Patent Applicants Face Tighter Deadlines: What the New USPTO Rule Means for Continuation and Divisional Applications

Starting May 13, 2025, patent applicants will experience a significant change in the timeline for filing continuation and divisional applications with the U.S. Patent and Trademark Office (USPTO). Under the new rule, the window between paying the issue fee and a patent officially issuing will shrink dramatically—from about three weeks to just one week.

For those familiar with the process, this may feel like a significant shift. Previously, applicants had a comfortable amount of time to make key decisions regarding the filing of continuation or divisional applications after paying the issue fee. This period, although not extensive, offered ample opportunity to consider further filings and get the necessary paperwork in order. Now, with the new timeline, applicants will have to act quickly or risk missing the opportunity to file these crucial applications before the parent patent officially issues.

A Major Change for Continuation and Divisional Filings
For those in the patent world, continuation and divisional applications are powerful tools used to refine, expand, or protect different aspects of an invention disclosed in the original patent application. These tools allow applicants to pursue additional claims or protect additional inventions within the same family of patents.
This might happen if an applicant wants broader protection or if new claims emerge that were not included in the original application. A continuation application essentially gives the applicant another opportunity to further develop the patent without starting the process from scratch.

Divisionals, on the other hand, are filed when the USPTO requests the applicant to divide the original application into separate filings because the application covers more than one invention. This is typically seen in cases where the original application is too broad or contains more than one distinct invention.
The critical detail here is that both continuation and divisional applications must be filed before the parent patent is granted. Once the patent issues, the opportunity to file such applications is largely closed, and reopening prosecution after issuance can be costly and difficult.

The New Deadline: A Week to Act
Historically, applicants had about three weeks, sometimes longer, to file continuation or divisional applications after paying the issue fee. This gave them time to review their options, consult with colleagues or patent attorneys, and finalize their strategy before the patent officially issued.

However, with the new rule coming into effect on May 13, 2025, applicants will have only one week between paying the issue fee and the patent issuing. This means the timeline for making decisions has been drastically compressed. The issue fee, which is typically paid after receiving a Notice of Allowance from the USPTO, serves as an indication that the patent is about to be granted. With the tighter timeline, applicants must be ready to act quickly to file continuation or divisional applications—or risk missing the opportunity altogether.

For patent professionals who file these types of applications regularly, this change represents a considerable shift in workflow. The new rule is likely to require better planning, quicker decision-making, and perhaps even a shift in internal procedures to ensure applications are filed on time.

Best Practices for Navigating the Change
While the new rule presents challenges, there are several best practices that applicants can adopt to ensure they stay ahead of the game:

File Before Paying the Issue Fee
This gives ample time to review the strategy and decide on any additional filings. Filing before paying the issue fee ensures that applicants can secure their desired protection without the stress of a shortened timeline.

Incorporate Continuation and Divisional Discussions into the Review Process
Patent applicants should include discussions of continuation and divisional strategies as part of their regular Notice of Allowance review. This can involve consulting with patent attorneys, revisiting claims, and carefully evaluating whether additional applications are necessary.

Set Internal Deadlines
This gives teams time to deliberate and take a more measured approach to filings, without the added pressure of an approaching deadline.

Treat the Issue Fee as a Warning Signal
The issue fee payment should be viewed as a signal to take immediate action, not as a last-minute task. Instead of waiting until the last moment, applicants should be proactive and take time to file any necessary applications well ahead of the fee payment deadline. Procrastination can lead to missed opportunities.

Why the Change Matters
The USPTO’s decision to tighten this filing window is likely a response to the growing complexity of the patent process and the increasing speed at which innovation is occurring.

For applicants, however, this presents a new set of challenges. The need for quick decision-making and a more nimble approach to patent strategy has never been more important. Companies will need to ensure their patent portfolios are managed with greater efficiency and foresight. In particular, patent attorneys and in-house counsel will need to be highly organized to ensure that crucial filings are made within the shortened timeline.

The Bottom Line: Speed and Preparation Are Key
The new rule that takes effect on May 13, 2025, is a significant change that will impact the way patent applicants file continuation and divisional applications. With only one week between paying the issue fee and the patent issuing, applicants must be prepared to act quickly to protect additional claims or inventions.

The smartest strategy is to file continuation and divisional applications before paying the issue fee, giving applicants more time to review and finalize their filing strategy. By setting internal deadlines, planning ahead, and treating the issue fee payment as a cue to take immediate action, patent applicants can ensure they are not caught off guard by the new, shorter timeline.

