{"identifier":"/us/usc/t35/s123","title":35,"num":"\u00a7\u202f123.","heading":"Micro entity defined","text":"\u00a7\u202f123.\nMicro entity defined\n(a)\nIn General.\u2014\nFor purposes of this title, the term \u201cmicro entity\u201d means an applicant who makes a certification that the applicant\u2014\n(1) qualifies as a small entity, as defined in regulations issued by the Director;\n(2) has not been named as an inventor on more than 4 previously filed patent applications, other than applications filed in another country, provisional applications under section 111(b), or international applications filed under the treaty defined in section 351(a) for which the basic national fee under section 41(a) was not paid;\n(3) did not, in the calendar year preceding the calendar year in which the applicable fee is being paid, have a gross income, as defined in section 61(a) of the Internal Revenue Code of 1986, exceeding 3 times the median household income for that preceding calendar year, as most recently reported by the Bureau of the Census; and\n(4) has not assigned, granted, or conveyed, and is not under an obligation by contract or law to assign, grant, or convey, a license or other ownership interest in the application concerned to an entity that, in the calendar year preceding the calendar year in which the applicable fee is being paid, had a gross income, as defined in section 61(a) of the Internal Revenue Code of 1986, exceeding 3 times the median household income for that preceding calendar year, as most recently reported by the Bureau of the Census.\n(b)\nApplications Resulting From Prior Employment.\u2014\nAn applicant is not considered to be named on a previously filed application for purposes of subsection (a)(2) if the applicant has assigned, or is under an obligation by contract or law to assign, all ownership rights in the application as the result of the applicant\u2019s previous employment.\n(c)\nForeign Currency Exchange Rate.\u2014\nIf an applicant\u2019s or entity\u2019s gross income in the preceding calendar year is not in United States dollars, the average currency exchange rate, as reported by the Internal Revenue Service, during that calendar year shall be used to determine whether the applicant\u2019s or entity\u2019s gross income exceeds the threshold specified in paragraphs\n1\n1 So in original. Probably should be \u201cparagraph\u201d.\n(d)\nInstitutions of Higher Education.\u2014\nFor purposes of this section, a micro entity shall include an applicant who certifies that\u2014\n(1) the applicant\u2019s employer, from which the applicant obtains the majority of the applicant\u2019s income, is an institution of higher education as defined in section 101(a) of the Higher Education Act of 1965 (\n20 U.S.C. 1001(a)\n(2) the applicant has assigned, granted, conveyed, or is under an obligation by contract or law, to assign, grant, or convey, a license or other ownership interest in the particular applications to such an institution of higher education.\n(e)\nDirector\u2019s Authority.\u2014\nIn addition to the limits imposed by this section, the Director may, in the Director\u2019s discretion, impose income limits, annual filing limits, or other limits on who may qualify as a micro entity pursuant to this section if the Director determines that such additional limits are reasonably necessary to avoid an undue impact on other patent applicants or owners or are otherwise reasonably necessary and appropriate. At least 3 months before any limits proposed to be imposed pursuant to this subsection take effect, the Director shall inform the Committee on the Judiciary of the House of Representatives and the Committee on the Judiciary of the Senate of any such proposed limits.\n(f)\nPenalty for False Certifications.\u2014\nIn addition to any other penalty available under law, an entity that is found to have falsely made a certification under this section shall, unless the entity shows that the certification was made in good faith, be subject to a fine, to be determined by the Director, the amount of which shall be not less than 3 times the amount that the entity failed to pay as a result of the false certification, whether the Director discovers the false certification before or after the date on which a patent has been issued.","url":"https://projectusc.org/usc/t35/s123.html","content":[{"t":"sec","id":"/us/usc/t35/s123","children":[{"t":"num","text":"\u00a7\u202f123."},{"t":"heading","text":"Micro entity defined"},{"t":"subsec","id":"/us/usc/t35/s123/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"In General.