Japan: Reductions in Patent Examination and Annuity Fees

During consultations about patent costs, clients often ask the following questions.

Patent costs are often calculated using a formula rather than a single flat fee. Japan follows this approach.

Official patent fees are generally calculated by adding a basic fee to a surcharge based on the number of claims. Applicable reductions then determine the final amount payable.

The Japan Patent Office also offers fee reductions for qualifying applicants, including eligible foreign applicants.

In this article, we will look at how the examination fee and annual fee are calculated based on the official fee table of the Japan Patent Office.

As in Korea, filing a Japanese patent application does not automatically trigger substantive examination. A separate examination request must be filed within the statutory period.

If examination is not requested in time, the application is generally deemed withdrawn. Paying the fee later does not automatically restore it; any available relief depends on the applicable requirements.

The examination fee of the Japanese patent will be calculated according to the following calculation.

This calculation is the same as the domestic patent system, and the higher the number of patent claims, the higher the examination request fee. Therefore, in the Japanese patent, how to configure the number of claims from the filing stage directly correlates with the total cost.

The examination request fee configuration is as below.

In this table, it is especially important to note that the examination fee is not simply calculated as the number of patent claims × a certain amount, but the basic fee is charged first and additional fees are added to it depending on the number of patent claims.

Here's an example of the actual calculation:

For 4 patent claims: 138,000 + (4 × 4,000) = 154,000 yen

10 patent claims: 138,000 + (10 × 4,000) = 178,000 yen

As the number of patent claims increases, the amount added will be constant, but it will make a difference that is never small in the overall examination request fee. This is why it is important to design a patent claim in Japan, not only for the scope of the rights, but also for the cost.

On the other hand, the examination fee of the Japanese patent is subject to the fee reduction program. Japan Patent Office operates a system to reduce the examination fee for small and medium-sized enterprises, ventures, universities and research institutes.

Eligible SMEs generally pay one half of the standard examination request fee, while qualifying micro enterprises and startups may pay one third.

The reduction applies to the total examination request fee, including the claim-based surcharge, not only to the basic fee.

In other words, the reduction rate is based on the sum of all the additional fees according to the basic examination request fee and the number of claims.

For an application with four claims, the examination request fee is as follows:

In this way, the cost reduction scheme is not just a small fraction of the cost, it is a significant factor in the actual cost of the company. Nevertheless, the reality is that domestic companies that do not understand the system accurately, do not apply the reduction, and bear unnecessary costs.

Patent costs continue after grant. Annual maintenance fees must be paid to keep the right in force.

Missing a payment deadline can cause a patent to lapse, subject to applicable late-payment and restoration provisions. Annual fees are therefore an essential part of patent management.

In Japan, fees for years 1–3 are paid together when registering the patent; those years are not fee-free. From year 4 onward, further annual fees are payable to maintain the right.

The annual fee of the Japanese patent also has a structure that varies according to the number of patent claims. In other words, the more patent claims you have, the more annual fees you have to pay.

Japanese patent annual fees increase by year band. Each band has a basic annual fee and a surcharge per claim.

As you can see from this table, the annual fee for the Japanese patent is not just a small increase year after year. At the time of the change of the annual interval, the annual fee has been increased step by step.

Japanese patent fees are calculated in the following formula:

For a patent with four claims, annual fees differ by year band as follows:

Annual fee for 4-6 years (per year)10,300 + (4 × 800) = 13,500 yen

Annual fee for years 7–9, per year: 24,800 + (4 × 1,900) = JPY 32,400

As time goes on, the cost of change is significantly increased. Therefore, if you plan to maintain a Japanese patent for a long period of time, you will need strategic rights management that takes into account not only the short-term costs but also the increase in the cost per annual section.

Meanwhile, the annual fee of the Japanese patent is also applied to the system of reduction. In the case of small and medium-sized enterprises, the annual fee from the first year to the tenth year after registration of the patent is reduced by one-half.

For a patent with four claims, the annual fee in years 4–6 varies with the applicable reduction:

As you can see from this table, annual fee reductions make a significant cost difference in the short term. If you maintain a long-term patent, the difference accumulates even more.

The practical characteristics of the annual fee reduction system are as follows:

Reductions are not automatic. Eligibility must be addressed when requesting examination or paying the relevant fees. Required declarations and any supporting documents should be checked for the applicant's category. The reduction applies to the combined basic and claim-based fee.

This means that even with the same patent, the actual costs can vary greatly depending on the application.

However, this does not apply solely to the “small business” category. The Japan Patent Office provides a relatively clear definition of the subject and requirements of the exemption.

Qualifying SMEs may pay one half of the examination request fee and patent fees for years 1–10. Manufacturing-sector eligibility includes the following size and ownership criteria:

- 300 or fewer employees, or

- Capital of JPY 300 million or less

- Not controlled by a large enterprise

For this category, the employee or capital threshold must be met, together with the applicable independence requirements.

For small businesses or ventures, the reduction is even greater if the size of the company is smaller.

- Small enterprises with 20 or fewer employees, or 5 or fewer in the service sector

- Venture companies established within the past 10 years, with capital of JPY 300 million or less

Qualifying applicants in these categories may pay one third of the examination request fee and patent fees for years 1–10.

Universities, public research institutions and industry-academic cooperation organizations also qualify; the examination request fee and annual fees for years 1–10 are reduced to one half.

Summary of reduced fee levels and coverage

The Japanese fee reduction program can substantially lower both examination and maintenance costs. Applicants should check the applicable eligibility criteria and procedures.

The examination fee and annual fee of the Japan patent will be calculated according to the official fee table of the Japan Patent Office. If you understand the number of basic fees, patent claims, annual intervals, and whether a reduction is applied, the actual amount of payment can be predicted. The cost of a Japanese patent is not a vaguely expensive cost, but a cost that must be understood and systematically managed.

Especially when it comes to small businesses, there can be a big difference in the amount of the actual burden, depending on how you use the system. If you're preparing a Japanese patent or already have one, it's important to take a look at the calculation structure for that amount, rather than simply checking the number on your bill.

IPLEX supports Japanese patent applications, examination requests and annual fee management, helping clients avoid unnecessary costs and maintain their rights.