The U.S. Patent and Trademark Office (USPTO) has announced a new enforcement policy. It will now fine applicants who claim false small or micro entity status. This could impact anyone who misrepresents their entity status or simply neglects to inform the USPTO of a change in entity status.
Why the USPTO Is Enforcing Penalties
Claiming small or micro entity status lets applicants pay reduced USPTO fees. However, these statuses are only available to those who meet specific legal criteria. If someone asserts a false small or micro entity claim—intentionally or by mistake—they may now face fines of at least three times the amount underpaid.
The USPTO’s move is part of a larger effort to preserve the integrity of the patent system and prevent fraud. Thrive IP® supports this effort and is here to help clients stay compliant.
USPTO’s New Enforcement Measures
The USPTO’s process includes:
Initial Notice: The USPTO issues a combined payment deficiency notice and order to show cause.
Response Opportunity: You must explain why a fine should not apply. You can submit evidence of a good faith error. Final Decision: The USPTO considers your response and then decides whether to apply a fine and how much it will be.
Final Decision: The USPTO considers your response and then decides whether to apply a fine and how much it will be.
What This Means for Your Business or Invention
Patent filings involve more than technical documents. They’re a legal process. Making the wrong entity declaration—even accidentally—can now be an expensive mistake.
The safest way to avoid these new fines? Work with a licensed patent attorney.
Our team at Thrive IP® understands the fine print of USPTO rules. We’ve helped hundreds of clients protect their innovations and stay fully compliant with every requirement. A mistake in entity status can lead to canceled patents or thousands in fines. Let us guide you through the process and give your inventions the legal support they deserve.
FAQs About Small and Micro Entity Status
What qualifies someone for small or micro entity status?
Small entities have fewer than 500 employees. Micro entities must meet small entity rules and have a low gross income and limited prior filings.
What is a good-faith mistake?
A good-faith error is an honest misinterpretation of eligibility, not fraud or neglect. The USPTO may waive penalties in these cases.
Can I fix my entity status later?
Yes, but timing is critical. If you correct the status before the USPTO discovers it, your chances of avoiding penalties are much better.
Do I need a patent lawyer to apply for a patent?
You can apply without one, but the risk of legal errors increases. A patent lawyer can help ensure your filing is correct and complete, reducing risk.
Work with Thrive IP® to Stay Compliant
Don’t risk your patent rights—or pay triple in fines—over an avoidable error. Our team at Thrive IP® will help you:
- Accurately claim your entity status
- File strong, enforceable patents
- Protect your innovation from start to finish
📞 Contact Thrive IP® today to schedule your consultation. Protect your idea. Protect your investment.