In the world of patent law, timing is everything—and starting May 2025, those who act early will be best positioned to navigate the new filing requirements.

India’s Evolving Intellectual Property Landscape: A Key Turning Point for Pharma Industry

“The needle has moved,” declares Anil Matai, Director General of the Organization of Pharmaceutical Producers of India (OPPI), in a recent podcast interview with Scrip. The statement refers to the substantial changes in India’s intellectual property rights (IPR) regime, which witnessed some critical amendments in the past year. As the representative body for foreign pharmaceutical companies in India, OPPI plays a crucial role in shaping the country’s IPR and regulatory environment, which continues to evolve as the industry adapts to both domestic and global pressures.

Matai’s remarks signal that India’s pharmaceutical sector is undergoing a transformation, particularly in areas such as patent regulations, data protection, and the ongoing debates surrounding Section 3(d) of the Indian Patent Act.

Key Amendments and the State of Play
India’s intellectual property landscape has been in flux, with several key amendments to the patent law being introduced last year.
However, one of the most controversial aspects of India’s patent system remains Section 3(d) of the Indian Patents Act. Section 3(d) prevents the patenting of new forms of known substances unless they result in significantly enhanced efficacy.

The ruling emphasized the need for innovation beyond mere incremental changes, a stance that was seen as a win for public health over the interests of global pharmaceutical companies. However, for foreign firms like those represented by OPPI, Section 3(d) remains a longstanding sticking point. Matai pointed out that while India’s patent system has evolved, challenges such as these continue to make it difficult for global innovators to protect their products in the country.

Data Protection: A Global Imperative
Another critical issue discussed by Matai is the need for Regulatory Data Protection (RDP), which he describes as a “no-brainer.” RDP refers to the protection of clinical trial data submitted to regulatory authorities in the drug approval process, ensuring that competitors cannot rely on this data to gain approval for their own versions of a drug without conducting their own trials. Matai cites China’s rapid advancement in the biologics space as an example, noting that China has already made significant strides in protecting RDP and attracting global pharmaceutical investment.

China’s National Medical Products Administration (NMPA) recently introduced guidelines that outline specific periods of data exclusivity for different categories of drugs. These guidelines are part of the broader regulatory framework that has seen China move ahead of India in the biologics sector.

The issue of data exclusivity (DE) has been contentious in India for years. Under the TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement, India, like other member states, is required to protect undisclosed data necessary for regulatory approval of new chemical entities. However, India has not yet provided for data exclusivity in its laws. While the generics industry and public health advocates argue that this is a matter of confidentiality and not exclusivity, foreign firms see data exclusivity as crucial for fostering innovation and protecting intellectual property.

Matai emphasized that India’s reluctance to adopt data exclusivity is a hindrance to attracting foreign investment in the pharmaceutical sector. “Without adequate data protection, global pharmaceutical companies may look elsewhere for growth opportunities,” he warned, citing how China has leveraged RDP to become a hub for life sciences research and development.

US-India Trade Relations and the Road Ahead
The issue of intellectual property rights is not only a domestic matter but also an international one, particularly in the context of India’s trade relationships. India remains on the Priority Watch List in the United States Trade Representative’s (USTR) Special 301 Report, which highlights countries that are seen as not providing adequate protection for intellectual property rights. India shares this distinction with China, reflecting ongoing concerns about patent protection, data exclusivity, and the safeguarding of undisclosed data.

The U.S. has long pushed for stronger IP protection in India, with senior figures such as Eli Lilly’s CEO, David Ricks, calling for the country to rethink its stance on IPR and become a leader in life sciences. According to Ricks and other pharmaceutical leaders, India’s regulatory framework must evolve to align with global standards to attract the level of investment needed for the country to become a competitive player in the pharmaceutical industry.

Both India and the U.S. are now working toward the first tranche of a multi-sector Bilateral Trade Agreement (BTA), which is expected to be finalized by the fall of 2025. It remains to be seen whether intellectual property issues, including those surrounding patent eligibility and data exclusivity, will be part of the negotiations. If they are, the outcome could have a profound impact on the future of the pharmaceutical industry in India.

The Path Forward

India’s evolving IPR landscape presents both challenges and opportunities. While the changes in the regulatory environment signal progress, much remains to be done to balance the needs of public health with those of global pharmaceutical companies. As foreign firms continue to call for stronger IP protections, India faces the delicate task of crafting a system that promotes innovation without undermining access to affordable medicines.