\u2014"},{"t":"chapeau","text":"For purposes of this title, the term \u201cmicro entity\u201d means an applicant who makes a certification that the applicant\u2014"},{"t":"para","id":"/us/usc/t35/s123/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" qualifies as a small entity, as defined in regulations issued by the Director;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t35/s123/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" has not been named as an inventor on more than 4 previously filed patent applications, other than applications filed in another country, provisional applications under section 111(b), or international applications filed under the treaty defined in section 351(a) for which the basic national fee under section 41(a) was not paid;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t35/s123/a/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" did not, in the calendar year preceding the calendar year in which the applicable fee is being paid, have a gross income, as defined in section 61(a) of the Internal Revenue Code of 1986, exceeding 3 times the median household income for that preceding calendar year, as most recently reported by the Bureau of the Census; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t35/s123/a/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" has not assigned, granted, or conveyed, and is not under an obligation by contract or law to assign, grant, or convey, a license or other ownership interest in the application concerned to an entity that, in the calendar year preceding the calendar year in which the applicable fee is being paid, had a gross income, as defined in section 61(a) of the Internal Revenue Code of 1986, exceeding 3 times the median household income for that preceding calendar year, as most recently reported by the Bureau of the Census.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t35/s123/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Applications Resulting From Prior Employment.\u2014"},{"t":"content","text":"An applicant is not considered to be named on a previously filed application for purposes of subsection (a)(2) if the applicant has assigned, or is under an obligation by contract or law to assign, all ownership rights in the application as the result of the applicant\u2019s previous employment.","tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t35/s123/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Foreign Currency Exchange Rate.\u2014"},{"t":"content","text":"If an applicant\u2019s or entity\u2019s gross income in the preceding calendar year is not in United States dollars, the average currency exchange rate, as reported by the Internal Revenue Service, during that calendar year shall be used to determine whether the applicant\u2019s or entity\u2019s gross income exceeds the threshold specified in paragraphs\u202f","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be \u201cparagraph\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be \u201cparagraph\u201d.","tail":" (3) or (4) of subsection (a)."}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t35/s123/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Institutions of Higher Education.\u2014"},{"t":"chapeau","text":"For purposes of this section, a micro entity shall include an applicant who certifies that\u2014"},{"t":"para","id":"/us/usc/t35/s123/d/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the applicant\u2019s employer, from which the applicant obtains the majority of the applicant\u2019s income, is an institution of higher education as defined in section 101(a) of the Higher Education Act of 1965 (","children":[{"t":"ref","text":"20 U.S.C. 1001(a)","href":"/us/usc/t20/s1001/a","tail":"); or"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t35/s123/d/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" the applicant has assigned, granted, conveyed, or is under an obligation by contract or law, to assign, grant, or convey, a license or other ownership interest in the particular applications to such an institution of higher education.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t35/s123/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Director\u2019s Authority.\u2014"},{"t":"content","text":"In addition to the limits imposed by this section, the Director may, in the Director\u2019s discretion, impose income limits, annual filing limits, or other limits on who may qualify as a micro entity pursuant to this section if the Director determines that such additional limits are reasonably necessary to avoid an undue impact on other patent applicants or owners or are otherwise reasonably necessary and appropriate. At least 3 months before any limits proposed to be imposed pursuant to this subsection take effect, the Director shall inform the Committee on the Judiciary of the House of Representatives and the Committee on the Judiciary of the Senate of any such proposed limits.","tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t35/s123/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Penalty for False Certifications.\u2014"},{"t":"content","text":"In addition to any other penalty available under law, an entity that is found to have falsely made a certification under this section shall, unless the entity shows that the certification was made in good faith, be subject to a fine, to be determined by the Director, the amount of which shall be not less than 3 times the amount that the entity failed to pay as a result of the false certification, whether the Director discovers the false certification before or after the date on which a patent has been issued.","tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}