EPO Introduces Additional Fee Reductions for Small Applicants

On April 1, 2024, a new fee system will enter into force at the European Patent Office (EPO). Apart from moderate fee increases (more than 7% below the real inflation rate) and the abolishment of several rarely used fees, the new fee system introduces a new fee reduction scheme for so-called micro-entities, which include:

• micro-enterprises,
• natural persons,
• non-profit organizations, universities, and public research organizations.

For the purpose of the fee reduction, a micro-enterprise is defined an enterprise that employs fewer than 10 persons and has an annual turnover or annual balance sheet total that does not exceed EUR 2 million. The micro-enterprise may not own or be a subsidiary of a large enterprise.

Further, the new reduction scheme is not available for applicants who have filed five or more European patent applications or Euro-Patent Cooperation Treaty (PCT) applications within a period of five years preceding:

• the date of filing of the European patent application concerned, or
• the data of entry into the European phase of the Euro-PCT application concerned.

The relevant date of a previous European application is its filing date and the relevant date of a previous Euro-PCT application is its date of entry into the European phase.

The new fee reduction scheme is in addition to, and may be applied in combination with, the already existing language-related fee reductions. However, where the language-related fee reductions are only available (see Art 14(4) of the EPC) for applicants having their residence or principal place of business in a European Patent Convention (EPC) country, for the new fee reduction scheme the applicant’s nationality or domicile is not taken into account. U.S. based applicants may thus also qualify.

To benefit from the reductions, applicants must expressly declare their state as micro-enterprise, natural person, et cetera, and this can be done by ticking the appropriate box in the request for grant  or in the request for entry into the European phase. They will then receive a 30% reduction on selected fees. For U.S. based applicants, the available fee reductions will typically be as follows (see here).

• filing fee: reduced from €135 to €95
• fee for a European or supplementary European search: reduced from €1520 to €1064
• examination fee: reduced from €1915 to € 1341
• designation fee: reduced from €685 to €480
• fee for grant: reduced from €1080 to €756
• renewal fees (30% reduction).

Background and Criticism

The possibilities for a new fee reduction scheme had already been considered in EPO’s “Non-paper on fee-related support measures for micro-entities and fee policy” which was published in May 2023. In this publication, the EPO acknowledged the importance of smaller entities for the European economy and considers it a good strategy to enhance attractiveness of the European patent system for smaller entities, especially against the background of “economic uncertainty and turbulence”. The Institute of Professional Representatives before the European Patent Office (epi) did raise concerns, though, as it found the new scheme as proposed in the above-referenced paper “complex, poorly targeted, and susceptible to abuse, and at the expense of those who would pay full fees” and raised the question whether it was right that European applicants should subsidize non-European entities. Instead, epi favored a system that would partially defer fees for small applicants and sent a letter to express this view to the EPO’s Budget and Finance Committee. However, as we know now, this letter did not stop the introduction of the new fee reduction scheme.

With the new scheme, the EPO incentivizes small applicants around the world to access the European patent system. One word of caution: a paid fee that has been unduly reduced will be deemed not to have been validly paid and the patent application will be deemed withdrawn. Representatives should thus confirm the applicant’s true status throughout the proceedings.

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