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(82) DEPARTMENT OF COMMERCE
United States Patent and Trademark Office
37 CFR Part 1
[Docket No.: PTO-P-2011-0016]
RIN 0651-AC78
Changes to Implement
Micro Entity Status for
Paying Patent Fees
AGENCY: United States Patent and Trademark Office, Commerce.
ACTION: Notice of proposed rulemaking.
SUMMARY: The United States Patent and Trademark Office (Office) is
proposing to amend the rules of practice in patent cases to implement
the micro entity provision of the Leahy-Smith America Invents Act.
Certain patent fees set or adjusted under the fee setting authority in
the Leahy-Smith America Invents Act will be reduced by seventy-five
percent for micro entities. The Office is proposing changes to the
rules of practice to set out the procedures pertaining to claiming
micro entity status, paying patent fees as a micro entity, notification
of loss of micro entity status, and correction of payments of patent
fees paid erroneously in the micro entity amount. In a separate
rulemaking, the Office is in the process of proposing to set or adjust
patent fees under the Leahy-Smith America Invents Act, including
setting fees for micro entities with a seventy-five percent reduction.
DATES: Comment Deadline Date: Written comments must be received on or
before July 30, 2012.
ADDRESSES: Comments should be sent by electronic mail message over the
Internet addressed to: micro_entity@uspto.gov. Comments may also be
submitted by postal mail addressed to: Mail Stop Comments-Patents,
Commissioner for Patents, P.O. Box 1450, Alexandria, VA 22313-1450,
marked to the attention of James Engel, Senior Legal Advisor, Office of
Patent Legal Administration, Office of the Deputy Commissioner for
Patent Examination Policy.
Comments may also be sent by electronic mail message over the
Internet via the Federal eRulemaking Portal. See the Federal
eRulemaking Portal Web site (http://www.regulations.gov) for additional
instructions on providing comments via the Federal eRulemaking Portal.
Although comments may be submitted by postal mail, the Office
prefers to receive comments by electronic mail message over the
Internet because sharing comments with the public is more easily
accomplished. Electronic comments are preferred to be submitted in
plain text, but also may be submitted in ADOBE® portable
document format or MICROSOFT WORD® format. Comments not
submitted electronically should be submitted on paper in a format that
facilitates convenient digital scanning into ADOBE® portable
document format.
The comments will be available for public inspection at the Office
of the Commissioner for Patents, currently located in Madison East,
Tenth Floor, 600 Dulany Street, Alexandria, Virginia. Comments also
will be available for viewing via the Office's Internet Web site
(http://www.uspto.gov). Because comments will be made available for
public inspection, information that the submitter does not desire to
make public, such as an address or phone number, should not be included
in the comments.
FOR FURTHER INFORMATION CONTACT: James Engel, Senior Legal Advisor
((571) 272-7725), Office of Patent Legal Administration, Office of the
Deputy Commissioner for Patent Examination Policy.
SUPPLEMENTARY INFORMATION:
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Executive Summary: Purpose: The Leahy-Smith America Invents Act
provides that: (1) The Office may set or adjust any patent fee,
provided that the revenue generated by patent fees recovers only the
aggregate estimated costs to the Office for processing, activities,
services, and materials relating to patents (including administrative
costs); and (2) most fees set or adjusted under this authority are
reduced by fifty percent with respect to small entities and by seventy-
five percent with respect to micro entities. The Leahy-Smith America
Invents Act also adds a new section to Title 35 of the United States
Code that defines a "micro entity." The rules of practice currently
have provisions pertaining to small entity status, as the patent laws
provided a small entity discount prior to the Leahy-Smith America
Invents Act. This notice proposes changes to the rules of practice to
implement the "micro entity" provisions added by the Leahy-Smith
America Invents Act.
Summary of Major Provisions: The Office proposes to add a provision
to the rules of practice pertaining to micro entity status. The
provision will set out the requirements to qualify as a micro entity
tracking the micro entity provision of Section 10 of the Leahy-Smith
America Invents Act. The provision will also set out procedures
relating to micro entity status that largely track the provisions in 37
CFR 1.27 for small entity status. These new procedures pertain to
claiming micro entity status, paying patent fees as a micro entity,
notifying the Office of loss of micro entity status, and correcting
payments of patent fees paid erroneously in the micro entity amount.
The procedures for claiming micro entity status require the filing of a
certification of entitlement to micro entity status. The Office is
developing forms (paper and electronic) for use by members of the
public to provide a certification of micro entity status. The
procedures for paying fees as a micro entity provide that a micro
entity certification need only be filed once in an application or
patent, but that a fee may be paid in the micro entity amount only if
the applicant or patentee is still entitled to micro entity status on
the date the fee is paid. The procedures pertaining to notifying the
Office of loss of micro entity status and correcting payments of patent
fees paid erroneously in the micro entity amount track the corresponding
small entity provisions for notifying the Office of loss of small entity
status and correcting payments of patent fees paid erroneously in the small
entity amount.
