Incentives provided by the Government to MSME/Start-Ups for patent filing

In the recent years, the Indian government has realized the importance of providing financial assistance in filing of patents to new entrants/Start-ups in the market, as the same has a direct impact on the economic growth of the country. To protect and promote Intellectual Property Rights (IPR) of Start-ups and to encourage innovation and creativity among them, the Indian government has come with several scheme(s) providing reimbursement/grant to MSME/start-ups for patent filing:

 I.      SCHEME FOR FACILITATINQ STARTUPS INTELLECTUAL PROPERTY PROTECTION (SIPP)

Link to access the Website: https://ipindia.gov.in/SIPP.htm 

Eligibility:

Any startup recognized in terms of the notification GSR 127(E) published in the Gazette of India dated 19.2.2019, as may be amended from time to time.

The Certificate of Recognition given by DPIIT may be verified from the Startup India web portal http://www.startupindia.gov.in.

The startups covered under this scheme will not be required to obtain certificate of an eligible business from the Inter-Ministerial Board of Certification.

However, startups will be required to give a self-declaration that they have not availed funds under any other Government scheme for the purpose of paying the facilitator/patent agent/trademark agent for filing and prosecuting their IP application.

Empanelment of Facilitators:

For effective implementation of the scheme, facilitators shall be empanelled by the Controller General of Patents, Designs and Trade Marks (CGPDTM). The CGPDTM may revise the list of Page 2 of 4 facilitators from time to time. The list of facilitators was last updated by CGPDTM in February 2020.

The CGPDTM shall regulate conduct and functions of empanelled facilitators from time to time. In case of any complaint by a startup about a facilitator or refusal by facilitator to provide services to the startup or on getting information about professional misconduct through any source, the CGPDTM can remove the facilitator from the panel without notice.

Period of Scheme: The scheme shall be applicable      for a period of 3 years w.e.f. 1st April 2020.

Fees of Facilitators: Following fees structure will be      applicable to the empanelled facilitators, for any number of patents,      trademarks or designs that may be applied for by a Startup. The facilitator      shall not charge anything from the Startup or the entrepreneur, and this      fee shall be paid directly to the facilitator by the Central Government      through the office of the CGPDTM and disbursed by the respective IP      office. This structure may be revised from time to time by the Department      for Promotion of Industry and Internal Trade.

Payment of Fees to facilitators:

·       A facilitator shall claim the fee from the IP office as per the stage of work completed.

·       The bill for claim of fee shall be accompanied by the self-declaration from the concerned startup that it has not availed of funds from any other Government scheme for the purpose of  paying  the facilitator/patent agent/trademark  agent  for filing  and  prosecuting their  IP application.

·       If any application is withdrawn or abandoned before disposal of application, facilitator shall be entitled to fees only for filing of application and not for disposal of application.

·       For claiming the reimbursement of fees, the facilitator shall submit an invoice to the respective IP Office mentioning the Registration ID No. obtained from DPIIT for the startup in respect of which the IP application is filed by the facilitator.

·       In the case of a Trademark application, final disposal of the application implies registration of the Trademark or final rejection of the application (except through withdrawal or abandonment), as the case may be.

Statutory Fees: The cost of the statutory fees      payable for each patent, trademark or design applied for by a startup      after launch of this scheme shall be borne by the Startup itself.

II.     MSME INNOVATIVE (IPR) –

This scheme offers legal and intellectual property filing support including patents, trademarks, copyrights, designs, geographical indications (GI) etc. The programme also provides IP advisory, consultation, Patentability Searches, Technology Gap Analyses and IP commercialization through establishment of Intellectual Property Facilitation Centres (IPFCs) across the country.

Link to access the Guidelines:

https://innovative.msme.gov.in/Documents/FinalGuidelines_MSME_Innovative.pdf

Eligibility for Reimbursement:

·       The applicant/entity/unit must have a valid Udyam Registration.

·       Patents/Trademarks/Designs registered in the name of individuals are also eligible for reimbursement subject to holding an Udyam Registration in their name and have full ownership of the enterprise. In case of partnership firm, applicant has to provide proof of ownership of at least 51% shareholding in the enterprise.

