Private Foundation vs Public Charity: The Differences Explained

Patents are crucial for protecting intellectual property, particularly if you run a small startup. The last thing you want is to invest all your time, energy, and money into a project, only for an unscrupulous rival to snatch your ideas.  The patenting procedure isn’t free, though. In this post, we’ll take a look at how much a patent actually costs. Then, we’ll analyze some patent cost examples before exploring the difference between trademark and patent costs.  Cost of a Patent You can break down the cost of obtaining a patent into three categories:  Government filing fees Attorney fees Drawing fees Patent applications can range from $400+ if you decide to go down the do-it-yourself route to $10,000+ if you use a lawyer. The actual amount you’ll pay depends on your status. Government filing fees for micro-businesses are $400, while those for small entities are $730 or more. If you also require professional drawings to describe your inventions, they will set you back a further $300 to $500, depending on the complexity.  Obtaining a patent isn’t a straightforward procedure. While the application process is affordable for the majority of businesses, the official requirements can be high. The law is becoming more stringent, and government agencies, such as the United States Supreme Court, The United States Patent and Trademark Office, and the United States Court of Appeals for the Federal Circuit, are constantly adding more regulations. To secure a patent, you must demonstrate in writing that your invention is unique and be able to prove this to the USPTO. You need to show that you’ve developed something original that other market participants are not yet using. And you must describe it in such a way that meets the various legal requirements of government agencies. Therefore, while the price of a patent application might seem relatively manageable, the likelihood of success depends entirely on the quality of the communication.  Certain types of patents may be more complicated than others. If you’ve hired a lawyer to draft your application for you, it may take them time to get up to speed with the technical aspects of your invention. Your patent could seem simple to you, but it might be complicated for a lawyer to grasp if it’s technically intricate. This may then drive up your costs, since you’ll require lengthier consultations with your lawyer.  Software patenting costs tend to be higher because of the difficulty in understanding the innovation. It may also be hard for the patent office to determine the way in which the invention is unique or original, increasing patenting fees and surcharges further.  Types of Patents and Their Costs Because of the varying complexity of patents, they have different costs. However, there are diverse types of patents that you can apply for.  Non-Provisional Patent Application Non-provisional patent applications protect your invention for as long as it remains in effect. Prices start from around $400 and include search, review, and examination fees. At the higher end of the price spectrum, a non-provisional application may cost over $15,000 if most tasks are handled by a lawyer. However, you should keep in mind that how much you pay depends primarily on the complexity of the invention. Attorney patent prices are significantly lower for simple inventions compared to complicated or software-based ones. Provisional Patent Application Provisional patent applications are popular among organizations that want to begin protecting their intellectual property immediately but don’t have time to file a non-provisional patent application. Allowing time for the non-provisional patent application to go through, provisional patents protect firms for 12 months against IP theft.  As you might expect, filing for a provisional patent can be significantly cheaper than a non-provisional patent since it is temporary. You can pay as little as $65 in filing fees if you do it yourself, but more realistically, $5,000-$10,000 with the help of a lawyer.  Design Patent Design patents protect your product’s unique appearance, for instance, the particular shape of a plastic bottle, earplug, or medical product. And because they only involve the evaluation of shape, prices tend to be much lower. Therefore, you can expect to pay $2,500-$3,000, including a $140 examination fee.  Design patents are essential in the fashion industry. A designer bag might not represent anything new in the technical sense, but the new design could be critical for the fashion house’s competitive advantage. Most importantly, a design patent can prevent rivals from creating copycat products.  Plant Patent Lastly, plant patents prevent anyone else from utilizing a particular plant for commercial gain. These patents mainly affect plant hybridization and genetic modifications, as plants found in their natural state cannot be patented.  Application costs for plant patents range from $360 to $720, whereas $170 of this cost covers examination fees. Total costs, including legal fees, are $4,600-$7,600.  What Factors Affect the Cost of Filing a Patent? So far, we’ve discussed patent costs in terms of averages. However, the amount that you actually pay will be calculated on the basis of various factors to do with the patent itself. Your product is similar to others. If your product is completely original and new, it is usually quite straightforward to determine its patentability. However, if you are adding a product to a saturated market, the patenting price rises. It is more difficult to demonstrate that the invention is unique and, therefore, requires more labor.  