What qualifies an applicant for small entity status?

An applicant qualifies for small entity status if they meet certain criteria established by the United States Patent and Trademark Office (USPTO). One key qualification is having fewer than 500 employees, which aligns with the size requirements for small businesses.

In addition, an independent inventor who is not under any obligation to assign their patent rights to another entity also qualifies for small entity status. This means that if the inventor retains full control and ownership of the invention, they can also apply for this status.

Thus, the correct answer encompasses both criteria: the employee count for small businesses and the independent status of inventors. By meeting either of these conditions, an applicant can benefit from reduced fees associated with filing and maintaining patent applications.

The other options either focus too narrowly on one of the criteria or do not encompass the broader range of qualifications that justify small entity status. Specifically, nonprofit status alone is not the sole determinant for small entity qualifications, nor does it address the important aspect of independent invention.