Rules and Regulations for the Invention Incentive Program

A.These rules and regulations (the “Rules”) are promulgated to set forth the principles, policies, and practices of the Rhode Island Commerce Corporation (the “Corporation”) in implementing and administering the Invention Incentive program created under R.I. Gen. Laws Chapter 42-64.28, the Innovation Initiative act (the “Act”).

A.These Rules are promulgated pursuant to R.I. Gen. Laws Chapter 42-64.28. These Rules have been prepared in accordance with the requirements of the Rhode Island Administrative Procedures Act, R.I. Gen. Laws Chapter 42-35.

A.These Rules shall apply to any application received by the Corporation for an Invention Incentive under the Act. Notwithstanding anything contained in these Rules to the contrary, the Corporation shall have and may exercise all general powers set forth in the Act that are necessary or convenient to effect its purposes and these Rules shall be liberally construed so as to permit the Corporation to effectuate the purposes of the Act and other applicable state laws and regulations. The Corporation, upon an affirmative vote of its board of directors, may provide exemption from the application of such portion of these Rules as may be warranted by extenuating circumstances arising from such application, based upon the written recommendation of the staff of the Corporation delineating the reasons for such exemption. An applicant seeking an exemption under this provision must demonstrate extenuating circumstances by showing either

1.that the application of a component of these Rules is inconsistent with a requirement of federal, state, or local law; or

2.that the application of a component of these Rules is not feasible or appropriate for the given project type.

B.Under no circumstances will lack of time or ability be deemed extenuating circumstances. The Corporation will only grant such exemptions as it determines are authorized by law and consistent with the safeguarding of public funds. The Corporation shall have no obligation to grant an exemption in any case, even if extenuating circumstances exist.

A.If any provision of these Rules, or the application thereof to any person or circumstance, is held invalid by a court of competent jurisdiction, the validity of the remainder of the Rules shall not be affected thereby.

A.The following words and terms, when used in these Rules, shall have the following meanings, unless the context clearly indicates otherwise.

1.“Act” means R.I. Gen. Laws Chapter 42-64.28, known as the Innovation Initiative.

2.“Applicant” means a small business or individual(s) that applies for an Invention Incentive under the Act and these Rules.

3.“Application” means the application, created by the Corporation, which must be completed and submitted by an Applicant pursuant to the requirements of the Act and these Rules.

4.“Business” means a corporation, partnership, S corporation, non-profit corporation, sole proprietorship, limited liability corporation or such other entity as approved by the Corporation in its discretion.

5.“Corporation” means the Rhode Island Commerce Corporation established pursuant to R.I. Gen. Laws Chapter 42-64.

6.“Employee” means a natural person who is employed in the State by a business for consideration for at least thirty-five (35) hours a week, or who is employed in the State by a professional employer organization pursuant to an employee leasing agreement between the Business and the professional employer organization for at least thirty-five (35) hours a week, and whose wages are subject to withholding.

7.“Grant” means a monetary award to an Applicant from the Corporation granted under the Act and these Rules.

8.“Individual” means any resident of the State of Rhode Island.

9.“Invention” means any invention or discovery which is or may be patentable or otherwise protectable under 35 U.S.C. § 100.

10.“Invention incentive” means a grant award in the form of reimbursement for allowable expenses incurred by an eligible Business or Individual in connection with the submission of a patent application to the United States Patent and Trademark Office (USPTO) up to five thousand dollars ($5,000).

11.“Inventor” means an Individual or, if a joint invention, the Individuals collectively, who invented or discovered the subject matter of the invention submitted for patent via application to the USPTO and are residents of Rhode Island.

12.“Micro entity” means any Applicant that qualifies for micro entity status with the United States Patent and Trademark Office under 37 C.F.R 1.29(a).

13. “Nonprovisional patent” means a nonprovisional application filed with USPTO, examined by a patent examiner, and issued as a patent if all requirements for patentability are met in accordance with 35 U.S.C and 37 C.F.R.

14.“Patent application” means filing a provisional or nonprovisional patent application with the USPTO.

15.“Provisional patent” means a patent application filed without a formal patent claim, oath or declaration, or any information disclosure statement to the USPTO in accordance with 35 U.S.C. § 111(b).

16.“Registered patent practitioner” means a patent attorney or patent agent registered with the USPTO and located in Rhode Island.

17.“Small business” means a Business that is resident in the State, has a business facility within the State, and has five hundred (500) or fewer Employees.

18.“State” means the State of Rhode Island. 

A.An Applicant can receive a reimbursement award of up to $5,000 for the costs of any of the following services or activities:

1.all fees collected by the USPTO associated with a submitted Patent Application;

2.preparation costs to submitting a patent application, including hiring a registered patent practitioner to assist in submitting the patent application.

