Government Incentives for Filing patents by Startups in India

The Indian Government considers a start-up as an entity incorporated or registered in India under the “Start-up India: Stand-Up India” initiative. The definition of a startup is defined by the government, and companies should register as a startup to benefit from Government schemes.

There are some incentives for start-ups to encourage innovation and promote the protection of their IP rights.

Patent reimbursement by State Governments

Many state governments in India have a Startup Cell. These cells actively support startups and provide knowledge, incentives, and funding support. Many state governments also encourage startups to file patents by reimbursing the cost of filing patents.

For example Karnataka Startup Cell gives several financial incentives. It will reimburse up to INR 2 lakh for every granted Indian patent and INR 10 lakh for a foreign patent. You will receive 75% of this reimbursement when you file and the remaining after the grant of patent. 

To qualify, you must be a startup registered with the Karnataka Startup Cell having a valid registration number. Physical or virtual incubation is necessary. You can find details of eligibility, application and document requirements at the Startup Karnataka website.

Similar schemes are available in many states. Visiting the particular states Startup policy website will provide more details.

National Intellectual Property Rights (IPR) Policy

This policy aims to simplify the patenting procedure. It reduces the average time taken to examine a patent from five years to 18 months. The IPR scheme also gives financial assistance on grant of patent and registration of geographical indication/trademark as follows:

• Domestic Patent: INR 1 lakhs
• Foreign Patent: INR 5 lakhs
• GI Registration: INR 2 lakhs
• Trademark: INR 0.10 lakhs

You can also avail upto INR 65 lakhs per centre for setting up an IP Facilitation Centre.

To be eligible, you must be registered with the MSME data bank and have a valid UAM/Udyam Registration Certificate. You can apply through the online portal mymsme.gov.in. 

Discounts offered by DIPP

According to the latest patent policy framework, start-ups registered under the Stand-up India initiative are eligible for certain benefits. These include reductions in fees and discounts such as an 80% rebate on patent fees. They can also avail expedited examination. The Department of Industrial Policy and Promotion (DIPP) will also bear the cost of facilitation. A facilitator assists the start-up in filing and prosecuting the application. The DIPP will provide a rebate on statutory patent application filing fee to the start-up/facilitator up to Rs.10,000/-.

Such schemes in India have seen a rise in the number of start-ups filing for patents. More such discounts are available to eligible start-ups at various stages of the patenting procedure.

This article is part of the series IPR Toolkit for Startups in India. The series covers various types of Intellectual Property Rights that startups can get in India. Access all the articles in the series