Costs and Benefits: This rulemaking is not economically significant
as that term is defined in Executive Order 12866 (Sept. 30, 1993).
Background: The Leahy-Smith America Invents Act was enacted into
law on September 16, 2011. See Public Law 112-29, 125 Stat. 283 (2011).
Section 10(a) of the Leahy-Smith America Invents Act provides that the
Office may set or adjust by rule any patent fee established,
authorized, or charged under title 35, United States Code, provided
that fees only recover the aggregate estimated costs to the Office for
processing, activities, services, and materials relating to patents
(including administrative costs). See 125 Stat. at 316. Section 10(b)
of the Leahy-Smith America Invents Act provides that "the fees set or
adjusted under [section 10(a)] for filing, searching, examining,
issuing, appealing, and maintaining patent applications and patents
shall be reduced by 50 percent with respect to the application of such
fees to any small entity that qualifies for reduced fees under [35
U.S.C.] 41(h)(1) * * *, and shall be reduced by 75 percent with respect
to the application of such fees to any micro entity as defined in [35
U.S.C.] 123." See 125 Stat. at 316-17. The patent laws provided in 35
U.S.C. 41(h) for small entities prior to the Leahy-Smith America
Invents Act. Section 10(g) of the Leahy-Smith America Invents Act adds
a new 35 U.S.C. 123 to define a "micro entity." See 125 Stat. at 318-
19.
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
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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. See 125 Stat. at 318. 35
U.S.C. 123(a) provides one basis under which an applicant may establish
micro entity status. 35 U.S.C. 123(d) (discussed subsequently) provides
another basis under which an applicant may establish micro entity
status.
The Office will indicate the income level that is three times the
median household income for the calendar year most recently reported by
the Bureau of the Census (the income threshold set forth in 35 U.S.C.
123(a)(3) and (a)(4)) on its Internet Web site, with its Independent
Inventor resource information, and on the Office's certification of
micro entity status (gross income basis) form (Form PTO/SB/15A). The
Office will also make available resources to micro entities to help
navigate the new micro entity procedures.
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 application as
the result of the applicant's previous employment. See id.
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 threshold
specified in 35 U.S.C. 123(a)(3) or (4). See 125 Stat. at 319.
35 U.S.C. 123(d) 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 applications to such an institution of
higher education. See id. As explained earlier, 35 U.S.C. 123(a)
provides one basis under which an applicant may establish micro entity
status, and 35 U.S.C. 123(d) provides another basis under which an
applicant may establish micro entity status.
35 U.S.C. 123(e) provides that 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. 35 U.S.C. 123(e) also provides that at least
three months before any limits proposed to be implemented pursuant to
35 U.S.C. 123(e) 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. See id.
The micro entity provisions of 35 U.S.C. 123 are currently in
effect. However, no patent fee is currently eligible for the seventy-
five percent micro entity reduction as no patent fee has yet been set
or adjusted under section 10 of the Leahy-Smith America Invents Act.
The Office is in the process of proposing to set and adjust patent fees
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under section 10 of the Leahy-Smith America Invents Act in a separate
rulemaking. The fees set or adjusted by the Office under section 10 of
the Leahy-Smith America Invents Act for filing, searching, examining,
issuing, appealing, and maintaining a patent application and patent
will be reduced by: (1) Fifty percent for an applicant or patentee who
establishes small (but not micro) entity status in the patent
application or patent; and (2) seventy-five percent for an applicant or
patentee who establishes micro entity status in the patent application
or patent.
The Office plans to rely upon the applicant's certification of
micro entity status (except where it conflicts with the information
contained in the Office's records, such as where Office records
indicate that the applicant is named as an inventor on more than four
previously filed and unassigned nonprovisional patent applications) and
will not require any additional documents from the applicant concerning
the applicant's entitlement to claim micro entity status. This practice
is similar to small entity practice where the Office generally does not
question a claim of entitlement to small entity status. See 37 CFR 1.27(f)
and MPEP 509.03.