B. An Applicant may not receive more than one Invention Incentive award.

C.Invention Incentives cannot be used for any other expenses.

A.The following conditions must be met for an Applicant to be eligible for an Invention Incentive under the Act:

1.the Applicant must be an Inventor, or;

2.the Applicant must be a Small Business, that is:

a.registered to do business in the State, and;

b.has at least fifty-one percent (51%) of its employees located in the State.

A.The Applicant shall file an Application in the form prescribed by the Corporation and available on the Corporation’s website. The Application shall require, at a minimum, that the Applicant provide the following information:

1.the name of the Applicant and contact information for the individual(s) primarily responsible for oversight and management of the Application;

2.the Applicant’s federal and State tax identification numbers;

3.the Applicant’s total number of Employees as well as number of employees in State, if applicable;

4.the requested Invention Incentive amount;

5.a description of the invention for which the Applicant is seeking a patent;

6.a copy of the receipt or documentation of paid patent application fees to the USPTO;

7. a copy of the established micro entity status from USPTO, if applicable;

8.a copy of the invoice for paid services to a registered patent practitioner, attorney or agent to draft and prosecute a patent application;

9. a copy of the Applicant’s USPTO Submission Receipt and USPTO Payment Receipt;

10. proof that the Applicant’s Registered Patent Practitioner is located in Rhode Island;

11.a delineation of any other federal, State, or municipal incentives, grants, tax credits, or other aid that will or may be received or requested by the Applicant in relation to the invention being patented;

12. the relevant industry the Applicant’s patent invention will support;

13.and such other information as the Corporation deems appropriate. 

A.Each Application shall be reviewed to confirm compliance with the Act and these Rules, and the Corporation may reject any incomplete or deficient Application.

B.The Corporation may require the submission of additional information in connection with any Application or the revision of an Application and may permit the resubmission of an Application rejected as being incomplete or deficient.

C.After submission of a complete Application and review by the Corporation in accordance with the requirements of the Act and these Rules, the Corporation will determine whether to award an Invention Incentive to the Applicant.

D.If the Corporation determines that it will not approve an Invention Incentive for an Applicant, it shall notify the Applicant in writing of such decision.

E.The Corporation may set periodic Application deadlines that will be published on the Corporation’s web site from time to time.

A.Upon approval of an Invention Incentive for an Applicant, the Corporation and the Applicant will enter into an Invention Incentive Agreement. The Corporation in its sole discretion may cancel an approval if mutually agreeable terms cannot be met within 30 days of notification of the approval.

B.In order to safeguard the expenditure of public funds and ensure that the disbursement of funds further the objectives of the Act, the Invention Incentive Agreement shall include, among others, the following terms:

1.the Invention Incentive award amount;

2.a description of the invention patented;

3.a copy of the documentation of patent application fees and/or fees paid to registered patent practitioners for services rendered in the submission of a patent application to the USPTO;

4. proof the patent application was submitted to the USPTO.

A.In the event that any information provided by the Applicant in its Application is found to be willfully false, the Corporation shall deny the issuance of or revoke any Invention Incentive in whole or in part, which revocation shall be in addition to any other criminal or civil penalties that the Applicant and/or the relevant officials of the Applicant may be subject to under applicable law.

B.The Corporation shall deny the issuance of or revoke any Invention Incentive if an Applicant or its successor-in-interest is convicted of bribery, fraud, theft, embezzlement, misappropriation, and/or extortion involving the State, any state agency or political subdivision of the state.

C.The Corporation may provide for additional rights and remedies in any Invention Incentive Agreement, which will be in addition to the rights provided under this Rule.

A.The Corporation shall not have any obligation to issue any award or grant any benefits under the Act or these Rules and may decline to grant Invention Incentives to any Applicant, including those who have submitted a completed Application that meets the eligibility requirements of § 7.7 of this Part.

B.A review of an Application shall not constitute a “contested case” under the Administrative Procedures Act, R.I. Gen. Laws § 42-35-9 , and no opportunity to object to an Application shall be afforded, nor shall judicial review be available from a decision rendered by the Corporation in connection with any Application.

A.The Corporation may examine any books, paper, records or memoranda bearing upon the approval of incentives awarded under the Act, and may require the attendance of any person executing any Application, report or other statement, or of any officer or employee of any taxpayer, or the attendance of any other person, and may examine such person under oath respecting any matter which the Corporation deems pertinent or material in determining eligibility for incentives claimed under the Act.

A.The Corporation shall have the right at reasonable times to make an inspection and to enter upon any property that is the subject of an Application during the term of an Incentive Agreement to verify compliance with the Act, the Rules and such other conditions imposed by the Corporation.