Anil Matai’s comments reflect the tensions at play in this balancing act. As India moves toward a more integrated role in the global pharmaceutical market, the next few years will be pivotal in shaping the future of the country’s intellectual property and regulatory framework. Whether India can find the right balance between fostering innovation, attracting investment, and maintaining access to essential medicines will be key to its future as a global leader in the life sciences sector.

In the meantime, the global pharmaceutical community will be watching closely, as India’s regulatory evolution continues to unfold.

Heimdal Receives U.S. Patent for Innovative AI-Powered DNS Threat Detection

Heimdal, a leading European cybersecurity firm, has been awarded U.S. Patent No. 18333620 for a proprietary method that predicts the likelihood of a domain being malicious. The patented technology, titled “Apparatus and Method of Predicting Malicious Domains,” marks a significant step forward in Heimdal’s mission to redefine DNS security.

This invention forms the foundation of Predictive DNS™, Heimdal’s AI-driven system designed to detect and block harmful domains before they are weaponized in phishing, ransomware, or data theft campaigns. The technology uses a combination of machine learning, natural language processing (NLP), and computer vision — all powered by neural networks trained on millions of data points including domain names and DNS behavior.

“It ensures we can continue to protect our customers with industry-leading innovation.”

The patented method allows for earlier and more accurate threat detection, giving security teams a powerful tool to prevent cyberattacks before they occur. Integrated into the company’s broader Heimdal XDR platform, this development supports fully automated, risk-aware threat prevention strategies.

With DNS traffic involved in over 90% of malware and breach-related activity, Heimdal’s technology addresses one of the most exploited yet often overlooked areas of cybersecurity.

Key features of Heimdal’s Predictive DNS™ include:

High-precision threat detection, measured by strong F1 scores.

Real-time adaptability, with AI models that evolve based on new data.

Seamless platform integration, enhancing Heimdal’s extended detection and response (XDR) capabilities.

As global threats grow more sophisticated, Heimdal’s latest achievement positions it as a critical player in next-generation cybersecurity.

USPTO Suspends Expedited Examination for Design Applications Amid Fraud Concerns and Case Backlog

In a decisive move aimed at improving efficiency and safeguarding the integrity of the U.S. intellectual property system, the United States Patent and Trademark Office (USPTO) has announced the suspension of expedited examination for design patent applications, effective April 17, 2025. The policy change was officially detailed in a notice published in the USPTO’s Official Gazette on April 14.

The decision comes in response to a 560% surge in requests for expedited design application reviews—a trend the USPTO attributes in large part to a rise in fraudulent filings. This suspension is part of a broader strategy to reduce the growing inventory of unexamined design applications, curb misuse of the system, and ensure accurate and fair processing for legitimate applicants.

Key Reasons Behind the Suspension
According to the USPTO, the unexpected spike in expedited examination requests has placed significant pressure on examiners and contributed to increased backlogs in the design application pipeline. Much of this rise, the agency notes, is linked to fraudulent filings, which not only distort processing timelines but also pose risks to the integrity of the U.S. intellectual property system.

The USPTO also cites a rise in erroneous micro entity certifications—false claims to fee discounts intended for small applicants—as a factor in its decision. These certifications have become a growing concern in recent years, complicating the patent review process and necessitating additional scrutiny.

What the Suspension Means for Applicants
Starting April 17, 2025, the USPTO will no longer grant requests for expedited examination of design applications, including any renewed or pending requests submitted on or after that date. In line with this change:

Associated fees will be refunded in full for requests made after the effective date.

The USPTO will continue to examine design applications under its standard timeline, as it works to reduce overall pendency and inventory.

Impact on the Design Patent Community
The suspension will have a notable impact on companies and individuals relying on faster design patent protection for products with short market cycles, particularly in sectors like fashion, consumer electronics, and packaging design. However, the USPTO maintains that ensuring quality and transparency in the application process outweighs the short-term disruption caused by the policy shift.

Industry analysts suggest that while the suspension may create delays for some innovators, the move is likely to improve the reliability and credibility of granted design patents in the long run, which is critical for both domestic and international enforcement.

Broader Reform Efforts
This policy change is one component of the USPTO’s wider agenda to combat abuse and strengthen the integrity of the IP system. The office has been ramping up enforcement against fraudulent filings, improving data analytics to detect suspicious activity, and refining procedures for certifying applicant eligibility for reduced fees.

