How do we reduce patent agent fees to optimize the process of patent renewals?

Georgina Horváth
May 29, 2024
Reading time:
4 minutes

In the field of IP management, the costs associated with local agent fees can be significant. These fees are charged by authorized patent agents who act on behalf of patent holders, handling the formal communication and transactions with patent offices in countries where direct dealings are not possible. Such fees can vary widely by country and by the year of the annuity, often adding a considerable cost to the overall cost of a patent renewal.

This post explores how PatentRenewal.com utilizes innovative strategies to minimize these fees to achieve maximum cost-efficiency for our clients.

Where is using local patent agents necessary?

While many countries allow direct renewal fee payments to patent offices, in some jurisdictions, it is not possible to pay the patent office directly due to the different criteria the patent offices set, so a third party, a patent agent, is needed to complete the renewal in the patent holder's name. It's important for patent holders to be aware of where patent agents are needed and where they are not necessary to execute the renewal of patents. 

 Jurisdictions that require a local agent/attorney  to renew your intellectual property.

Our solution

At PatentRenewal.com, our goal is to reduce unnecessary expenses in the IP renewal process wherever possible. These patent agents’ fees can vary depending on the annuity year and above-mentioned specific jurisdiction, which can inflate the overall cost of renewals. 

Many patent renewal service providers continue to use local agents even in regions where they are no longer required, which unnecessarily increases costs. We address this issue directly by eliminating the need for local agents in all jurisdictions where direct payments are permitted and leveraging technology to handle these transactions efficiently. This means that our strategy not only simplifies the patent renewal process but also ensures that our customers are not paying more than necessary.

Therefore, today, for more than 90% of IP renewals handled by PatentRenewal.com, there is no local patent agent fee at all since our platform manages the administrative process without an external patent agent when it’s possible. 

Impact of innovative methods

Aside from completely eliminating middlemen, like patent agents, from the workflow where possible, we also successfully reduced patent agent fees in jurisdictions where they are required by pooling payments. We can leverage volume to negotiate more favorable terms, which translates directly to lower costs for our clients. 

The below graph illustrates the decline in agent fees over recent years and highlights our effective strategy for reducing the cost of patent renewals for our customers annually.

With the constant implementation of innovative strategies, including the continuous search for more cost-effective patent agents and setting deposit accounts to avoid extra transaction costs, we have already reduced our agent fees by 70% compared to 2020. 

Annually, we were able to reduce our fees by an average of 25% compared to the previous year, which underlines the effective methods our Operational Excellence Team implements continuously.

Average patent agent fee on a renewal with an annual decrease in percentage from 2020 to 2024.

Although there are factors that can't be influenced, such as jurisdiction fees where local agents are required, it can still mean a significant benefit to our customers when looking at the overall up to 50% cost savings they receive on their patent renewal costs with PatentRenewal.com.

Understanding the landscape

Our patent renewal experts are dedicated to continuously monitoring and adapting to the global IP management landscape. By staying informed of regulatory changes and adjusting our strategies accordingly, we ensure that our customers benefit from the most cost-effective patent renewal solutions available. 

Adopting systematic budgeting practices, leveraging advanced technologies, and aligning patent maintenance tactics with overall business objectives can help you navigate the marketplace with confidence. Effectively managing patent renewals is about more than just reducing costs; it is about making informed investments in the protection and management of your key assets to ensure that your innovations remain competitive.

Are you ready to transform your IP renewal approach? Learn how PatentRenewal.com can enhance your processes, decrease renewal expenses by up to 50%, and protect your innovations. Schedule a demo or request a pricing comparison today!