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What Is a Micro Entity? Understanding USPTO Discounts for Inventors

What Is a Micro Entity? Understanding USPTO Discounts for Inventors

When you’re preparing to file a patent application with the United States Patent and Trademark Office (USPTO), one of the first questions you’ll face is: What fees apply – and can I qualify for a discount?
For many independent inventors, students, startups, and small research groups, the answer depends on whether they meet the USPTO’s micro-entity status.

Becoming a micro entity can reduce many USPTO fees by 80%, which often makes an enormous difference when budgeting for your patent strategy. Here’s a clear breakdown of what a micro entity is, how you qualify, and what to keep in mind.

What Is a Micro Entity?

A micro entity is a special status recognized by the USPTO that offers the largest fee discount available -significantly lower than both large-entity and small-entity fees. It is designed to help smaller inventors access the patent system without the high upfront cost.

There are two pathways to qualify:

1. Micro Entity (Gross Income Basis)

Most individual inventors will qualify under this pathway.

To qualify, the applicant must meet all of the following criteria:

  • Qualifies as a small entity first (i.e., has fewer than 500 employees and is not obligated to assign rights to a large organization).

  • Has not been named as an inventor on more than four prior U.S. non-provisional patent applications.

  • Has a gross income less than three times the median U.S. household income in the previous year. As of December 2025 this is $251,190. To view the current threshold, click here.

  • Has not assigned – or is not obligated to assign -rights to an entity with a gross income exceeding that same threshold.

For most inventors, this income threshold is easily met, especially in years where the median income rises.

2. Micro Entity (Institution of Higher Education Basis)

You may qualify under this category if:

  • You are an inventor employed by a qualifying university; or

  • You have assigned (or are obligated to assign) rights to a university; or

  • You are under contract with a qualifying university to perform research.

This category is common for graduate students, professors, and researchers.

Why Micro Entity Status Matters

Micro entity status dramatically reduces the cost of filing and maintaining a patent. For example, at the time of writing:

  • Filing fee for a non-provisional utility patent:

    • Large entity: $2000

    • Micro entity: $400

  • Issue fee for a granted patent:

    • Large entity: $1,290

    • Micro entity: $258

These savings continue across many USPTO fees, including maintenance fees over the life of the patent; however, qualification for Micro Entity Status needs to be re-assessed every time a fee is paid to the USPTO. 

For current fees, click here.

How to Claim Micro Entity Status

To receive the discount, you must file the correct certification with the USPTO:

  • Form SB/15A — Micro Entity Certification (Gross Income Basis). To download this form, click here or here.

  • Form SB/15B — Micro Entity Certification (Institution of Higher Education). To download this form, click here or here.

Your representative (like Legacy Patents) will typically prepare these forms for you.

It’s important to keep your status accurate. If your income changes or you no longer qualify – for example, due to too many prior applications – you must update the USPTO. Improperly paying discounted fees can jeopardize your patent rights, so careful compliance is key.

Takeaway

Micro entity status is one of the most valuable tools available to independent inventors and small businesses. By reducing many USPTO fees by 80%, it helps ensure the cost of innovation doesn’t stand in the way of protecting your ideas.

If you’re unsure whether you qualify – or want help navigating the application process – feel free to reach out. At Legacy Patents, we assess entity status for every client and prepare the necessary forms so you receive the lowest possible fees while keeping your application fully compliant.

Ready to move ahead? Contact us at (480) 253-9888, admin@legacypatents.com or click the link below, and we will help guide you!

Are you ready to take the next step to protect your invention?

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