s, or joint
 inventor’s previous employment.
 

 
 *****

 

 37 CFR
 1.29(b) implements the provisions of 35 U.S.C.
 123(b) . 37 CFR 1.29(b) provides that
 an applicant, inventor, or joint inventor is not considered to be named on a
 previously filed application for purposes of 37 CFR
 1.29(a)(2) if the applicant, inventor, or joint inventor has
 assigned, or is under an obligation by contract or law to assign, all ownership
 rights in the application as the result of the applicant’s, inventor’s, or joint
 inventor's previous employment. In order for 37 CFR
 1.29(b) to apply, not only must all ownership rights have
 been assigned, or be under an existing obligation by contract or law to be
 assigned, the assignment or obligation to assign must have resulted from
 employment with a previous employer. This requires that the applicant, inventor,
 or joint inventor was a former employee of the previous employer, and that the
 assignment or obligation to assign was the result of such previous employment as
 opposed to the applicant’s, inventor’s, or joint inventor’s own enterprise.
 

 III. SECTION 1.29(c) – GROSS INCOME DETERMINED BY CURRENCY EXCHANGE RATE 
 37 CFR § 1.29 Micro entity status. 

 *****

 
 (c) If an applicant’s, inventor’s, joint
 inventor’s, or entity’s gross income in the preceding calendar year is
 not in United States dollars, the average currency exchange rate, as
 reported by the Internal Revenue Service, during that calendar year shall
 be used to determine whether the applicant’s, inventor’s, joint
 inventor’s, or entity’s gross income exceeds the threshold specified in
 paragraph (a)(3) or (4) of this section.
 

 
 *****

 

 Section 1.29(c) implements the provisions of
 35
 U.S.C. 123(c) . Section 1.29(c) provides that
 if an applicant’s, inventor’s, joint inventor’s, or entity’s gross income in the
 preceding calendar year is not in United States dollars, the average currency
 exchange rate, as reported by the Internal Revenue Service, during that calendar
 year shall be used to determine whether the applicant’s, inventor’s, joint
 inventor’s, or entity’s gross income exceeds the threshold specified in
 37
 CFR 1.29(a)(3) or (a)(4) . The Internal Revenue Service reports the average
 currency exchange rate (Yearly Average Currency Exchange Rates) on its Internet
 website ( www.irs.gov/Individuals/International-Taxpayers/
 Yearly-Average-Currency-Exchange-Rates ).
 

 For an applicant or entity whose previous calendar
 year’s gross income was received partially in U.S. dollars and partially in
 non-United States currency, the gross income amount in non-United States currency
 must be converted into U.S. dollars in accordance with 37 CFR
 1.29(c) and then added to the gross income amount in U.S.
 dollars to determine whether the applicant or entity meets the gross income
 requirement of 37 CFR 1.29(a)(3) .
 

 

 
 509.04(b) Institution of Higher Education Basis for Micro
 Entity Status [R-07.2022]
 

 
 37 CFR 1.29 Micro entity status. 

 *****

 
 (d) To establish micro entity status under this
 paragraph, the applicant must certify that:
 
 (1) The applicant qualifies as a small
 entity as defined in § 1.27 without
 relying on a government use license exception under §
 1.27(a)(4) ; and
 

 (2)
 
 (i) The applicant’s employer, from
 which the applicant obtains the majority of the applicant’s
 income, is an institution of higher education as defined in
 section 101(a) of the Higher Education Act of 1965 (20 U.S.C.
 1001(a)); or
 

 (ii) The applicant has assigned,
 granted, conveyed, or is under an obligation by contract or law,
 to assign, grant, or convey, a license or other ownership
 interest in the particular application to such an institution of
 higher education.
 

 
 

 
 

 
 *****

 

 35 U.S.C.
 123(a) provides a gross income basis under which an applicant
 may establish micro entity status. See MPEP §
 509.04(a) . 35 U.S.C. 123 provides that a
 micro entity shall also include an applicant who certifies that: (1) The applicant’s
 employer, from which the applicant obtains the majority of the applicant’s income, is
 an institution of higher education as defined in section 101(a) of the Higher
 Education Act of 1965 (20 U.S.C. 1001(a)); or (2) the applicant has assigned,
 granted, conveyed, or is under an obligation by contract or law, to assign, grant, or
 convey, a license or other ownership interest in the particular application to such
 an institution of higher education. 37 CFR 1.29(d) implements the
 provisions of 35 U.S.C. 123(d) .
 

