Scheme of Start-up Intellectual Property Protection

Date posted: Wednesday 27 April 2016
Laws:,

Background

Intellectual Property Rights (IPRs) are emerging as a strategic business tool for business organizations to   enhance industrial competitiveness. Start-Ups, with limited resources and manpower can sustain in the highly competitive world only through continuous growth and development oriented innovations. It is important for such innovations to be protected. Hence the Scheme for Start-up Intellectual Property Protection (SIPP) was launched by the Government of India on 22nd April, 2016.

The SIPP aims to promote awareness and adoption of IPRs amongst Start-Ups. The SIPP will nurture and   mentor innovative and emerging technologies among Start-Ups and assist them in protecting and commercializing it by providing them access to high-quality IP services and resources.

Applicants

  1. Any start-up certified by the Start-up Certification Board as having an innovative business can apply under SIPP.
  2. For this SIPP, Start-up has been defined to mean an entity,
    • incorporated or registered  in India  not prior to 5 years,
    • with annual turnover <= Rs. 25 crores in any preceding  financial year,
    • working towards innovation,  development,  deployment  or commercialization   of new products,  processes or services driven by technology  or intellectual property,
    • which is not formed by splitting up, or reconstruction, of a business  already in existence.
  3. An entity shall cease to be a Start-up  if its turnover  for the previous  financial years > Rs. 25  crores  or  it has  completed  5  years  from  the  date  of incorporation/ registration.

Facilitators to assist in filling IP Applications

  1. Appointment of Facilitator: For effective implementation of the scheme, facilitators shall be empanelled by the Controller General of Patent, Trademark and Design (CGPDTM).  The CGPDTM shall regulate conduct and functions of empanelled facilitators from time to time.
  1. Who can be a Facilitator
    • Any Patent Agent registered with the CGPDTM,
    • Any Trademark Agent registered with the CGPDTM,
    • Any Advocate who fulfills such conditions as are prescribed,
    • Government departments/   organizations/   agencies   like   TIFAC,   NRDC,   BIRAC, DEITY, DSIR etc.
  2. Functions of Facilitators: Among other functions, facilitators will be responsible  for:
    • Providing general  advisory  on different  IPRs  to  Start-Ups  on pro bona basis,
    • Providing information on protecting and promoting IPRs to Start-Ups 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 under the CGPDTM,
    • Drafting complete/ provisional specifications for inventions of Start-Ups,
    • Preparing and filing responses to examination reports and other queries, notices or letters by the IP office,
    • Appearing on behalf of start-up at hearings-as may be scheduled,
    • Contesting opposition, if any, by other parties, and
    • Ensuring final disposal of the IPR application.
  1. Fees of Facilitators
    • Under the SIPP, the Central Government shall bear the entire fees of the facilitators for any number of patents, trademarks or designs that a Start-up may file and the Start-ups shall bear only the cost of the statutory fees payable.
    • The table of fees payable by Central Government to the facilitators is provided below:
Stage of Payment Patent

(in Rs.)

Trademark (in Rs.) Design

(in Rs.)

At the time of filing of application 10,000 5,000 2,000
At the time of final disposal of application
Without Opposition 10,000 2,000 2,000
With Opposition 15,000 5,000 4,000

 

Period of the Scheme

The scheme shall be run initially on a pilot basis, and shall be applicable for a period of 1 year from the date of launch of Start-Up India.

Ownership of IPR

This scheme shall in no way transfer, either wholly or partially, ownership rights on the IPR created to the facilitator or the Government, and the Start-Up shall have full rights on the IP generated.

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