The USPTO also continues to explore new technologies and staffing solutions to address examination delays and ensure legitimate applications are processed efficiently.

USPTO Streamlines Patent Issuance Timeline with Faster Turnaround Starting May 13

In a move that promises to bring greater efficiency to the U.S. patent system, the United States Patent and Trademark Office (USPTO) has announced a major update to its patent issuance process.
This improvement marks a significant shift in the patenting landscape, providing faster legal recognition of inventions and reducing administrative lag for both individual inventors and companies awaiting protection for their intellectual property.

Transition to Digital Patent Grants Accelerates the Process
The accelerated timeline has been made possible in large part due to the USPTO’s adoption of electronic patent grants (eGrants). With the USPTO now fully transitioned to digital issuance, those time-consuming steps have been eliminated, allowing for quicker finalization of granted patents.

The agency has stated that, once all requirements are met and the Issue Fee is paid, inventors typically receive an Issue Notification within one to two weeks. Under the new process, the formal patent will be granted just two weeks after this notification, as opposed to the previous three-week standard.

Benefits for Inventors and Legal Professionals
This change not only shortens the waiting period for inventors eager to see their rights formally granted, but it also has strategic legal benefits. The reduced timeline cuts down the so-called “lame duck” period—a window of time during which inventors and their legal counsel are still required to submit any known prior art that might affect the patent’s validity. During this period, submissions of relevant information could cause delays in issuance.

By shortening this window, the USPTO effectively reduces the likelihood of last-minute delays caused by prior art disclosures, allowing for smoother and more predictable patent finalizations.

A Win for Innovation and IP Management
The streamlined process is being welcomed by the patent community as a step in the right direction. Faster issuance allows inventors to enforce their rights sooner, boosts the value of patent portfolios more quickly, and provides an advantage to companies working in fast-moving sectors such as technology, pharmaceuticals, and biotech.

“This is a smart move by the USPTO,” said a patent attorney at a Washington-based IP law firm. “In a time where speed to market can make or break an invention’s commercial potential, cutting down unnecessary administrative lag can be a game-changer.”

Looking Ahead
The USPTO has been steadily modernizing its systems to better serve inventors, including the roll-out of digital filing systems, the modernization of examiner tools, and now this reduction in issuance lag. These changes reflect the agency’s ongoing commitment to streamlining operations while maintaining high standards for patent examination and grant quality.

As of May 13, inventors who receive their issue notifications can expect to see their patents granted just two weeks later—giving them the legal recognition and rights they’ve earned, faster than ever before.

Shares of Lupin and Zydus Life Slide After Losing US Patent Case to Astellas Pharma

Shares of Indian pharmaceutical giants Lupin and Zydus Lifesciences came under significant selling pressure on April 16, falling by 3% and 4.5% respectively. The decline followed a ruling by the U.S. District Court in Delaware in favor of Astellas Pharma, the original patent holder of Myrbetriq, a drug used to treat overactive bladder (OAB). The court determined that Lupin and Zydus had infringed upon Astellas’s patent rights, potentially paving the way for the withdrawal of their generic versions from the U.S. market.

Court Ruling Favors Astellas
The dispute centers around the ‘780 patent, which protects the formulation of Mirabegron, the active ingredient in Myrbetriq. Astellas Pharma filed a lawsuit claiming that the generic products manufactured by Lupin and Zydus violated this patent.

The judgment emphasized that the defendants failed to demonstrate that the patent was invalid on grounds such as lack of enablement, inadequate written description, or indefiniteness. With the court upholding the validity of the ‘780 patent, the generics produced by Lupin and Zydus are now under threat of being barred from sale in the U.S.

Financial Implications Loom
Market analysts have raised concerns over the financial impact this legal defeat could have on the Indian pharma companies. Myrbetriq was anticipated to contribute nearly $30 million in quarterly revenues to each company, according to some industry estimates. The ruling could not only impact future earnings but also result in penalties.

Vishal Manchanda, a pharmaceutical sector analyst at Systematix Group, told CNBC-TV18, “We expect a tangible hit to FY26 earnings for both Zydus Life and Lupin due to this development. Moreover, damages and potential penalties, if levied by the jury trial, could further strain their financials.”

The final determination of damages and any remaining disputes over infringement or validity will be taken up in a consolidated jury trial scheduled for 2026.