 To the extent that 35 U.S.C.
 123(d) (unlike 35 U.S.C. 123(a) ) does not
 expressly require that an applicant qualify as a small entity under 37 CFR
 1.27 , the Office has invoked its authority under 35 U.S.C.
 123(e) to “…impose… other limits on who may qualify as a micro
 entity…” in order to expressly require that a party claiming micro entity status via
 35
 U.S.C. 123(d) qualify as a small entity under 37 CFR
 1.27 . Accordingly, 37 CFR 1.29(d)(1) requires that
 an applicant claiming micro entity status on the institution of higher education
 basis must certify that the “applicant qualifies as a small entity as defined in
 §
 1.27 without relying on a government use license exception
 under §
 1.27(a)(4) ” in addition to certifying that the other
 requirements set forth in 35 U.S.C. 123(d)(1) or (2) are
 met. See MPEP §
 509.02 for a discussion of the requirements for small
 entity status.
 

 I. REQUIREMENTS An applicant for micro entity status under the
 “institution of higher education” basis set forth in 37 CFR
 1.29(d) must satisfy two requirements. First, the applicant
 must certify that the applicant qualifies as a small entity as defined in
 37 CFR
 1.27 . Second, the applicant must certify that either (i) the
 applicant’s employer, from which the applicant obtains the majority of the
 applicant’s income, is an institution of higher education as defined in section
 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)); or (ii) the
 applicant has assigned, granted, conveyed, or is under an obligation by contract
 or law, to assign, grant, or convey, a license or other ownership interest in the
 particular application to such an institution of higher education.
 

 A. Small Entity Requirement In order to meet the small entity requirement,
 every party holding rights in the application must qualify as a small entity
 under 37
 CFR 1.27 . If any rights in the application are assigned,
 granted, conveyed, or licensed to a party that does not qualify as a small
 entity under 37 CFR 1.27 , the applicant
 cannot qualify for any patent fee discount. An obligation to assign, grant,
 convey, or license rights in the application to a party that does not qualify
 for small entity status would also disqualify the applicant from receiving any
 patent fee discount. In order to qualify for small entity status, and in order
 to meet the small entity requirement for micro entity status, there can be no
 party holding rights or obligated rights in the application that does not
 qualify as a small entity. See MPEP § 509.02 for a discussion
 of the requirements for small entity status.
 

 B. Section 1.29(d)(2) Requirement Under 37 CFR
 1.29(d)(2)(i) the applicant must certify that the
 applicant’s employer, from which the applicant obtains the majority of the
 applicant’s income, is an institution of higher education. Because only a
 person can have an “employer,” the applicant certifying under 37 CFR
 1.29(d)(2)(i) must be a person or persons, which in most
 cases, means the inventor(s). 
 

 Under 37 CFR
 1.29(d)(2)(ii) the applicant must certify that the
 applicant has assigned, granted, or conveyed a license or other ownership
 interest in the subject application (or is obligated to do so) to such an
 institution of higher education. An attempt to obtain micro entity status by
 merely seeking to transfer a de minimus interest to an
 institution of higher education could be considered a sham transaction.
 Although the Office considers it highly unlikely that institutions of higher
 education would be party to such transactions, the Office plans to closely
 monitor the percentage of applicants claiming micro entity status under
 35 U.S.C. 123(d) to ensure that applicants are not
 engaging in such transactions in order to obtain micro entity status.
 

 II. MEANING OF “INSTITUTION OF HIGHER EDUCATION” Section 101(a) of the Higher Education Act of 1965
 defines what is meant by “institution of higher education” in the context of
 37
 CFR 1.29(d) . See 20 U.S.C. 1001. Section 101(a) of the
 Higher Education Act states that the term “institution of higher education”
 means:
 

 an educational institution in any State that—

 
 1. admits as regular students only persons having
 a certificate of graduation from a school providing secondary education, or
 the recognized equivalent of such a certificate, or persons who meet the
 requirements of section 1091(d)(3) of this title;
 

 2. is legally authorized within such State to
 provide a program of education beyond secondary education;
 

