US Patent Office steps up crackdown on fake small entities

The United States Patent and Trademark Office (USPTO) today announced that it will begin enforcing legal penalties for false claims or certifications of small and micro entities. This action is part of the USPTO’s ongoing efforts to maintain the integrity of the U.S. patent system and mitigate threats to it.

Under the law, if an entity is found to have made a false declaration or certification of small/micro entity status that resulted in failure to properly pay patent office fees, the USPTO will impose a penalty of not less than three times the unpaid amount, unless the entity can prove that the declaration or certification was made in good faith. The USPTO will issue a combined notice of underpayment and request for explanation of cause to the patent application or patent at issue after making a preliminary determination. When it is found that a false declaration or certification resulted in an improper reduction in payment, a further notice will be issued to provide a final determination as to whether a penalty should be imposed and the amount of the penalty. This decision will be based on timely responses and the overall record.

This new measure by the USPTO highlights the high demands on the integrity of the patent system, while also reminding applicants to take the accuracy of their information seriously.