Companies Respond
In a post-market statement, Zydus Lifesciences acknowledged the verdict and said it is currently reviewing the court order and assessing its implications. “We are evaluating the potential impact of the said order on the operations of the Company and the legal remedies available with the Company,” the statement read.

Both Zydus and Lupin have filed a ‘Motion to Clarify’ in an effort to assert additional arguments regarding the patent’s validity, which the court will consider during the 2026 trial.

Background on Myrbetriq and the Patent Dispute
Myrbetriq, approved by the U.S. Food and Drug Administration in 2012, has been a high-value product in the OAB treatment category, with global sales reaching over a billion dollars annually in recent years. The drug works by relaxing the bladder muscle to increase storage capacity and reduce urinary urgency.

The ‘780 patent, central to the lawsuit, covers specific formulations and the method of administration of Mirabegron. Patent infringement in this context refers to manufacturing or selling a product that falls within the patent’s claim scope without authorization from the patent holder.

The ruling highlights the risks generic manufacturers face when attempting to enter markets dominated by patented medications. It also reaffirms the legal strength of patent protections in the U.S., particularly for high-value pharmaceutical products.

Market Reaction
Investors reacted swiftly to the news, with both Lupin and Zydus Life stocks falling sharply in trading. Analysts believe the market is pricing in not only the potential loss of revenue but also uncertainty around future legal proceedings and penalties.

The verdict serves as a cautionary tale for generics manufacturers and underscores the importance of thorough patent analysis before launching competing products in major markets like the United States.

As the legal battle progresses, the pharmaceutical sector will be closely watching the developments in the run-up to the 2026 trial, which will determine the extent of financial liability and the long-term market prospects for generic versions of Myrbetriq.

Peraso Secures Key Patent Approval for Resilient Wireless Network Technology

Peraso Inc., a leading innovator in millimeter-wave (mmWave) wireless technology, has announced that it has received a Notice of Allowance from the U.S. Patent and Trademark Office (USPTO) for its patent application 17/846275, titled “System for Seamless Recovery of Distributed Access Points in a Wireless Local Area Network.” The patent is expected to be formally granted in 2025, providing intellectual property protection extending into the year 2042.

The newly approved patent highlights Peraso’s efforts to solve a persistent challenge in large-scale wireless networks — service disruptions caused by the failure or reintegration of access points (APs). As modern networks increasingly rely on numerous APs to maintain connectivity, disruptions due to lost or rejoining nodes can degrade performance and require full system resets. Peraso’s technology aims to eliminate this issue through intelligent, automated AP recovery and seamless reintegration, boosting both reliability and user experience.

Key innovations covered by the forthcoming patent include:

Seamless roaming for client devices when AP connections are lost.

Instant detection of dropped APs and recognition when they rejoin the network.

A secure protocol for restoring encryption keys during AP recovery.

Automatic reconnection of devices to ensure uninterrupted performance.

“This advancement reflects our ongoing commitment to developing cutting-edge solutions in the mmWave wireless space,” said Ron Glibbery, CEO of Peraso. “Protecting our innovations through a strong patent portfolio not only safeguards our work but also delivers long-term value for our customers, partners, and shareholders.”

Peraso has been steadily expanding its intellectual property holdings as it continues to push the boundaries of high-frequency wireless communications. This latest development reinforces the company’s strategic focus on enabling smarter, more resilient wireless systems across enterprise, industrial, and consumer applications.

USPTO Releases New Guidance on Patent Eligibility for AI-Based Inventions

The United States Patent and Trademark Office (USPTO) has issued updated guidance to help innovators, examiners, and stakeholders better understand how AI-related inventions can meet the standards for patent eligibility under U.S. law.

As artificial intelligence continues to evolve and reshape industries, the USPTO has provided detailed insights into how patent claims involving AI technology are assessed—particularly those involving neural networks and machine learning algorithms.

Three Key Takeaways from the USPTO’s Hypothetical Scenarios
To clarify its approach, the USPTO introduced a set of hypothetical AI inventions, including one focused on data anomaly detection using artificial neural networks. The invention is claimed in three different formats to illustrate various outcomes in the patent eligibility process:

Hardware-Based Implementation Supports Eligibility
When an AI system is described as running on specific hardware or integrated with a technical apparatus, it is more likely to be viewed as patent eligible. This approach grounds the invention in a concrete technological framework.

