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Simple English definitions for legal terms
maintenance fee
Read a random definition: court of chancery
A quick definition of maintenance fee:
MAINTENANCE FEE: A fee that needs to be paid regularly to keep something in good condition or to maintain a privilege. It can be a charge for keeping a property habitable, reinvesting earnings in mutual funds, or to keep a patent in force. For example, if you want to keep your patent, you need to pay a maintenance fee to the U.S. Patent and Trademark Office every 3 1/2, 7, and 11 1/2 years from the date the patent is issued.
A more thorough explanation:
A maintenance fee is a periodic payment that is required to keep something in good condition or to maintain a privilege. Here are some examples:
- License fee: Some licenses require a maintenance fee to keep them valid. For example, a driver's license may require a fee to be paid every few years to keep it active.
- Property fee: Homeowners may be required to pay a maintenance fee to keep their property in good condition. This fee may cover things like landscaping, repairs, and upkeep of common areas.
- Mutual fund fee: Some mutual funds charge a maintenance fee to cover the cost of reinvesting earnings and dividends.
- Patent fee: Patent holders must pay a maintenance fee to keep their patent in force. These fees are due at specific intervals after the patent is issued.
These examples illustrate how a maintenance fee is a payment that is required to keep something in good condition or to maintain a privilege. Without these fees, licenses may expire, properties may fall into disrepair, mutual funds may not be able to reinvest earnings, and patents may become invalid.