Every business invests in security. For physical stores, this might involve installing cameras or anti-theft devices to combat shoplifting. For ecommerce businesses, this could mean establishing data security practices to ensure customer information stays confidential. These protected assets—inventory and customer data—are crucial to the business’s success, and keeping them safe is worth investing in.
The same can be said for another important business asset: intellectual property (IP). One way to protect IP is through patents, and for the right businesses, patent protection is absolutely worth the investment. Here we break down the costs of applying for and obtaining a patent.
What is a patent?
A patent is a government-granted right for some forms of IP. Specifically, a patent gives the inventor the sole right to make, use, or sell their invention, usually for a period of up to 20 years, thereby protecting the inventor’s ability to profit from their own creation.
Many people in the patent law community view patents as conducive to ingenuity.
“Inventors are more incentivized to invent when they know there’s some mechanism that allows them to profit for a time without being undercut by competitors,” says Karan Jhurani, a patent attorney with the intellectual property law firm Fish & Richardson.
In the US, patents are issued by the United States Patent and Trademark Office (USPTO), a federal agency. Inventors interested in acquiring a patent submit an application to the USPTO, usually through patent attorneys. Should the application meet the USPTO’s requirements, the agency will grant patent protection over the invention for a period of up to 20 years. Patents do not apply to IP such as literature, drama, and music (those are eligible for copyright) or symbols and logos (those can be trademarked).
Types of patents
There are three different types of patents available:
Utility patents
A utility patent, the most common type of patent, protects intellectual property like machines, processes, systems, and manufactured goods and materials. A new chemical compound or a new kind of kitchen appliance, for example, would qualify for a utility patent.
Design patents
A design patent covers the ornamental design of an invention, like the shape of an indoor exercise bike or the special ergonomic handle of a vacuum cleaner. Patterns or graphics that can be affixed to any item do not qualify for patent protection, but they may qualify for trademark or copyright protection.
Plant patents
A plant patent covers new species of plant life that are cultivated through grafting (cuts of plants), not through traditional seed cultivation. The latter are considered natural phenomena and are not patentable.
Provisional vs. final patent applications
There are two kinds of patent applications: A provisional patent application and a final patent application.
A provisional patent application protects inventions that are still in development and not yet ready for market. To convert a provisional patent into a permanent one, you need to file a non-provisional patent application within a year of filing the provisional application. If approved, the term of the patent is backdated to the provisional filing date. Documenting this timeline can be important for defending your invention against copycats.
How much does a patent cost?
- Basic patent fees
- Attorney fees
- Patentability search
- Drafting the patent
- Patent examination
- Patent office action
- Issue fee
- Maintenance fees
There are a number of costs to consider when seeking a patent, and the total cost can range from just a few hundred dollars to tens of thousands of dollars. Some of the patent costs, such as government filing fees, are unavoidable. Others will vary depending on the complexity of your invention, who you are as an inventor, and the legal fees you incur.
If you’re just getting started in your patent journey, the best way to understand how these fees can range and add up is by looking at them in the context of the step-by-step patent application process.
Basic patent fees
First off, you’ll need to consider USPTO patent filing fees—some of the more predictable costs associated with obtaining a patent.
“The USPTO offers a tiered fee structure,” Karan explains. “The fees will depend on the size of the entity providing the application. The fees won’t be as high for a solo inventor as they will for a Fortune 500 company.”
For a USPTO-designated “micro-entity” (meaning you have a limited income and have never or rarely filed a patent), the fee for filing a provisional utility patent application ranges from $60 to $300, depending on entity size. Fees range from zero (for micro-entity filings online only) to $320 for non-provisional applications. Design patent fees are slightly lower, ranging from $44 to $220.
On top of that, there is a $160 minimum fee for a USPTO examination, in which your application is checked against existing inventions (this is called “prior art”). If all goes according to plan, you must then pay the USPTO at least $240 to actually issue the patent.
Karan stresses that, more often than not, the costs of obtaining a patent exceed these basic minimums—sometimes unpredictably. There are fees associated with correcting mistakes and responding to USPTO questions and concerns.
“Like with a will, you can certainly draft one yourself. But as things get more complex, mistakes become more likely, and this can create headaches down the line,” says Karen. “Unforeseen fees, forfeiting an earlier filing date—these costs add up, and they can hurt your patent rights in the long run.”
