Inventors are filled with creativity, technical knowledge, and specialist skills – a solid legal background isn’t usually required; until you need a patent. When the law gets difficult, costs mount up, and so do the costs of filing for a patent.
When it comes to patenting your innovation, understanding the nuts and bolts of the associated costs can significantly influence your intellectual property strategy. This is especially critical for startups where resources are precious, and every decision can pivot the future of the business. Here’s a deeper look into the three crucial factors that determine the cost of filing a patent, with practical tips for managing these expenses efficiently.
A patent is a legal way to protect your unique product from other people profiting off it or claiming it as their own, but they can be tricky, expensive, and time-consuming to get.
How tricky? In an 1892 Supreme Court judgment, it was said that a patent was “one of the most difficult legal instruments to draw with accuracy.”
It doesn’t have to be that way, so we’re going to walk you through:
● The elements that make up the cost of a patent
● The different ways you can file for a patent
● Patent costs based on the type of filing
● Other costs that crop up during the filing of a patent
Then, we’ll finish by giving you solid examples of how much a patent costs for different use cases and answer all the questions you need answers. With nearly $19 billion spent on patent and trademark legal services each year, it’s big business, so let’s cut through the jargon and get into how much a patent costs.
The 3 Factors that Determine the Cost of Filing a Patent
Anyone researching a patent price will already know, applying for a patent can be an expensive task.
The value of protecting your intellectual property through the United States Patent and Trademark Office (USPTO) can far outweigh the legal and filing fees you’ll need to pay.
Your patent costs will broadly be made up of:
- Legal fees
- Drawing fees
- Filing fees
With lots of factors that determine precisely how much each one will cost. Let’s explore which factors will go into the cost of patent protection for your application.
How detailed your description is
The first and most important factor that’ll determine your patent fees is the depth and quality of the patent disclosure.
What information you give to the USPTO and how much detail is included will bear the success of your application and the cost.
A logical first step when going through the patent process is to organize drawings made up.
Consider how many words it would take you to describe how your new invention works. Now consider how many drawings can do the same thing. For example, a typical patent application for a simple invention can have five to ten drawings, while significant cases can have drawings running into the hundreds.
Depending on your skillset, it may be best to pay someone experienced in patents for your type of invention to draw up everything you need for your application. But, of course, the more complicated your design and the more drawings you’ll need, the more these drawings are going to cost you.
Along with the drawings, there need to be several annotations that link your drawings to the text that goes into your Detailed Description.
You can find some concise guidelines from the U.S. Patent and Trademark Office in MPEP Section 2163.
In brief, this lays out the minimum requirements for how detailed your application needs to be.
Why does the level of detail matter in your patent application?
A detailed description of the first iteration of your invention will make subsequent amendments much easier.
It also should give you more protection of your intellectual property when there is a good level of detail.
It’s easy for a patent application to become a small book – and if you’re paying a patent lawyer to file for your invention’s patent protection, you’re looking at $300-800 per hour. So here’s the next factor that adds to the cost of a patent.
Depending on your skillset, it may be best to pay someone experienced in patents for your type of invention to draw up everything you need for your application. But, of course, the more complicated your design and the more drawings you’ll need, the more these drawings are going to cost you.
Along with the drawings, there need to be several annotations that link your drawings to the text that goes into your Detailed Description.
You can find some concise guidelines from the U.S. Patent and Trademark Office in MPEP Section 2163.
Here’s the next factor that adds to the cost of a patent.
Covering your invention for design-around
Drawing up and writing out your patent application is just the first tranche of money you’ll spend in the patenting process.
Of course, you’re applying for a patent to protect your intellectual property, but your competitors may love your idea so much they want to make their version that’s not the same.
This is known as a “design-around,” where another company works to emulate the product you’ve gone through the patent application process for without infringing on your claim.
While the exercise of designing around a patent can help drive innovation, you don’t want this to happen to your hard work, so you need to do everything you can to protect your patent.
