What Is Patent Allowance?
Patent allowance refers to the official notification from a patent office that an application has met all requirements for grant. Unlike a patent grant, an allowance indicates that the examiner has reviewed and approved the claims, but the patent is not yet issued. The applicant must complete final steps, such as paying issue fees, before the patent is officially granted.
Why Patent Allowance matters for Businesses and Inventors?
Patent allowance is a critical milestone because it:
- Confirms patentability – The invention has passed novelty, non-obviousness, and utility tests.
- Enables final adjustments – Applicants may still file amendments before grant.
- Triggers commercial planning – Businesses can prepare for licensing, enforcement, or investment strategies.
- Requires final fees – Failure to pay issue fees can result in abandonment.
Key insight
Patent allowance signals that a patent is ready for grant, allowing businesses to plan for market entry, commercialization, and legal enforcement.
How Patent Allowance works?
- Notice of allowance issued – The patent office confirms that the application meets all legal and technical standards.
- Issue fee payment required – The applicant must pay the fee to proceed to grant.
- Final amendments (if needed) – Some jurisdictions allow minor claim adjustments before issuance.
- Patent officially granted – Once formalities are complete, the patent is published and enforceable.
Example: A biotech company developing a new drug receives a notice of allowance. They quickly finalize licensing deals before the patent is officially granted, ensuring commercial protection.
Challenges related to Patent Allowance
Even after allowance, risks remain:
- Abandonment risk – If fees are not paid, the application will lapse.
- Opposition risk – In some jurisdictions, third parties can challenge allowance before grant.
- Claim scope concerns – Final claim wording must be carefully reviewed for enforceability.
- International timing – Applicants must synchronize allowance timelines across multiple jurisdictions.
Strategic Business use of Patent Allowance
Companies should leverage Patent Allowance to:
- Secure investment – Allowed patents increase valuation and investor confidence.
- Prepare for enforcement – Legal teams can assess infringement risks.
- Optimize licensing deals – Licensing negotiations become stronger with an allowed patent.
- Coordinate global filings – Ensure consistent protection across jurisdictions.
Key takeaways
- Patent allowance means the patent office has accepted the claims, but final steps are needed for grant.
- Businesses should leverage allowance for licensing, investment, and enforcement planning.
- Failure to act on allowance can lead to abandonment or weaker protection strategies.