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Maintenance fee (patent)
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Maintenance fees or renewal fees are fees that are paid to maintain a granted patent in force. Some patent laws require the payment of maintenance fees for pending patent applications. Not all patent laws require the payment of maintenance fees and different laws provide different regulations concerning not only the amount payable but also the regularity of the payments. In countries where maintenance fees are to be paid annually, they are sometimes called patent annuities.
arch is reported indicating that renewal fees can be used to improve the innovation incentives generated by patent rights.
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Encyclopedia
Maintenance fees or renewal fees are fees that are paid to maintain a granted patent in force. Some patent laws require the payment of maintenance fees for pending patent applications. Not all patent laws require the payment of maintenance fees and different laws provide different regulations concerning not only the amount payable but also the regularity of the payments. In countries where maintenance fees are to be paid annually, they are sometimes called patent annuities.
Rationale
Research is reported indicating that renewal fees can be used to improve the innovation incentives generated by patent rights.
International treaties
Paris Convention
Article 5bis of the Paris Convention requires that parties to the Convention should provide a six-month grace period for paying maintenance fees:
- (1) A period of grace of not less than six months shall be allowed for the payment of the fees prescribed for the maintenance of industrial property rights, subject, if the domestic legislation so provides, to the payment of a surcharge.
- (2) The countries of the Union shall have the right to provide for the restoration of patents which have lapsed by reason of non–payment of fees.
Patent Cooperation Treaty
International patent applications filed under the Patent Cooperation Treaty are not subject to the payment of maintenance fees. However, maintenance fees may fall due to designated/elected national and regional offices. If renewal fees have become due by the time the national phase could start, they must be paid before the expiration of the time limit applicable for entering the national phase.
National and regional legislations
Canada
In Canada, maintenance fees for a patent application, or a patent issued from the application, is due on each anniversary of the filing date of the application, beginning on the second anniversary. The amount due each year escalates during the life of the patent or patent application.
If the maintenance fee is not paid by the due date with respect to a patent application, the application is deemed abandoned. The abandoned application may be reinstated within 12 months of the date of abandonment, by filing a request for reinstatement with payment of the maintenance fee that is due and the reinstatement fee.
The maintenance fee for a patent may be paid within a one year grace period after the due date, with the payment of a late fee. If the required fee has not been paid when the grace period expires, the patent lapses.
China
No annuity (maintenance) fees due for pending applications. Recently China changed the rule to eliminate annuities for pending applications.
European Patent Office
Renewal fees are payable to the European Patent Office in respect of pending European patent applications in respect of the third year from the date of filing. These fees are paid in advance of the year in which they are due (such that the renewal fee for the third year falls due two years from the date of filing) and fall due on the last day of the month containing the anniversary of the date of filing.
If the payment of a renewal fee for a European patent application is not made in due time, the renewal fee may still be validly paid within 6 months of the due date, provided that the additional fee provided by is paid within the 6 months as well. For the calculation of the 6-month additional period, the so-called de ultimo ad ultimo rule is applied by the EPO. According to this rule, the six-month period runs "from the last day of the month to the last day of the month". For instance, if a renewal fee was due in February 2004, the additional fee fell due on August 31, 2004 (Tuesday), i.e. 6 months from the end of February 2004.
The obligation to pay renewal fees terminates with the payment of the renewal fee due in respect of the year in which the mention of the grant of the European patent is published. Subsequently, renewal fees are payable to the national offices of the EPC Contracting States in which the European patent is brought into effect. Each Contracting State then pays the European Patent Organisation a proportion of each renewal fee received for a European patent in that State.
Italy
In a widely criticised move the Italian Parliament approved the cancellation of all maintenance fees due for Italian patents (including European patents validated in Italy), utility models and designs, as from 2006-01-01. Although the fees were reintroduced on 2007-01-02, the actual amounts of the fees were not announced until 2007-04-06. Consequently, for any fees that fell due between 2007-01-02 and 2007-04-30, the time limit for paying these was extended to 2007-06-30. Some, including Roland Grossenbacher, chairman of the Administrative Council of the European Patent Organisation, considered that the abolishment of annuity fees in Italy was an error, because, if annuities were abolished, "all patents would remain in force up to the 20th year."
United Kingdom
The United Kingdom does not require renewal fees to be paid in respect of pending applications but a granted patent must be renewed on the 4th anniversary of the filing date and every year after that.
Historically, and in contrast to most other European countries and the European Patent Office, the law in the United Kingdom required that renewal fees be paid on the anniversary of the filing date rather than on the last day of the month. , which came into effect on 1 October 2005, ensure that any period prescribed for payment of a renewal fee does not expire until the end of the month in which the renewal date falls.
United States
Patent maintenance fees in the United States are due 3˝, 7˝ and 11˝ years after grant of the patent. No maintenance fees are due while an application is pending.
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