You want to protect your product in several countries. Protecting your intellectual property in the US is relatively clear-cut. However, you will need to pay additional fees to patent examiners in other countries if you want to protect it internationally.  You see a big market opportunity. In many cases, the greater the profits that an invention will bring, the more money it’s worth spending patenting an invention.  Your invention involves technology. As you might expect, a complex mechanical patent costs significantly more than a simple one. It takes time for examiners and lawyers to understand how it works and assess it accordingly. You operate a large business. Lastly, the price of a patent will go up if you run a large business. Individuals, micro-entities, and small businesses pay the least.  Patent Cost Examples Let’s take a look at some examples of how much you are likely to pay for a patent, from the simplest to the most complex:  Licensing a patent cost Invention Type Example Patent Attorney Cost Search Costs Very Simple Paper clip, bowl, wallet, packaging, tea cozy $5,000-$7,000 $1,000-$1,250 Simple Fanny pack, children’s toy, drinks flask, dog harness $7,000-$8,500 $1,000-$1,250 Low Complexity Handheld tools, MP3 player, disposable camera $8,500-$10,000 $1,250-$1,500 Medium Complexity Solar panel pack, pop-up tent $10,000-$12,000 $1,500-$1,750 High Complexity Prosthetic limbs, telecommunications equipment, medical scanners $14,000-$16,000 $2,000-$2,500 Software Machine learning systems, automated control systems, networking software More than $16,000 $2,500-$3,000   These figures are just an estimate and should be adjusted for each case. However, as you can see, the main cost is definitely legal fees. Other costs only make up around 20%-30% of the total price.  Here is an example of how your costs might break down for a consumer electronics product, such as a bicycle GPS or Bluetooth headset:  Patenting a consumer electronics product – example Service Price  Patent search with attorney opinion $1,750 Provisional patent preparation and filing $2,500 USPTO provisional filing fee $130 Non-provisional patent filing $6,000 USPTO non-provisional filing fee $800 Professional illustrations $500 Total $11,680   As you can see, the costs can add up quickly. Even a relatively simple invention patent can reach five figures or more. However, the cost of a patent is considerably lower than the costs that might ensue in case of not filing.  How Much Does It Cost To Appeal a Rejected Patent Application? The USPTO won’t always accept your patent, even with the help of lawyers. However, if they reject it, you can still appeal.  Filing a written response costs $2,000-$5,000, and if you want to speak to a USPTO representative face to face, you may have to spend thousands more dollars. There is no guarantee that your appeal will be successful, either, so it’s advisable to speak to an attorney before you proceed.  Patent Maintenance Fees Non-provisional patents are for life, and you don’t need to pay recurring fees to keep them active. However, the USPTO requires inventors to pay periodic maintenance fees for provisional patents.  This breaks down as $980 after three and a half years, $2,480 after seven and a half years, and $4,110 after 11 years. Using this method, some inventors may be able to protect their intellectual property for the product’s entire life if obtaining a full non-provisional patent is not possible.  During this time, you can also make amendments to your invention. These cost $2,200-$3,500 and may help advance your non-provisional application in the sense that the alterations might be sufficient to convince the USPTO that your patent is one of a kind. Furthermore, inventors of any type of patent (including non-provisional) may also be subject to ongoing costs. These include financial services administration fees, post-issuance fees, and extension-of-time fees, which let patents run for longer.  Trademark vs. Patent Cost While trademark filing fees are roughly the same as patent fees – between $225 and $600 – legal costs vary significantly. In general, legal fees will be substantially lower (and sometimes non-existent) when filing for a trademark. It is solely in cases when applicants are challenging the trademark of another brand that they may incur considerable legal fees. Asking the question “how much does it cost to patent a name?” doesn’t make a lot of sense, as trademarks, which are not inventions, cannot become patents. Should You Use a Patent Cost Calculator?  It’s not always clear what the ultimate cost of a patent will be. However, you might be able to get an estimate using a patent cost calculator. It will help evaluate the complexity of the patent and then give you a ballpark figure based on current fees and cost estimates.  Calculators, though, are not a substitute for a professional opinion. Experienced attorneys should be able to tell you both the likely legal and total cost of an invention after reviewing your ideas.  Conclusion So, how much does a patent cost? The price you pay for a patent depends heavily on the type of invention you want to launch on the market and the type of patent you obtain. Other factors that can lead to higher costs include things like the number of similar patents already registered and the size of your business. As a general rule, you should expect to pay a minimum of $5,000 with legal assistance.

