USPTO: Legal Penalties for False Claims of Small and Micro Entity Status

When filing a patent application with the U.S. Patent and Trademark Office (USPTO), applicants can receive USPTO fee discounts based on their entity status.

Small Entity:

• An applicant is an individual, or a business with fewer than 500 employees.

• Eligible for a 60% fee discount.

  
  

Micro Entity:

• Must qualify as a Small Entity

• Additionally, must meet all the following conditions:

  • Neither the inventor nor the applicant has been named as an inventor on more than four previously filed U.S. patent applications.

  • Gross income is less than $212,352 (2024, subject to annual change)

• Eligible for an 80% fee discount.

Legal Penalties for False Claims

The USPTO is serious about protecting the integrity and fairness of the U.S. patent system. That's why they impose significant legal penalties for falsely claiming or certifying Small Entity or Micro Entity status. If it's discovered that an applicant falsely certified themselves as a Small or Micro Entity when they didn't qualify, and they cannot prove the certification was made in good faith, they could face penalties. This may include treble damages, meaning a fine of at least three times the amount of the unpaid fees. If a false claim is suspected, the USPTO will issue a Notice along with a Request for Show Cause. When this request is issued, the examination of the patent application will be paused. The applicant then gets an opportunity to provide an explanation. The USPTO will make a final decision on whether to impose a penalty and the amount, based on the applicant's response and the complete record.

For any inquiries regarding U.S. patent and trademark applications, please feel free to contact Law Firm ACI.

Contact: info@acilawgroup.com