Title 35 — Patents
Part II · Chapter 11 — Application for Patent
§ 123. Micro entity defined
Statutory text
In General.—
For purposes of this title, the term “micro entity” means an applicant who makes a certification that the applicant—
qualifies as a small entity, as defined in regulations issued by the Director;
has not been named as an inventor on more than 4 previously filed patent applications, other than applications filed in another country, provisional applications under section 111(b), or international applications filed under the treaty defined in section 351(a) for which the basic national fee under section 41(a) was not paid;
did not, in the calendar year preceding the calendar year in which the applicable fee is being paid, have a gross income, as defined in section 61(a) of the Internal Revenue Code of 1986, exceeding 3 times the median household income for that preceding calendar year, as most recently reported by the Bureau of the Census; and
has not assigned, granted, or conveyed, and is not under an obligation by contract or law to assign, grant, or convey, a license or other ownership interest in the application concerned to an entity that, in the calendar year preceding the calendar year in which the applicable fee is being paid, had a gross income, as defined in section 61(a) of the Internal Revenue Code of 1986, exceeding 3 times the median household income for that preceding calendar year, as most recently reported by the Bureau of the Census.
Applications Resulting From Prior Employment.—
An applicant is not considered to be named on a previously filed application for purposes of subsection (a)(2) if the applicant has assigned, or is under an obligation by contract or law to assign, all ownership rights in the application as the result of the applicant’s previous employment.
Foreign Currency Exchange Rate.—
If an applicant’s or entity’s gross income in the preceding calendar year is not in United States dollars, the average currency exchange rate, as reported by the Internal Revenue Service, during that calendar year shall be used to determine whether the applicant’s or entity’s gross income exceeds the threshold specified in paragraphs 1 (3) or (4) of subsection (a).
Institutions of Higher Education.—
For purposes of this section, a micro entity shall include an applicant who certifies that—
the applicant’s employer, from which the applicant obtains the majority of the applicant’s income, is an institution of higher education as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)); or
the applicant has assigned, granted, conveyed, or is under an obligation by contract or law, to assign, grant, or convey, a license or other ownership interest in the particular applications to such an institution of higher education.
Director’s Authority.—
In addition to the limits imposed by this section, the Director may, in the Director’s discretion, impose income limits, annual filing limits, or other limits on who may qualify as a micro entity pursuant to this section if the Director determines that such additional limits are reasonably necessary to avoid an undue impact on other patent applicants or owners or are otherwise reasonably necessary and appropriate. At least 3 months before any limits proposed to be imposed pursuant to this subsection take effect, the Director shall inform the Committee on the Judiciary of the House of Representatives and the Committee on the Judiciary of the Senate of any such proposed limits.
Penalty for False Certifications.—
In addition to any other penalty available under law, an entity that is found to have falsely made a certification under this section shall, unless the entity shows that the certification was made in good faith, be subject to a fine, to be determined by the Director, the amount of which shall be not less than 3 times the amount that the entity failed to pay as a result of the false certification, whether the Director discovers the false certification before or after the date on which a patent has been issued.
Footnotes
- 1 So in original. Probably should be “paragraph”.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 112–29 · 125 Stat. 318
Enacted · 35 U.S.C. § 123
Added and amended Pub. L. 112–29, §§ 10(g)(1), 20(j), Sept. 16, 2011, 125 Stat. 318, 335
Source evidence
Code source credit
Added and amended Pub. L. 112–29, §§ 10(g)(1), 20(j), Sept. 16, 2011, 125 Stat. 318, 335Pub. L. 112–29 § 20(j) · 125 Stat. 318
Struck · 35 U.S.C. § 123(a)
Pub. L. 112–29, § 20(j), struck out “of this title” after “For purposes” in introductory provisions
Source evidence
Code amendment note
Subsec. (a). Pub. L. 112–29, § 20(j), struck out “of this title” after “For purposes” in introductory provisions.Enacted provision · exact public law section