Attorney fees
One way to control for and predict costs is to hire a patent attorney (or sometimes a patent agent, a non-attorney licensed patent professional). Before you hire one though, it’s important to know what that involves. An engagement letter, which commences an attorney-client relationship, can give you a clear idea.
“Your engagement letter should specify what all the fees are and what you’re on the hook for,” Karan says.
If you choose to hire an attorney to assist in compiling and submitting your patent application, you will have to pay a variety of fees throughout the process.
- Retainer fees. Paid at the outset of the attorney-client relationship, it functions as a reservation fee, ensuring your lawyer’s availability to work on your case. Retainer fees can range from $1,000 for solo practitioners and small law firms to between $5,000 and $15,000 for mid-sized and larger firms.
- Hourly rates. Attorneys are usually paid by the hour, with junior associates charging between $150 and $350, and senior attorneys, partners, and patent specialists charging between $500 and $1,500.
It’s important to note that attorney fees will generally be higher in major metropolitan areas like San Francisco and Boston. Conversely, patent agents tend to charge flat fees for set packages of services.
Patentability search
A patent attorney or agent can perform an exhaustive, preemptive search for all prior art in a wide range of databases. This ensures your invention is indeed patentable. And while it’s an optional step, it can help avoid additional costs down the road.
Patentability searches range in cost from $250 for a simple invention to thousands of dollars for a more complex one. The more complex the invention, and the more experienced the attorney, the higher these fees go. For example, computer software-related inventions, which are widely considered to be among the most difficult and costly to patent, can cost upwards of $3,000 to adequately search.
Drafting the patent
Eligible patents contain a lot of information: exhaustive diagrams and a minutely detailed written description of how the invention and each of its components work. Drafting a patent application requires a high degree of technical and legal expertise.
“A patent attorney or agent can typically draft a patent by themself, but sometimes you need to pay for draftspeople to draft specific plans for patentable items,” Karan explains. Using a draftsperson can be particularly beneficial in the design patent context to ensure you’re making the application as accurate and close to the actual representation as possible.
Drafting a provisional patent application can cost anywhere from $400 for a simple invention to $600 for a more complex one. For non-provisional patent applications, costs can range from $1,000 to $1,500 for simple inventions but can go much higher for ones that require more complex diagramming.
Patent examination
After the attorney or agent files the patent application, the USPTO assigns an examiner to the case. USPTO examination fees range from $160 for micro-entities to $320 for small entities to $800 for large entities. Patent examiners then conduct their own patent search, review the application, and issue any concerns or objections to the applicant in the form of a document known as an “office action.”
Patent office action
If your patent examiner issues one or more office actions against your patent application, you will need to respond in order for the patent application to proceed. When an attorney or agent handles these on your behalf, it’s a process known as “patent prosecution.”
In prosecuting the patent, you will most likely need to pay the attorney’s hourly rate. The amount you ultimately pay in connection with responding to office action will depend on the number of concerns raised by the examiner and how complex the responses are.
Issue fee
If a patent is granted, the USPTO will send a Notice of Allowance and Fee(s) Due to the applicant or their attorney. To complete the patent process, the applicant will then need to pay an issue fee for the patent, and, if applicable, a fee to publish it in a patent application publication. The utility patent issuing fee for micro-entities is $240, $480 for small entities, and $1,200 for large entities. Issuing fees for design patents range from $148 to $740.
Maintenance fees
Once you receive your patent, it is valid for up to 20 years from the filing date. Depending on the type of patent issued, a patent owner will need to pay periodic maintenance fees to the USPTO. For utility patents, the minimum maintenance fee is $300. It is paid out in three installments over the course of the patent term:
- At least $100 at the three and a half year mark
- $100 at the seven and a half year mark
- $100 at the 11 and a half year mark
How much does a patent cost FAQ
Can you file a patent application by yourself?
Yes, you can file a patent application by yourself. However, doing so without the assistance of an experienced patent attorney can result in costly errors and delays in patent issuance, which could put your rights in jeopardy.
What affects the cost of a patent?
A variety of factors affect the cost of a patent, including the type of patent you’re seeking, the complexity of your invention, the size of your applicant entity, and the degree of legal assistance you need.
Why is getting a patent so expensive?
Getting a patent application filed and allowed is time-consuming, expensive, and complex given the nuanced issues of patent law that can come up during the process. Notwithstanding the complex and time-consuming process, the rewards of obtaining a patent are substantial. As patent attorney Karan Jhurani puts it, “Getting a patent is essentially a 20-year monopoly on your invention.”
