Written By: Stephano Salani

Some Patent Offices will provide discounts for government fees to small businesses as an incentive to facilitate access to intellectual property protection. Depending on the size of your company, you may qualify for such discounts as a “Small Entity.” In this article, we discuss the qualifications required to be considered as one of these discounted entities in Canada and in the U.S.

Canada

The Canadian Intellectual Property Office (“CIPO”) provides a 50% reduction in most government patent fees for applicants qualifying as a Small Entity.

Effective January 1, 2024, a “Small Entity” is defined in Canada as an applicant with fewer than 100 employees or a university. This classification does not include:

• an entity that is controlled directly or indirectly by an entity, other than a university, that has 100 employees or more; or
• an entity that has transferred or licensed, or has an obligation other than a contingent obligation, to transfer or license, any right in a claimed invention to an entity, other than a university, that has 100 employees or more.

A qualifying entity would be eligible for reduced patent fees upon submitting a Small Entity Declaration, signed by an authorized person, including a statement indicating that the applicant/patentee “believes that they are entitled to pay fees at the Small Entity level.”

Patent fees that are discounted for Small Entities include the application fee, maintenance fees, the request for examination fee, the final fee, and the fee for entering the national phase in Canada from a PCT application.

United States

The United States Patent and Trademark Office (“USPTO”) provides a 60% reduction in most government patent fees for applicants qualifying as a Small Entity.

A “Small Entity” is defined in the U.S. as a person, a small business (including affiliates, and having no more than 500 employees), or a non-profit organization anywhere in the world.

Additionally, a Small Entity must not have assigned, granted, conveyed, or licensed the invention, or be legally obligated to do so, to anyone who does not also qualify as a Small Entity.

Micro Entity

The USPTO also has a “Micro Entity” status with a further reduction in fees amounting to 50% of that paid by a small entity (in other words, an 80% reduction from the standard government fees). If you qualify as a Small Entity, you may also qualify for Micro Entity status if each inventor, patent applicant, or patent owner, as applicable, meets these additional criteria:

• Was named as an inventor on four or fewer previously filed applications (stayed within the application filing limit);
• Had an income for the previous calendar year of no more than the gross income limit $251,190 in 2025 and changing yearly); and
• Has not assigned, granted, conveyed, or licensed the invention, or is legally obligated to do so, to anyone who exceeds the gross income limit

Even if you haven’t met all three criteria above, you may also qualify for Micro Entity status if you have received the majority of your income from employment by a U.S. institution of higher education, or have assigned, granted, or conveyed, or are legally obligated to do so, a patent ownership interest to such an institution.

Patent fees that are discounted for Small and Micro Entities include the basic filing fee, search fee, examination fee, excess claim fees, extension of time fees, the issue fee, maintenance fees, and the fee for entering the national phase in the U.S. from a PCT application.

Entity Status FAQs

If I am a Small Entity in Canada am I automatically a Small Entity in the U.S.?

No, not necessarily. The definitions of a Small Entity are not equal for CIPO and the USPTO, so it is possible to qualify as a Small Entity in one country but not qualify as a Small Entity in another.

Can I change my status from a Standard Entity to a Small Entity after I filed my patent application?

Yes, while the process to do so is slightly different for the USPTO than with CIPO, you can claim Small Entity status during the pendency of your patent application in either country.

I filed my patent application as a Small Entity, but my company grew while my patent application was pending and I no longer qualify as a Small Entity. Can I continue paying reduced fees as a Small Entity?

No, you cannot enjoy the reduction of fees intended for small entities if you no longer qualify as a Small Entity. While the process of changing entity status in each country is slightly different, you must pay the patent fees at the standard rate once you lose your Small Entity status. Failure to do so is serious and may result in losing patent rights for your invention.

Need assistance filing your patent application? Feel free to contact us and schedule a call with a patent professional. This content is for informational use only, does not constitute legal or professional advice, and does not establish a lawyer-client relationship. To obtain such advice, please communicate with our offices directly.