The Office does not plan to provide advisory opinions on whether a
particular entity is entitled to claim micro entity status. See MPEP
509.03. The Office, however, is providing the following information
concerning procedures for micro entity status under 35 U.S.C. 123:
If an application names more than one applicant, each applicant
must meet the requirements of 35 U.S.C. 123(a) or (d) for the
applicants to file a micro entity certification in the application. For
example, it would not be appropriate to file a micro entity
certification for the application in the following situations in which
there is more than one applicant: (1) some but not all of the
applicants qualify as micro entities under 35 U.S.C. 123(a) (e.g., some
applicants exceed the gross income levels; some applicants have more
than four other nonprovisional applications; or some applicants have
assigned, granted, or conveyed the application or are under an
obligation to do so, to an entity that exceeds the gross income levels)
and the institution of higher education provisions of 35 U.S.C. 123(d)
are not applicable to the non-qualifying applicants; or (2) some but
not all of the applicants meet the higher education provisions of 35
U.S.C. 123(d) and the micro entity provisions of 35 U.S.C. 123(a) are
not applicable to the remaining applicants. Additionally, where there
is more than one applicant, the income level requirement in 35 U.S.C.
123(a)(3) applies to each applicant's income separately (i.e., the
combined gross income of all of the applicants need not be below the
income level in 35 U.S.C. 123(a)(3)). Further, if an applicant 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 requirements in the micro entity standard
(either by meeting the income limit specified in 35 U.S.C. 123(a)(4),
or by being an institution of higher education under 35 U.S.C. 123(d))
for the applicant to claim micro entity status under 35 U.S.C. 123.
An "institution of higher education" as that term is used in 35
U.S.C. 123(d), is defined in the Higher Education Act of 1965 (20
U.S.C. 1001(a)). Section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001) provides that: "For purposes of this chapter, other than
subchapter IV, 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
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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." Section 103 of the Higher Education Act of
1965 (20 U.S.C. 1003) provides "the term 'State' includes, in addition
to the several States of the United States, 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."
The Office proposes to include in the rules of practice the
requirements for micro entity status and procedures for claiming micro
entity status, paying patent fees as a micro entity, notifying the
Office of loss of micro entity status, and correcting payments of
patent fees paid erroneously in the micro entity amount. The Office is
also developing forms for use by members of the public to provide a
certification of micro entity status. The procedures track the
corresponding provisions in 37 CFR 1.27 and 1.28 for small entities,
except where the small entity procedure is not appropriate for micro
entity status under the provisions of 35 U.S.C. 123. For example, 35
U.S.C. 123 requires a certification as a condition of an applicant
being considered a micro entity. Thus, the process in 37 CFR 1.27(c)(3)
for establishing small entity status by payment of certain fees in the
small entity amount cannot be made applicable to establishing micro
entity status, and the process in 37 CFR 1.28(a) for a refund based
upon subsequent establishment of small entity status is not applicable
where there is subsequent establishment of micro entity status. In
addition, 35 U.S.C. 123(a)(3) and (a)(4) require that the income level
be met for the calendar year preceding the calendar year in which the
applicable fee is being paid. Thus, the provision in 37 CFR 1.27(g)(1)
that the applicant need only determine continued eligibility to small
entity status for issue and maintenance fee payments, but can pay
intervening fees at small entity rate without determining whether still
entitled to small entity status, cannot be made applicable to payment
of patent fees as a micro entity.
Discussion of Specific Rules
The following is a discussion of proposed amendments to Title 37 of
the Code of Federal Regulations, Part 1.
Section 1.29: Section 1.29 is proposed to be added to implement
procedures for claiming micro entity status.
Since 35 U.S.C. 123(a) through (d) specify the requirements to
qualify as a micro entity, the provisions in §§ 1.29(a) through
(d) will track the provisions of 35 U.S.C. 123(a) through (d). 35
U.S.C. 123 uses the term "applicant" throughout, which was virtually
synonymous with "inventor" on September 16, 2011 (the date of
enactment of the Leahy-Smith America Invents Act as well as the
effective date of 35 U.S.C. 123). 35 U.S.C. 118, effective on September
16, 2012 (one year after the effective date of 35 U.S.C. 123), however,
permits an application to be made by a person to whom the inventor has
assigned or is under an obligation to assign the invention. In
addition, a person who otherwise shows sufficient proprietary interest
in the matter may make an application for patent on behalf of and as
agent for the inventor. Thus, on and after September 16, 2012, 35
U.S.C. 118 will allow a person other than the inventor to file an
application as the applicant if the inventor has assigned or is under
an obligation to assign the invention, or if the person shows
sufficient proprietary interest in the matter. As the terms
"applicant" and "inventor" will no longer be virtually synonymous
on and after September 16, 2012, the Office invites public comment on
the issue of whether the term "inventor" should be used in place of
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"applicant" at any instance in the proposed § 1.29.
Section 1.29(a) implements the provisions of 35 U.S.C. 123(a).
Section 1.29(a) provides that an applicant claiming micro entity status
under 35 U.S.C. 123(a) must certify that the applicant: (1) Qualifies as
a small entity as defined in § 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.