You, as the inventor, will need to work with a lawyer specialized in intellectual property law and pay for the ensuing attorney’s fees that come from this work.
As you’d expect, the more potential design-around and the higher complexity of the invention, the higher the patent’s cost becomes. The third contributor to the cost of a patent is next.
Making broad but defensible claims
Drafting a patent claim is the most complicated part of writing a patent application.
Your patent claim defines the elements of your invention as unique – everything else up to this point is describing how it functions.
This means independent inventors need to know how to make broad claims to protect their work yet detailed enough to not infringe on the prior art of other inventors.
Sounds complicated, right?
This is where lawyer fees can mount up, but it’s worth considering the value their input will have.
You need to ensure your claim draft identifies all the elements of your invention and how they work together, i.e., whether they’re dependent or independent claims.
A lot of knowledge and experience is needed to draft a claim – the lawyer needs to know about the current market and consider the future to try and prevent future design-around.
With experience comes a cost, and this is one of the most significant chunks of a cost of a patent.
Terms and phrases used in the claims must find clear support or antecedent basis in the description so that the meaning of the terms in the claims are clearly understood by consulting the description. That’s how your costs build up with a patent filing. Here are the different ways to approach filing your patent.
The Complexity of Your Invention
Complex inventions often require more claims, which are essentially the boundaries of your patent protection. Each claim must be clear and defensible, which can be challenging as complexity increases. More complex patents can lead to more USPTO rejections or objections, requiring additional rounds of revision and resubmission.
Before diving deep into patenting, conduct a robust feasibility study to determine if the potential market size and product lifespan justify the patenting cost. For complex products, consider filing multiple simpler patents covering various aspects of the technology rather than a single complex one. This can often reduce initial outlay while building a formidable IP portfolio.
Use provisional patents to secure an early filing date, giving you time to refine and possibly simplify your approach to the final patent application. This also spreads the cost over time, which can be beneficial for cash flow management.
Anticipating Future Legal Challenges
The reality of business means anticipating and preparing for potential challenges, including legal disputes over patent rights. The strength of your patent doesn’t just come from how well it’s written but also from how defensible it is in court.
When drafting your patent, consider potential loopholes that competitors might exploit. Work closely with your attorney to craft a patent application that is as watertight as possible. This includes comprehensive market and existing patent research to anticipate areas where challenges might arise.
Investing in a thorough initial patent search can save you money long-term by avoiding infringement on existing patents or filing for a patent that’s too similar to existing ones. Some firms offer this as a complimentary part of their patent services.
Your Options When it Comes to Patent Filing
Patents are necessary to make sure your small business gets the recognition it deserves for the inventions it makes.
The traditional way of filing for a patent is to use a patent lawyer and pay the associated attorney fees.
You have alternatives that help keep your patent application cost at a level you can afford. Let’s look at the four options you have to file a patent application.
Use patent law firms
When filing a patent application, your first thought is likely to be to use a patent lawyer.
Not every lawyer can deal with patents and intellectual property (I.P.) law; they usually:
- Have an engineering or design degree
- Have a law degree
- Pass a state bar exam
- Pass the patent bar exam
- Register as a patent attorney with the USPTO
A registered patent attorney will guide you through patenting your invention with their years of experience and offer legal advice when needed.
The pros of using a patent attorney are:
- Vast experience with writing and filing patents, whether you have a simple or complex invention
- Expertise is a targeted area of IP law, meaning you get accurate and up-to-date advice
- You can be sure that you won’t miss a step in the process of filing a patent
There are some drawbacks to using a patent law firm, such as:
- You can feel like you don’t have much control or input into the patent application process
- Finding a patent lawyer with the specialist knowledge you need can be a challenge
The expertise of a patent lawyer makes them very costly
The cost of using a patent law firm
According to the American Intellectual Property Law Association, in 2019, the typical billing rate for a patent attorney was $516 per hour for law firms with 101 or more employees.
The median hourly rate across all business sizes was $400 in 2018.
To give you perspective on that rate – a simple patent claim can take roughly 40 hours to put together. So with those rates, you can expect a lawyer-filed patent cost to be $15-20,000.
