Annuity fees with Reduction and Exemption for Taiwan design patents

According to the “Measures for Reduction and Exemption of Patent Annuities” in Taiwan, if the patentee is a natural person, a school, or a medium/small enterprise, the annuity fees from the 1st to 6th year could be deducted by NT$800 for each year of the 1st to 3rd annuities and NT$1200 for each year of the 4th to 6th annuities. The newly revised annuity fees for Taiwan design patent as effective from July 1, 2011 have substantially lowered the annuity fees in which the 1st to 3rd annuities is NT$800 for each year, 4th to 6th annuities is NT$2000 for each year, and 7th annuity onward is NT$3000 for each year (the patent term for a design patent is 10 years from its filing date).

Therefore the applicant or patentee who has met the requirements of the “Measures for Reduction and Exemption of Patent Annuities” does not need to pay the 1st to 3rd annuities and needs to pay only NT$800 each year for 4th to 6th annuities. Taiwan Intellectual Property Office (TIPO) recently explained as to how the applicant or patentee can apply the newly annuity fees of design patent as follows: Starting from July 1, 2011, the patentee who is eligible for the reduced annuities of a design patent may state the same in the application when paying the issue fee for Letters Patent.

Taiwan Intellectual Property Office will examine the eligibility of the patentee, and if approved, will then record the valid annuity of said design patent up to the 3rd year. Accordingly it is no need for the eligible patentee to pay the 1st to 3rd year of annuities for a design patent. For the annuity fee which has a deadline after July 1, 2011 but was paid before July 1, 2011, the surplus amount of official fee paid can be refunded or deducted for the payment of next annuity.

Therefore if the patentee, being a natural person or a local school, has paid the 1st or 2nd annuity fee before July 1, 2011, TIPO will automatically reduce its annuity fee and record the payment of annuities for 3rd year annuity. In case said already paid 2nd annuity has not exceeded its deadline, a refund can be applied. As to whether the patentee is qualified to a foreign school or a domestic or foreign medium/small enterprise, TIPO will adopt a lenient attitude to examine the reduced fees where applicable.