Do you have a great business idea but don't have the money to get it off the ground? If so, you should look for an angel investor. So what are angel investors? How does angel investing work, and what are the advantages and potential pitfalls to look out for? We’ll answer all of these questions in the following blog post. We'll even take the time to compare angel investors to venture capitalists to help you make the best decision for your business.  Angel Investor Definition An angel investor is someone who funds a startup company, usually in exchange for convertible debt or ownership equity. Some team up with other investors to form small angel investor groups operating under the umbrella of the Angel Capital Association or ACA. Those who prefer to avoid the commitment of traditional investor groups can join online syndicates instead. Who Can Be an Angel Investor? While anyone who has the money to back a business can be an angel investor, most angels are either accredited investors or sophisticated investors. According to the Securities and Exchange Commission or SEC, an accredited investor is an individual with a net worth of over $1 million in assets, excluding any residences. The other metric used to discern accredited angel investors is that they have to have an annual income of over $200,000 (or $300,000 for couples) for the previous two years. Angel investors do not necessarily come from a financing or business background. They can be lawyers, doctors, accountants, c-level executives, or small business owners who have successfully helped kickstart other companies. How Does Angel Investing Work? When it comes to angel investments, there are a few different ways for the investment process to play out. One of the most common methods is for the angel investor to provide seed money to a business that needs help in the early stages in exchange for convertible debt or ownership equity. In short, angel investors expect sizable returns in the long run. Another angel investing method involves the purchase of equity-backed securities. Investors provide capital to a business in exchange for stock ownership. This type of angel funding is more common with larger businesses that are looking for a more hands-off approach from their investors. Once the angel investor provides the capital, they typically take a back seat in terms of day-to-day operations. Of course, there are always exceptions to this rule, and some angel investors do take an active role in the businesses they invest in. However, most angel investors simply provide the initial funding and let the business owner(s) take it from there. The Pros and Cons of Angel Investors Just like any other type of investment, you need to weigh the pros and cons of angel investments. Let's start with the pros: One of the biggest advantages of working with an angel investor is that they can provide the capital you need to get your business off the ground. This is especially helpful if you don't have sufficient personal funds or you don't qualify for a traditional bank loan. Another advantage is that angel investors are typically more flexible than other types of investors, such as venture capitalists. Some angel investors raise the money through their syndicates or crowdfunding sites. Furthermore, angel investors for startups understand that these are risky investments and often have a long-term approach. Lastly, if you manage to land an angel investor who is an accomplished entrepreneur and willing to actively participate in the growth of your business, you can make use of their network and expertise. Now, let's take a look at some of the cons: The biggest downside to working with an angel investor is that it may require you to surrender a larger portion of your company than you would if you went with another type of investor. This is because angel investing is risky, and the funds are typically provided early on. The return on investment for angels depends on the investment opportunity, but it’s not unusual to see some angel investors expect a 30% ROI. Another downside to working with angel investors is the fact that you’re losing your decision-making powers. This is because some angels will want a seat on the board, or they may want to be involved in major decisions. That’s why an angel investment from someone with expertise in your field is an ideal option. It is not uncommon for angel investors to try to implement unrealistic business decisions, creating a struggle within the company. Where to Find an Angel Investor? There are a few different ways for business startups to find angel investors. One way is to search online directories, such as the Angel Investment Network or Gust. Another way is to attend startup events or pitch your business ideas at the appropriate forums, which can be a great way to meet potential investors. Lastly, you can try going through a business accelerator program, as they typically have a network of angel investors that they work with. All in All There are a lot of things to consider when it comes to angel investments. While they are a great option for startups and small businesses that are struggling with financing, giving up a part of your business in exchange for the funds is not necessarily the wisest decision. Do your research and take your time to find an investor who is a good fit for your company and your business goals. And remember, the most important thing is to have a clear understanding of the terms of the agreement before you accept any funding.