Abstract Model Training Alone May Be Ineligible
Claims that focus only on the high-level process of training and using a model—without grounding it in a technical application—are likely to be considered abstract ideas and therefore patent ineligible under current legal standards.

System Behavior Based on AI Output Boosts Eligibility
The most nuanced insight reveals that how a system reacts to the AI’s output can be crucial. If the invention includes specific actions triggered by the AI’s decision or analysis, this interaction may constitute a patent-eligible technological improvement.

Why This Matters
These insights reflect a growing effort by the USPTO to balance innovation with legal clarity in the rapidly advancing field of AI. The guidance helps applicants craft claims that are more likely to survive scrutiny, especially during examination, appeals, and post-grant reviews.

The update also introduces a new set of AI-specific examples to guide both patent examiners and inventors in determining what constitutes eligible subject matter under existing laws.

Looking Ahead
As AI technologies become more sophisticated and embedded in everyday systems, the USPTO’s 2024 guidance serves as a critical roadmap for innovators seeking robust intellectual property protection. Those developing AI-driven solutions should consider these factors carefully to enhance their chances of securing a valid, enforceable patent.

Mphasis Secures U.S. Patent for Quantum Machine Learning Breakthrough

In a notable step toward advancing real-world applications of quantum computing, Bengaluru-based IT services company Mphasis announced on Wednesday that it has been granted a U.S. patent titled “System and method for optimized processing of information on quantum systems.” This new intellectual property milestone positions Mphasis at the forefront of innovation in Quantum Machine Learning (QML)—a field rapidly reshaping the future of artificial intelligence and data processing.

🚀 A New Era for Quantum-AI Integration
As quantum computing evolves from theory to practice, one of the major challenges lies in efficiently translating classical data into quantum-compatible formats. Mphasis’ patented solution directly tackles this issue by providing a pipeline for transforming high-dimensional classical data into an optimized quantum feature space. This ensures that data is not only properly prepared for quantum processing, but also that it maximizes performance while minimizing resource usage—a key concern with today’s qubit-limited quantum systems.

The technology is designed to:

Reduce the need for additional qubits when dealing with complex, high-dimensional data

Manage large feature sets and data volumes with efficiency

Improve convergence speed during QML model training, thereby shortening time-to-insight

In simpler terms, this patent paves the way for faster, more scalable, and more cost-effective quantum machine learning models—making QML a more viable tool for businesses and researchers alike.

💬 Industry Perspective
Srikumar Ramanathan, Chief Solutions Officer at Mphasis, emphasized the transformative nature of the development:

This sentiment reflects a growing consensus in the tech world that quantum computing—particularly in synergy with AI—holds immense potential to solve complex problems in fields ranging from finance and healthcare to logistics and cybersecurity.

🧩 Why This Patent Matters
While quantum computing remains in its nascent stage, the importance of developing hardware-aware, forward-compatible algorithms and data pipelines cannot be overstated. Most current quantum devices have limited qubit counts and high error rates. By creating methods that optimize data preparation and quantum state loading, Mphasis is future-proofing its QML capabilities for both near-term quantum simulators and more powerful systems to come.

Furthermore, this development is in line with a broader industry trend of investing in hybrid computing solutions—where classical and quantum processors collaborate, each handling tasks they’re best suited for.

🌐 Mphasis: Driving Innovation Beyond Traditional IT
Known for its expertise in cloud, cognitive services, and digital transformation, Mphasis has steadily expanded its footprint in cutting-edge technology domains, including AI, blockchain, and now quantum computing. The new patent is not just a technological feat—it’s a strategic asset that strengthens the firm’s position as a forward-looking technology partner for enterprises navigating the quantum era.

🔮 Looking Ahead
Quantum computing may still be a few years away from widespread enterprise adoption, but milestones like this show that companies like Mphasis are not waiting for the future—they’re building it. By addressing core technical bottlenecks in quantum machine learning today, Mphasis is laying the groundwork for solutions that could redefine what’s possible in data-driven innovation tomorrow.

Patents: A Hidden Cost Trap for Startups – How to Navigate Without Overspending

For many startups, patents seem like a necessary but one-time expense. However, the reality is far more complicated. Filing a patent might appear straightforward, but the costs involved are anything but. From legal fees and government charges to international filings and ongoing maintenance costs, the true expense of a U.S. patent can easily exceed $50,000 over its lifetime.

