3 mins read
Startups are entitled to certain benefits when they apply for patents in India. The Department for Promotion of Industry and Internal Trade (DPIIT), which is a part of the Government of India, manages the Startups Intellectual Property Protection (SIPP) scheme. This scheme provides startups with an 80% discount on patent filing fees and also provides a facilitator Patent agent who facilitates the Startup throughout the process. Moreover, startups can expedite the review process of their patent applications, which helps to reduce the time taken to grant the patents. As per the 2023 Intellectual Property of India office (IPO) annual report, there has been an upward trend (approx. 131% increase) in the number of Patent filings by Startup applicants.
Government fee Applicable to Startups
· Discounted Patent Filing Fee (30 Pages and 10 Claims): Rs. 1600
· Discounted Early Publication and Expedited Examination Fee: Rs.10,500
Please note that as a Patent Facilitator, we will assist you throughout the process of Patent registration starting from Patent Search, Drafting, Filing, Publication, Examination, Hearing and finally the disposal of the Patent application. Our fee will be paid up by DPIIT on behalf of the startup.
It is the success of Govt. of India that more than 1.4 lakh Startups (as of June 2024) have registered under Startup India scheme, managed by DPIIT. However, it could be a little confusing for a Startup founder to navigate through the benefits of the scheme and avail them. There are various reasons why founders register under the scheme e.g. funding, incubation, tax benefits, awards, regulatory support etc. In this blog, I will introduce you how you could avail the benefits offered under the scheme for the registration of Patent, Trademarks and Designs (IPRs).
What is SIPP scheme?
In 2016, a sub-scheme for IPR facilitation was launched under the main scheme (startupindia) which is called as Startups Intellectual Property Protection (SIPP) scheme. This was envisaged to facilitate protection of Patents, Trademark and Designs of innovative and interested Startups. Currently this scheme is valid until FY 2025-26. Under this scheme DPIIT has empanelled around 2200 Patent and Trademark Attorneys (called as IP Mitras). The role of IP Mitra is to facilitate and represent the recognized Startup in the IPR registration journey. The catch here is that instead of the Startup, the administrator of the scheme (DPIIT) pays the charges of the IP mitra.
Why Startups need IPR protection?
Trademarks
Startups have limited assets and their own name or the name of their Product/Solution is one of the first assets they create. It is not easy to coin a non-conflicting name these days and many Startups don’t realize that they have either coined a name that is too descriptive (of what they do) or confusingly similar to some other registered brand name. This leads to a frustrating situation wherein the priceless resources of entrepreneurs are drained down the line when they realize that the name of the Startup itself is non registrable or is someone else’s property. These are some of the problem statements of Startups that we as Trademark Lawyers have heard in the past 6 months:
· My brand name is being used by someone else in their domain name/ play store / social media handle or e-commerce platform
· I have received an email from XYZ that I can no longer use my brand name as it belongs to them in the first place
· My Trademark Application is refused or opposed
· I have received a Notice from XYZ that I should stop using my Brand Name as it is causing a confusion with customers of the XYZ
If you are a startup and you are facing above mentioned challenges, you are required to look into your Trademark Strategy. Many startups fail to appreciate a “Trademark Strategy” early in the business lifecycle and end up losing rights over the goodwill that they have created with their brand name. There are many others who do not understand the Legal logic of strong and weak trademarks and end up coining a name that describe their business itself.
As a Start-up recognized by DPIIT, you are entitled for Professional support by DPIIT for registration of their Trademarks. What that means is your Trademark Lawyer’s fee (IP mitra) will paid out by DPIIT.
Fee: Government Fee Payable for registering One Trademark in One Class: is Rs. 4500 per mark per class (inclusive of 50% discount applicable to Startups, the actual fee is Rs. 9000) and Rs. 550 towards Stamp duty on the Power of Attorney
Designs
Similarly, several product-based startups, design their product(s) that are qualified through several stages of product designing lifecycle. A lot of detailing goes in to materials, shape and configuration and the packaging of these products. These products or prototypes are often displayed and showcased to customers, potential partners or investors and remain at risk of being copied. It is to prevent this very likelihood that India has enacted The Designs Act of 2000. The startups can approach IP mitra who will guide them through the various stages of Design registration.
Fee: The government fee for registering a design application is Rs. 1000, and Rs. 550 towards Stamp duty on the Power of Attorney. Once registered the Design Certificate is valid for 10 years.
Patents
If you have a startup that is engaged in something innovative and you believe that your idea is new, inventive and can be applied in any industry, you must apply for a Patent for the same. There are several stages in the Patent Grant process. IP mitra will help you in Drafting, Filing, Prosecuting the Patent application. This generally takes about 3-5 years; however, the process can be expedited for Startups and can be completed within a year.
Fee: The government fee for registering a Patent application on expedited basis is Rs. 12650 (Breakup Rs. 1600 Filing Fee + Rs. 2500 Early Publication + Rs. 8000 for Expedited Examination and Rs. 550 towards Stamp duty on the Power of Attorney). Once registered the Patent right is valid for 20 years and requires an annual renewal.
Who we are?
We are a law firm with 60 Associates (which also includes multiple facilitators) based in Pune and we are one of the leading IPR facilitators appointed by DPIIT to support Start-ups in Patent, Design and Trademark registration proceedings. Mr. Priyank Gupta, our Managing Partner is IP mitra empanelled with SIPP scheme. We are actively helping Startups under this scheme since 2016 and we have facilitated over 800 Startups in their IP registration journey.
How do we get Paid?
For assisting every new Startup, DPIIT pays us the following Professional fees:
Trademarks: Rs. 3000 after filing and another Rs. 5000 after registration of the Trademark.
· Designs: Rs. 3000 after filing and another Rs. 5000 after registration of the Design.
· Patent: Rs. 15000 after filing and another Rs. 25000 after disposal of the Patent.
We have so far filed more than 100+ Patents, 200+ Designs and 3000+ Trademarks for 700+ DPIIT Recognized Start-ups from across India. If you would like us to assist your organization to file IPs please fill up this form
If you have any other queries, kindly contact us on tm@stratjuris.com
Startup |
Small Entity |
|
|---|---|---|
| Criteria for Incorporation | 1) Up to 10 years from the date of its incorporation; | -- |
| Criteria of turnover | Turnover (gross revenue/total sales) should be less than INR 100 Crores (approx. 12 million USD) in any of the previous financial years | Annual turnover does not exceed INR 250 crores (approx. 30 million USD) |
| Criteria of investment | -- | does not exceed INR 50 crores (approx.6 million USD) |
| Advantages |
1) 80% reduction in official fees; and 2) Expedited examination can be availed. |
1) 80% reduction in official fees; and 2) Expedited examination can be availed. |
| Proof/documents required by a foreign client |
1) Certificate of incorporation; 2) Financial documents; and 3) A declaration |
1) Financial documents; and 2) A declaration |
It is to be noted that certain connotations specific to the Indian accounting and legal system have been mentioned; however, the local accounting and documentation shall apply to a foreign entity.