·       Applicant has to submit a self-declaration for not claiming funding from any Central/State Government for the same patent/trademark/design.

·       The applicant shall file the reimbursement application through the portal of the scheme. The same will be duly forwarded after comprehensive scrutiny by the IPFC to MoMSME for requisite approval.

·       Upon approval of the application by MoMSME, the reimbursement will be done by the IPFC.

Component of Grant/Financial Assistance      for MSMEs:

·       The maximum financial assistance to the eligible applicants under the IPR component is as follows:

·       The financial assistance under the scheme for the reimbursement of expenditure incurred towards registration of patents/trademarks/Designs/GIs, will be a onetime support from Government of India subject to condition that same has not been claimed by the applicant under any other scheme of Central Govt./State Govt.

·       Patent: The applicant may receive 100% reimbursement of the actual costs or expenses incurred towards the Patent registration with competent authority [including but not limited to facilitation fees, all government fees, design/diagram and drawing fees, attorney fees, consultancy charges, prior art search and analysis charges, patent application drafting (provisional and complete specifications) charges, charges for patent application prosecution and hearings, examination and publication fees, fee and charges associated with PCT/international/foreign patent fillings, other incidental charges]. This should be duly supported by original invoices/bills/receipts with a maximum upper limit of Rs. 1 lakh for an Indian patent and up to Rs 5 lakh for a foreign patent. However, it will not cover the cost incurred on renewal of applications or any other expenditure incurred towards assignment of IP, correction in application etc.

How to Apply:

It can be applied through online portal i.e., https://innovative.msme.gov.in/Home/IprIndex.

Contact Details: Delhi email ID: dcdi-ndelhi@dcmsme.gov.in 

III.     SCHEME FOR ‘BUILDING AWARENESS ON INTELLECTUAL PROPERTY RIGHTS’ (IPR) FOR THE MICRO, SMALL & MEDIUM ENTERPRISES – “AN NMCP SCHEME” –

"Building Awareness on Intellectual Property Rights (IPR)" for the MSME was launched by the government of India to enable the MSME sector to face the present challenges of liberalization, various activities on IPR are proposed under this scheme. These initiatives will provide MSME sector more information, orientation and facilities for protecting their intellectual powers.

Link to access the Guidelines: http://www.dcmsme.gov.in/schemes/IPRDetail.pdf

Eligibility: MSME Units (Units with Registration      or EM credentials - subject to verification)

Scope and Coverage: The eligible applicant will be      provided one time Government of India financial support on grant      of Patent (domestic/foreign) patent (It should be noted      that this will not apply to re-imbursement of fees towards filing of PCT      Application). The support of Government of India will be in      form of reimbursement to the applicant. The amount of grant will be      restricted to actual, or the ceiling mentioned above, whichever is lower.

Component of Grant:

Under this scheme, registered Indian MSME will be provided one-time financial support limited up to Rs. 25,000/- for on grant of domestic patent and Rs. 2.00 lakh for foreign patent.

Funding Pattern: If the application satisfies      the eligibility and acceptance criteria for consideration of support, the      reimbursement process will be initiated, and payment will be made directly      to the beneficiary.

How to Apply: Eligible applicants can apply      in the format Annexed at (Annexure-V) for reimbursement of patent. The      following documents are to be provided by the beneficiaries.

·       Reimbursement details.

·       Product brochures.

·       Annual Report for the last 2 years (in case of firm /company).

·       Copy of the registration of the applicant industries/producers/entrepreneurs.

·       Copy of the proof for grant of patent by the competent authority.

Alternatively, Applicants can apply for reimbursements through the online portal of MSME: http://my.msme.gov.in/MyMsme/Reg/COM_IprGopAppForm.aspx

Further, Applicants can contact the near MSME-DI to apply.

