Fourth-quarter patent annuity invoices are only a couple of weeks away! There’s been a lot going on in the world since you received your Q3 invoices at the end of May, so we thought we’d give you a preview of how currency fluctuations could impact your Q4 invoice.
The standard disclaimers are in order: Q4 patent annuity invoices are still a couple of weeks away, and aliens could invade the Earth and wreck the currency markets, so none of this is guaranteed.
Paying International Patent Annuity Fees in USD?
US-based IP owners with patents in Europe or the UK should expect a modest increase in currency costs due to a weakening dollar. What’s a modest increase, you ask?
If you had a million Euros of European patent annuities due in Q3, you would have paid 1.069 million US dollars (before currency costs and service fees). That same million Euros of patent annuities now costs you 1.089 million dollars, an increase of about USD 19.5k
If you had a million GBP of UK patent annuities in Q3, you would have paid 1.245 million US dollars (before currency costs and service fees). That same million GBP of annuities now costs you 1.273 million dollars, an increase of about USD 29k
Paying International Patent Annuity Fees in EUR?
European IP owners with patents in the US or the UK should expect a bit of good news and a bit of bad news. The weakening US Dollar will make US patent annuities less expensive, but a strengthening British pound will increase EU costs slightly.
If you had a million US dollars worth of United States patent annuities in Q3, you would have paid .935 million Euros (before currency costs and service fees). That same million USD of annuities now costs you .918 million Euros, a decrease of about EUR 17k.
If you had a million GBP of UK patent annuities in Q3, you would have paid 1.164 million Euros (before currency costs and service fees). That same million GBP of annuities now costs you 1.17 million EUR, an increase of about EUR 6k.
Paying International Patent Annuity Fees in GBP?
Winner winner, chicken dinner
British IP owners with US or EU patents should expect good news. The strengthening of the British Pound should result in lower costs for both US and EU patent annuity payments (all else being equal).
If you had a million US dollars worth of United States patent annuities in Q3, you would have paid .804 million GBP (before currency costs and service fees). That same million USD of annuities now costs you .786 million GBP, a decrease of about GBP 18k.
If you had a million EUR of EU patent annuities in Q3, you would have paid .859 million GBP (before currency costs and service fees). That same million EUR of annuities now costs you .855 million GBP, a decrease of about GBP 4k.
How Can You Use This Data?
You can’t change the currency markets (if you could, you wouldn’t be reading this post), but knowing the currency trends is essential, even for IP professionals. If you are in the US, you should expect a slight increase for comparable payments, but if you see a significant increase, it’s probably worth a deeper dive.
Similarly, if you are in Europe or the UK and you see increased costs for your US payments, it’s time for a discussion with your annuity provider.
We can’t protect you from aliens, but hopefully, you are ready for Q4 now!
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