What Is the Difference Between Micro Entity and Small Entity Patent Fees?

KEY TAKEAWAYS

The difference between micro entity and small entity patent status determines how much you pay in USPTO fees. Micro entities pay 75% less than large entities, while small entities pay 50% less. Micro entity status under 35 U.S.C. 123 requires gross income below approximately $220,000 (adjusted annually based on three times the median household income), no obligation to assign the patent to an entity exceeding the income limit, and that you have not been named as inventor on more than four previously filed patent applications. Small entity status under 37 CFR 1.27 requires fewer than 500 employees and no obligation to license or assign to a large entity. Qualifying for the correct fee status can save inventors thousands of dollars over the life of a patent.

What Are the Requirements for Micro Entity Status?

Micro entity status is available to individual inventors and small organizations who meet all four requirements under 35 U.S.C. 123. This status provides the maximum fee reduction: 75% off all USPTO fees.

Requirements (all must be met):

1.     Qualify as a small entity (fewer than 500 employees, no licensing obligation to large entity)

2.     Not named as inventor on more than four previously filed US patent applications (excluding provisional applications, applications filed by a previous employer, and PCT applications that did not enter the US national phase)

3.     Gross income for the preceding calendar year did not exceed three times the median household income (approximately $220,000 for 2026 based on Census Bureau median household income data)

4.     No obligation to assign, grant, or convey the application to an entity that exceeds the income limit (if you are obligated to assign to your employer, your employer must also meet the income limit OR be a qualifying institution of higher education)

There is also a separate micro entity pathway for applicants who are employees of an institution of higher education under 35 U.S.C. 123(d), regardless of income level.

How Much Do You Actually Save with Micro Entity vs. Small Entity?

The savings are substantial and compound across every USPTO fee throughout the patent's life. Here is a side-by-side comparison for a standard utility patent:

Fee	Micro Entity	Small Entity	Large Entity
Filing + Search + Exam	$690	$1,380	$2,760
Issue Fee	$300	$600	$1,200
3.5-Year Maintenance	$425	$850	$1,700
7.5-Year Maintenance	$975	$1,950	$3,900
11.5-Year Maintenance	$1,390	$2,780	$5,560
Total Government Fees	$3,780	$7,560	$15,120
Savings vs. Large Entity	$11,340 (75%)	$7,560 (50%)	—

Over a patent's 20-year life, micro entity status saves approximately $11,340 compared to large entity fees and $3,780 compared to small entity fees. For inventors filing multiple patents, these savings multiply significantly.

What Happens If You Incorrectly Claim Micro or Small Entity Status?

Incorrectly claiming micro or small entity status has serious consequences. If the error is discovered, you must pay the difference in fees. If the incorrect claim was made with intent to deceive, the patent may be rendered unenforceable under the doctrine of inequitable conduct.

Under 37 CFR 1.27(h), if you later discover that you no longer qualify or never qualified:

5.     Promptly notify the USPTO

6.     Pay the deficiency in fees (the difference between what you paid and what you should have paid)

7.     File a corrective statement explaining the error

The duty is ongoing — you must re-evaluate your entity status before each fee payment. Changes that can affect your status include: exceeding the income threshold, being named on a fifth application (for micro entity), hiring your 500th employee (for small entity), or entering a licensing agreement with a large entity.

FAQ: Micro Entity Patent

Q: Can a startup qualify for micro entity status?

A: Yes, if the startup meets all requirements: fewer than 500 employees, no inventor named on more than four prior applications, gross revenue below the income threshold, and no obligation to assign to a large entity. Many early-stage startups qualify.

Q: Do provisional applications count toward the four-application limit for micro entity?

A: No. Under 35 U.S.C. 123(a)(1), provisional applications, applications assigned to a previous employer, and PCT applications that did not enter US national phase are excluded from the count.

Q: When does entity status need to be determined?

A: At the time of each fee payment. Your status can change between filing and maintenance fee payments. You must re-certify entity status for each payment where you claim reduced fees.

Q: Can an LLC or corporation qualify for micro entity status?

A: The entity status tracks through to the individual inventors. If the inventors meet the micro entity requirements and the company they are obligated to assign to also meets the income requirement, the application can claim micro entity status.

Q: What if my income crosses the threshold after filing?

A: You must claim the appropriate entity status at the time of each fee payment. If your income exceeded the threshold before your next payment, you would pay small entity (or large entity) fees for that payment going forward.

Here are other articles from our blog:

·      How Much Does a Patent Cost in 2026?

·      Provisional vs Non-Provisional

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Legal Disclaimer: This article is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading this content. Patent law is complex and fact-specific; consult a qualified patent attorney for advice on your particular situation.