Provisions on Fee Reduction and Exemption for Patent Applications in Taiwan, China

According to the relevant provisions of the Patent Law of Taiwan, China, small and medium-sized enterprises can enjoy annual fee reduction policies for patent applications. Among them:

The criteria for identifying small and medium-sized enterprises are:

• An enterprise that has completed company registration or business registration in accordance with the law, has a paid-in capital of less than NT$100 million, or regularly employs less than 200 employees.

The criteria for identifying a small-scale enterprise are:

• Small and medium-sized enterprises that regularly employ less than 5 people.

The number of regularly employed employees shall be based on the average monthly number of insured persons in the last 12 months for businesses accepted by the Labor Insurance Bureau of the Ministry of Labor.

The following are regarded as small and medium-sized enterprises:

• After expansion through guidance, if the scale of a small and medium-sized enterprise exceeds RMB 100 million in paid-in capital, it will still be regarded as a small and medium-sized enterprise for two years from the date of expansion.
• After a merger with guidance, if the scale of a small and medium-sized enterprise exceeds RMB 100 million in paid-in capital, it will still be regarded as a small and medium-sized enterprise for three years from the date of the merger.
• Where a guidance agency, guidance system or similar institution carries out centralized guidance for small and medium-sized enterprises, and some of these enterprises have a paid-in capital of more than RMB 100 million, and the guidance agency, guidance system or similar institution deems it necessary to conduct combined guidance, they shall still be deemed as small and medium-sized enterprises during the period of centralized guidance.
  

According to the relevant provisions of Article 95 of the Patent Law of Taiwan, if the inventor is a natural person, school or small and medium-sized enterprise, he or she may apply to TIPO for a reduction in the annual patent fee. According to the relevant provisions of Article 3, if the patent owner is a foreign school or a local small and medium-sized enterprise in Taiwan, he or she may submit a written request to TIPO to reduce the annual patent fee. If the patent owner is a natural person or a local school in Taiwan, TIPO will directly reduce the annual patent fee. Among them:

• Natural person: refers to natural persons in Taiwan and any foreign country.
• Taiwanese schools: public or private schools in Taiwan.
• Foreign schools: refers to foreign schools recognized by the Ministry of Education of Taiwan, China.

The annual fee exemption qualification means that if the patent owner is a natural right holder and does not have the financial ability to pay the patent annual fee, he or she can submit a written application for exemption from the patent annual fee. If he or she does not have the financial ability, he or she must be a low-income person recognized by the local office or relevant government authorities.

Amount of reduction:

• Annual fee reduction of NT$800 for the first three years
• In the 4th to 6th year, the annual reduction is NT$1,200
• Only annual fees for years 1 to 6 can be exempted

Procedure for application of reduction of income:

• If the patent owner is a natural person or a local Taiwanese school, TIPO will directly reduce the annual patent fee.
• If the patent owner is a foreign school or a Taiwanese or foreign small and medium-sized enterprise, they must submit a written request to apply for a reduction in the annual patent fee. The reduction can be for 3 or 6 years at a time, or annually from the 1st to the 6th year.

Waiver of application procedures:

• If the patent owner is a natural person and has no financial ability to pay the annual patent fee, he or she must submit a written request to TIPO every year to apply for exemption of the annual patent fee.
• When applying, you must attach a low-income household certification document issued by the local office of your registered residence or the relevant government authority.
• The annual patent fee for the first year should be paid within three months of the delivery of the approval letter or decision; the annual patent fee for the second year should be paid during the payment period or within six months of the expiration of the annual patent fee, and a written request for exemption of the annual patent fee should be submitted to TIPO.