Guide to Determining USPTO Entity Status

When filing a patent application with the United States Patent and Trademark Office (USPTO), the fees you pay depend on your entity status. There are three categories:

Undiscounted Entity – Full USPTO fees apply ($325)
Small Entity – 60% fee reduction ($130)
Micro Entity – 80% fee reduction ($65)

This guide will help you determine which category applies to you.

1. Undiscounted Entity

You are an Undiscounted Entity if you do not qualify as either a Small Entity or a Micro Entity. This typically includes:

Large companies or organizations with over 500 employees, including affiliates.
Entities that have licensed or are obligated to license the invention to a large entity.
Government agencies or foreign institutions not meeting Small Entity criteria.

If none of the Small or Micro Entity qualifications apply, you are an Undiscounted Entity and will pay the full USPTO fees.

2. Small Entity

You qualify as a Small Entity if:

You are an individual inventor, a small business, or a nonprofit organization.
Your small business has 500 or fewer employees, including affiliates.
You have not licensed or are not obligated to license your invention to a non-small entity.
Nonprofit organizations include universities and nonprofit research institutions.

If you meet these criteria, you are eligible for a 60% fee reduction.

3. Micro Entity

To qualify as a Micro Entity, you must meet all of the following requirements:

You meet the Small Entity requirements (see above).
You have not been named as an inventor on more than four previously filed US patent applications. Provisional applications and international applications under the PCT (not entering the US) do not count.
Your gross income is less than three times the median household income in the previous year. For 2025, that income limit is $241,830.00 (in other words, you can’t have made more than this amount in the previous year).
You have not assigned, licensed, or conveyed any rights in the invention to an entity with gross income exceeding the limit above.

If you meet all these requirements, you qualify as a Micro Entity and are eligible for an 80% fee reduction.

Important Notes

Entity status must be truthful and accurate. Misrepresentation can result in penalties or loss of patent rights.
If you are unsure about your status, consider consulting a patent attorney or agent.
You can always check the latest requirements on the USPTO’s website.

Which Status Should I Choose?

If you do not meet the requirements for Small Entity or Micro Entity, select Undiscounted Entity.
If you are an individual inventor, small business, or nonprofit, you likely qualify for Small Entity.
If you are an individual inventor, made less than $241,830.00 in the previous year, and have minimal prior patent filings, consider Micro Entity for the maximum fee reduction.

Choosing the correct status can significantly reduce your patent filing costs, so be sure to carefully review each category before making your selection.

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