H.R. 7803 would exempt certain patent applicants that falsely apply as small entities but do not meet the requirements for that status from fines levied by the Patent and Trademark Office (PTO), if they made that assertion in good faith. Under current law, individuals, small businesses, or nonprofit organizations that certify their status as a small entity may pay reduced patent filing, maintenance, and other fees to PTO. Applicants that falsely assert that they are eligible for a fee reduction as a small entity are subject to civil monetary penalties. 

CBO estimates that it would cost PTO less than $500,000 to update its guidance to small entities. However, PTO is authorized to collect fees in amounts sufficient to offset its annual appropriation, and CBO expects that the agency would adjust fee collections to match any increase in operating costs. Assuming appropriation actions consistent with that authority, CBO estimates that the net increase in discretionary spending for PTO would be negligible.

In addition, CBO estimates that enacting H.R. 7803 could reduce the collection of civil monetary penalties, which are treated as revenues, over the 2024-2034 period. Based on the amounts collected under current law, CBO estimates that any reduction in those penalties would be insignificant.