 3. provides an educational program for which the
 institution awards a bachelor’s degree or provides not less than a 2-year
 program that is acceptable for full credit toward such a degree, or awards a
 degree that is acceptable for admission to a graduate or professional degree
 program, subject to review and approval by the Secretary;
 

 4. is a public or other nonprofit institution;
 and
 

 5. is accredited by a nationally recognized
 accrediting agency or association, or if not so accredited, is an
 institution that has been granted pre-accreditation status by such an agency
 or association that has been recognized by the Secretary for the granting of
 pre-accreditation status, and the Secretary has determined that there is
 satisfactory assurance that the institution will meet the accreditation
 standards of such an agency or association within a reasonable time.’
 

 
 Additionally, section 103 of the Higher Education Act
 of 1965 provides that the term “State” means the 50 States of the United States as
 well as “the Commonwealth of Puerto Rico, the District of Columbia, Guam, American
 Samoa, the United States Virgin Islands, the Commonwealth of the Northern Mariana
 Islands, and the Freely Associated States’’ and that the Freely Associated States
 means the ‘‘Republic of the Marshall Islands, the Federated States of Micronesia,
 and the Republic of Palau.’’ See 20 U.S.C. 1003.
 

 Based upon these definitions, public or non-profit
 institutions located in one of the 50 States or U.S. territories offering certain
 undergraduate educational programs credited toward a bachelor’s degree or
 educational programs awarding “a degree that is acceptable for admission to a
 graduate or professional degree program” are eligible as an “institution of higher
 education” for purposes of establishing micro entity status under
 37
 CFR 1.29(d) . Except for universities or other institutions
 of higher education located outside the United States, any university or other
 U.S. institution of higher education that qualifies for small entity status by
 virtue of being a nonprofit organization under 37 CFR
 1.27(a)(3) meets the criteria of an “institution of higher
 education” for micro entity status purposes.
 

 An institution such as a non-profit research
 foundation, technology transfer organization, or Federal Government research
 laboratory does not qualify as an “institution of higher education” under the
 definition of “institution of higher education” set forth in the Higher Education
 Act of 1965 for purposes of establishing micro entity status. 
 

 A. Universities and Colleges that Do Not Qualify as Institutions of
 Higher Education One of the requirements for an “institution of
 higher education” under section 101(a) of the Higher Education Act of 1965 is
 that the institution be non-profit. Therefore, for-profit universities and
 colleges do not qualify as an “institution of higher education” for purposes of
 establishing micro entity status. As previously stated, foreign universities do
 not qualify as an “institution of higher education” for purposes of
 establishing micro entity status. A foreign university may offer an on-line
 educational program in the United States, however, on-line classes offered in
 the United States would not qualify the foreign university as an “institution
 of higher education” for purposes of establishing micro entity status. That’s
 because the university must be located “in any State” in the context of what
 “in any State” meant in 1965 – the year of the Higher Education Act of 1965. In
 addition, institutions that only grant graduate degrees do not qualify as an
 “institution of higher education” for purposes of establishing micro entity
 status because section 101(a) of the Higher Education Act of 1965 is limited to
 an institution that “provides an educational program for which the institution
 awards a bachelor’s degree or provides not less than a 2-year program that is
 acceptable for full credit toward such a degree, or awards a degree that is
 acceptable for admission to a graduate or professional degree program…”
 

 B. The University Cannot be the Micro Entity Applicant Although the 37 CFR
 1.29(d) basis for qualifying for micro entity status is
 referred to as the “institution of higher education” basis, it is not the
 institution of higher education that can qualify for micro entity status, but
 rather inventors who are employees of an institution of higher education (see
 37 CFR 1.29(d)(2)(i) ) or inventors or applicants who
 have conveyed ownership rights to an institution of higher education (see
 37 CFR 1.29(d)(2)(ii) ). The institution (university)
 logically cannot make the certifications required under 37 CFR
 1.29(d)(2)(i) and (d)(2)(ii) (that the employer from which the university
 obtains the majority of its income is an institution of higher education as
 defined by section 101(a) of the Higher Education Act of 1965, or that the
 university itself has assigned, granted, conveyed, or is under an obligation by
 contract or law, to assign, grant, or convey, a license or other ownership
 interest in the particular application).
 