(j) Unnecessary References.— (1) In general.— Title 35, 35 USC 2, 12, 32, 41, 103, 104, 111, 119–123, 132, 135, 143, 145, 146, 154, 157, 162, 172, 182–186, 207, 210, 257, 267. United States Code, is amended by striking “of this title” each place that term appears. (2) Exception.— The amendment made by paragraph (1) shall not apply to the use of such term in the following sections of title 35, United States Code: (A) Section 1(c). (B) Section 101. (C) Subsections (a) and (b) of section 105. (D) The first instance of the use of such term in section 111(b)(8). (E) Section 161. (F) Section 164. (G) Section 171. (H) Section 251(c), as so designated by this section. (I) Section 261. (J) Subsections (g) and (h) of section 271. (K) Section 287(b)(1). (L) Section 289. (M) The first instance of the use of such term in section 375(a).Pub. L. 112–274 § 1(m) · 126 Stat. 2456
Inserted · 35 U.S.C. § 123(a)
Pub. L. 112–274 inserted “of this title” after “For purposes” in introductory provisions
Source evidence
Code amendment note
Subsec. (a). Pub. L. 112–274 inserted “of this title” after “For purposes” in introductory provisions.Enacted provision · exact public law section
(m) Clerical Amendment.— Section 123(a) of title 35, United States Code, is amended in the matter preceding paragraph (1) by inserting “of this title” after “For purposes”.Effective date note
Amendment by Pub. L. 112–274 effective Jan. 14, 2013, and applicable to proceedings commenced on or after such date, see section 1(n) of Pub. L. 112–274, set out as a note under section 5 of this title.Department of Commerce Appropriations Act, 2023
Pub. L. 117–328 div. W § 107(b)(2) · 136 Stat. 4459
Added · 35 U.S.C. § 123(f)
Pub. L. 117–328 added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 117–328 added subsec. (f).Enacted provision · exact public law section
Sec. 107. The Administrator of the National Oceanic and Atmospheric Administration is authorized to use, with their consent, with reimbursement and subject to the limits of available appropriations, the land, services, equipment, personnel, and facilities of any department, agency, or instrumentality of the United States, or of any State, local government, Indian Tribal government, Territory, or possession, or of any political subdivision thereof, or of any foreign government or international organization, for purposes related to carrying out the responsibilities of any statute administered by the National Oceanic and Atmospheric Administration.Pub. L. 118–151 § 1(2) · 138 Stat. 1685
Inserted · 35 U.S.C. § 123(f)
Pub. L. 118–151 inserted “, unless the entity shows that the certification was made in good faith,” before “be subject”
Unresolved: Pub. L. 118–151 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (f). Pub. L. 118–151 inserted “, unless the entity shows that the certification was made in good faith,” before “be subject”.
3 of 5 references resolved to an enrolled provision · 1 partial · 1 unresolved
Editorial Notes
References in Text
Section 61(a) of the Internal Revenue Code of 1986, referred to in subsec. (a)(3), (4), is classified to section 61(a) of Title 26, Internal Revenue Code.
Amendments2011–2024 · 4 rounds
2024
Subsec. (f). Pub. L. 118–151 inserted “, unless the entity shows that the certification was made in good faith,” before “be subject”.
2022
Subsec. (f). Pub. L. 117–328 added subsec. (f).
2013
Subsec. (a). Pub. L. 112–274 inserted “of this title” after “For purposes” in introductory provisions.
2011
Subsec. (a). Pub. L. 112–29, § 20(j), struck out “of this title” after “For purposes” in introductory provisions.
Statutory Notes and Related Subsidiaries
Effective Date of 2013 Amendment
Amendment by Pub. L. 112–274 effective , and applicable to proceedings commenced on or after such date, see section 1(n) of Pub. L. 112–274, set out as a note under section 5 of this title.
Effective Date of 2011 Amendment
Amendment by section 20(j) of Pub. L. 112–29 effective upon the expiration of the 1-year period beginning on , and applicable to proceedings commenced on or after that effective date, see section 20(l) of Pub. L. 112–29, set out as a note under section 2 of this title.
Effective Date
Section effective on , see section 10(i)(1) of Pub. L. 112–29, set out as a Fee Setting Authority note under section 41 of this title.
Credits
2011–2024 · 4 acts
- 2011Added and amended Pub. L. 112–29, §§ 10(g)(1), 20(j), , 125 Stat. 318, 335
- 2013Pub. L. 112–274, § 1(m), , 126 Stat. 2459
- 2022Pub. L. 117–328, div. W, § 107(b)(2), , 136 Stat. 5522
- 2024Pub. L. 118–151, § 1(2), , 138 Stat. 1685.
Show as published
(Added and amended Pub. L. 112–29, §§ 10(g)(1), 20(j), , 125 Stat. 318, 335; Pub. L. 112–274, § 1(m), , 126 Stat. 2459; Pub. L. 117–328, div. W, § 107(b)(2), , 136 Stat. 5522; Pub. L. 118–151, § 1(2), , 138 Stat. 1685.)