One of the most significant aspects of the protection and maintenance of patent rights is the element of ensuring that any and all annuity fees are paid for in a timely manner.
Patent annuity fees, also known as renewal, or maintenance fees, are the costs that are payable for upholding the protection rights in relation to a patent for a specified amount of time. These fees typically constitute annual payments which will occur in advance, and ensure the patent is protected for the year, or in some cases, years, to come. It is vital for patent owners to be fully informed and up-to-date with such annual payments, as failure to do so can result in the loss of patent rights.
It is widely recognised that the terms of payment and the annuity fees themselves can vary based on the jurisdiction in which the patent is protected. As a result, it can prove difficult for patent holders to manage and monitor the deadlines and fees for multiple patents in the case whereby patent rights are held in several countries simultaneously, or where multiple patents are held in the same jurisdiction for the same patent owner.
The costs for patent annuity can vary based on a number of factors, including whether the patent is protected by a national right within an individual country, or a regional right, such as by way of a European Patent (EP) that later splits into multiple national patents, for example.
Other factors that can influence annuity fee costs include how long the patent has been in force, how many other patents the right holder owns, and if the invention is protected by alternative patent types, such as supplementary protection certificates.
In many jurisdictions, annual patent fees are payable in advance in relation to each respective year of a patent's lifetime, which is typically 20 years in most jurisdictions. This is true in the case of patent rights granted in the jurisdiction of Germany, for instance, whereby yearly maintenance fees are payable for each year, commencing from the third, and running through to the twentieth, even before the patent right has been granted. As per the current 2024 patent fee schedule enforced in Germany, the annual cost for the third year of a patent’s validity term constitutes 70 EUR, or 35 EUR in the case of a patent license.
In other jurisdictions, such as the USA, patent annuity fees are only due at three intervals, namely at the 3.5, 7.5, and 11.5 year marks, whilst in the UK, for example, patent maintenance fees are only due once the patent right has been granted.
As is the case in many countries, annuity fees rise as the patent ages. In Germany, for example, the maintenance fee payable for the tenth year is higher than that of the third year, constituting 430 EUR, the fifteenth 1130 EUR, and the twentieth 2030 EUR. One fee that does remain consistent through each of the twenty years of patent validity in Germany is the surcharge for late payment of said fees, which comprises 50 EUR for each validity year respectively.
The provisions in relation to the late payment surcharge in Germany are also provided for in many other jurisdictions, with the possibility of late payment providing a grace period in which patent owners can still renew the patent validity for that coming year, even if payment is made at a later date, provided it is within the time frame stipulated in the patent legislation.
Annuity fees in regard to regional patent applications differ slightly to those which start as purely national patent rights. With regard to European Patents, for example, the application and the European states designated for protection are initially dealt with as regional in nature before splitting into multiple national patent rights validated individually in each designated state.
As such, the patent annuity fees in relation to an EP prior to the granting of individual patents in each designated European state are paid directly to the European Patent Office (EPO), covering the patent as a whole. In such instances, the first annuity fee in relation to an EP is due on the second anniversary of the filing date in order to maintain the right for the third year, and comprises 690 EUR, payable to the European Patent Office (EPO). EP annuity fees continue to be payable to the EPO until the patent is granted and, as a result, the patent splits into separate respective rights in each designated state in which it is validated. The patent annuity fees are then paid to each respective IPO of the jurisdiction in which the patent is enforced as per the rates stipulated in the national patent legislation.
Across most jurisdictions, if a patent holder does not pay the annuity fees within the time stipulated or within the grace period for late payment, the patent right will be deemed invalid and the invention will no longer be protected by a patent right. Such a lapse of patent protection would therefore mean that any individual, business, or organization could produce, utilize, or sell the invention without infringing on the patent rights. Such a lapse in patent protection could prove devastating to an inventor, as it could result in a catastrophic fiscal and reputational loss for a business. In some jurisdictions, it is possible to restore a patent right that was forfeited due to missed annuity payments, however this is not guaranteed and the process can prove lengthy and expensive.
In order to prevent such lapses occurring, the IP-Coster platform allows you to minimize the risk of losing your patent by providing live notifications for all upcoming deadlines for patent annuities, among other deadlines, far in advance.
Our dedicated team of IP professionals utilizes a combination of comprehensive data and global IP fees to streamline the annuity payment procedure.
In addition, the IP-Coster platform will also provide you with the following resources:
- Immediate budget forecasting using our unique fee calculator;
- Competitive and affordable fees;
- 24/7 access to professional and hands-on assistance.
For ease and reference, all fees associated with patent annuities across many jurisdictions are available in the fee calculator on our website.