 C. CERTIFICATION FORM – INSTITUTION OF HIGHER EDUCATION BASIS The Office’s form PTO/SB/15B contains the
 certifications under 37 CFR 1.29(d) that are
 required to establish micro entity status on the institution of higher
 education basis. There are 2 signature blocks reflecting that in addition to
 the small entity requirement under 37 CFR
 1.29(d)(1) , there are two alternative requirements under
 37
 CFR 1.29(d)(2) . The first signature block is for
 certifying under 37 CFR 1.29(d)(2)(i) that
 the applicant’s employer, from which the applicant obtains the majority of the
 applicant’s income, is an institution of higher education. The second signature
 block is for certifying under 37 CFR 1.29(d)(2)(ii) that
 the applicant has assigned, granted, or conveyed a license or other ownership
 interest in the subject application (or is obligated to do so) to such an
 institution of higher education.
 

 

 

 

 
 509.04(c) Parties Who Can Sign the Micro Entity
 Certification [R-11.2013]
 

 A certification of micro entity status, on either the
 gross income basis or the institution of higher education basis, can be signed only
 by an authorized party as set forth in 37 CFR 1.33(b) , which
 includes:
 

 
 (1) A patent practitioner of record; 

 (2) A patent practitioner not of record who acts in a
 representative capacity under the provisions of 37 CFR
 1.34 ; or 
 

 (3) The applicant ( 37 CFR
 1.42 ). Unless otherwise specified, all papers submitted
 on behalf of a juristic entity must be signed by a patent practitioner. 
 

 
 For joint inventor applicants, each joint inventor
 should sign a separate copy of the relevant micro entity certification form. However,
 if one joint inventor is appointed to prosecute the application on behalf of all the
 other joint inventors, then only that one joint inventor need sign the micro entity
 certification form. See USPTO form PTO/AIA/81, titled “Power Of Attorney To One Or
 More Of The Joint Inventors And Change Of Correspondence Address”, available on the
 USPTO forms Web page at www.uspto.gov/patent/patent-forms .
 

 Additionally, if any applicant is an assignee or other
 party under 37
 CFR 1.46 , and the assignee or other party is a corporation or
 organization rather than a person, a registered practitioner must sign the
 certification of micro entity status. An officer of the assignee corporation, for
 example, is not authorized to sign a certification of micro entity status.
 

 

 
 509.04(d) Continued Obligation to Determine Micro Entity
 Qualification [R-11.2013]
 

 
 37 CFR 1.29 Micro entity status. 

 *****

 
 (g) A certification of entitlement to micro entity
 status need only be filed once in an application or patent. Micro entity
 status, once established, remains in effect until changed pursuant to
 paragraph (i) of this section. However, a fee may be paid in the micro
 entity amount only if status as a micro entity as defined in paragraph (a)
 or (d) of this section is appropriate on the date the fee is being paid.
 Where an assignment of rights or an obligation to assign rights to other
 parties who are micro entities occurs subsequent to the filing of a
 certification of entitlement to micro entity status, a second certification
 of entitlement to micro entity status is not required.
 

 (h) Prior to submitting a certification of
 entitlement to micro entity status in an application, including a related,
 continuing, or reissue application, a determination of such entitlement
 should be made pursuant to the requirements of this section. It should be
 determined that each applicant qualifies for micro entity status under
 paragraph (a) or (d) of this section, and that any other party holding
 rights in the invention qualifies for small entity status under
 §
 1.27 . The Office will generally not question
 certification of entitlement to micro entity status that is made in
 accordance with the requirements of this section.
 

 
 *****

 

 An applicant is not required to provide a certification
 of micro entity status with each fee payment once micro entity status has been
 established by filing a certification in an application. While an applicant is not
 required to provide such a certification with each fee payment, the applicant must
 still be entitled to micro entity status to pay a fee in the micro entity amount at
 the time of all payments of fees in the micro entity amount. Thus it must be
 determined whether the requirements for micro entity status exist at the time each
 fee payment is made. If any requirement for micro entity status is no longer met,
 then the applicant must notify the Office of loss of micro entity status and pay the
 required fee in the small entity or undiscounted amount, as appropriate. 
 