This hefty price tag raises questions for founders: Is patenting worth it? I’ve seen firsthand how many entrepreneurs hesitate to move forward with patent filings, uncertain whether the return on investment justifies the expenditure. However, skipping patents altogether can present even more dire consequences for your business:

A competitor could beat you to the patent office, locking you out of your own market.

Investors may lose interest if they don’t see a clear intellectual property (IP) strategy.

A legal battle might emerge just as your business gains momentum, forcing you into costly litigation.

So, the question isn’t whether you should patent, but rather how you can do so without draining your resources.

Strategies for Smart Patent Filing on a Budget

The key to navigating the patent process effectively is knowing where to focus your budget. Fortunately, it’s easier than you think. Here are some proven strategies to help you patent without overspending.

1. Identify High-Value Innovations for Patent Protection
Startups often make two costly mistakes when it comes to patents: over-patenting or under-patenting. Both can harm your business.

Under-patenting happens when startups fail to document and protect innovations, allowing valuable ideas to slip through the cracks. Without a structured process like Invention Disclosure Forms (IDFs), innovations may not be patented in time, especially when funds are limited.

Over-patenting involves filing patents for ideas that don’t significantly strengthen your market position. It’s akin to betting on every horse instead of choosing the one with the best odds of winning. Instead, focus on innovations that have the potential to generate revenue or block competitors.

To avoid these pitfalls, use a structured patentability assessment. This process, which involves input from R&D, legal teams, and business leaders, evaluates the patent’s business value, the likelihood of patenting success, and the associated costs. Only the most valuable ideas should move forward.

As a rule of thumb: If losing an idea wouldn’t hurt your business, don’t patent it.

2. Plan Your IP Budget Wisely
Filing a patent without a clear budget is risky and irresponsible. Many startups rush into patent applications, only to run out of funds midway through the process, leaving their filings incomplete or allowing issued patents to expire.

Patent costs accumulate in phases—drafting fees, prosecution costs, government fees, and maintenance costs after the patent is granted. The total cost can soar, especially when foreign patents are involved. If you only budget for the initial filing, you may be forced to abandon a patent midway as costs balloon.

To prevent this, set a comprehensive patent budget before you file. Ensure you account for all phases of the patenting process, from drafting through maintenance. It’s also crucial to discuss fixed-fee structures or end-to-end budgets with your attorney to avoid any surprise costs. Once the patent is in progress, use cost estimation tools to track your ongoing expenses.

A well-planned budget ensures that your patents work for you, not against you.

3. Use Smart Filing Strategies to Cut Costs
Cutting corners on patent filings can be tempting, but it often leads to rejections, poor strategy, or patents that are ineffective when needed most. Here are some smarter ways to save:

Provisional Patents: Start with a provisional patent. For as little as $140 in USPTO fees (with lower legal fees as well), a provisional patent locks in your filing date and gives you 12 months to refine your invention before committing to a full application.

Government Fee Discounts: If you qualify as a small or micro-entity, you can save 50-75% on USPTO fees. Many startups overlook this, leaving money on the table.

Foreign Filings: Avoid rushing into international filings unless you’re committed to those markets. Foreign patent costs can range from $5,000-$10,000 per country initially, with total costs reaching $25,000-$75,000. Start with U.S. filings, then use the PCT (Patent Cooperation Treaty) system to delay foreign decisions for up to 30 months, giving you more time to assess demand.

Avoid Excessive Prosecution: Don’t waste money on tough examination areas. Use predictor tools to steer clear of technologies where patenting is challenging. You can also analyze examiner statistics and request interviews to improve your chances of success. If your application is unlikely to succeed, consider abandoning it early to avoid sinking more money into a lost cause.

4. Prune Low-Value Patents to Cut Unnecessary Fees
Many startups waste up to 20% of their patent budget on patents that no longer serve their business needs. If a patent is no longer protecting a key technology or providing a competitive edge, there’s no reason to keep paying for it.

Review your patent portfolio annually and study does this patent still align with my business strategy? If not, consider dropping it, selling it, or licensing it to recover costs. If your business has exited a market, stop paying for patents in that market.

5. Use Data, Not Guesswork
Smart patenting isn’t about making intuitive decisions—it’s about using data to guide your moves. The right tools can assess the likelihood of approval, predict overall patenting costs, and reveal cost-saving opportunities. This data-driven approach helps you determine which patents are worth pursuing and maintaining.

Successful innovation managers don’t file patents blindly; they track, analyze, and adjust based on data. If you want to win, adopt the same strategy.