IP Related Schemes for Startups and SMEs

1. Scheme for Start-up Intellectual Property Protection (a.k.a Startup India):

Eligibility Criteria:

Any business entity registered in India, which is less than FIVE years old, whose annual turnover is less than Rs. 25 Cr in any of the preceding financial year, which is “working towards innovation, development, deployment or commercialization of new products, processes or service driven by technology or intellectual property”, certified by the Startup Promotion Board can avail the benefits under this scheme.

Benefits relating Intellectual Property:

• Fast track examination of Patents and disposal.
• Setting up a panel of “Facilitators” who will advise on different Intellectual Property Rights (filing of patent, trademark and design registration etc.) and also provide advice on promoting and protection of IPRs in overseas jurisdictions. Such Facilitators will also provide end-to-end advisory from making applications till the stage of final disposal of the IPR application.
• The Government will bear the cost of such Facilitators and the Startups shall bear only the cost of the applicable statutory fees.
• A rebate of 80% on patent filing fees vis-à-vis other companies.

2. Support International Patent Protection in Electronics and IT (SIP-EIT) – A scheme to support International patent Protection by SMEs and Technology Start up Units.

Eligibility Criteria:

• Registered Indian Micro, Small and Medium enterprises.
• Enterprises engaged in the manufacture or production of goods where the investment in plant and machinery does not exceed Rs.10 Cr.

or

• Providing or rendering of services the scheme will be restricted to enterprises where the investment in plant and machinery does not exceed Rs.5 Cr.
• In-house R&D Certification by DSIR

or

• Technology Incubation enterprises registered as companies with support under some government scheme

Benefits:

Up to 50% of the total patent cost. The support will be in form of reimbursement of expenses in actual to the applicant. Support will be limited to Rs.15 lakhs or 50% of the total expenses incurred on filing each invention whichever is less.

All patent processing costs including Attorneys’ Fees, Patent Office filing fees, Examination Fees, Patent Search cost, Additional cost for entering National Phase up to grant/issue. Subsequently after the grant, the cost will be borne by the industry.

3. Intellectual Property Initiatives to Drive Make In India

Benefits:

• 10% rebate (refund) on online filing.
• 50 % fee reduction has been provided for MSMEs (Micro, Small and Medium Enterprises).

4. State of Karnataka – Incentives for Technology Upgrade, Quality Certification and Patent Registration under Electronic System Design and Manufacturing (ESDM) Policy 2013

 “ESDM” shall mean Electronics System Design and Manufacturing which includes, but not be restricted to, Electronics Hardware design and manufacturing (which shall include embedded software) for IT, Telecommunications, Defense, Medical, Industrial, Automotive, Consumer Products, applications and components, parts, and accessories required for the aforesaid products and applications.

 The Government(State of Karnataka) shall reimburse up to 50% of the actual costs (including filing fees, attorney fees, search fees, maintenance fees) with a maximum of Rs. 1,00,000 for filing a domestic patent and up to Rs. 5,00,000 for filing an international patent.

This reimbursement shall be payable 75% after the patent is filed and the balance 25% after the patent has been granted. The patent filing incentives provided by Government of Karnataka shall be in addition to any existing scheme of Govt. of India.

5. State of Tamil Nadu is also running similar scheme, wherein the state Government will provide 50% on the rebate on cost of filing Patent Registration application, maximum of Rs. 2 lakhs. New & existing manufacturing Micro, Small and Medium Enterprises can avail the benefits of this scheme.
6. State of Gujarat offers up to 75% subsidy under Scheme 6 of New Industrial Policy 2015 for MSMEs. This can be claimed by both individual and legal entities.
7. Other MSME Scheme:

            Benefits:

• Registered Indian MSME will be provided one-time financial support limited up to 25,000 for on grant of domestic patent and Rs. 2 lakh for foreign patent. For registering under Geographical Indications of Goods Act, one time financial support will be limited up to Rs.1 lakh.
• Government of India will provide a total financial support up to 65.00 lakh each for establishing IP facilitation centers, which will include one-time grant of Rs.45.00 lakh and Rs.18.00 lakh as recurring expenses for 3 years, Rs. 2 lakhs will be provided as miscellaneous charges.

Eligibility Criteria:

• Registered MSME Units.
• MSME organisations – like industry association, societies, cooperatives, firms, trusts, NGOs, institutions and universities with a track record of assisting MSMEs.
• Competent agencies – like consultancy organisations, research institutes, individual experts or agencies having sound technical and financial capabilities to conduct pilot studies with at least five years of previous experience.
• Expert agencies – like TIFAC, Patent Facilitation Centre, NRDC, Indian Patent Office, Registrar of Trademark, Registrar of Geographical Indication, D.B.T., Registrar of Copyright, MoHRD, NIIPM, IITs,Law Schools, Patent Attorneys, individual IPR expert, WIPO, EU-TIDP, USPTO, KIPO/KIPA, IIFT, DIT, MoEF, Ministry of MSME, DSIR and other such bodies.
• Quasi-Government or Government Aided bodies.
• Private units provided it is sponsored by MSME.
• Industry Associations.

Authored by Anantha

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