 For micro entity status on the gross income basis under
 37 CFR
 1.29(a) , the applicant must determine that the applicant and
 each inventor or joint inventor still meet the applicable conditions of
 37 CFR
 1.29(a) to claim micro entity status. For example, the
 applicant must determine that neither the applicant nor inventor nor joint inventor
 has had a change in gross income that exceeds the “maximum qualifying gross income”
 as reported on the USPTO website (a new determination must be made each year because
 gross income may change from year to year, and micro entity status is based upon
 gross income in the calendar year preceding the calendar year in which the applicable
 fee is being paid). In addition, the applicant must determine that neither the
 applicant nor inventor nor joint inventor has made, or is obligated by contract or
 law to make, an assignment, grant, or conveyance to an entity exceeding the “maximum
 qualifying gross income,” and that no new inventor or joint inventor has been named
 in the application who does not meet the conditions specified in 37 CFR
 1.29(a) . See MPEP §
 509.04(a) , subsection I, for additional information. 
 

 For micro entity status under 35 U.S.C.
 123(d) , the applicant must determine that each applicant still
 complies with 37 CFR 1.29(d) (e.g., still
 obtains the majority of his or her income from an institution of higher education as
 defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).
 37 CFR
 1.29(g) also provides that where an assignment of rights or an
 obligation to assign rights to other parties who are micro entities occurs subsequent
 to the filing of a certification of entitlement to micro entity status, a second
 certification of entitlement to micro entity status is not required.
 

 

 
 509.04(e) Notification of Loss of Entitlement to Micro
 Entity Status [R-01.2024]
 

 
 37 CFR 1.29 Micro entity status. 

 *****

 
 (i) Notification of a loss of entitlement to micro
 entity status must be filed in the application or patent prior to paying, or
 at the time of paying, any fee after the date on which status as a micro
 entity as defined in paragraph (a) or (d) of this section is no longer
 appropriate. The notification that micro entity status is no longer
 appropriate must be signed by a party identified in §
 1.33(b) . Payment of a fee in other than the micro
 entity amount is not sufficient notification that micro entity status is no
 longer appropriate. A notification that micro entity status is no longer
 appropriate will not be treated as a notification that small entity status
 is also no longer appropriate unless it also contains a notification of loss
 of entitlement to small entity status under § 1.27(f)(2) [ §
 1.27(g)(2) ]. Once a notification of a loss of
 entitlement to micro entity status is filed in the application or patent, a
 new certification of entitlement to micro entity status is required to again
 obtain micro entity status.
 

 
 *****

 

 37 CFR
 1.29(i) contains provisions for a micro entity that correspond
 to the provisions of 37 CFR 1.27(g)(2) for a small
 entity. 37 CFR 1.29(i) provides that notification of a loss of
 entitlement to micro entity status must be filed in the application or patent prior
 to paying, or at the time of paying, any fee after the date on which status as a
 micro entity as defined in 37 CFR 1.29(a) or
 1.29(d) is no longer appropriate. The notification that micro
 entity status is no longer appropriate must be signed by a party identified in
 37 CFR
 1.33(b) . Payment of a fee in other than the micro entity amount
 is not sufficient notification that micro entity status is no longer appropriate. An
 applicant can make a simple statement that the applicant is no longer eligible for
 micro entity status without identifying the particular reason(s) for loss of
 entitlement to micro entity status.
 

 37 CFR
 1.29(i) further provides that a notification that micro entity
 status is no longer appropriate will not be treated as a notification that small
 entity status is also no longer appropriate unless it also provides notification of
 loss of entitlement to small entity status under 37 CFR
 1.27(g)(2) . Thus, an applicant or patentee who files a
 notification that micro entity status is no longer appropriate will be treated as a
 small entity by default. For applications under micro entity status, regular
 unreduced fee status will result from: (1) a notification of loss of entitlement to
 micro entity status accompanied by regular unreduced fees or some other indication of
 loss of entitlement to small entity status; or (2) a notification of loss of
 entitlement to small entity status by itself.
 

 37 CFR
 1.29(i) finally provides that once a notification of a loss of
 entitlement to micro entity status is filed in the application or patent, a new
 certification of entitlement to micro entity status is required to again obtain micro
 entity status. Form SB/460 “Notification of Loss of Micro Entity Status” may be used
 to notify the Office of a loss of entitlement to micro entity status and make payment
 of any deficiencies in payment associated with the loss of entitlement to micro
 entity status.
 