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." The median household income for calendar year 2010 (the year
most recently reported by the Bureau of the Census) was $49,445. See
Income, Poverty, and Health Insurance Coverage in the United States:
2010 at pages 5 and 33 (Table A-1) (Sept. 2011). Thus, the income level
specified in §§ 1.29(a)(3) and (a)(4) (three times the median
household income) is $148,335 for calendar year 2010.
Section 1.29(b) implements the provisions of 35 U.S.C. 123(b).
Section 1.29(b) provides that an applicant is not considered to be
named on a previously filed application for purposes of §
1.29(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.
Section 1.29(c) implements the provisions of 35 U.S.C. 123(c).
Section 1.29(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 threshold
specified in § 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 Web site
(http://www.irs.gov/businesses/small/international/article/0,,id=
206089,00.html).
Section 1.29(d) implements the provisions of 35 U.S.C. 123(d).
Section 1.29(d) provides that an applicant claiming micro entity status
under 35 U.S.C. 123(d) must certify that: (1) The applicant qualifies
as a small entity as defined in § 1.27; 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
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or other ownership interest in the particular applications to such an
institution of higher education. 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 § 1.27, the Office is invoking its
authority under 35 U.S.C. 123(e) to expressly require that a party
claiming micro entity status via 35 U.S.C. 123(d) qualify as a small
entity under § 1.27. The legislative history of 35 U.S.C. 123 is
clear that it is directed to a subset of small entities, namely,
"truly independent inventors." See H.R. Rep 112-98 at 50 (2011)
("[t]he Committee was made aware, however, that there is likely a
benefit to describing-and then accommodating-a group of inventors who
are even smaller [than small entities], in order to ensure that the
USPTO can tailor its requirements, and its assistance, to the people
with very little capital, and just a few inventions, as they are
starting out. This section of the Act defines this even smaller group-
the micro-entity-that includes only truly independent inventors").
Thus, permitting an applicant who does not qualify as a small entity to
take advantage of the benefits of micro entity status via 35 U.S.C.
123(d) would be inconsistent with the purposes of micro entity
provisions of 35 U.S.C. 123. The statute and its legislative history do
not, for example, contemplate a for-profit, large entity applicant
becoming a "micro entity" (and thus obtaining a 75 percent discount)
merely by licensing or assigning some interest (even merely a nominal
or miniscule interest) to an institution of higher education.
Accordingly, the Office has determined that requiring all micro
entities to qualify as small entities is reasonably necessary and
appropriate to ensure that applicants who do not qualify as a small
entity do not inappropriately attempt to take advantage of micro entity
status.
Section 1.29(e) provides that small entity status must be asserted
in compliance with § 1.27 in an application for micro entity status
to be established in such application. Section 1.29(e) further provides
that micro entity status must be established in an application in which
small entity status is or has previously been asserted in compliance
with § 1.27 by filing a certification in writing that complies with
either § 1.29(a) or § 1.29(d) and that is signed in compliance
with § 1.33(b). Section 1.29(e) also contains provisions for a
micro entity that correspond to the provisions of § 1.27(c)(4) for
a small entity. Section 1.29(e) provides that: (1) Status as a micro
entity must be specifically established by an assertion in each
related, continuing, and reissue application in which status is
appropriate and desired; (2) status as a small or micro 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; and (3) 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
certification of entitlement to micro entity status for the continuing
or reissue application.
Section 1.29(f) contains provisions for a micro entity that
correspond to the provisions of § 1.27(d) for a small entity.
Section 1.29(f) provides that 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.
Section 1.29(g) contains provisions for a micro entity that
correspond to the provisions of § 1.27(e) for a small entity.
Section 1.29(g) provides that a certification of entitlement to micro
entity status need only be filed once in an application or patent, that
micro entity status, once established, remains in effect until changed
pursuant to § 1.29(i), but a fee may be paid in the micro entity
amount only if status as a micro entity as defined in § 1.29(a) or
(d) is appropriate on the date the fee is being paid. Thus, while an
applicant is not required to provide a certification of entitlement to
micro entity status with each fee payment, the applicant must still be
entitled to micro entity status to pay a fee in the micro entity
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amount. For micro entity status under 35 U.S.C. 123(a), the applicant
must determine that each applicant still meets the conditions of 35
U.S.C. 123(a) and § 1.29(a) to claim micro entity status (e.g.,
that no applicant has had a change in gross income that exceeds the
gross income threshold in 35 U.S.C. 123(a)(3) (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),
that no applicant has made, or is obligated by contract or law to make,
an assignment, grant, or conveyance to an entity not meeting the gross
income threshold in 35 U.S.C. 123(a)(4), that no new applicant has been
named in the application who does not meet the conditions specified in
35 U.S.C. 123(a) and § 1.29(a)). For micro entity status under 35
U.S.C. 123(d), the applicant must determine that each applicant still
complies with 35 U.S.C. 123(d) and § 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)). Section 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.
