The PTO will cut certain fees in half for applications sent in by inventors qualifying for small entity status.

Independent inventors who have not assigned the invention, small businesses (with less than 500 employees), and nonprofit organizations like universities all qualify for small entity status.

A petition will have to be filed in order to receive the fee break. Once this petition is accepted, the applicant will qualify for a 50% discount on many different fees. These include application filing fees, petitions for an extension of time, related appeal fees, issue fees, disclaimers, and maintenance fees. Some fees are not reduced.

In addition to small entity status, the USPTO more recently established a 75% micro entity discount. There are two separate bases for establishing micro entity status. These are referred to as the "gross income basis" and the "institution of higher education basis".