A winning website is undoubtedly one of the greatest assets at any business owner’s disposal. But before you start thinking about the design elements or effective content, it’s important to consider the website hosting cost. There are almost 2 billion websites currently live, and they each need a host. Plenty of options exist on the market, which can be overwhelming for many entrepreneurs. This web hosting comparison guide will provide everything you need to know about the importance of choosing the right host, along with the cost breakdowns that will help you make a calculated decision. What Is Website Hosting? When looking to create a website, you need to claim your little space on the internet so that people can find your business. Web hosting is the perfect way to achieve it. Experts at One.com define web hosting as “an online service that allows you to publish your website files onto the internet,” which essentially means you will rent the necessary data services and infrastructure to build, manage, and maintain your website. With thousands of providers to choose from, hosting costs can vary greatly from one company to the next. While it can be tempting to select the cheapest possible solution, web hosting fees can only deliver value for money if the company provides a reliable service. Here’s why: Websites average no more than three hours of downtime per month. When yours is down due to hosting problems, it’s costing you traffic and sales. Mobile traffic now contributes to 56% of all traffic. So, only a web hosting service that facilitates both desktop and mobile will suffice. Conversion rates fall by 4.4% for every extra second your website takes to load between 0 and 5 seconds. Cybersecurity breaches will probably cost businesses $10.5 billion by 2025, according to predictions. Quality web hosting servers help reduce the risks. Global eCommerce is worth over $5.5 trillion. The right website with the right web host allows you to tap into this lucrative market. Low-cost website hosting remains a popular choice, particularly for new local startups. However, the fact that a strong website can generate online sales and indirectly boost offline sales (81% of people now do their online research before visiting a local store) in the process means that even high website hosting fees are a worthwhile investment. It should also be noted that migrating to another host can cost around $400 while also creating extra hassle. Ideally, you’ll want to make the right choice at the outset.  Navigating the Minefield of Business Website Hosting Costs  There are over 330,000 web host providers worldwide, and the majority will offer a range of services and packages. The different tiers of service may include variables such as: The number of websites you can host under one package Whether the package includes email mailboxes and the domain hosting cost How many databases are included in the package How much digital file storage is available The amount of bandwidth When choosing a web host, you will also want to consider other features like whether you want a simple WordPress website installer or a different type of website builder. Likewise, many web hosts will offer SSL certificates, eCommerce tools, and added items. Sometimes these will be included as standard, while others have them as add-ons. Generally speaking, though, when you look to compare web hosting packages, they fall into five categories. Shared Hosting When running a price comparison for different hosting services, shared hosting is seen as the gateway option. As it’s the cheapest paid plan, the domain and hosting cost for the first year can be under $100. The low costs make it a popular solution for startups. As the name suggests, shared hosting is based on the concept of several websites sharing the resources of a web server. In turn, this can make the website a little less robust and reliable. Given the importance of load times, many businesses will subsequently connect a CDN like Google hosting to their site as it’s an affordable way to obtain faster loading speed. The fact that CDNs can be managed according to GB usage also creates added versatility as the website’s requirements grow. In addition to providing a cost-effective option, shared hosting can be used in conjunction with various website builders, while mailboxes and SSL certificates can be added as well. The website hosting cost will be quite affordable. Some of the most popular providers are: InMotion - shared hosting plans starting from $2.29 per month for two websites and 100 GB SSD storage with additional plans at $4.99/month and $12.99/month over 36-month contracts. Bluehost - shared hosting plans starting at $2.95 per month, including the domain hosting price for one year. Further options cost between $5.45/month and $12.95/month over 12 months. HostGator - shared hosting plans starting from $2.75 per month for one domain and website cost. Additional plans are available at $3.50/month and $5.25/month for unlimited sites. The hosting fee for shared hosting is the main incentive for choosing this type of plan, but it also offers a streamlined approach that allows you to use a simple website builder to