Section 1.29(h) contains provisions for a micro entity that
correspond to the provisions of § 1.27(f) for a small entity.
Section 1.29(h) provides that 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 §
1.29(a) or 1.29(d). Section 1.29(h) indicates that it should be
determined that all parties holding rights in the invention qualify for
micro entity status. Section 1.29(h) also indicates that the Office
will generally not question certification of entitlement to micro
entity status that is made in accordance with the requirements of §
1.29.
Section 1.29(i) contains provisions for a micro entity that
correspond to the provisions of § 1.27(g)(2) for a small entity.
Section 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 § 1.29(a) or 1.29(d) is no
longer appropriate. Section 1.29(k) provides for how to make such
notification of loss of micro entity status. Also, 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. Once a notification of a loss of
entitlement to micro entity status is filed in the application or
patent, a written assertion of small entity status under §
1.27(c)(1) is required to obtain small entity status. Applicants will
be expected to pay fees in the full (other than small entity) amount if
a written assertion of small entity status is not submitted with the
notification of loss of entitlement to micro entity status. The written
assertion of small entity status under § 1.27(c)(1) may be
submitted together with the notification of a loss of entitlement to
micro entity status. In addition, a new certification of entitlement to
micro entity status is required to again obtain micro entity status.
Section 1.29(j) contains provisions for a micro entity that
correspond to the provisions of § 1.27(h) for a small entity.
Section 1.29(j) provides that any attempt to fraudulently establish
status as a micro entity, or pay fees as a micro entity, shall be
considered as a fraud practiced or attempted on the Office, and that
establishing status as a micro entity, or paying fees as a micro
entity, improperly, and with intent to deceive, shall be considered as
a fraud practiced or attempted on the Office.
Section 1.29(k) contains provisions for a micro entity that
correspond to the provisions of § 1.28(c) for a small entity.
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Section 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 (Fed. Cir. 1998). Section 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
§ 1.29(i) through error, the error will be excused upon compliance
with the separate submission and itemization requirements of §
1.29(k)(1) and the deficiency payment requirement of § 1.29(k)(2).
Section 1.29(k)(1) provides that any paper submitted under §
1.29(k) must be limited to the deficiency payment (all fees paid in
error) required for a single application or patent, and 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. Section 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 § 1.29(k)(2).
Section 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 other than a 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 §
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 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").
Section 1.29(k)(3) provides that if the requirements of §§ 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 § 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 payment.
Section 1.29(k)(4) provides that any deficiency payment (based on a
previous erroneous payment of a micro entity fee) submitted under § 1.29(k)
will be treated as a notification of a loss of entitlement to
micro entity status under § 1.29(i).
Rulemaking Considerations
A. Administrative Procedure Act
This notice proposes to amend the rules of practice in patent cases
to implement the micro entity provisions of the Leahy-Smith America
Invents Act. The changes being proposed in this notice do not change
the substantive criteria for entitlement to micro entity status (except
possibly for requiring in 37 CFR 1.29(d)(1) that an applicant claim
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small entity status in compliance with 37 CFR 1.27 in order to claim
micro entity status; see 35 U.S.C. 123(e)), but simply specify the
procedures pertaining to claiming micro entity status, paying patent
fees as a micro entity, notification of loss of micro entity status,
and correction of payments of patent fees paid erroneously in the micro
entity amount. Therefore, these proposed changes (except as discussed
previously) involve rules of agency practice and procedure and/or
interpretive rules. See Bachow Commc'ns Inc. v. FCC, 237 F.3d 683, 690
(DC Cir. 2001) (rules governing an application process are procedural
under the Administrative Procedure Act); Inova Alexandria Hosp. v.
Shalala, 244 F.3d 242, 350 (4th Cir. 2001) (rules for handling appeals
were procedural where they did not change the substantive standard for
reviewing claims); Nat'l Org. of Veterans' Advocates v. Sec'y of
Veterans Affairs, 260 F.3d 1365, 1375 (Fed. Cir. 2001) (rule that
clarifies interpretation of a statute is interpretive).
Accordingly, prior notice and opportunity for public comment are
not required pursuant to 5 U.S.C. 553(b) or (c) (or any other law), and
thirty-day advance publication is not required pursuant to 5 U.S.C.
553(d) (or any other law), except possibly for the proposal to require
in § 1.29(d)(1) that an applicant claim small entity status in
compliance with 37 CFR 1.27 in order to claim micro entity status. See
35 U.S.C. 123(e); Cooper Techs. Co. v. Dudas, 536 F.3d 1330, 1336-37
(Fed. Cir. 2008) (stating that 5 U.S.C. 553, and thus 35 U.S.C.
