USPTO Update

The USPTO's patent fee revisions, effective January 19, 2025, represent one of the most sweeping changes in recent years.  Adjusted fees cover projected operational costs, including a 2.0% civilian pay raise for 2025 and anticipated 3.0% annual increases through 2029. This includes a baseline 7.5% hike across most fees to account for inflation and expenses, with an additional 2.5%, bringing the total increase to 10% for "front-end" fees like filing, search, and examination to shift cost recovery earlier in the process. Notably, two new fees were introduced: the Continuing Application Fee (CAF) and the Information Disclosure Statement (IDS) size fee, targeting practices that extend prosecution without proportional revenue generation.

 

The CAF applies to continuations, divisionals, and continuations-in-part filed more than six years after the Earliest Benefit Date (EBD), affecting about 19.7% of such applications based on FY 2022 data. The IDS size fee penalizes large disclosures, impacting roughly 13% of applications, with a new requirement for a certification regarding the size of the IDS under 37 C.F.R. § 1.98(a). Other adjustments include 25% increases for PTAB filing and institution fees, 10% for first Request for Continued Examination (RCE), and 43% for subsequent RCEs.

Fee Category	Key Changes	Undiscounted Rate	Small Entity (60% Discount)	Micro Entity (80% Discount)
Across-the-Board Increase	7.5% on most fees	Varies	Varies	Varies
Front-End Fees (Filing/Search/Exam	Additional 2.5% (total 10%)	Varies	Varies	Varies
Continuing Application Fee (CAF)	>6 ≤9 years from EBD	$2,700	$1,080	$540
Continuing Application Fee (CAF	>9 years from EBD	$4,000 (less prior tier)	$1,600 (less prior)	$800 (less prior)
IDS Size Fee	>50 ≤100 items	$200	$80	$40
IDS Size Fee	>100 ≤200 items	$500 (less prior)	$200 (less prior)	$100 (less prior)
IDS Size Fee	>200 items	$800 (less prior)	$320 (less prior)	$160 (less prior)
Inter Partes Review (up to 20 claims)	25% increase	$23,750	N/A (no discounts)	N/A
RCE (Second and Subsequent)	43% increase	Varies (higher)	Varies	Varies

• The introduction of the Continuing Application Fee (CAF) emphasizes the importance of filing continuations and divisionals within six years of the earliest benefit date. Practitioners will need to evaluate pending portfolios and recommend early filings to avoid penalties, while also managing client expectations about timing. 
• IDS size fee highlights the need for disciplined disclosure practices. Attorneys may increasingly advise clients to consolidate prior art submissions, prioritize the most material references, and implement internal review processes to stay below the 50-reference threshold. These changes also mean more front-loaded strategic planning, as clients will expect firms to balance compliance with cost efficiency.

• Companies in sectors with long product cycles—such as pharmaceuticals, medical devices, and semiconductors—face heightened exposure from CAF, potentially adding thousands in unplanned fees for each continuation filed late in prosecution. Portfolio managers will need to weigh the value of keeping families alive longer versus accelerating decision-making earlier in development. 
• Technology companies with large IDS submissions, especially those involved in cross-licensing or M&A activity, may face higher diligence costs. On the other hand, discounts for small and micro entities provide a partial buffer for startups, helping maintain access to the patent system despite rising costs.