Use books to learn how to “do-it-yourself”
After seeing the total cost of hiring a patent attorney, you might consider turning to DIY solutions and using books to coach you through the process.
Indeed, there are plenty available as physical and ebooks and can range from a few dollars to a couple hundred depending on how much detail they have.
DIY patent books can be written by anyone, with people like entrepreneurs and lawyers selling their secrets to reduce the cost of a patent.
There are some benefits to writing your patent after reading a book, such as:
- A reduction in the financial outlay you have to invest in the process
- You get to learn a new skill along the way
- You can start to learn about the process from scratch which can be helpful in the future
However, there are clear downsides to filing your patent after reading a book:
- Patent law can change and you can’t be sure how up-to-date and accurate it is
- It can still take months to learn the process and you need to invest a lot of time when you could be running your business
- It can feel very easy to file a patent and you may avoid seeking legal advice even when it’s necessary
The cost of reading a DIY patent book
Taking an average of the first ten books listed in Amazon with the search term “how to file a patent,” the cost is $18.62. However, it’s worth noting that the average publication date of those same books is 2016, so they are already potentially out-of-date.
You also need to add on application fees, an examination fee, a search fee, and other costs associated with applying yourself.
When weighing up the pros and cons of this option, consider your hourly rate when doing the work you’re skilled at – the costs can quickly mount up, and this can become an expensive option. Also, consider that your expertise is in the field you work in, and learning how to speak the language of patents through books can give you an application that’s not the best it can be.
Use services such as Legalzoom
There are many options online for patent services, with Legalzoom being a notable example.
On this site – and others like it – users can get a range of templates for contracts and other legal issues and can help them avoid using a lawyer in many cases.
The company offers patent application services and is a significant trademark filer; in its 2020 Securities and Exchange Commission filing, LegalZoom noted that it filed 6% of all trademark applications in the U.S. – around 25,000 applications in total.
The cost of using Legalzoom
There are many options online for patent services, with Legalzoom being a notable example.
On this site – and others like it – users can get a range of templates for contracts and other legal issues and can help them avoid using a lawyer in many cases.
The company offers patent application services and is a significant trademark filer; in its 2020 Securities and Exchange Commission filing, LegalZoom noted that it filed 6% of all trademark applications in the U.S. – around 25,000 applications in total.
The cost of using Legalzoom
To use Legalzoom’s utility application process, you need to follow two steps:
- A consultation and review by a patent lawyer or patent agent with four pages of drawings, which will cost $699
- Utility application preparation with up to ten claims and five pages of specifications, costing $2,400
Use PowerPatent’s AI-led technology
PowerPatent uses A.I. and automated systems to help you navigate your way through a patent application and reduce costs.
To use the tool, you’re asked to provide a paragraph to describe the problem you’re looking to solve, the background of your invention, and what your solution is – a summary of your invention.
Next, you upload drawings showing how your invention works, along with part-list annotations for the drawings.
You can then run diagnostics on the text to catch numerical inconsistencies and pick up on claims not included in your description.
From there, the A.I. does its job and creates a proposed text for a utility patent application that you can make edits and revisions to.
Once everything is completed, you export the document as a Word file, and it’s ready to be submitted to the USPTO. It’s recommended that, If you’ve not filed a patent application before, you should have a professional patent review the application before submitting it.
That’s all the ways you can choose to file a patent; with an idea of how much it’ll cost, let’s look at more specific details for the cost of a patent.
Engaging with Boutique Patent Firms
Instead of heading straight for the big-name law firms, consider partnering with boutique patent firms that specialize in working with startups. These firms often provide more personalized attention and understand the unique challenges startups face, including budget constraints and the need to move quickly.
They might offer flexible billing arrangements, such as flat fees for specific services or reduced rates for startups. Engaging with a boutique firm can be a strategic move, providing you with specialized expertise without the hefty price tag of larger firms.
