The fee reductions aim to support the development and growth of smaller and less experienced entities by making the European patent grant procedure less expensive. Significantly, the fee reductions apply irrespective of the nationality or domicile of the applicant (OJ EPO 2024, A8).

Micro-entity 30% fee reductions (Rule 7a(3) EPC)

1. filing fee;
2. fee for a European or supplementary European search;
3. examination fee, and in addition the previously paid international search fee where the EPO acted as International Searching Authority;
4. designation fee;
5. fee for grant; and
6. renewal fees for the European patent application.

Over the course of European patent prosecution this can lead to significant cost savings. For example, the examination fee for a European application is currently €1, 915.00. This would be reduced by €574.50 under the fee scheme for micro-entities.

In order to be eligible for the fee reductions, an applicant must satisfy two eligibility criteria:

1. The applicant must be a micro-entity.
2. The applicant must not have exceeded a filing cap defined by the EPO.

In the case of multiple applicants, each applicant must satisfy the eligibility criteria (Rule 7a(5) European Patent Convention (EPC)).

1. Micro-entity status

The EPO considers the following entities to be micro-entities: microenterprises, natural persons, non-profit organisations, universities and public research organisations. A microenterprise is defined as an enterprise which employs fewer than ten full-time persons and an annual turnover and/or annual balance sheet total of up to €2million (European Commission recommendation 2003/361/EC). To be eligible the applicant must be a micro-entity on the date of the payment concerned (Rule 7a(6) EPC).

2. Filing cap

To support less experienced users of the patent system the fee reduction is only available for applicants which have not exceeded a filing cap: the applicant must have filed fewer than five applications with “relevant dates” in the five years before the relevant date of the European application concerned. The relevant date is the filing date for Euro-direct applications, the date of receipt for European divisional applications, or the date of entry into the European phase for Euro-PCT applications (Rule 7a(4) EPC).

How to benefit from the EPO micro-entity fee reduction

To benefit from the reduced fees the applicant must declare they are a micro-entity at the latest when the reduced fee concerned is paid. This may be done by ticking the relevant box on Form 1001 (for European applications) or Form 1200 (for Euro-PCT applications). A subsequent change in status will not affect past reduced fee payments.

EPO checks

Applicants are obligated to inform the EPO of any change of status affecting eligibility for a reduction of fees at the latest when the fee concerned is paid. For example, if the applicant is a micro-enterprise whose number of full time employees increases to ten the EPO must be informed.

The EPO will conduct random checks on the status of applicants throughout the grant procedure. If there is reasonable doubt that a declaration made by the applicant is not accurate, the EPO may request the applicant to provide evidence. The EPO will also conduct systematic checks on whether applicants have exceeded the filing cap.

Incorrectly paying reduced fee

If an applicant incorrectly pays a reduced fee, the consequence depends on which eligibility criterion was not met. If the applicant was not a micro-entity, then the application may be deemed withdrawn. If the applicant exceeded the filing cap, the EPO will invite the applicant to pay the missing amount within a two-month period.

Conclusion

The fee reductions for micro-entities represents a welcome initiative to support smaller businesses and individuals through the European grant procedure. Although not as generous as the corresponding fee reductions for US patents (for which micro-entities can obtain an 80% reduction on most patent-related fees), the fee reductions provide a further incentive for micro-entities to obtain patent protection in Europe.

Useful link

Notice from the EPO dated 25 January 2024 concerning fee-related support measures for small entities, OJ EPO 2024, A8: dycip.com/oj-epo-2024-a8