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How Much Are Annual Patent Fees? A Complete Guide to 2024 Patent Annuity Payments

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A detailed guide to patent annuity fee standards, reduction policies, payment deadlines, and methods to help patent holders effectively manage patent maintenance costs.

Once a patent is granted, annual fees, also known as patent annuity fees, must be paid to maintain its validity. Many patent holders are unfamiliar with the fee standards and payment rules, which can lead to the unintended lapse of their patent rights. This article provides a comprehensive overview of patent annuity fees to help you effectively plan your patent maintenance costs.

I. Detailed Breakdown of Patent Annuity Fee Standards

Invention Patent Annuity Fees

The annuity fees for invention patents increase progressively over the patent's term. For the first three years after grant, the annual fee is 900 RMB, representing the lowest patent cost for maintenance. From the 4th to the 6th year, the fee increases to 1,200 RMB per year. For years 7 to 9, it rises further to 2,000 RMB annually.

As the patent enters its mid-term, from the 10th to the 12th year, the fee significantly increases to 4,000 RMB per year, reflecting the long-term value of the protection. From the 13th to the 15th year, the fee continues to climb to 6,000 RMB. In the final stage of protection, from the 16th to the 20th year, the annuity fee reaches its peak at 8,000 RMB per year.

Eligible individual applicants can benefit from an 85% fee reduction. With this reduction, the fees are substantially lower: 135 RMB for the first 3 years, 180 RMB for years 4-6, 300 RMB for years 7-9, 600 RMB for years 10-12, 900 RMB for years 13-15, and 1,200 RMB for the final years 16-20. This policy significantly eases the financial burden on individual inventors.

Utility Model Patent Annuity Fees

Utility model patents have a protection term of 10 years, and their annuity fees are more affordable than those for invention patents. For the first three years, the annual fee is 600 RMB. For the 4th and 5th years, it increases to 900 RMB. From the 6th to the 8th year, the fee is 1,200 RMB, and for the final two years (9th and 10th), it is 2,000 RMB.

Individual applicants for utility model patents also enjoy an 85% fee reduction. The reduced fees are: 90 RMB for the first 3 years, 135 RMB for years 4-5, 180 RMB for years 6-8, and 300 RMB for the last two years. This structure makes it affordable for individuals to maintain their utility model patents.

Design Patent Annuity Fees

Design patents have a protection term of 15 years. The initial fees are similar to utility models: 600 RMB for the first three years, 900 RMB for years 4-5, and 1,200 RMB for years 6-8. The fee for years 9 and 10 is 2,000 RMB. For the extended period from the 11th to the 15th year, the fee increases to 3,000 RMB annually.

An 85% fee reduction is also available for individual design patent applicants. The reduced fees are: 90 RMB for years 1-3, 135 RMB for years 4-5, 180 RMB for years 6-8, 300 RMB for years 9-10, and 450 RMB for years 11-15. This policy effectively lowers the patent maintenance cost for individual designers and small businesses.

II. Understanding Fee Reduction Policies

Eligibility for Fee Reduction

Fee reduction policies are designed to support applicants with limited financial resources. To qualify, an individual applicant's average monthly income in the previous year must be below 5,000 RMB (or annual income below 60,000 RMB). Small and micro-enterprises must meet three criteria: fewer than 20 employees, annual sales revenue under 3 million RMB, and total assets under 3 million RMB. Public institutions, social groups, and non-profit research organizations can also apply if they meet specific national standards.

Reduction Rates

  • Individual Applicants: Receive the highest reduction of 85%.
  • Two or More Individuals (Joint Application): Receive a 70% reduction.
  • Small and Micro-Enterprises: Receive a 75% reduction.
  • Joint Application by Individual and Enterprise: Receive a 75% reduction.

Application Process

The request for fee reduction is typically submitted along with the initial patent application. For subsequent annual fees, the eligibility for reduction must be re-confirmed each year before the payment deadline. All necessary supporting documents must be up-to-date and submitted on time.

III. Annuity Fee Payment Deadlines

Payment Period

The first year's annuity fee is due within 2 months of the patent grant date. For subsequent years, the fee is due annually on the anniversary of the grant date. It is possible to pay the next year's fee in advance.

If a deadline is missed, there is a 6-month grace period. However, a late fee (surcharge) will be applied, calculated at 0.5% of the annual fee per day, capped at a maximum of 25% of the total annual fee.

Example Calculation

If a patent was granted on March 15, 2023:

  • The 1st year's fee is due by March 15, 2023.
  • The 2nd year's fee is due by March 15, 2024.
  • If the 2nd year's fee is not paid by March 15, 2024, it can be paid during the grace period until September 15, 2024, with the applicable late fee.

IV. Methods of Payment

  1. Online Payment (Recommended): The most convenient method is through the official CNIPA (China National Intellectual Property Administration) patent fee payment system. It supports various payment options, including bank transfer, Alipay, WeChat Pay, and online banking.
  2. Bank Transfer: Payments can be made at major banks like Bank of China, ICBC, CCB, and ABC. It is crucial to correctly fill in the payee information (CNIPA Patent Office) and include the patent number in the transaction notes.
  3. In-Person Payment: Payments can be made directly at the CNIPA headquarters or at designated patent agency offices and authorized bank branches across the country.

V. Annuity Fee Management Strategies

  1. Set Up Payment Reminders: Use calendar alerts, patent management software, or professional patent services from an agency to ensure you never miss a deadline. CNIPA also offers official SMS reminders.
  2. Conduct Patent Valuation: Regularly assess the value of your patent based on its technical merit, market potential, and competitive advantage. This will help you decide whether continued patent maintenance is worthwhile. High-value patents should be maintained for their full term, while low-value patents might be abandoned to save on patent costs.
  3. Implement Cost Control Strategies: Manage patents in batches to streamline payments and fee reduction applications. Classify patents into core, defensive, and strategic categories, and apply different maintenance strategies to each to optimize your budget.

VI. Handling Common Issues

  1. Forgetting to Pay: If you are still within the 6-month grace period, pay the fee and the late surcharge immediately. If the grace period has passed, the patent right is terminated. You may apply for restoration, but you must provide a valid reason for the failure to pay (e.g., force majeure).
  2. Payment Errors: If you underpaid, you must pay the difference. If you overpaid, you can apply for a refund. If you paid for the wrong year, contact CNIPA to have the payment reallocated to the correct year.
  3. Changes in Fee Reduction Eligibility: If your financial status or your company's size changes and you no longer meet the criteria for fee reduction, you must start paying the standard fee. It is important to honestly report these changes.

By understanding these rules and implementing a sound management strategy, you can effectively maintain your valuable patent rights while controlling your patent costs.