Cost of Obtaining Patents for Small and Medium Enterprises: A Tactical Approach to Securing Intellectual Property Without Straining Finances
Patenting your inventions isn't as straightforward as it seems. When people ask, "How much does a patent cost?", they're usually met with the price of the next step, like filing or drafting. But to build a robust patent strategy, you need to understand the full picture.
Think about it like building a house, where you're only quoted the price of the land. You can't construct a solid house without considering the cost of materials, labor, and maintenance. Similarly, filing a patent is just the start.
After you file, you'll face a gauntlet of costs, starting with writing the application, government fees, responding to rejections, keeping your patent alive through maintenance fees, and possibly protecting it overseas.
Patent attorney Tom Franklin, with 25 years of experience, puts it this way: "Typically, it's about a third of the cost goes to writing it, a third of the cost goes to govt fees, and a third of the cost goes to arguing your patents."
To give you a realistic breakdown, we've put together this guide to help you navigate the patent process and its associated costs. Here's what you can expect:
Understanding the Patent Process and Associated Costs
In the U.S., most patent applications begin with either a provisional or non-provisional application, two distinct paths.
A provisional application secures your filing date and gives you a 12-month window to decide if you want to move forward with a full patent. It's budget-friendly, with small entities often paying as little as $130 ($325 for large entities). It's a small price to pay for peace of mind and early protection.
If you want the USPTO (United States Patent and Trademark Office) to review your invention and consider granting a patent, you'll need to submit a non-provisional application within those 12 months. That's the formal document with detailed claims and technical descriptions. It's what triggers the official examination process and associated fees.
Let's break down the costs you'll encounter:
Mandatory USPTO Official Fees Breakdown
When you file a patent with the USPTO, several fees apply right from the start. These cover the cost of reviewing, searching, and processing your application. They also help maintain your patent after it's granted.
Basic Filing Fee
This fee is for submitting your application. It's $320 for large entities, $128 for small, and $64 for micro.
Search Fee
The USPTO conducts a prior art search to check for similar inventions. Based on the latest USPTO fee schedule, the search fee is $700 for large entities, $280 for small entities, and $140 for micro entities.
Examination Fee
After the search, an examiner reviews your application in detail. This costs $800 for large entities, $320 for small entities, and $160 for micro entities.
Excess Claims Fee
If you have more than 20 total claims or more than three independent claims, you'll pay extra. Each additional claim costs $100 (large), $50 (small), or $25 (micro). Extra independent claims cost $460, $230, or $115, respectively.
Issue Fee
Once your patent is allowed, you must pay $1,000 (large), $500 (small), or $250 (micro) to get it granted.
Maintenance Fees
Due at 3.5, 7.5, and 11.5 years to keep your patent active, large entities pay $1,600, $3,600, and $7,400. Small entities pay $800, $1,800, and $3,700. Micro entities pay $400, $900, and $1,850. Failing to pay for these means your patent rights will lapse and cannot be enforced.
Attorney and Professional Service Costs
The largest portion of your patent budget will typically go toward attorney fees. While it's possible to file without professional help, the complexity of patent law and the significant value at stake usually make this unwise for business-critical innovations.
Patent Search Costs
Before filing a patent, start with a patentability search. This helps determine if your invention is likely to meet the legal standards of novelty and non-obviousness under 35 U.S.C. §§ 102 and 103. A search can prevent costly applications for ideas that are unlikely to be granted.
A professional search typically costs $1,500 to $4,000, depending on the complexity of the field. Software, AI, and medical technologies often fall on the higher end, while simpler mechanical inventions tend to be less expensive.
Pro Tip: Though it adds to your upfront costs, a search:
- flags inventions unlikely to receive a patent,
- helps craft stronger, more focused claims,
- reveals competitor filings and trends,
- guides you in refining your invention to avoid existing patents, and
- sets realistic expectations for you and your team.
You can begin with a DIY search using tools like Google Patents or the USPTO site. However, these searches have limitations, especially with foreign patents or nuanced searches, and certainly not a replacement for a professional review.
Patent Drafting
Creating a strong patent application takes both legal skill and technical precision. Your patent must meet strict requirements under U.S. law, including those under 35 U.S.C. § 112, which demands a clear and complete written description. This is where quality has the biggest impact on how well your patent protects your invention. Therefore, drafting is expensive.
To give you an idea, attorney fees for drafting utility patent applications generally fall into the following ranges:
- Simple mechanical inventions: $6,000 to $9,000
- Moderately complex electrical or mechanical inventions: $9,000 to $14,000
- Complex software or biotechnology inventions: $14,000 to $20,000 or more
Note: As a patent attorney with 25 years of experience, Thomas Franklin advises everyone to ask a series of patent portfolio cost-related questions to their patent attorney. Feel free to listen to his thoughts here: What should you ask your counsel about patent portfolio cost? | Thomas Franklin | Triangle IP
If you are filing a design patent, the costs are typically lower, ranging from $2,000 to $4,000. Design patents are shorter, have a simpler claim structure, and focus more on drawings than technical descriptions.
