Small entity status in Canada, permitting one to pay patent fees at a reduced rate, encompasses a much more limited group of entities than in the United States and, in fact, it is quite difficult for any business to qualify for this status. A decision of the Federal Trial Court now makes it dangerous to make a claim for small entity status unless one is sure that, at the time of making a payment at the reduced rate, the patent applicant or owner properly qualifies for the reduction. In Dutch Industries Ltd. v. Canada (Commissioner of Patents), the court held that, contrary to the previous practice, the Commissioner had no power to permit correction of an error in the payment of a fee at the wrong rate. According to the court, payment of a fee at a small entity rate if the fee should properly have been paid at a higher rate resulted in abandonment of the application or patent in respect of which the payment was made. Canada has a provision for revival of abandoned applications within one year of their abandonment. Patents or applications in respect of which the wrong fees had been paid could be revived within this period; however, after the revival period had expired, the right in question was itself irretrievably lost.

It is understood that an appeal has been filed.