What penalty fee is associated with paper filing under the AIA?

The penalty fee for paper filing under the America Invents Act (AIA) is indeed $200 for small entities and $400 for large entities. This fee structure was implemented to incentivize applicants to use electronic filing methods, which are more efficient for both the U.S. Patent and Trademark Office (USPTO) and applicants themselves.

By imposing this penalty fee for paper filing, the USPTO aims to streamline the processing of applications and reduce the administrative burden associated with handling physical documents. The fee structure reflects the office's push toward modernization and digitization in patent application processes.

In this context, the other choices do not align with the established penalty fee schedule, which confirms that the correct answer is based on the direct and explicit guidelines provided in the MPEP regarding filing fees associated with the AIA.