These costs reflect the time and expertise required to:
- Translate technical features into clear legal language,
- Draft claims with the right scope to maximize protection,
- Create supporting drawings that match the claims,
- Anticipate likely rejections from the USPTO under statutes like § 101 (subject matter eligibility) or § 103 (obviousness),
- Structure the application to withstand scrutiny in litigation or licensing negotiations, and
- Ensure a comprehensive coverage, a solid technical and legal foundation, and strategic claims for high-quality patents, which often have a higher chance of getting approval.
International Patent Protection Costs
Patents are territorial, so a US patent provides no protection in Europe, China, or elsewhere. International protection multiplies costs quickly, requiring careful strategy.
PCT Applications
If you want international patent protection but are not ready to file in multiple countries, the Patent Cooperation Treaty (PCT) offers a smart solution. By filing one PCT application, you preserve your U.S. filing date across more than 150 countries. This gives you time to test your invention's market potential before committing to the much higher costs of foreign filings.
When filing a PCT application through the USPTO as the Receiving Office, you should budget for three main fee categories:
- Transmittal Fee (USPTO): $285 for large entities, $114 for small entities, and $57 for micro entities.
- International Filing Fee: $1,347 is the flat rate for all types of entities.
- Search Fee (USPTO as International Searching Authority): $2,400 (large), $960 (small), or $480 (micro)
These fees do not include attorney costs, which typically range from $3,000 to $6,000 to prepare and file a well-drafted PCT application.
While these upfront costs are significant, the PCT process gives you up to 30 or 31 months from your earliest filing date to decide where to file nationally.
National Phase Entry
Once the PCT phase ends, you must decide where to pursue patent protection through national or regional patent offices. This is one of the most financially significant points in your IP strategy, as costs increase quickly with each country you choose.
For every country you enter, expect to pay:
- Translation costs: around $2,000 to $3,000 per language, especially for jurisdictions like China, Japan, or Europe.
- National filing fees: typically $200 to $1,000.
- Local attorney fees: around $2,000 to $5,000 to prepare and file each national entry.
- Ongoing maintenance fees: vary by jurisdiction and increase over time.
To put this in perspective, obtaining a European patent through a grant can cost between $30,000 and $50,000. Similar figures apply to other major markets such as China, Japan, and Korea. Filing in multiple jurisdictions can easily exceed six figures. That's why you should approach national phase entry with a selective, strategy-driven mindset. Focus on countries where:
- You plan to sell or distribute your products,
- Your competitors manufacture or operate,
- Patent enforcement is reliable and cost-effective,
- The region holds strategic licensing or partnership opportunities.
For most small to mid-sized enterprises, targeting 3 to 5 key markets offers the best return on investment. The real value of the PCT system is not just in deferring these costs, but in giving you time to gather the data on markets, competitors, and partners.
- Building a robust patent strategy requires understanding the full costs involved, just as constructing a house requires considering more than just the land cost.
- In the U.S., most patent applications begin with either a provisional or non-provisional application, each with its distinct path and costs.
- A provisional application secures your filing date and gives you a 12-month window for deciding whether to move forward with a full patent, costing small entities as little as $130 ($325 for large entities).
- A non-provisional application, costing more, is necessary if you want the USPTO (United States Patent and Trademark Office) to review your invention and consider granting a patent.
- Mandatory USPTO official fees include a basic filing fee, search fee, examination fee, excess claims fee, issue fee, and maintenance fees, with costs varying for large, small, and micro entities.
- The largest portion of your patent budget typically goes towards attorney fees, which cover patent search and drafting costs, with these costs affected by the complexity of the invention.
- A professional patent search, costing between $1,500 to $4,000, helps determine your invention's likely chances of meeting legal standards and guides refining your invention to avoid existing patents.
- Patent drafting costs, ranging from $6,000 to $20,000 or more, ensure a comprehensive coverage, solid technical and legal foundation, and strategic claims for high-quality patents.
- International patent protection costs can be significant, requiring careful strategy, and the PCT offers a solution for international protection while preserving the U.S. filing date across more than 150 countries.
- After the PCT phase ends, you must decide where to pursue patent protection through national or regional patent offices, with costs increasing quickly with each country you choose.
- When considering international patent protection costs, focus on countries where you plan to sell or distribute products, your competitors operate, patent enforcement is reliable, and the region holds strategic licensing or partnership opportunities.
