Royalties

Royalties or taxes

In order to move forward in the issuing process, one must not forget to pay fees (taxes). But still it is necessary to know how to pay them ...

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Chapter 1. Difference between tax and royalty

In France, there is a semantic difference between tax and royalty.

Indeed, a tax is a financial levy collected by an administration against a public service provision. A fee is also an amount paid by the user of a public service. Unlike the tax, the amount is proportional to the service rendered and only users who benefit directly from this service pay it.

So, concerning the INPI, we have to deal with royalties ...

Once this distinction is made, I authorize you to do what you want: anyway, I always use "tax" for me ... (but here I will make an effort for the principle).

Chapter 2. Fees for royalties

Section 2.1. Due date

2.1.1. Principle

The due date appears to be the date until which payment can be made.

Unlike the European procedure, the French code does not seem to distinguish between the date of payment and the possible deadline for payment.

The directives simply refer to the "payment period" (INPI Examination Guidelines, HI 1).

2.1.2. Fees paid before the due date

It is possible to pay the annual fees in advance, however this payment can not be validly made more than 1 year in advance (R613-46 CPI).

For the other royalties, it is more vague: I do not see anything that forbids for example to pay the fee of delivery to the deposit.

Chapter 3. Payment of royalties

Section 3.1. Amount

Royalties must be paid at the rate in effect on the date of payment (INPI Examination Guidelines, HI 2).

Section 3.2. Who can pay

There is no legal basis for this: I assume that anyone can pay a fee, even if it is not the owner of the application or the patent.

Section 3.3. Means of payment

3.3.1. Cash payment

It is possible to pay in cash at the counter at INPI headquarters (Order of 24 April 2008 on procedural fees collected by the INPIArticle 4).

3.3.2. Payment by current account

1) Opening

To open a current account at the INPI, it is necessary to fill out a form and validate the terms and conditions current account.

Only one current account per natural or legal person is possible (INPI account opening formpoint 3.1)

2) Supply

It is possible to supply his account (INPI account opening form, point 4.2):

  • by bank transfer to the account of the accounting officer of the INPI
    • only the account holder can make a transfer (otherwise the supply is refused)
    • the supply date of the account can be a little anytime, depending on the diligence of the accountant (wholesale) ...
  • by check (French).
3) Closing

The account can be closed:

The balance of the account (if positive) is paid into the bank account mentioned at the opening.

If the refund can not be made, a formal notice is sent by the INPI and the INPI will keep the sums if:

  • no response is received within 4 years;
  • no answer is received within 3 months and the balance is less than or equal to 8 €.
4) Statement of account

Nothing is explicitly provided for in the texts, even though statements of account are available on the INPI website.

5) Account debit

It is possible to pay by direct debit on this customer account (Order of 24 April 2008 on procedural fees collected by the INPIArticle 4):

It also seems possible to pay the fees for the deposit via EPOLINE (decision of the Director General of INPI No. 2015-073). Nevertheless, I do not find any legal basis to authorize the payment of the other royalties (it is embarrassing, one does it every day in the cabinets of CPI ...).

If a debit order is made by an unauthorized person, normally the order is rejected (INPI account opening formpoint 3.1)

6) Inadequate flow and supply

In case of insufficient supply, the payment order will be refused (INPI account opening form, point 4.2.2)

7) Automatic withdrawal

This does not exist 🙂 (INPI account opening form, point 4.2.2)

3.3.3. Money order

It is possible to pay by money order by sending the money order (Order of 24 April 2008 on procedural fees collected by the INPIArticle 4) at INPI headquarters (decision of the director general of INPI n ° 2015-059);

3.3.4. Payment by credit card

It is possible to pay by credit card (Order of 24 April 2008 on procedural fees collected by the INPIArticle 4):

  • online on the INPI website,
  • at the windows of the headquarters of the INPI.

3.3.5. Bank transfer

It is possible to pay by bank transfer (Order of 24 April 2008 on procedural fees collected by the INPI, Article 4) by transferring the money to the account of the accounting officer of the INPI.

3.3.6. checks

It is possible to pay by check (Order of 24 April 2008 on procedural fees collected by the INPIArticle 4)

Section 3.4. Calculation of the amount of the fee

In the case of calculation of a fee in relation to a percentage (ie reduction, late payment), the amount of the fee is rounded down to the euro (Order of 24 April 2008 on procedural fees collected by the INPIArticle 3).

Section 3.5. Insufficient payment

3.5.1. Principle

In any case, if a penny is missing the payment of royalties, the payment will not be considered as made.

There is no provision to pay for a payment if there is a small amount missing.

Section 3.6. Fee schedule applicable to payment

The tariffs for the procedure are defined by theOrder of 24 April 2008 on procedural fees collected by the National Institute of Industrial Property .

The rates of the services are defined by the decision n ° 2017-24 of the director general of the INPI.

Section 3.7. Modification of the scale

The rates fixed by earlier decrees, however, remain applicable (INPI Examination Guidelines, HI 2 and Order of 24 April 2008 on procedural fees collected by the National Institute of Industrial Property) :

  • if warnings or notifications have already been addressed,
  • unless the new rates are lower.

Chapter 4. Date on which a payment is deemed to have been made

Royalties are considered as regularly paid:

Chapter 5. Reimbursement of royalties

Section 5.1. Refunds case

Deposit and search report fees are automatically reimbursed when the application is inadmissible (R411-17 CPI).

Furthermore, if the application is withdrawn or rejected before the start of the search report procedure, the search fee is reimbursed (R411-17 CPI).

Section 5.2. Other case

It seems that the INPI does not have the possibility to refund a fee paid in error.

The only possible reimbursement cases are listed in the article R411-17 CPI.

It's not me who says it, it's the INPI:

Thus, if you pay a license fee, but the application is rejected before, the INPI will not refund.

In other words, the INPI does not know the concept of unjust payment as in the EPO ...

This is extremely surprising because, as I said earlier, a fee is an amount paid for a service rendered. It is therefore surprising that the INPI keeps the sum but does not perform the service.

But that's my personal opinion!

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