What qualifies an applicant for small entity status?

Small entity status is an important classification for applicants seeking to reduce their patent fees and is primarily aimed at supporting individual inventors, startups, and small businesses. To qualify for small entity status, an applicant must meet specific criteria outlined by the United States Patent and Trademark Office (USPTO).

One key qualification is that the entity must have fewer than 500 employees. This criterion ensures that the benefits of small entity status are extended to smaller businesses, which may not have the same resources as larger corporations. It allows these smaller entities to access patent protections more affordably.

Additionally, an independent inventor can qualify for small entity status if they are not under any obligation to assign their rights to a larger entity, such as an employer or a corporation. This helps support solo inventors who are looking to patent their innovations without the financial burden typically associated with the patent process.

Considering these factors, both qualifications—having fewer than 500 employees and being an independent inventor not obliged to assign rights—are necessary to establish small entity status, making the comprehensive answer correct. The option that combines both criteria appropriately reflects the intent of the USPTO guidelines for small entities.