How Patent Term Adjustments and Extensions Work

Securing a patent is an important milestone, but importantly, patents don’t last forever. In the U.S., the standard term for a utility patent is twenty years from the date of filing, but the reality is rarely that straightforward. Because the patent examination process can be long and complicated, the law allows for patent term adjustments and extensions to ensure that inventors receive the full benefit of their rights. Continue reading and reach out to Lemler IP to speak with a knowledgeable New Orleans, Louisiana patent lawyer to learn more about patent term adjustments and extensions.

What are patent term adjustments (PTA)?

A patent term adjustment, often simply called a PTA, exists to compensate patent holders for delays that occur at the United States Patent and Trademark Office during the examination process. The law recognizes that applicants shouldn’t lose valuable time simply because the agency took too long to review the application.

For example, if the USPTO fails to issue an office action or a response within specific deadlines, those days can be added to the life of the patent. The adjustment is calculated by tracking various categories of delay, which are sometimes called “A delays,” “B delays,” and “C delays.”

Simply put, each of these categories reflects different kinds of administrative holdups, ranging from missing deadlines to delays caused by appeals or interference proceedings.

What are patent term extensions (PTE)?

While adjustments deal with the examination process, extensions, on the other hand, are designed to address regulatory review delays, particularly in industries like pharmaceuticals, biotech, and medical devices. Patent Term Extensions are also known as PTEs. When a company develops a new drug or treatment, the FDA approval process can take many years, often consuming a large portion of the patent’s twenty-year lifespan. To balance this, the Hatch-Waxman Act sets the framework for patent term extensions.

A qualifying patent may receive up to five additional years of protection, although the total effective patent life after FDA approval cannot exceed fourteen years. This ensures that innovators are not denied meaningful market exclusivity simply because regulatory agencies must conduct rigorous testing to protect public health.

Ultimately, for innovators in a wide range of fields, whether in energy, healthcare, or advanced manufacturing, the length of patent protection can directly impact profitability. Losing years of exclusivity can potentially mean millions of dollars in lost revenue, especially if competitors are ready to enter the market once the patent expires.

If you have additional questions or would like assistance in maximizing the lifespan of your patent, Lemler IP is here to help. Contact a dedicated New Orleans intellectual property lawyer for an initial consultation today.