If you have a concept that you want to protect, generally speaking the most beneficial choice you have – unless you can keep the concept secret from consultants, manufacturers, agencies, and consumers – is obtaining patent protections.
Patenting an idea is a significant investment, but in many cases it is a crucial step in protecting your intellectual property. Sometimes, having a patent or patents related to a concept is the single most important determining factor for whether your concept gets funded or acquired. Often, having a patent is a fundamental requirement for obtaining investment from angel investors or venture capitalists (VCs).
The costs involved in obtaining a patent are sometimes unclear, but Colorado patent law firm Schell IP is committed to cost transparency in association with the expenditures involved in securing a patent from a top patent expert. Those costs include hiring a top patent lawyer, initial filing fees, and ongoing patent maintenance fees. Understanding these costs can help you make informed decisions and strategically manage your budget.
Understanding Patent Types
Before diving into costs, it’s essential to understand the different types of patents. The most common are utility patents and design patents. There are also a subset of patents specifically related to plant strains called plant patents.
Additionally, there are various types of patent applications that could be filed depending upon your individual strategy and the type of patent that you wish to pursue. Knowing which type of patent you need will influence the total cost and the specific steps you’ll need to take. You should always speak with a patent attorney in connection with a patent project, who can help advise on which patent type is right for your invention. Colorado patent law firm Schell IP offers free initial consultations for new clients for this very purpose.
Utility Patents
Utility patents cover new inventions or discoveries of a process, machine, manufacture, or composition of matter. While generally speaking utility patents provide the broadest scope of coverage for an invention (as compared especially to the more limited coverage afforded by a design patent), utility patents are typically more intense to prepare and therefore cost more.
Utility patents generally protect the functional aspects of an invention. This means that if your invention performs a unique function or has a unique method of operation, a utility patent is likely the right choice. The protection afforded by a utility patent covers how the invention works, how it is used, and how it is made.
The application process for utility patents generally is rigorous, and involves a deep experience and knowledge of the many requirements mandated by the USPTO and the courts in association with a patent – which is why it’s very important to consult a licensed and experienced patent attorney. Your attorney will take the time to deeply understand your invention and all its intricacies, as the application process requires a detailed description and claims. One of the key advantages that Schell IP provides is that it was founded by a team of founders, with several multimillion dollar exits and fundraises under their belts – the success of each linked to the patents that our patent team was able to obtain.
The utility patent process also generally involves multiple rounds of examination and revisions. In general, a patent examiner reviews a utility patent and provides to an inventor arguments either allowing or rejecting the claims of a utility patent application in the form of an “Office Action.” You always should have an experienced patent attorney assist you in replying to an Office Action, as there are numerous pitfalls that may not be apparent to anyone unfamiliar with the related processes.
The complexity of the process and amount of time required contributes to higher costs as compared to other patent types, though there are more options to spread those costs out in association with the steps of the utility patent process optionally over several years. Regardless, the investment is often justified by the robust protection utility patents offer, potentially giving you a significant competitive advantage and making it more likely for you to raise funds for your concept.
Design Patents
Design patents protect the unique visual qualities of a product. If you’re looking to patent the appearance rather than the function, a design patent is what you need. The processes associated with obtaining design patents are generally less complex and less expensive than those associated with utility patents, but still require the involvement of an experienced attorney.
Design patents focus on the ornamental design of a functional item. This means the patent protects the way an item looks, not how it works. If the visual aspect of your product is unique and valuable, a design patent is the appropriate choice.
The application process for design patents is simpler compared to utility patents. It involves providing illustrations or photographs of the design and a brief description. This simplicity translates to lower costs, less revisions, faster approval times.
Because design patents are less complex, the associated costs are lower. This makes them an attractive option for businesses that want to protect the aesthetic aspects of their products without a substantial financial outlay.
Filing Fees and Costs
The cost to file a patent varies depending on the type and complexity of the patent. Understanding these costs upfront can help you budget effectively and avoid unexpected expenses.
Utility Patent Costs
For a utility patent, the United States Patent and Trademark Office (USPTO) charges different fees based on the size of the entity filing and associated costs for the patent application. These filing fees can range anywhere from as low as about $120 to upwards of $2,500 depending on the size of your entity and the strategy that you choose. We always recommend checking the USPTO’s fee schedule for the most accurate cost, as these fees are subject to change, and you may need to pay additional fees.
Basic fees cover the basic filing, search, and examination fees. The size of your entity — whether it’s a large corporation, a small business, or an individual — is one determinant of the fee you pay. Smaller entities benefit from reduced fees making it more affordable for startups and individual inventors. Your patent lawyer will ensure the necessary fees are included with your application.
Additional costs might apply depending on the specifics of your invention. These can include fees for extra claims, drawings, and other required documents. It’s important to budget for these potential extras to avoid surprises down the line.
