[Patentpractice] Fwd: USPTO to assess statutory penalties for false assertions or certifications of small and micro entity status
Roger Browdy
Roger.Browdy at FisherBroyles.com
Thu Jun 12 20:23:05 UTC 2025
Mistakes on such minutia would certainly seem to fall into the good faith category. Easily explainable if the clerk thinks an independent contractor is an employee.
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From: Patentpractice <patentpractice-bounces at oppedahl-lists.com> On Behalf Of Irving Fishman via Patentpractice
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Subject: Re: [Patentpractice] Fwd: USPTO to assess statutory penalties for false assertions or certifications of small and micro entity status
One big fat issue is the moving target of “who is an employee?” for counting the 500 count limit. Full time and part time typical employees are fairly easy, but “independent contractors that have recently been held to be employees for certain aspects of the certain legal benefits. Are they employees for the 500 count as well? And what if their label as employees is only for a part of the year and they rotate in and out with others. Does each count as an employee for the 500 count?
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Subject: Re: [Patentpractice] Fwd: USPTO to assess statutory penalties for false assertions or certifications of small and micro entity status
Dunno… Seems a big University is going to have to take up the reins and bring to the Fed Circuit in order to point out what a big stinking pile of BS this is and that it is nearly impossible to prove the negative, i.e., that it was an honest mistake made in good faith.
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From: Patentpractice <patentpractice-bounces at oppedahl-lists.com<mailto:patentpractice-bounces at oppedahl-lists.com>> On Behalf Of Ronni Jillions via Patentpractice
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Subject: Re: [Patentpractice] Fwd: USPTO to assess statutory penalties for false assertions or certifications of small and micro entity status
In my view, the issue will be more problematic where an applicant claims small entity status, and then finds out that this was a mistake, made in good faith. How do you prove that?
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From: Patentpractice <patentpractice-bounces at oppedahl-lists.com<mailto:patentpractice-bounces at oppedahl-lists.com>> On Behalf Of Carl Oppedahl via Patentpractice
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Subject: Re: [Patentpractice] Fwd: USPTO to assess statutory penalties for false assertions or certifications of small and micro entity status
Of course what one imagines is that the USPTO clerk who pounces on entity-size filings to try to collect the penalties might fail to notice the cover letter.
I guess though if the clerk pounces, mailing out whatever the clerk mails out, it would be very satisfying to be able to deal with it in a better way. Instead of filing a document styled as a "response", one would be able to file a document entitled "request that the clerk's letter be withdrawn". The basis being that the cover letter already addressed the issue.
On 6/12/2025 1:01 PM, Suzannah K. Sundby via Patentpractice wrote:
From now on when a case changes from small entity to large bc of, e.g., licensing or a change in the size of the applicant, I think I am going to submit a cover letter explaining the effective date the small entity status was lost to preempt having to respond to the USPTO asking me to explain the change in entity status.
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From: Patentpractice <patentpractice-bounces at oppedahl-lists.com><mailto:patentpractice-bounces at oppedahl-lists.com> On Behalf Of Doreen Trujillo via Patentpractice
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Cc: Doreen Trujillo <DTrujillo at vlplawgroup.com><mailto:DTrujillo at vlplawgroup.com>
Subject: Re: [Patentpractice] Fwd: USPTO to assess statutory penalties for false assertions or certifications of small and micro entity status
Per the OG Notice:
“Division W of the Consolidated Appropriations Act of 2023 enacted the Unleashing American Innovators Act of 2022 and amended Title 35 of the United States Code to provide for penalties for false assertions and certifications under 35 U.S.C. 41G) and 123(t), respectively. See Public Law 117-328. In December 2024, Public Law 118-151 further amended Title 35 to provide good faith exceptions to the statutory penalty system of 35 U.S.C. 41G) and 123(t). Consequently, 35 U.S.C. 41G) and 123(t) require the USPTO to assess a fine of not less than three times the amount an entity failed to appropriately pay the USPTO, when the entity is found by the USPTO to have falsely made an assertion or certification of small or micro entity status that resulted in the payment of a fee in an unentitled reduced amount, unless the entity establishes that the assertion or certification was made in good faith.”
Regards,
Doreen
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From: Patentpractice <patentpractice-bounces at oppedahl-lists.com<mailto:patentpractice-bounces at oppedahl-lists.com>> On Behalf Of Randall Svihla via Patentpractice
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Subject: Re: [Patentpractice] Fwd: USPTO to assess statutory penalties for false assertions or certifications of small and micro entity status
This was provided for in one of the past rulemaking notices, but they have never implemented it.
From: Patentpractice <patentpractice-bounces at oppedahl-lists.com<mailto:patentpractice-bounces at oppedahl-lists.com>> On Behalf Of Carl Oppedahl via Patentpractice
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Subject: Re: [Patentpractice] Fwd: USPTO to assess statutory penalties for false assertions or certifications of small and micro entity status
I imagine that part of what will go on here is a consequence of an applicant self-reporting.
In the past, if an applicant were to self-report that it paid (say) a small fee when it should have paid a non-small fee, the consequence was that the applicant topped up the deficiency. And everybody moved forward.
Now I guess the applicant that self-reports and tops up will receive a notice demanding that the applicant pay a times-three for the deficiency.
I imagine that this will lead to less self-reporting of deficiencies.
On 6/12/2025 7:59 AM, Michael Brown via Patentpractice wrote:
This is an interesting development. I am curious as to the mechanism to be used when "the USPTO makes a preliminary determination" about the improper payment. I suppose for micro entity, a cross check of an inventor's name could be done, but what would they do for small entities?
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From: U.S. Patent and Trademark Office <subscriptioncenter at subscriptions.uspto.gov<mailto:subscriptioncenter at subscriptions.uspto.gov>>
Date: Thu, Jun 12, 2025 at 9:39 AM
Subject: USPTO to assess statutory penalties for false assertions or certifications of small and micro entity status
To: <michaeljbrownlaw at gmail.com<mailto:michaeljbrownlaw at gmail.com>>
The USPTO will begin implementing statutory penalties for falsely made assertions or certifications of small and micro entity status.
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News Brief
USPTO to assess statutory penalties for false assertions or certifications of small and micro entity status
The U.S. Patent and Trademark Office (USPTO) will begin implementing statutory penalties for falsely made assertions or certifications of small and micro entity status, as part of the USPTO’s continuing efforts to mitigate threats to the U.S. patent system and to protect that system’s integrity.
As required by statute, the USPTO will assess a fine of not less than three times the amount an entity failed to appropriately pay the USPTO when the entity is found to have falsely made an assertion or certification of small or micro entity status, unless the entity shows that the assertion or certification was made in good faith.
The USPTO will begin issuing a combined notice of payment deficiency and order to show cause as to why a fine should not be assessed when the USPTO makes a preliminary determination that a pending patent application or patent contains a false assertion or certification that resulted in the payment of at least one fee in an unentitled reduced amount. The agency will issue a subsequent notice to provide a final determination of whether a fine is being assessed, and the fine amount, based on any timely response to the combined notice and order to show cause, and the record as a whole.
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