So How Much Will This Cost Me??
Have you tried to search the internet for "how much will a patent cost?" Are you frustrated that no answer pops up?
There is a reason that the fee structure is not as transparent as you might like: each patent application costs a different amount. Consider why:
First, the USPTO reserves the right to change their fee structure at any time. It's not an annual update, it happens whenever Congress gets around to it. For example, when the "microentity" designation was released, fees for some applicants dropped dramatically. Usually, though, fees will increase.
Second, your invention is -- must be! -- unique. This means that writing the application is like no application that's ever been written before. Also, you as a client have a different level of sophistication as other clients. Some corporations have "captive" patent law firms and set a flat fee for each application, but they make it up in a high volume of business. Some inventors just have an idea and a few sketches and the patent attorney has a lot of ground to make up to turn the Invention Disclosure into a workable application; other inventors are very experienced and produce a detailed Invention Disclosure along with professional-grade drawings which can reduce the attorney costs.
Third, your invention may require a specialist. Many patent attorneys (who are, by definition, lawyers with an additional engineering or science qualification and admission to the USPTO) and most patent agents have a specific area of technology in which they specialize. Some patent attorneys are generalists. If your invention is in biomedical engineering, business methods, or other very specialized sciences like plant patents or recombinant DNA, a specialist might ultimately be the most cost-effective choice. Expect a higher hourly rate, but perhaps a lower number of hours to complete the work.
Fourth, the USPTO Examiner will likely have "rejections" and "objections" to your patent application. These could be based on anything from pagination, details in the drawings, or claim grammar to substantive rejections as a result of prior art or the determination that your application includes more than one distinct invention and you must choose which, if any, to pursue. Each communication from the USPTO will require a response, and depending on the content of the communication, the cost to respond will vary. This is almost always billed hourly by patent attorneys because it's unpredictable.
Fifth, if you pursue international filings either through the Patent Cooperation Treaty (PCT) or directly filing with foreign patent offices, consider that your costs will increase exponentially. You will pay filing fees to each country you enter, you may pay annuity fees to keep your application pending, you must pay foreign attorneys to represent you (and if your US attorney coordinates this, you will likely pay the US attorney hourly as well), and you may have translation costs as well. This is not to undermine the importance of international protection when your business has international reach, but understand that many of these costs are too unpredictable to accurately estimate up front.
According to the American Intellectual Property Law Association, the national median cost to have a patent attorney prepare a non-provisional utility application in 2012 was $10,000. Likewise, the median hourly rate for patent attorneys was over $300 per hour. Again, these are round estimates that do not reflect regional price differences or specific types of application. At HLR, we are sensitive to your cash-flow situation and are often able to assist you in your search for investors or sources of funding.
A note about patent agents: these are typically highly-qualified technicians who do not have a law degree, but more than make up for it with technical expertise. While the patent agent cannot assist you with legal services (formation of a new business, license negotiations, contract drafting, etc.), if the only thing you need is prosecuting a patent before the USPTO, this might be a more cost-effective option. HOWEVER, don't be surprised to see "Dr." before the patent agent's name, and a fee structure that reflects their specialized expertise. Don't be afraid to ask for cost estimates from several sources before choosing your patent counsel.
There is a reason that the fee structure is not as transparent as you might like: each patent application costs a different amount. Consider why:
First, the USPTO reserves the right to change their fee structure at any time. It's not an annual update, it happens whenever Congress gets around to it. For example, when the "microentity" designation was released, fees for some applicants dropped dramatically. Usually, though, fees will increase.
Second, your invention is -- must be! -- unique. This means that writing the application is like no application that's ever been written before. Also, you as a client have a different level of sophistication as other clients. Some corporations have "captive" patent law firms and set a flat fee for each application, but they make it up in a high volume of business. Some inventors just have an idea and a few sketches and the patent attorney has a lot of ground to make up to turn the Invention Disclosure into a workable application; other inventors are very experienced and produce a detailed Invention Disclosure along with professional-grade drawings which can reduce the attorney costs.
Third, your invention may require a specialist. Many patent attorneys (who are, by definition, lawyers with an additional engineering or science qualification and admission to the USPTO) and most patent agents have a specific area of technology in which they specialize. Some patent attorneys are generalists. If your invention is in biomedical engineering, business methods, or other very specialized sciences like plant patents or recombinant DNA, a specialist might ultimately be the most cost-effective choice. Expect a higher hourly rate, but perhaps a lower number of hours to complete the work.
Fourth, the USPTO Examiner will likely have "rejections" and "objections" to your patent application. These could be based on anything from pagination, details in the drawings, or claim grammar to substantive rejections as a result of prior art or the determination that your application includes more than one distinct invention and you must choose which, if any, to pursue. Each communication from the USPTO will require a response, and depending on the content of the communication, the cost to respond will vary. This is almost always billed hourly by patent attorneys because it's unpredictable.
Fifth, if you pursue international filings either through the Patent Cooperation Treaty (PCT) or directly filing with foreign patent offices, consider that your costs will increase exponentially. You will pay filing fees to each country you enter, you may pay annuity fees to keep your application pending, you must pay foreign attorneys to represent you (and if your US attorney coordinates this, you will likely pay the US attorney hourly as well), and you may have translation costs as well. This is not to undermine the importance of international protection when your business has international reach, but understand that many of these costs are too unpredictable to accurately estimate up front.
According to the American Intellectual Property Law Association, the national median cost to have a patent attorney prepare a non-provisional utility application in 2012 was $10,000. Likewise, the median hourly rate for patent attorneys was over $300 per hour. Again, these are round estimates that do not reflect regional price differences or specific types of application. At HLR, we are sensitive to your cash-flow situation and are often able to assist you in your search for investors or sources of funding.
A note about patent agents: these are typically highly-qualified technicians who do not have a law degree, but more than make up for it with technical expertise. While the patent agent cannot assist you with legal services (formation of a new business, license negotiations, contract drafting, etc.), if the only thing you need is prosecuting a patent before the USPTO, this might be a more cost-effective option. HOWEVER, don't be surprised to see "Dr." before the patent agent's name, and a fee structure that reflects their specialized expertise. Don't be afraid to ask for cost estimates from several sources before choosing your patent counsel.