2(b)(2)(B), does not require notice and comment rulemaking for
"interpretative rules, general statements of policy, or rules of
agency organization, procedure, or practice") (quoting 5 U.S.C.
553(b)(A)). The Office, however, is publishing this proposal for
comment as it seeks the benefit of the public's views on the Office's
proposed implementation of the micro entity provisions of the Leahy-
Smith America Invents Act.
B. Regulatory Flexibility Act
For the reasons set forth herein, the Deputy General Counsel for
General Law of the United States Patent and Trademark Office has
certified to the Chief Counsel for Advocacy of the Small Business
Administration that changes proposed in this notice will not have a
significant economic impact on a substantial number of small entities.
See 5 U.S.C. 605(b).
This notice proposes changes to the rules of practice to allow a
subset of small entities-i.e., micro entities-to pay further reduced
fees, namely, a seventy-five percent discount. The notice proposes
procedures pertaining to claiming micro entity status, paying patent
fees as a micro entity, notification of loss of micro entity status,
and correction of payments of patent fees paid erroneously in the micro
entity amount. This notice does not propose to change the criteria in
35 U.S.C. 123(a) or (d) for entitlement to file a certification of
micro entity status (except possibly for requiring in 37 CFR 1.29(d)(1)
that an applicant claim small entity status in compliance with 37 CFR
1.27 in order to claim micro entity status; see 35 U.S.C. 123(e)). The
micro entity procedures proposed in this notice track to the extent
feasible the corresponding small entity procedures under 37 CFR 1.27.
Thus, the burden to all entities, including small entities, imposed by
these rules is no greater than those imposed by the current regulations
pertaining to claiming small entity status, paying patent fees as a
small entity, notification of loss of small entity status, and
correction of payments of patent fees paid erroneously in the small
entity amount.
Requiring that an applicant claim small entity status in compliance
with 37 CFR 1.27 in order to claim micro entity status under 37 CFR
1.29(d)(1) will not have a significant economic impact on a substantial
number of small entities. The Office uses the Small Business
Administration business size standard for the purpose of paying reduced
patent fees in 13 CFR 121.802 as the size standard when conducting an
analysis or making a certification under the Regulatory Flexibility Act
for patent-related regulations. See Business Size Standard for Purposes
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of United States Patent and Trademark Office Regulatory Flexibility
Analysis for Patent-Related Regulations, 71 FR 67109, 67109 (Nov. 20,
2006). A small entity for purposes of the Regulatory Flexibility Act
analysis is a small entity for purposes of paying reduced patent fees.
Therefore, requiring in 37 CFR 1.29(d)(1) that an entity claim small
entity status in compliance with 37 CFR 1.27 in order to claim micro
entity status will preclude only an applicant or patentee who is a
large entity (i.e., not a small entity) from claiming micro entity
status.
The Office estimates that a minority percentage of small entity
applications will be filed by paying micro entity fees under these
proposed rules. Based upon the data in the Office's Patent Application
Locating and Monitoring (PALM) system, of the approximately 2,498,000
nonprovisional patent applications (utility, plant, design, and
reissue) and requests for continued examination filed in total over the
last five fiscal years, small entity fees were paid in approximately
669,000 (26.8 percent). Thus, an average of approximately 500,000
nonprovisional patent applications and requests for continued
examination have been filed each year for the last five fiscal years,
with small entity fees being paid in approximately 134,000 of the
nonprovisional patent applications and requests for continued
examination filed each year.
As indicated above, this rule provides a procedure for small
entities to attain a 75 percent reduction in fees as a micro entity, as
provided by statute. The procedures for micro entity status track the
existing procedures for small entity status. While the rule impacts the
entire universe of small entity applications and patents, the rule is
necessary to implementing a reduction in fees, which is entirely
beneficial, and no other provision has an economic impact on the
affected small entities.
C. Executive Order 12866 (Regulatory Planning and Review)
This rulemaking has been determined to be not significant for
purposes of Executive Order 12866 (Sept. 30, 1993).
D. Executive Order 13563 (Improving Regulation and Regulatory Review)
The Office has complied with Executive Order 13563. Specifically,
the Office has, to the extent feasible and applicable: (1) Made a
reasoned determination that the benefits justify the costs of the rule;
(2) tailored the rule to impose the least burden on society consistent
with obtaining the regulatory objectives; (3) selected a regulatory
approach that maximizes net benefits; (4) specified performance
objectives; (5) identified and assessed available alternatives; (6)
involved the public in an open exchange of information and perspectives
among experts in relevant disciplines, affected stakeholders in the
private sector and the public as a whole, and provided on-line access
to the rulemaking docket; (7) attempted to promote coordination,
simplification, and harmonization across government agencies and
identified goals designed to promote innovation; (8) considered
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public; and (9) ensured the objectivity of scientific
and technological information and processes.
