A Legal Guide To TECHNOLOGY TRANSACTIONS A COVID-19 Update…

the examination of the application. The cost of drafting a patent application, including completion of the attendant documents, is highly dependent upon the complexity of the invention, but typically runs between about $6,000 and $15,000. The cost of drafting a response to an Examiner’s Office Action depends upon the complexity of the Action but typically runs between about $1,500 and $3,000. The patent application may be allowed on the first Office Action which would, of course, eliminate the cost of drafting a response. Patent attorneys typically work on an hourly fee basis. Very few are willing to work for a fee contingent upon profits to be derived from the patented invention. Further, patent attorneys typically require the prepayment of a substantial portion of the application costs. Patent attorney fees can be eliminated completely if the applicant drafts and prosecutes the patent application himself or herself. The Patent and Trademark Office does allow an applicant to file and prosecute his or her own patent application, and various publications are available to assist those wishing to file their own application. Government Fees At the time of printing this edition, the government fees include (i) a basic filing fee of $280, a search fee of $600 and an examination fee of $720, (ii) an post-allowance fee of $960, and (iii) periodic maintenance fees which start at $1,160, and later escalate to $3,600 and finally to $7,400. Government fees may be reduced by one-half if the applicant qualifies as a “small entity” which is defined as (i) an individual, (ii) a business with 500 or fewer full-time, part-time and temporary employees (weighted average), or (iii) a qualifying non-profit organization or institution. Whether the invention is licensed to an entity that would not qualify as a “small entity” is also considered in the determination of the appropriate fees to pay.

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