Takeaway: The USPTO announced patent fee hikes effective January 2025, revising some controversial increases while maintaining others to cover rising costs, enhance operations, and sustain financial stability. In light of the impending fee increases, you may want to initiate or authorize any pending work now before January 19, 2025.

The U.S. Patent and Trademark Office (USPTO) has announced a significant overhaul of patent-related fees, set to take effect on January 19, 2025. This adjustment includes 433 fee changes, with 52 new fees introduced to offset rising operational costs due to inflation, higher examiner salaries, and discounts mandated by a 2022 law for small-entity applicants. While some proposed fee increases, such as a 5% hike for most patent-related costs, faced public criticism, the USPTO revised them in the final rule. Filing, search, and examination fees will increase by 2.5%, and other patent fees by 7.5%, cumulatively amounting to a 10% revenue boost. The agency asserts that these changes will support improvements in patent quality, reduce pendency, and modernize IT infrastructure. Notable adjustments include reductions in proposed fees for patent term extensions and terminal disclaimers, aiming to balance cost recovery with stakeholder concerns.

Several fees for processes like continuing applications, inter partes reviews, and design patent filings were recalibrated, while others remained aligned with earlier proposals. For instance, fees for filing design patents will rise by 48%, justified by the USPTO’s substantive examination process. Adjustments were also made to address criticism that some increases would disproportionately burden applicants, such as the scaling back of costs for subsequent Requests for Continued Examination. Despite public objections, the USPTO maintains that its fee structure reflects operational costs and ensures financial stability. The announcement follows a history of fee-setting authority granted to the USPTO under the America Invents Act, with the current authority expiring in 2026 unless renewed by Congress. The agency emphasized that stakeholder feedback influenced revisions to its final rule, showcasing a balance between cost recovery and innovation encouragement