get your site online and accessible to your customers in no time. VPS Hosting VPS hosting, or virtual private server hosting, is essentially the same as shared hosting in that your website will share resources with several other websites. However, there are fewer sites connected to the server, while you have a private virtual server that makes it seem as though you have a dedicated server for your site. The average VPS hosting plan will cost more than shared hosting and deliver a better service. Most notably, your site is not likely to be hit by temporary 404 messages and downtime while loading speeds are quicker too. Considering the fact that 88% of consumers won’t return to a website after a subpar experience, the benefits of VPS hosting often justify the slightly higher web host rate.  VPS hosting can be seen as a midway point between shared and dedicated hosting plans, offering some of the benefits of both. We’ve produced a guide to the best VPS hosting solutions, also presenting some of the best ones below: Hostinger - VPS hosting starts at $3.95 per month including a dedicated IP, 1 GB RAM, and 1 TB bandwidth. Eight plans are available, with the most expensive being $77.99/month for 16 GB RAM and 12 TB bandwidth. Kamatera - VPS hosting starts at $4 per month for 5 TB traffic and includes a free 30-day trial. In addition to standard plans at several tiers, a fully customized plan can be designed to meet your exact needs. LiquidWeb - VPS hosting starts from $25 per month for 2 GB RAM. Additional plans are available for up to 16 GB, while users can also choose a monthly contract if they prefer. The use of VPS has gained popularity in recent years with the market showing a CAGR of around 17%. For microbusinesses and SMEs, in particular, it is an attractive prospect indeed. Dedicated Hosting Dedicated hosting is also referred to as dedicated server hosting, and that’s exactly what you get. A dedicated server ensures that your site is blessed with fast loading speeds and almost zero uptime disruptions, especially when a reliable web host is selected. The cost of web hosting will be higher in the long run, but it can be worthwhile. After all, the average online order value in the US is between $100 and $200, depending on the device the shopper uses when making a purchase. Losing sales due to inadequate web functioning as a result of an inferior host or busy shared server is the last thing any business owner wants. Dedicated servers provide full control over resources while you will not be affected by the traffic spikes enjoyed by other websites. You can also ensure that the resources you purchase match the company's needs. Some of the best options are: Hostwinds - dedicated server hosting plans starting at $122 per month. Alongside several standard packages, dedicated hosting can be fully customized with extra RAM, server drives, and RAID. IONOS - dedicated hosting plans starting at $65 per month for dedicated enterprise hardware powered by Intel, Xeon, or AMD processors, as well as API & cloud integration and unlimited traffic. A2 Hosting - dedicated hosting plans starting from $105.99 per month for unmanaged or $155.99 per month for managed services on 24-month plans. Monthly and annual plans are also available. Dedicated hosting is an excellent solution as the web hosting cost per year will still only reach four figures for most SMEs. When weighed up against potential revenue benefits, it’s still great value for money. Cloud Hosting An increasing number of business owners are now looking at VPS hosting vs. cloud hosting price plans. More than simply a place to store files as you do from your smartphone, cloud servers are a group of servers working simultaneously to ensure that your website is up and running at full speed at all times. It’s the fastest-growing sector of web hosting services, which is to be expected, taking into account that cloud computing has become increasingly accessible. The website hosting cost will reflect the fact that there are multiple servers working together as a safety net to ensure that your site is live and performing optimally. Therefore, if you can’t afford downtime or need to feel that you have complete control over your website, this is a fantastic solution that is still cheaper than dedicated hosting. Many of the best web hosting providers now offer cloud-based services, while there are also great deals for new customers as cloud servers are still relatively new. The top cloud hosting options on the market include: Host Armada - cloud hosting plans start from $2.99 per month with SSL certificates, domain hosting cost, and transfer included. Unlimited sites and 40 GB storage cost $5.39/month. DreamHost - cloud hosting services starting at $4.50 per month. DreamHost offers monthly and annual contracts, giving the user full control over the hosting services as well as website management. Cloudways - cloud hosting plans start from $12 per month while also using a pay-as-you-go model that can be adapted to suit your needs and evolve in accord with the requirements of your website. Even though cloud hosting is in its infancy, it has already helped thousands of small business owners by providing adaptable services. Cloud hosting costs aren’t the lowest on the market, but they are well worth the investment.  