a taxpayer that is neither a medium or large entity
The patent statutes distinguish two type of applicants, small entities and large entities for the determination of fees. Small entities often pay about half of what a large entity would for the same service. A small entity includes companies with less than 500 employees and non-profit and academic institutions. Often the term is used informally to distinguish the smaller, newer and more entrepreneurial inventor entities, from the older, larger established ones.
A status recognized by the U.S. Patent Office as qualifying for a reduced fee on most routine filings. The three types of small entities are independent inventors, nonprofit companies and small businesses. Additional qualifications within these categories may apply.
"Small entity" in respect of an invention, means an entity that employs 50 or fewer employees or that is a university, but does not include an entity that: (a) has transferred or licensed, or is under a contractual or other legal obligation to transfer or license, any right in the invention to an entity, other than a university, that employs more than 50 employees, or (b) has transferred or licensed, or is under a contractual or other legal obligation to transfer or license, any right in the invention to an entity that employs 50 or fewer employees or that is a university, and has knowledge of any subsequent transfer or license of, or of any subsisting contractual or other legal obligation to transfer or license, any right in the invention to an entity, other than a university, that employs more than 50 employees.
An individual, a commercial concern of 50 or fewer employees, or a university.
Small entity status is determined based on the size of the group that invented the subject matter. For-profit companies with less than 500 employees, nonprofit organizations or independent inventors will qualify for small entity status. If a patent application receives small entity status, the payment of certain fees, including the maintenance fees and application fees, will be cut in half.
According to the U.S Patent and Trademark Office (PTO), a for-profit company with 500 or fewer employees, a nonprofit organization or an independent inventor. The PTO charges small entities half the fees charged large entities for filing a patent application and for issuing and maintaining the patent.