Eligibility Criteria for Language-Related Fee Reductions

While the eligibility criteria for language-related fee reductions remain unchanged, they now fall under Article 14(4) and Rule 7a(1) and (2) of the European Patent Convention (EPC), previously under Rule 6(3) and (4) EPC. Small entities eligible for these reductions must have their residence or principal place of business in an EPC contracting state and file a European patent application or request for examination in an official language of that state, excluding English, French, or German.

The language-related fee reductions under Rule 7a(1) EPC are accessible to various small entities, including:

• Microenterprises
• Small and medium-sized enterprises (SMEs)
• Natural persons
• Non-profit organizations
• Universities and public research organizations

Expanding Opportunities with Micro-Entities

Under the new scheme, the reduction of fees, as outlined in Rule 7a(3) EPC, is exclusively designed for micro-entities, irrespective of their nationality or domicile. Micro-entities encompass the aforementioned small entities, with the exception of Small and Medium-sized Enterprises (SMEs), which are larger in scale than microenterprises. The definition of a microenterprise is established in Article 2 of Commission Recommendation 2003/361/EC of May 6, 2003.

Defining Eligible Entities

Let’s clarify the eligibility criteria for entities seeking fee reductions under both the language-related and micro-entity-related support schemes, as stipulated in Rule 7a(2) and (3) EPC:

(i) Non-profit organizations: These organizations, by their legal form or statutes, are forbidden from generating income, profit, or financial gain for their owners. In cases where they are permitted to make a profit, there is a legal or statutory obligation to reinvest the profits in the interest of the organization.

(ii) Universities: In this context, “classic” universities are higher education and research institutions defined by relevant legislation. Additionally, comparable institutions such as secondary or higher education establishments are considered universities.

(iii) Public research organizations: These entities, including universities and research institutes organized under public law, are primarily dedicated to conducting fundamental research, industrial research, or experimental development, and disseminating results through teaching, publication, or technology transfer. All profits must be reinvested in these activities, result dissemination, or teaching.

Fee Reduction Percentage

For both the language-related and micro-entity-related support schemes under Rule 7a(1) and (3) EPC, the reduction is a substantial 30% of the relevant fee. Specifically, the language-related reduction for small applicants under Rule 7a(1) EPC applies to the filing fee, including any additional fees forming part of the filing fee, and the examination fee.

Fee Reduction Application Areas

Under Rule 7a(3) EPC, the reduction for micro-entities applies to a wide range of fees, including:

• The filing fee, including any additional fees forming part of the filing fee.
• The fee for a European search or the fee for a supplementary European search in the case of a Euro-PCT application searched by an International Searching Authority (ISA) other than the EPO.
• The examination fee, and if applicable, the previously paid international search fee where the EPO acted as ISA.
• The designation fee.
• The fee for grant.
• The renewal fees for the European patent application.
• Double Reduction for Examination Fees

Notably, the examination fee may be reduced twice under the micro-entity-related support scheme of Rule 7a(3) EPC. Firstly, by a reduction of the examination fee itself, and secondly, additionally by a reduction of the effectively paid international search fee, which is the search fee net of potential refunds or reductions. For example, the international search fee might have been fully or partially refunded due to the re-use of a previous search report drawn up by the EPO as ISA on an application with claimed priority.

The reduction of the international search fee applies as long as the examination fee is paid on or after April 1, 2024, regardless of when the international search fee was initially paid. Moreover, the fee reductions for micro-entities under Rule 7a(3) EPC are applicable to payments for European patent applications or international applications that have entered the European phase (Euro-PCT applications). However, there is a caveat: micro-entities are eligible for fee reductions only if they have filed fewer than five applications with relevant dates within the five years preceding the relevant date of the application. If an entity has submitted five or more previous applications within this five-year period, they will not qualify for a fee reduction.

Combining Fee Reduction Schemes

Lastly, it’s important to note that the EPO allows for the combination of various fee reduction schemes. For instance, an applicant may be eligible for fee reductions under both Rule 7a(1) and Rule 7a(3) EPC, maximizing their cost-saving potential.

These significant changes in the EPO’s fee reduction schemes mark a significant step toward fostering innovation and making patent protection more accessible to a broader range of entities, particularly micro-enterprises and smaller innovators.

For further information on how these changes may impact your patent application or to determine your eligibility for fee reductions, consult a qualified European patent attorney who can guide you through the updated procedures and ensure that you maximize the benefits of these new fee reduction opportunities.