The Trump administration is reportedly exploring a major change to U.S. patent policy that could substantially increase the cost of obtaining and maintaining a patent. While no formal proposal has been published, the structure under discussion would replace flat maintenance fees with payments based on a patent’s assessed value. Under this model, patent holders would pay fees ranging from 1% to 5% of each patent’s estimated value.
For patent holders across industries, this change could introduce significant additional costs and prompt a reassessment of how intellectual property (IP) is managed and protected.
From Flat Fees to Valuation-Based Payments
Historically, U.S. utility patents have required three scheduled maintenance fees, due at 3.5, 7.5, and 11.5 years after issuance. It’s unclear whether the United States Patent and Trademark Office (USPTO) would determine a patent’s value or whether patent holders would self-report. Key questions remain regarding valuation standards, enforcement, and dispute resolution.
Potential Business Impacts
If enacted, a value-based fee structure could reshape how companies evaluate the costs and benefits of patent protection. The potential increase in patent fees could make it more difficult to justify future investments and could negatively impact innovation.
Key implications include:
- Increased patent-related expenses impacting cash flow, pricing strategies, and ROI forecasts
- Stronger incentives to evaluate portfolios based on commercial potential and strategic value
- Greater reliance on trade secrets as a potential cost-effective alternative to patent protection
- More complex compliance and valuation requirements, especially for companies without established IP valuation expertise
Staying ahead of these potential valuation issues will help mitigate risk and preserve flexibility.
Recommended Business Actions
Regardless of whether a formal proposal advances, this policy discussion signals a broader shift in how IP may be regulated and monetized. Companies should respond with proactive planning and strategic reassessment.
Suggested actions include:
- Model the financial impact of value-based patent fees.
- Use reliable valuation approaches to assess patent worth.
- Evaluate which IP assets may be better protected through the use of trade secrets
- Align IP strategies with business goals and anticipated regulatory trends.
Now is an opportune time for businesses to revisit how their patent portfolios support long-term innovation and growth, as a more value-driven fee model could demand more selective decisions about which assets to maintain, monetize, or divest.
Strategic Guidance on IP Valuation Impact
Grassi’s Intellectual Property Services provides litigation support, valuation, and strategic consulting to help businesses protect, monetize, and defend their patents, trademarks, copyrights, and trade secrets. We will continue to monitor developments related to patent valuation reform and its potential business implications.
For tailored guidance on how these potential changes could impact your IP strategy, contact us or reach out to Gregory J. Urbanchuk, Principal in Forensics, Litigation, Valuation, and Intellectual Property Services today.