 

 

 

 

 
 509.04(f) Correcting Errors in Micro Entity
 Status [R-07.2015]
 

 
 37 CFR 1.29 Micro entity status. 

 *****

 
 (k) If status as a micro entity is established in
 good faith in an application or patent, and fees as a micro entity are paid
 in good faith in the application or patent, and it is later discovered that
 such micro entity status either was established in error, or that the Office
 was not notified of a loss of entitlement to micro entity status as required
 by paragraph (i) of this section through error, the error will be excused
 upon compliance with the separate submission and itemization requirements of
 paragraph (k)(1) of this section and the deficiency payment requirement of
 paragraph (k)(2) of this section.
 
 (l) Any paper submitted under this paragraph
 must be limited to the deficiency payment (all fees paid in error)
 required for a single application or patent. Where more than one
 application or patent is involved, separate submissions of deficiency
 payments are required for each application or patent (see
 §
 1.4(b) ). The paper must contain an itemization
 of the total deficiency payment for the single application or patent
 and include the following information:
 
 (i) Each particular type of fee that
 was erroneously paid as a micro entity, (e.g., basic statutory
 filing fee, two-month extension of time fee) along with the
 current fee amount for a small or nonsmall entity, as
 applicable; 
 

 (ii) The micro entity fee actually paid,
 and the date on which it was paid;
 

 (iii) The deficiency owed amount (for
 each fee erroneously paid); and
 

 (iv) The total deficiency payment owed,
 which is the sum or total of the individual deficiency owed
 amounts as set forth in paragraph (k)(2) of this section.
 

 
 

 (2) The deficiency owed, resulting from the
 previous erroneous payment of micro entity fees, must be paid. The
 deficiency owed for each previous fee erroneously paid as a micro
 entity is the difference between the current fee amount for a small
 entity or non-small entity, as applicable, on the date the deficiency
 is paid in full and the amount of the previous erroneous micro entity
 fee payment. The total deficiency payment owed is the sum of the
 individual deficiency owed amounts for each fee amount previously and
 erroneously paid as a micro entity.
 

 (3) If the requirements of paragraphs (k)(1)
 and (2) of this section are not complied with, such failure will
 either be treated at the option of the Office as an authorization for
 the Office to process the deficiency payment and charge the processing
 fee set forth in § 1.17(i) , or
 result in a requirement for compliance within a one-month time period
 that is not extendable under § 1.136(a) to
 avoid the return of the fee deficiency payment.
 

 (4) Any deficiency payment (based on a
 previous erroneous payment of a micro entity fee) submitted under this
 paragraph will be treated as a notification of a loss of entitlement
 to micro entity status under paragraph (i) of this section. 
 

 
 

 
 

 37 CFR
 1.29(k) contains provisions for a micro entity that correspond
 to the provisions of 37 CFR 1.28(c) for a small
 entity. 37 CFR
 1.28(c) permits an applicant or patentee to correct the
 erroneous payment of a patent fee in the small entity amount if status as a small
 entity was established in good faith, and fees as a small entity were paid in good
 faith. See DH Tech. Inc. v. Synergystex Int’l Inc., 154 F.3d 1333,
 47 USPQ2d 1865 (Fed. Cir. 1998). 37 CFR 1.29(k) provides that if:
 (i) an applicant or patentee establishes micro entity status in an application or
 patent in good faith; (ii) the applicant or patentee pays fees as a micro entity in
 the application or patent in good faith; and (iii) applicant or patentee later
 discovers that such micro entity status either was established in error, or that the
 Office was not notified of a loss of entitlement to micro entity status as required
 by 37 CFR
 1.29(i) through error, the error will be excused upon
 compliance with the separate submission and itemization requirements of
 37 CFR
 1.29(k)(1) and the deficiency payment requirement of
 37 CFR
 1.29(k)(2) .
 