Leveraging Online Patent Filing Services
In the digital age, online patent services are a boon for cost-conscious startups. Platforms like LegalZoom and Rocket Lawyer offer streamlined patent filing services at a fraction of the cost of traditional methods.
These platforms often provide step-by-step guidance through the patent application process, which can be particularly beneficial if you’re new to the world of patents. They may also offer preliminary patent searches and basic legal support, helping you to avoid early pitfalls without overstretching your budget.
Collaborating with Universities or Research Institutions
For startups rooted in technology and innovation, collaborating with universities or research institutions can be a game-changer. Many universities have technology transfer offices (TTOs) that specialize in commercializing innovations developed in their labs.
By partnering with a TTO, you can tap into a wealth of resources, including access to experienced patent counsel and potential funding opportunities. This collaboration can be particularly valuable for deep-tech startups that require extensive research and development before going to market.
Considering Government and Nonprofit Programs
Look into government and nonprofit programs designed to support innovators. In the U.S., the United States Patent and Trademark Office (USPTO) offers assistance through programs like the Patent Pro Bono Program for inventors who might not afford the typical costs associated with patent filing.
Additionally, some nonprofits provide grants or free legal services to help cover the costs of patenting for qualifying startups, reducing financial barriers and supporting innovation.
DIY Patent Filing with Expert Checks
If you’re inclined to take on the challenge, filing a patent yourself is the most cost-effective method. However, it’s crucial to get it right to avoid costly mistakes.
Prepare your initial filing and then hire a patent attorney for a “sanity check” before submission. This approach allows you to control the bulk of the work while still benefiting from professional oversight. It’s a strategic balance between cost and risk.
The Cost of Filing a Patent for 3 Different Patent Application Types
There are three broad types of patent applications, each with different costs.
It’s not just the type of application that you file that’ll determine the costs of your application – how much you pay will depend on the size of your company.
Organizations classed as a small entity or a micro-entity can pay reduced fees for patent applications compared to a large entity.
A small entity under USPTO rules is defined as either an individual, a business with less than 500 employees, a university, or a 501(c)(3) nonprofit.
A micro-entity must also have less than four patents in their name, have a gross income no more than three times the median household income in the U.S. as reported by the Bureau of the Census, and have not filed more than four applications.
You can also be classed as a micro-entity if you work for a higher education institution and the majority of your income comes from this job. Again, we’ll note the difference in fees for each entity type as we go through the different patent application fees.
Provisional patent application
A provisional patent application gives you up to 12 months to develop your ideas and claims before completing a full filing.
When you complete a provisional filing, you’ll be able to give your invention a patent-pending status, and your patent filing date begins from the date of the provisional application. The costs for a provisional patent application for a utility patent if done by law firms are:
Non-provisional patent application
You can choose to file a non-provisional application following your provisional application, or you can file the non-provisional application without filing the provisional first. Utility patent costs for a complete application are:
Design patent
A design patent application is different from a utility patent in that it protects the way your invention looks rather than its functionality. The design patent costs that you pay to lawyers and the USPTO filing fees breakdown as:
Additional Costs Associated with Filing a Patent
Along with the standard costs for filing a patent that we’ve just looked at, you need to be aware of some additional fees and expenses.
You may choose to do an independent search during the patent prosecution before filing your application with the Patent Office.
A search fee will depend on how complex your patent application is and can cost $1,000 to $3,000.
When a patent is issued, you need to pay an issue fee, which has three different prices depending on the type of patent and whether you’re a small or micro entity:
Once you’ve had your patent issued, you need to consider your patent maintenance fees. This is the cost to keep your patent in place once it’s no longer provisional and needs to be renewed after three and a half, seven and a half, and 11.5 years.
Those USPTO fees are as follows:
Next, you need to consider pursuing an international patent using your rights under the World Intellectual Property Organization (WIPO) Treaty.
An international application can help you patent your invention in up to 150 countries through a simplified patent search process.