E. Executive Order 13132 (Federalism)
This rulemaking does not contain policies with federalism
implications sufficient to warrant preparation of a Federalism
Assessment under Executive Order 13132 (Aug. 4, 1999).
F. Executive Order 13175 (Tribal Consultation)
This rulemaking will not: (1) Have substantial direct effects on
one or more Indian tribes; (2) impose substantial direct compliance
costs on Indian tribal governments; or (3) preempt tribal law.
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Therefore, a tribal summary impact statement is not required under
Executive Order 13175 (Nov. 6, 2000).
G. Executive Order 13211 (Energy Effects)
This rulemaking is not a significant energy action under Executive
Order 13211 because this rulemaking is not likely to have a significant
adverse effect on the supply, distribution, or use of energy.
Therefore, a Statement of Energy Effects is not required under
Executive Order 13211 (May 18, 2001).
H. Executive Order 12988 (Civil Justice Reform)
This rulemaking meets applicable standards to minimize litigation,
eliminate ambiguity, and reduce burden as set forth in sections 3(a)
and 3(b)(2) of Executive Order 12988 (Feb. 5, 1996).
I. Executive Order 13045 (Protection of Children)
This rulemaking does not concern an environmental risk to health or
safety that may disproportionately affect children under Executive
Order 13045 (Apr. 21, 1997).
J. Executive Order 12630 (Taking of Private Property)
This rulemaking will not effect a taking of private property or
otherwise have taking implications under Executive Order 12630 (Mar.
15, 1988).
K. Congressional Review Act
Under the Congressional Review Act provisions of the Small Business
Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 801 et seq.),
prior to issuing any final rule, the United States Patent and Trademark
Office will submit a report containing the final rule and other
required information to the United States Senate, the United States
House of Representatives, and the Comptroller General of the Government
Accountability Office. In addition, the United States Patent and
Trademark Office will inform the Committee on the Judiciary of the
House of Representatives and the Committee on the Judiciary of the
Senate of any proposed limits under 35 U.S.C. 123(e) at least three
months before any limits proposed to be implemented pursuant to 35
U.S.C. 123(e) take effect.
The changes in this notice are not expected to result in an annual
effect on the economy of 100 million dollars or more, a major increase
in costs or prices, or significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
United States-based enterprises to compete with foreign-based
enterprises in domestic and export markets. Therefore, this notice is
not expected to result in a "major rule" as defined in 5 U.S.C.
804(2).
L. Unfunded Mandates Reform Act of 1995
The changes set forth in this notice do not involve a Federal
intergovernmental mandate that will result in the expenditure by State,
local, and tribal governments, in the aggregate, of 100 million dollars
(as adjusted) or more in any one year, or a Federal private sector
mandate that will result in the expenditure by the private sector of
100 million dollars (as adjusted) or more in any one year, and will not
significantly or uniquely affect small governments. Therefore, no
actions are necessary under the provisions of the Unfunded Mandates
Reform Act of 1995. See 2 U.S.C. 1501 et seq.
M. National Environmental Policy Act
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This rulemaking will not have any effect on the quality of the
environment and is thus categorically excluded from review under the
National Environmental Policy Act of 1969. See 42 U.S.C. 4321 et seq.
N. National Technology Transfer and Advancement Act
The requirements of section 12(d) of the National Technology
Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) are not
applicable because this rulemaking does not contain provisions which
involve the use of technical standards.
O. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)
requires that the Office consider the impact of paperwork and other
information collection burdens imposed on the public. An applicant who
wishes to claim micro entity status must submit a certification of
micro entity status, preferably by using Form PTO/SB/15A (gross income
basis) or Form PTO/SB/15B (institution of higher education basis). The
Office of Management and Budget (OMB) has determined that, under 5 CFR
1320.3(h), Forms PTO/SB/15A and B do not collect "information" within
the meaning of the Paperwork Reduction Act of 1995.
This proposed rulemaking, however, does involve information
collection requirements (for fee deficiency payment based upon the
previous erroneous payment of patent fees in the micro entity amount)
which are subject to review by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3549).
The collection of information involved in this notice has been
submitted to OMB under OMB control number 0651-00xx. The proposed
collection will be available at OMB's Information Collection Review Web
site (www.reginfo.gov/public/do/PRAMain).
Title of Collection: Fee Deficiency Payments.
OMB Control Number: 0651-00xx.
Needs and Uses: This information collection is necessary so that
patent applicants and patentees may pay the balance of fees due (i.e.,
fee deficiency payment) when a fee was previously paid in error in a
micro or small entity amount. The Office needs the information to be
able to process and properly record a fee deficiency payment to avoid
questions arising later either for the Office or for the applicant or
patentees as to whether the proper fees have been paid in the
application or patent.