Contact details of the department:

Sh. Amit Kumar Tamaria (Deputy Director)

Email Id: aktamaria@dcmsme.gov.in

Tel: 011-23062249

Phone: 011–23061176

Address: Development Commissioner Micro, Small & Medium Enterprises (MSME), Government of India, Nirman Bhavan, New Delhi-110108

IV.     SCHEME – 9 OF AATMANIRBHAR GUJARAT SCHEME FOR ASSISTANCE TO MSMEs:

Link to access the Guidelines:

https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20MSMEs.pdf

Eligibility: Individual/any legal entity      will be eligible for assistance under the scheme.

Scope and Coverage: Applicant shall have to submit      application within one year from the date of publication/notification of      the patent. Application submitted after one year from the date of      publication/notification will not be eligible for assistance. 50% of the      Assistance will be disbursed after the publication/notification of the      patent, while remaining assistance will be disbursed after issuance of      certificate of patent.

Component of Grant:

·       75% of cost/expenditure incurred for any number of patent applications subject to maximum Rs. 25,00,000/- per applicant/Enterprise for obtaining Patent registration of developed product/process during the operating period of the scheme.

·       Fees paid to patent attorney, patent service center, patent registration and patent equipment purchased to develop patent will be eligible as cost/expenditure (excluding travel, hotel charges) for obtaining patent registration.

·       Maximum fee for attorney for national patent shall be capped at Rs. 50,000 for domestic patents and Rs. 2,00,000/- per country for international patent within the overall cap of 75% of the cost/expenditure of patent registration within overall ceiling.

Contact details of the department:

Name: Smt. A B Bhatt [Deputy Commissioner of Industries (MSME Incentive)]

Email Ids:  msmeinc@gujarat.gov.in, dci-msme-inc@gujarat.gov.in, io-msme-inc@gujarat.gov.in.

Phone: +917923252594, +917923252588, +917923252659.

Address: Block No. 1, 4th Floor, Udyog Bhavan, Sector 11, Gandhinagar – 382017. 

V.     INTELLECTUAL PROPERTY RIGHTS (IPR) REIMBURSEMENT SCHEME BY GOA STARTUP POLICY

Link to access the Website: https://startup.goa.gov.in/StartupIncentives

Eligibility: All the Start-Ups certified      by the Start-Up Promotion Cell (SPC) having a valid start-up certificate      number are eligible to apply for this Scheme.

Start-up means an entity meeting the following criterion:

1. Up to ten years from the date of incorporation / registration in the State of Goa and/or operating in the State of Goa.

2. With annual turnover not exceeding INR 100 crore in any of the preceding financial years.

3. Incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited Liability Partnership. 

Scope and Coverage: The eligible applicant will be      provided a one-time payment from the State Government. The support of the      State Government will be in the form of a reimbursement to the applicant.      The applicant cannot apply under this provision more than once for the      same IP application.

Component of Grant:

For Start-ups registering National and International IP, the Start-Up Promotion Cell (SPC) will reimburse up to 50% of the cost incurred by the start-up in fees and all other costs associated with IP application, if the IP is registered successfully, subject to a cap of Rs. 2 lakh for National IP, and Rs. 5 lakh for International IP.

Funding Pattern: If the application satisfies the      eligibility and acceptance criteria for the consideration of support, the      reimbursement will take place as a one-time payment.

How to Apply: The following documents are to be      provided for claiming the reimbursement:

·       Copy of IP registration.

·       Original Proof of Payment – detailed statement of expenses incurred towards the IP. Registration along with the copies of invoices & receipts from the competent authority and legal counsel as applicable.

·       The form and documents as mentioned in Annexure – 1, available on: https://www.goa.gov.in/wp-content/uploads/2018/05/Schemes.pdf.

·       The application for the IPR reimbursement scheme can be applied online at the given link: https://goaonline.gov.in/Public/stpRegistration_af

Contact details of the department:

Email Id: spc-dit.goa@gov.in

Phone: 18002335060

Address: IT HUB, 2nd Floor, Altinho, Panaji, Goa – 403001

Support provided by the government through all of these schemes will help the MSMEs/Start ups in protecting their IP Rights. It will help them in increasing their revenue and profitability by commercializing their patent portfolio. It will also help them in boosting the innovation and creating a fruitful ecosystem where research and development will be encouraged.