 37 CFR
 1.29(k)(1) provides that any paper submitted under
 37 CFR
 1.29(k) must be limited to the deficiency payment (all fees
 paid in error) required for a single application or patent. 37 CFR
 1.29(k)(1) provides that where more than one application or
 patent is involved, separate submissions of deficiency payments (e.g., checks) and
 itemizations are required for each application or patent. 37 CFR
 1.29(k)(1) also provides that the paper must contain an
 itemization of the total deficiency payment and include the following information:
 (1) each particular type of fee that was erroneously paid as a micro entity, (e.g.,
 basic statutory filing fee, two-month extension of time fee) along with the current
 fee amount for a small or non-small entity; (2) the micro entity fee actually paid,
 and the date on which it was paid; (3) the deficiency owed amount (for each fee
 erroneously paid); and (4) the total deficiency payment owed, which is the sum or
 total of the individual deficiency owed amounts as set forth in 37 CFR
 1.29(k)(2) .
 

 37 CFR
 1.29(k)(2) provides that the deficiency owed, resulting from
 the previous erroneous payment of micro entity fees, must be paid. The deficiency
 owed for each previous fee erroneously paid as a micro entity is the difference
 between the current fee amount for a small entity or non-small entity, as applicable,
 on the date the deficiency is paid in full and the amount of the previous erroneous
 micro entity fee payment. The total deficiency payment owed is the sum of the
 individual deficiency owed amounts for each fee amount previously and erroneously
 paid as a micro entity. This corresponds to the procedure for fee deficiency payments
 based upon the previous erroneous payment of patent fees in the small entity amount.
 See 37 CFR
 1.28(c)(2)(i) ("[t]he deficiency owed for each previous fee
 erroneously paid as a small entity is the difference between the current full fee
 amount (for non-small entity) on the date the deficiency is paid in full and the
 amount of the previous erroneous (small entity) fee payment").
 

 37 CFR
 1.29(k)(3) provides that if the requirements of
 37 CFR
 1.29(k)(1) and (k)(2) are not complied with,
 such failure will either be treated at the option of the Office as an authorization
 for the Office to process the deficiency payment and charge the processing fee set
 forth in 37 CFR 1.17(i) , or result in a
 requirement for compliance within a one-month nonextendable time period under
 37 CFR
 1.136(a) to avoid the return of the fee deficiency payment.
 

 37 CFR
 1.29(k)(4) provides that any deficiency payment (based on a
 previous erroneous payment of a micro entity fee) submitted under 37 CFR
 1.29(k) will be treated as a notification of a loss of
 entitlement to micro entity status under 37 CFR
 1.29(i) .
 

 

 

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 501-Filing Papers With the U.S. Patent and Trademark Office 

 502-Depositing Correspondence 
 502.01-Correspondence Transmitted by Facsimile 

 502.02-Correspondence Signature Requirements 

 502.03-Communications via Internet Electronic Mail (email) 

 502.04-Duplicate Copies of Correspondence 

 502.05-Correspondence Transmitted by EFS-Web 

 
 

 503-Application Number and Filing Receipt 

 504-Assignment of Application for Examination 

 505-Date of Receipt Stamp 

 506-Completeness of Original Application 
 506.01-[Reserved] 

 506.02-Review of Refusal To Accord Filing Date 

 
 

 507-Drawing Review in the Office of Patent Application Processing 

 508-Distribution 
 508.01-[Reserved] 

 508.02-Papers Received After Patenting or Abandonment 

 508.03-[Reserved] 

 508.04-Unlocatable Patent or Application Files 

 
 

 509-Payment of Fees 
 509.01-Deposit Accounts 

 509.02-Small Entity Status — Definitions 

 509.03-Claiming Small Entity Status 
 509.03(a)-Duty to Investigate Entitlement to Claim Small Entity Status 

 509.03(b)-Change or Correction of Status 

 
 

 509.04-Micro Entity Status — Definitions 
 509.04(a)-Gross Income Basis for Micro Entity Status 

 509.04(b) -Institution of Higher Education Basis for Micro Entity Status 

 509.04(c) -Parties Who Can Sign the Micro Entity Certification 

 509.04(d) -Continued Obligation to Determine Micro Entity Qualification 

 509.04(e) -Notification of Loss of Entitlement to Micro Entity Status 

 509.04(f) -Correcting Errors in Micro Entity Status 

 
 

 
 

 510-U.S. Patent and Trademark Office Business Hours 

 511-Postal Service Interruptions and Emergencies 

 512-Certificate of Mailing or Transmission 

 513-Deposit as Priority Mail Express® with U.S. Postal Service 

 

 

 
 

 
 
 

 
 

 

 
 
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