WordPress Hosting WordPress is the world’s most popular content management system by far and is used to power over 40% of all websites. For an easy, user-friendly website builder, WP hosting is the answer. However, you still need a host to provide a space for your site to reside. The great news is that the average WordPress website hosting cost is quite cheap. Moreover, most of the big host providers deliver easy one-click installations. This means you can start building your business website in a matter of minutes. WordPress hosting is optimized for the platform and can also use shared or dedicated servers depending on the needs of an individual or a business. Most of the major web hosts offer WordPress hosting a range of monthly and annual plans. Given the popularity of WP, it’s no wonder that some of the best hosts in this area are the biggest companies overall. Favorites include: GoDaddy - WordPress hosting services starting at $6.99 per month for one website, 30 GB of storage, and up to 25,000 monthly visitors. Bigger plans are also available, while the GoDaddy website hosting cost includes a domain too. SiteGround - WordPress hosting services priced at $3.99 per month for up to 10 GB of storage and 10,000 monthly visitors. Bigger packages are available and can be part of 12-, 24-, or 36-month plans. WP Engine - WordPress hosting services starting at $20 per month for up to 25,000 monthly visitors on an annual plan. The web host is dedicated solely to WordPress and it certainly shows in the service. All of the WordPress hosting plans allow you to build a website using the popular CMS tools and let business owners choose their theme, layout, and plug-ins. So, What Makes a Great Web Host? Whichever type of hosting plan you opt for (shared hosting, VPS hosting, or other), it’s imperative that you have 100% confidence in the web host - not least because the value of an efficient website keeps increasing every year. North America boasts the greatest number of providers and also takes a 27% share in global domain registrations. When choosing a web host service, you should consider the following aspects to make the right decision: Does the web host provide the type (cloud, VPS, etc.) of web hosting that you want? Are multiple plans, or even tailored plans, made available by the web hosting company? Does the web host have a solid track record for solving customer support issues through live chat, VoIP, and other tools? Will the web host provide additional services (domains, cybersecurity) at a good price? Can the plans evolve alongside your changing requirements as a business owner without facing penalties? Ultimately, a great web host is one that provides a professional and reliable service that gives you maximum uptime and peace of mind at a fair price. For most website owners, it is preferential to work with a website host that has operated for several years - although plenty of good newer hosts do exist. Additional Tips To Bring Down the Cost of Your Web Hosting Services In the grand scheme of things, a few extra dollars for your web hosting services definitely go a long way. After all, compared to renting a brick-and-mortar store, this overhead is likely to be quite small. Nonetheless, you should still seek value for money (without compromising on quality), not least because the savings can be invested in other parts of the business.  Here are 10 quick tips that will help you keep your website hosting rates to a manageable level: Opt for a longer hosting plan. A 12, 24, or 36-month plan will offer a significant discount compared to a monthly fee. Choose the right web host on the first attempt, as switching can cost you a few hundred dollars. Where possible, bundle domains, email inboxes, and other related services. But get rid of any services that you won’t use or already have in-house teams for, such as SEO. If choosing a flexible plan, start with the lowest option right now - at least during the website building phase. Get smart with optimized images and cache static pages to keep storage requirements down. Look for free incentives like Google Ads vouchers that can give you extra value for money in the long run. Speak to the company’s advisor to see what package they can build around your needs, but avoid their upselling strategies. Know the customer support lines. Calling premium toll numbers could cost you a fortune compared to free web support. Finally, look online for discount codes or consider waiting for the next big sale like Black Friday or summer sales. The Final Word on the Cost of Website Hosting Ultimately, the website hosting cost is merely another expense that doesn’t increase your overall outgoings by a significant amount. With the right host provider behind your brand, it’s one of the most valuable investments you’ll ever make. Nonetheless, you should seek the best hosting rates to satisfy your immediate requirements while maintaining the flexibility to upscale or evolve as the business grows. Choose the best web hosting for your needs, and the World Wide Web will be your oyster.