Start-ups and spinouts looking to pursue a patent application with the European Patent Office (EPO) could benefit from a significant reduction in the associated fees, providing they meet certain criteria. Here, we briefly explain what these reductions are, and who might be eligible for them.
How much does filing a patent application with the EPO cost?
Filing a patent application with the EPO is one of the easiest and most cost-effective ways to obtain patent rights in its 39 member states. Nevertheless, there are still upfront and ongoing fees associated with filing, searching, examination, designation, granting, and renewal to consider.
These costs can often be prohibitively expensive for very early-stage businesses, including university spinouts, particularly in their infancy when they have often not yet secured significant funding to support their IP costs.
This can leave startups and spinouts in a Catch-22 situation, in which they need funding to apply for a patent, but also require valid intellectual property (IP), such as a patent, to apply for funding.
What fee reductions are available?
For eligible ‘micro-entities’, however, support may be available in the form of a 30% reduction on main official fees payable throughout the patent prosecution process.
These reductions can apply to fee payments made on, or after, 1 April 2024.
What is a micro-entity?
According to the EPO, a micro-entity is defined as:
- A micro-enterprise. The EPO defines this as an enterprise that employs fewer than ten full-time employees, with an annual turnover and / or annual balance sheet total of up to EUR 2m;
- A “natural person”, or;
- A non-profit organisation, university, or public research organisation.
Every applicant connected to the patent application must meet the definition of a ‘micro-entity’. Therefore, in situations of co-ownership, each entity must fulfil the requirement.
Are there any other eligibility criteria?
In addition to being a micro-entity, eligible applicants must demonstrate that they have submitted no more than five applications in the five years preceding:
- The date of filing for European direct applications;
- The date of entry into the European phase for Euro-PCT applications, or;
- The date of filing of divisional applications.
Deciding whether a micro-entity is eligible in this regard is not always straightforward, particularly if applications have been transferred to a different entity before they are granted.
How do I apply?
In most instances, applying for these reductions is relatively simple, however, there may be cases in which the EPO requires evidence to support any declarations made, or clarification on the ownership of existing patents.
Further, incorrect claims of entity status could result in repaying the full remaining balance or, in worst cases, having an application withdrawn. This will ultimately result in a significant waste of time and expense.
It is therefore important to ascertain if this can be applied for correctly, and our patent attorneys are on hand to advise on eligibility criteria when relevant to our clients’ patent applications. In this manner, we are able to ensure that your route to securing patent protection is strategic and cost-effective, thus supporting your innovation as it enters its next stage of growth.