What are Maintenance Fees?
Maintenance Fees, or renewal fees or annuities are periodic payments required to keep a granted patent in force. These fees must be paid at specific intervals to prevent the patent from expiring before its full term. If the fees are not paid on time, the patent may lapse, making the invention available for public use.
Why Maintenance fees matter for Businesses and Inventors?
Paying maintenance fees is essential to ensure continuous patent protection and prevent costly losses. Businesses must carefully manage these fees to:
- Maintain exclusive rights – Non-payment results in the patent becoming public domain.
- Optimize IP portfolio costs – Companies may choose to let less valuable patents lapse.
- Ensure enforceability – Only active patents can be enforced against infringers.
- Manage international filings – Different jurisdictions have varied fee structures and deadlines.
Key Insight
Maintenance fees are not just a legal requirement. They are a strategic business decision that impacts patent value, enforceability, and overall IP management.
How Maintenance Fees work?
- Payment deadlines – Maintenance Fees are due at regular intervals, often in 3.5, 7.5, and 11.5 years after grant (USPTO model).
- Grace periods and surcharges – Some jurisdictions allow late payments with extra fees.
- Lapse consequences – If fees remain unpaid, the patent expires, and the invention enters the public domain.
- Portfolio review – Businesses periodically assess whether to renew or abandon certain patents.
Example: A pharmaceutical company pays maintenance fees for patents protecting blockbuster drugs but lets older, less valuable patents expire to reduce costs.
How often should Maintenance Fees be paid?
The timing of maintenance fee payments varies by jurisdiction. Below is a general schedule for some major patent offices:
| Jurisdiction | Payment Schedule | Grace Period | Additional Notes |
| United States (USPTO) | Due at 3.5, 7.5, and 11.5 years after grant | 6-month grace period with surcharge | If unpaid, the patent lapses. May be restored under “unintentional delay” rules. |
| European Patent Office (EPO) | Annually, starting from the third year after filing | 6-month grace period with late fees | If a European patent lapses, national validation may be affected. |
| United Kingdom (UKIPO) | Annually, starting from the fourth year | 6-month grace period with penalty fees | Lapsed patents may be restored under “unintentional failure” rules. |
| China (CNIPA) | Annually, starting from grant | 6-month grace period | If unpaid, the patent lapses immediately. |
| Japan (JPO) | Annually, but first payment covers the first 3 years | 6-month grace period with late fees | Lapsed patents can be restored under “unavoidable reasons.” |
| India (IPO) | Annually, starting from the third year | Six-month grace period | Failure to pay leads to patent lapsing, but restoration may be possible within 18 months. |
How much do Maintenance Fees Cost?
Maintenance fee amounts vary significantly based on the jurisdiction, patent type, and entity size (e.g., large entity, small entity, micro entity discounts). Below are examples of standard fees:
| Jurisdiction | Small Entity Cost (Approx.) | Large Entity Cost (Approx.) |
| United States (USPTO) | $500 (3.5 years), $1,250 (7.5 years), $2,600 (11.5 years) | $1,000 (3.5 years), $2,500 (7.5 years), $5,200 (11.5 years) |
| European Patent Office (EPO) | €470 (year 3), increasing to €1,575 (year 20) | Same for all applicants |
| China (CNIPA) | ¥900 (~$130) per year | Same for all applicants |
| Japan (JPO) | ¥10,300 (~$70) per year for the first three years | ¥28,700 (~$200) per year for the first three years |
| India (IPO) | ₹2,000 (~$25) per year for individuals/startups | ₹8,000 (~$100) per year for large entities |
Note: Fees are subject to periodic changes. Companies must stay updated to avoid unexpected lapses.
Grace Periods and Late Payment Surcharges
If maintenance fees are not paid by the due date, most jurisdictions allow a grace period where the fee can still be paid with a penalty surcharge. Below are typical grace period conditions:
| Jurisdiction | Grace Period | Late Fee Surcharge |
| United States (USPTO) | 6 months | Additional $250-$2,000, depending on entity size. |
| European Patent Office (EPO) | 6 months | 50% of the missed fee. |
| China (CNIPA) | 6 months | ¥1,000 (~$140) |
| India (IPO) | 6 months | 10% per month of delay. |
What Happens if Maintenance Fees are not Paid?
- Patent Lapse – The patent becomes unenforceable, and anyone can use the invention freely.
- Loss of Exclusive Rights – The patent owner loses control over the technology.
- Potential for Restoration – Some jurisdictions allow patent restoration if a reasonable excuse is provided (e.g., USPTO’s “unintentional delay” policy).
Example: A pharmaceutical company lets a patent lapse on an older drug but pays maintenance fees for its newer, high-revenue medications.
Strategic Business use of Maintenance Fees
To optimize patent management, businesses should:
- Prioritize key patents by maintaining only the most commercially valuable IP.
- Use automated tracking tools to ensure payments are made on time.
- Align fees with business strategy to avoid unnecessary costs.
- Monitor competitor renewals to identify trends and potential opportunities.
Key takeaways
- Maintenance fees must be paid to keep a patent active; failure to pay results in expiration.
- Businesses should strategically manage patent renewals to balance costs and protection.
- Proper planning ensures valuable patents remain enforceable while avoiding unnecessary expenses.