Method of Collection: By mail, facsimile, hand delivery, or
electronically to the Office.
Affected Public: Individuals or households; businesses or other
for-profits; and not-for-profit institutions.
Estimated Number of Respondents: 3,000 responses per year. The
basis is that the Office receives approximately 2,250 fee deficiency
payments annually arising out of small entity filings. For purposes of
this calculation, it was estimated that up to 750 fee deficiency
payments could be made annually arising out of micro entity filings.
Estimated Time per Response: The Office estimates that the
responses in this collection will take the public 2 hours.
Estimated Total Annual Respondent Burden Hours: 6,000 hours per
year.
Estimated Total Annual Respondent Cost Burden: $2,040,000 per year.
The Office is soliciting comments to: (1) Evaluate whether the
proposed information requirement is necessary for the proper
performance of the functions of the Office, including whether the
information will have practical utility; (2) evaluate the accuracy of
the Office's estimate of the burden; (3) enhance the quality, utility,
and clarity of the information to be collected; and (4) minimize the
burden of collecting the information on those who are to respond,
including by using appropriate automated, electronic, mechanical, or
other technological collection techniques or other forms of information
technology.
Please send comments on or before July 30, 2012 to Mail Stop
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Comments-Patents, Commissioner for Patents, P.O. Box 1450, Alexandria,
VA, 22313-1450, marked to the attention of Raul Tamayo, Legal Advisor,
Office of Patent Legal Administration, Office of the Deputy
Commissioner for Patent Examination Policy. Comments should also be
submitted to the Office of Information and Regulatory Affairs, Office
of Management and Budget, New Executive Office Building, Room 10202,
725 17th Street NW., Washington, DC 20503, Attention: Desk Officer for
the Patent and Trademark Office.
Notwithstanding any other provision of law, no person is required
to respond to, nor shall a person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements
of the Paperwork Reduction Act, unless that collection of information
displays a currently valid OMB control number.
List of Subjects in 37 CFR Part 1
Administrative practice and procedure, Courts, Freedom of
information, Inventions and patents, Reporting and recordkeeping
requirements, Small businesses.
For the reasons set forth in the preamble, 37 CFR part 1 is
proposed to be amended as follows:
PART 1-RULES OF PRACTICE IN PATENT CASES
1. The authority citation for 37 CFR Part 1 continues to read as
follows:
Authority: 35 U.S.C. 2(b)(2).
2. Section 1.29 is added to read as follows:
§ 1.29 Micro entity status.
(a) To establish micro entity status under this paragraph, the
applicant must certify that the applicant:
(1) Qualifies as a small entity as defined in § 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.
(b) An applicant is not considered to be named on a previously
filed application for purposes of paragraph (a)(2) of this section 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) 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
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entity's gross income exceeds the threshold specified in paragraph
(a)(3) or (a)(4) of this section.
(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; 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 applications to such an
institution of higher education.
(e) Small entity status must be asserted in compliance with §
1.27 in an application for micro entity status to be established in
such application. Micro entity status is established in an application
in which small entity status is asserted in compliance with § 1.27
by filing a micro entity certification in writing of compliance with
the requirements of either paragraph (a) or paragraph (d) of this
section and is signed in compliance with § 1.33(b). Status as a
micro entity must be specifically established in each related,
continuing and reissue application in which status is appropriate and
desired. Status as a micro 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 certification of entitlement to micro
entity status for the continuing or reissue application.
(f) 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.
(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, but 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 paragraph (a) or (d) of this section.
It should be determined that all parties holding rights in the
invention qualify for micro entity status. The Office will generally
not question certification of entitlement to micro entity status that
is made in accordance with the requirements of this section.
(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. Once a notification of a loss of entitlement to micro
entity status is filed in the application or patent, a written
assertion of small entity status under § 1.27(c)(1) is required to
obtain small entity status, and a new certification of entitlement to
micro entity status is required to again obtain micro entity status.
(j) Any attempt to fraudulently establish status as a micro entity,
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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 as a micro entity, or paying fees as a micro
entity, shall be considered as a fraud practiced or attempted on the
Office.
(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.
(1) 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 non-small
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 (k)(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, but payment of a deficiency based upon
the difference between the current fee amount for a small entity and
the amount of the previous erroneous micro entity fee payment will not
be treated as an assertion of small entity status under § 1.27(c).
Once a deficiency payment is submitted under this paragraph, a written
assertion of small entity status under § 1.27(c)(1) is required to
obtain small entity status.
May 23, 2012 DAVID J. KAPPOS
Under Secretary of Commerce for Intellectual
Property and Director of the United States
Patent and Trademark Office
[1379 OG 234]