Summary
This post examines the financial challenges faced by inventors and small to medium enterprises in protecting and commercializing intellectual property in India. It highlights the impact of recent fee changes on IP-related costs and discusses available funding options, including investor support and government grants. A detailed overview of the Department of Scientific & Industrial Research’s initiatives, such as grants for prototype development and the PACE scheme, is provided. The article also outlines the eligibility criteria, grant amounts, and repayment terms associated with these schemes. The objective is to inform inventors and organizations about viable avenues for obtaining financial assistance for IP development.
Funding Options for Inventors and Small Enterprises
The path from an initial idea to a commercialised product requires investment at every stage, from early research and development through to the protection and exploitation of intellectual property. For individual inventors and small to medium scale organisations, the costs involved in converting an invention into a protectable and commercially viable product can be considerable. The cost of obtaining IP protection is often comparable to the cost of developing and refining the underlying concept.
Recent changes to filing, prosecution, and maintenance fees in jurisdictions including India, the United States, Europe, and elsewhere have added to the financial burden faced by smaller entities. Several government bodies and government-funded organisations in India offer grants and loans that can assist inventors and small organisations at various stages of the innovation and protection process. The following is an overview of one such scheme.
Department of Scientific & Industrial Research (DSIR)
The Department of Scientific & Industrial Research (DSIR) was established in 1985 with the objective of promoting indigenous technology research and facilitating the development, utilisation, and transfer of technology through incentives and other measures. The Department assists a broad range of Indian individuals, including artisans, technicians, engineering and medical professionals, scientists, housewives, students and those engaged in farming, as well as organisations involved in technology development, start-ups holding protected or licensed IP, and research and development institutions. Special programmes are also available to encourage women innovators.
Grants provided through DSIR schemes cover the following activities:
- Creating a laboratory or computer model of an invention;
- Converting an invention into a working prototype;
- Value-added work such as refining product features, obtaining patent protection, and aesthetic design;
- Enhancing product features, IP protection, and limited production for test marketing; and
- Promoting international technology transfer and trade, including exports of technologies, projects, services, and technology-intensive products.
These grants vary from INR 75,000 up to INR 1 crore.
PACE Scheme
DSIR had, at the time of publication, invited proposals under its Patent Acquisition and Collaborative Research and Technology Development (PACE) scheme. The scheme provides financial assistance for the acquisition, protection, and exploitation of intellectual property to Indian profit-making industries that have been in operation for at least three full financial periods, for IP protection in India and in territories outside India, including under the PCT, at the USPTO, the EPO, and in Japan, Australia, China, and Korea. Assistance under the PACE scheme is provided on a loan basis of up to 50 per cent of the project value, repayable in five equal instalments after one year from completion or commercialisation of the project, whichever occurs first. The deadline for the submission of proposals under this scheme was the 30th of April, 2014.
Disclaimer: This article is for general information and does not constitute legal advice. Readers should consult a qualified attorney before acting on any matter discussed here.