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Quoted a Flat Fee for a Trademark Filing? The Questions That Show What It Covers

A single trademark application, quoted three different ways, shows how hourly and fixed fees came to coexist and which questions reveal what a number actually includes.

Three printed fee quotation letters spread across a desk beside a product package showing a brand name, with a pen resting on one of them
Three printed fee quotation letters spread across a desk beside a product package showing a brand name, with a pen resting on one of them

A small manufacturer wants to register the name on its packaging. Three firms return three numbers: one flat fee per class of goods, one hourly estimate with a range, and one flat fee that is noticeably lower than the others and stops at a point the letter does not describe in plain terms. All three are honest quotes. They are also answers to slightly different questions, which is the difficulty, and the way through it is not to guess at value but to establish where each number ends. That boundary is knowable, and it is knowable before you sign.

Where the hour came from, and why it did not always exist

Billing by time is younger than most people assume. For much of the twentieth century, American bar associations published minimum fee schedules: recommended charges for a deed, a will, a title search, an incorporation, set by the county or state bar and enforced through the threat of discipline. Lawyers priced the task, not the clock. Reginald Heber Smith, at a Boston firm in the 1940s, popularized systematic timekeeping as a management tool, a way to see which work paid and which did not, and by the late 1960s the recorded hour had migrated from the back office to the invoice.

The schedules ended abruptly. In Goldfarb v. Virginia State Bar, decided in 1975, the Supreme Court held that a bar association minimum fee schedule was price fixing subject to the antitrust laws, and the published tables came down across the country. What replaced them, in the absence of any agreed reference price for a task, was the one unit every firm could measure and defend: the hour. Flat fees never disappeared, but they retreated to work that repeats often enough for a firm to know its own cost. Trademark filings are exactly that kind of work, which is why they are quoted both ways today.

One application, three shapes of price

A federal trademark application is a genuinely bounded piece of work at its core. Someone clears the mark against existing registrations and common law uses, picks the classes of goods or services, drafts the identification, collects a specimen showing the mark in use, and files. The United States Patent and Trademark Office administers the register and sets the government filing fee, which is charged per class and is separate from anything the lawyer bills. A quote that does not separate the government fee from the professional fee is the first thing to send back for clarification, because two numbers added together conceal which half is negotiable.

The unbounded part sits after filing. An examining attorney may issue an office action raising a refusal, a likelihood of confusion with an earlier mark, a merely descriptive objection, a request to amend the identification of goods. Responding takes research and drafting, and nobody knows in advance whether it will take two hours or twenty. That is why the low flat fee is low. It usually prices the filing and nothing after it. The higher flat fee often includes a first response of ordinary complexity, and the hourly estimate prices the whole arc with a range around it.

The questions, and what a weak answer sounds like

Ask what specifically is included up to the filing receipt, and ask for the clearance search to be described: whether it covers the federal register only, or state registrations and unregistered commercial uses as well. Ask what happens if an office action arrives, at what rate, and whether there is a cap. Ask who does the work, because a flat fee absorbed by a partner and a flat fee delegated to a paralegal with partner review are the same price for different things. Ask what a second class of goods adds, in both government fee and professional fee.

A strong answer names a scope boundary and a number on each side of it. A weak answer generalizes: most applications go through without issue, we will keep you posted, it depends on the situation. It may be true that most go through. It is not a price. The other poor answer is the one that treats the question as distrust, because a firm that files these routinely knows its own average and can say so without discomfort. Get the scope description in the engagement letter rather than the email, and read the paragraph on what triggers hourly billing.

Choosing between them once the boundary is visible

With the boundary drawn, the choice becomes a straightforward judgment about your own mark. A coined word used in one narrow class, with a clean search, is predictable work, and the flat fee transfers a small risk for a small premium, which is a fair trade and simpler to budget. A mark that is suggestive of the product, or that shares a root with three live registrations in adjacent classes, is likely to draw an office action, and there the hourly arrangement with a written estimate and a check-in threshold usually costs less than a flat fee priced to survive that same outcome.

The same reasoning transfers to almost any professional engagement quoted both ways: the fixed price is sound where the work repeats and the variance is small, and the hour is honest where it is not. What you are buying with the questions is not a lower number. It is the ability to compare two numbers that are actually measuring the same span of work.

Put the three quotes side by side and write, next to each, the event that ends it. If two of them end at the filing receipt and one ends at registration, the cheapest is not the cheapest, and the conversation you need to have is with the firm whose letter says least.

Leonard Abernathy

Leonard writes about what to ask, and how to hear a bad answer.

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