The three fees you need to pay to start the Patent Cooperation Treaty, or PCT application process are:
- An international filing fee of 1,330 Swiss francs (approx. US$1,435)
- A search fee of between 500 and 2,000 Swiss francs (approx. US$540 – US$2,160), depending on the person completing the patent search for you
- A transmittal fee, which is set by the receiving office and can vary
From here, you receive a report after an international search has been done, and you can decide which foreign countries you want to pursue your patent claims.
Each country has different legal and government fees, patent costs, and processes you’ll need to handle. Those are the main extra costs you may encounter when filing a patent application; let’s look at some detailed examples.
Cost Breakdown of 3 Examples of Patents
Understanding the cost of a patent requires you to decide how you want to complete the process. Each patent application process will look a little different, and costs can vary, but you can use this information to give you an idea of how much different patents cost.
Example #1: Software
A software patent can be expensive since a lot of technical information is requested by patent courts.
This means the patent application will likely be classed as “highly complex” when looking at the legal fees involved.
A software patent can be expensive since a lot of technical information is requested by patent courts.
This means the patent application will likely be classed as “highly complex” when looking at the legal fees involved.
The patent filing costs you can expect for a piece of software are rough:
- Filing fees for a provisional application: $300
- Filing fees for one claim with no dependent claims, search, and examination fees: $1,820
- Search fees with an opinion: $3,000
- Professional illustrations: $400
It’s worth noting that the filing fees are often included in the attorney fees, although you should always confirm before entering into an attorney-client relationship.
Example #2: Consumer product
By consumer product, we will be looking at a relatively simple item like a board game or flashlight.
To patent a consumer product that’s not too complicated would cost roughly:
- Filing fees for a provisional application: $300
- Filing fees for one claim with no dependent claims, search, and examination fees: $1,820
- Attorney fees $8,500
- Search fees with opinion: $1,250
- Professional illustrations: $400
Example #3: Engineering invention
If we assume that an engineering invention is relatively complex, such as a hydraulic suspension system, there are different costs.
For this type of complexity in your invention, you can expect the costs of a patent to look like this:
- Filing fees for a provisional application: $300
- Filing fees for one claim with no dependent claims, search, and examination fees: $1,820
- Attorney fees: $14,000
- Search fees with opinion: $2,000
- Professional illustrations: $400
That’s the details you need about the potential cost of filing a patent using the traditional method of hiring a patent attorney; let’s bring this to a close.
Provisional Patent Application: An Affordable Preliminary Step
A provisional patent application offers a lower-cost initial step to protect an invention while providing up to a year to further develop the idea or seek funding.
The cost primarily involves a filing fee which is significantly less than that of a non-provisional patent application. This fee is approximately $130 for micro entities, $260 for small entities, and $520 for large entities.
However, it’s important to consider that this type of patent application won’t lead to a patent on its own; it needs to be followed by a non-provisional application to gain actual patent protection.
This strategy is advantageous for those who need immediate protection but require more time to refine their invention or secure additional resources.
Non-Provisional Patent Application: Securing Full Patent Protection
The non-provisional patent application is where the rubber meets the road in terms of obtaining substantial legal protection for your invention.
It is more detailed and requires a complete set of claims, drawings, and an intricate specification. The base filing costs are $430 for micro entities, $785 for small entities, and $1,720 for large entities.
However, when you include attorney fees, drawings, and the potential for office actions (which require additional responses and possibly amendments to the application), the costs can escalate considerably.
For startups looking to fully secure their intellectual property rights, this investment is critical despite the higher initial expenditure. The comprehensive nature of this application allows inventors to solidify their market position and deter competitors effectively.
Design Patent: Specialized Protection for Aesthetic Designs
For products where the appearance is integral to consumer appeal and marketability, filing for a design patent is essential. This type of patent protects the ornamental design of an item, making it a vital tool for products in which the design is a key differentiating factor.
The filing fees for design patents are generally lower, about $100 for micro entities, $200 for small entities, and $400 for large entities. Despite the lower filing fees, the total cost may increase if professional illustrations are required to properly depict the design elements.
