The launch of startup India campaign followed by the startup India Action Plan was not just to bring hype among the startups. Modi Government has still more for startups. Scheme for Facilitating Startups Intellectual Property Protection is slated to make the startup environment more efficient.

It is been a known fact that among startups the most neglected part is the Intellectual Property. Most of the time startups fail to understand the importance and the consequence of not protecting them at the right time.Intellectual property refers to creations of the mind; inventions; literary and artistic works; and symbols, names and images used in commerce.

The Startup India Action Plan 2016 envisaged on intellectual property registrations amongst startups. The points in the action plan relating to patents broadly focused on three aspects:

1. 80% cut in the patent application fee for start-ups
2. Panel of facilitators to provide legal support and assist in filing of patent applications
3. Patent applications of start-ups to be fast tracked

Following the announcement of the Startup India Action Plan, the Controller General of Patents Designs and Trademarks has released details about the Startup Intellectual Property Protection Scheme as follows:

Vision:

To protect and promote Intellectual Property Rights of startups and thus encouraging innovation and creativity among them.

Objective:

• To promote awareness and adoption of Intellectual Property Rights amongst startups
• To help nurture and mentor innovative and emerging technologies and
• To assist them in protecting and commercializing it by providing them with access to intellectual property services and resources.

Who can apply?

Any startup certified by the Startup Certification Board as having an innovative business.

Who is a Startup?

An entity-

• incorporated or registered in India not prior to five years
• annual turnover not exceeding INR 25 crore in any preceding financial year
• working towards innovation, development, deployment or commercialization of new products, processes or services
• driven by technology or intellectual property

Why Intellectual Property Facilitators?

To help startups get advice and services related to intellectual property filing and registration, the scheme provides for empanelment of facilitators by the Controller General of Patents, Designs, and Trademarks.

Functions of facilitator:

• Providing general advisory on different intellectual property rights to startups on pro bono basis;
• Providing information on protecting and promoting IPRs to startups in other countries on pro bono basis;
• Providing assistance in filing and disposal of the IP applications related to patents, trademarks and design under relevant Acts at the national IP offices;
• Drafting complete/provisional specifications for inventions of startups;
• Preparing and filing responses to examination reports and other queries, notices or letters by the IP office;
• Appearing on behalf of startup at hearings as may be scheduled;
• Contesting opposition, if any, by other parties, and
• Ensuring final disposal of the IPR application.

Fee for Intellectual Property Facilitators:

Government shall bear-

• The professional fee for intellectual property service rendered by empanelled facilitators
• for any number of patents, trademarks or designs
• applied for by a eligible startup.

The startup will only be liable to bear:

• The cost of the statutory fee
• payable for each patent, trademark or design applied for in India or abroad.

The following fee structure is payable to the intellectual property facilitator by the Controller General of Patents, Designs, and Trademarks:

Professional Fee Payable for Patent Registration:

• Patent application filing: Rs.10,000
• At the time of disposal of patent application without opposition: Rs.10,000
• At the time of disposal of patent application with opposition: Rs.15,000
• Professional Fee Payable for Trademark Registration
• Trademark application filing: Rs.5,000
• At the time of disposal of patent application without opposition: Rs.2,000
• At the time of disposal of patent application with opposition: Rs.5,000

Professional Fee Payable for Design Registration:

• Design application filing: Rs.2,000
• At the time of disposal of patent application without opposition: Rs.2,000
• At the time of disposal of patent application with opposition: Rs.4,000

Period of Scheme

The scheme for Startups Intellectual Property Protection (SIPP) is set to initially run on a pilot basis for a period of one year from the launch of Startup India.

The SIPP provides a platform for Indian Start-Ups to come at par with the existing players by fast tracking the valuation of their IPRs with easy access to facilitators, professional advice and minimization of cost of registration for protection of the IPRs.

Though many startups that do not fulfill the definition of startup will not be able to ripe the benefit of this scheme but such move is another positive step by the Government to promote innovation, resourcefulness and realization of the untapped potential of otherwise cash strapped entrepreneurs.

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