The complexity of your invention can also influence costs. More complex inventions typically require more detailed applications and may incur higher examination fees. Working with a patent lawyer is important to manage these complexities and ensure all requirements are met, though the attorney fees are separate from and additional to the fees that the USPTO charges for an invention.
Design Patent Costs
Design patents are generally less expensive. The USPTO fees for design patents typically range from a few hundred to a thousand dollars, though are subject to change and may vary based on additional costs.
Basic design patent USPTO fees cover the basic filing, search, and examination fees. As with utility patents, the size of your entity affects the fee you pay. The lower costs for design patents make them accessible for protecting the visual aspects of products.
Because design patents are simpler, the associated costs are lower. This includes fewer additional fees and a faster, more straightforward application process. These savings can be significant, especially for businesses looking to protect multiple designs.
The reduced fees for small and micro entities make design patents particularly accessible for individual inventors and small businesses. This allows a wider range of innovators to protect their designs without significant financial barriers. Likewise for a design patent, the attorney fees are separate from and additional to the fees that the USPTO charges for an invention.
Additional Costs
While the USPTO fees are a significant part of the cost, other expenses can add up quickly. It’s crucial to consider these additional costs when budgeting for your patent application.
Patent Lawyer Costs
Hiring a patent lawyer is highly recommended – and generally mandated by investors considering an investment related to an invention – due to the complexity of patent law. The cost of a patent lawyer can vary widely based on their experience and location.
- Initial Consultation: typically a few hundred dollars, though Schell IP offers free initial consultations.
- Preparation and Filing of a Patent Application: $2,500 – $10,000+, depending on invention complexity and type of application filed.
- Prosecution and Responses to Office Actions: $2,000 – $5,000+ per office action, again depending on the complexity of the office action and the anticipated content of the response. Any filed utility or design patent application can involve one or more office actions.
During the initial consultation, your patent lawyer will assess your invention, discuss the patenting process, and provide an estimate of the total costs. Importantly, your patent lawyer will consider your business and invention objectives, and help you develop a strategy to maximize the value in relation to those objectives in association with the intellectual property rights desired. This step is also crucial for understanding what lies ahead and planning your budget.
The preparation and filing of the patent application are the most significant costs. This stage involves drafting the patent, preparing detailed descriptions and claims, and ensuring all legal requirements are met. The cost for this typically ranges from $2,000 to $10,000, depending on the application type, the complexity of the invention, and resultantly the expertise and time required.
Once the application is filed, the USPTO may issue office actions requiring amendments or additional information. The cost to respond to these actions typically ranges from $2,000 to $5,000. Having a lawyer handle this stage ensures that your application remains on track and increases the likelihood of approval.
Professional drawings are often required to meet USPTO standards. The cost for these drawings typically ranges from $300 to $500 per sheet.
Total Estimated Costs
So, how much does it cost to work with an attorney to patent an idea from start to finish when all factors are considered? Here’s a rough estimate, which includes the attorney costs and the costs of working with a patent illustrator, and which ranges encompass around 75%+ of the variety of inventions that we work with:
- Utility Patent: $10,000 – $25,000
- Design Patent: $2,500 – $7,500
However, it’s important to note the total cost of getting a patent can vary widely based on the complexity of your invention and the specific services you require. More complex inventions with extensive claims and detailed descriptions will naturally incur higher costs. However, working with experienced patent attorneys like those at Schell IP with a significant background in fundraising and building new ventures associated with a product concept can help manage these costs and improve your chances of a successful patent application.
Cost-Saving Tips
Patenting an idea can be expensive, but there are ways to manage the costs. Implementing these strategies can help you protect your intellectual property without breaking the bank.
Consider a Provisional Patent
A provisional patent application is a lower-cost option that allows you to secure a filing date and test the market before committing to a full patent. The filing fee and attorney fees for a preparing and filing provisional patent application is significantly lower, generally less than $4,000 in total.
A provisional patent provides a cost-effective way to secure your invention’s filing date for up to 12 months. This gives you a year to test the market, seek funding, or refine your invention before filing a full patent application. The lower filing fee makes it an attractive option for startups and individual inventors.
The provisional patent application process is simpler and less formal than the full patent application. This reduces the initial costs and allows you to focus on developing and marketing your invention. However, you won’t be able to obtain a patent unless and until you file and prosecute a complete non-provisional patent application within a year with a patent attorney to maintain your priority date of the filing date of your provisional application.
Conclusion
Understanding the costs involved in patenting an idea is crucial for budgeting and planning. From USPTO fees to hiring a patent lawyer, anticipating and planning for the expenses is an important step. However, with careful planning and by working with experienced and top quality patent lawyers and staff like the team at Schell IP, you can protect your intellectual property without breaking the bank.
Ready to start your journey to getting a patent? Book a free consultation with Schell IP now.