Design patents can be obtained more quickly than utility patents and provide a strategic advantage by preventing others from making, using, or selling a product that looks substantially similar to the protected design.
Now Over to You
That’s everything you need to know about the cost of filing for a patent.
When you have something unique and original, the investment to protect your intellectual property can be well worth it.
Costs can vary depending on your use options, with a patent attorney being the most expensive option.
PatentPC uses cutting-edge A.I. and machine learning to make filing a process more cost-effective and efficient. Contact us to discuss your patent needs and understand the processes you need to follow.
Reflect on Your Business Strategy and IP Needs
Take a moment to reflect on your overall business strategy and how intellectual property fits into it. Are you aiming for rapid market entry, or are you more focused on a thorough development process that may take longer?
Your strategy will influence whether you should opt for a provisional patent to quickly secure a filing date or invest in a non-provisional patent for comprehensive protection. Also, consider how the design of your product contributes to its marketability and whether a design patent should be part of your IP strategy.
Evaluate Your Financial Resources
Carefully evaluate your financial resources. Patenting can be a costly endeavor, especially for startups and small businesses. It’s essential to balance the desire for protection with the reality of your budget.
Look at your funding options—whether it’s bootstrapping, seeking investors, or applying for grants and loans that support innovation. Decide how much of your budget you can realistically allocate to obtaining and maintaining patent protection without compromising other critical areas of your business development.
Consult with IP Professionals
While you’ve gained significant insights, there’s no substitute for personalized advice from intellectual property professionals. Consulting with patent attorneys or agents can provide you with tailored guidance based on the specifics of your invention and business model.
Even if you’re considering more cost-effective routes like filing on your own or using online services, a consultation can help you avoid common pitfalls.
Consider International Protection Needs
If you envision your product making an impact in markets outside the United States, consider the need for international patent protection.
This involves additional complexities and costs but can be crucial for protecting your market share globally. Explore the Patent Cooperation Treaty (PCT) process as a way to seek patent protection in multiple countries simultaneously.
Plan for the Long Term
Finally, think long-term. Beyond the initial filing, patents require maintenance fees and potentially additional legal support to enforce against infringements.
Plan how you will manage these ongoing commitments financially and operationally. This long-term perspective will help ensure that your patent strategy supports sustained business growth and market competitiveness.
Frequently Asked Questions (FAQs)
Filing for a patent takes a lot of work, and there are lots of laws and processes to follow. We know how challenging it is, so we’ve answered some of the questions that come up most often about the costs of a patent.
Q1. What is the cheapest way to get a patent?
The cheapest way to get a patent is to complete the process yourself; since you’ll spend the least money. However, this will take a lot of time and learning that you can spend better elsewhere, so using an AI-driven solution like PowerPatent to work through the process with you can be a more cost-effective way to get a patent.
Q2. Can you get a patent for free?
No, at a minimum, you need to pay the U.S. Patent and Trademark Office patent filing, search, examination, and issuing fees, even if you do all the other work yourself.
Q3. Are patents worth the money?
Whether a patent is worth the money depends on various factors, such as whether you can sell enough of your product to make back your initial investment of time and cash. A patent gives you up to 20 years to make money from your original idea before anyone else can copy it, so there is a large window with the potential to make money.
Q4. How many patents can you buy at once?
You can file multiple claims in one patent filing, with extra costs for more than 20 claims in one application and no upper limit. The claims need to be related to the same product, and you can file as many separate claims as you want and can afford.
Q5. How much is a patent renewal?
A patent can be renewed three times during its lifetime, after three and a half, seven and a half, and 11.5 years. The standard fees are $2,000, $3,760, and $7,700 respectively. A patent can’t be extended past the initial 20 years granted.
Q6. Do you need to file your patent in other countries besides the one where the patent is granted?
If you want to protect your intellectual property in a country outside of the United States, you’ll need to file a patent in those countries where you want protection. This process is made simpler using your rights under the Patent Cooperation Treaty that lets you file for searches and examinations in other countries to decide where else you may want to file for a patent.
