Recently, the Micro, Small, and Medium-Sized Enterprises (MSMEs) sector has been acknowledged and encouraged as India’s economic engine. MSME industries have made a substantial impact on a global scale. MSMEs are also receiving attention and relaxation in India. The government is working to support and grow micro, small, and medium-sized businesses (MSMEs).
MSMEs are essential to a nation’s stability and economic progress. They are essential, especially for developing nations like India, as they promote economic activity, create jobs, and aid in the fight against poverty. MSMEs currently make up about 29 percent of India’s GDP, and the government wants to increase this to 50 percent over the next five years. The information regarding the MSMEs is available on the website https://msme.gov.in/.
MSMEs Definition as per the government of India
The enterprises which fall under the MSMEs category have been summarized in the table below:
| Investment in plant and machinery | Investment in equipment | Annual Turnover | |
| Micro enterprises | Does not exceed Rs. 25 lakhs | Does not exceed Rs. 10 lakhs | Not more than Rs. 5 crores |
| Small enterprises | More than Rs. 25 lakhs but does not exceed Rs. 5 crores | More than Rs. 10 lakhs but does not exceed Rs. 2 crores | Not more than 50 crores |
| Medium enterprises | More than Rs. 5 crores but does not exceed Rs. 10 crores | More than Rs. 2 crores but does not exceed Rs. 5 crores | Not more than 250 crores |
Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
With the intention of creating wealth and employment, the Indian government introduced “Startup India.” As a result, several Schemes are being introduced as part of the “Startup India” effort. Support for International Patent Protection in Electronics & Information Technology, often known as SIP-EIT, is one such program. The Ministry of Electronics & Information Technology has introduced SIP-EIT. It attempts to give financial assistance to Micro, Small, and Medium Enterprises, and technology startup units, for the filing of international patents.
Applying for intellectual property rights is a need for companies that want to operate internationally. Because there is a perpetual risk that ideas would be copied or used improperly, the government offers a number of programs to protect their intellectual property. SIP – EIT is a program launched to provide financial support to MSMEs and Technology Startup units for submitting patent applications abroad. International patent filing promotes creativity, recognizes the value of international intellectual property, and takes advantage of market expansion prospects in the information, communication, and electronics (ICTE) industry.
Purposes
SIP-EIT provides financial support for international filing in the ICTE sector to eligible entities. The reimbursement expense is limited to Rs. 15 lakhs or 50% of the total expenditure, whichever I less. The official fees for filing, examination, processing, search expenses, attorney fees, and translation costs are all considered expenses. Additionally, only expenses paid between the date the application was accepted and the date the patent was awarded will be refunded.
To provide financial support for the worldwide filing of the information, communication, and electronics sectors in order to make it possible for MSMEs to compete on a global level for the production of products of the highest caliber. Additionally, as part of the program, this organization holds workshops on IPR awareness. to promote domestic innovation, acknowledge the worth and potential of international intellectual property, and seize expansion possibilities in the electronics and information technology sectors.
Financial Assistance under SIP-EIT
The following is a breakdown of how the expense reimbursement will be distributed:
- After meeting the requirements of Section 39 of the Indian Patent Act, applications that are directly filed abroad:
- a. Reimbursement of 25% of the costs associated with submitting a patent application in the relevant foreign geography.
- b. Following the grant of the patent, 75% of the costs incurred from the time of the filing till the patent is granted will be reimbursed.
- Applications submitted abroad within a year of submitting a Convention Application for a patent in India:
- a. Reimbursement of 25% of the costs associated with submitting a patent application in the relevant foreign geography.
- b. Following the grant of the patent, 75% of the costs incurred from the time of the filing to the grant will be reimbursed.
- Applications submitted via the PCT route:
- a. Subject to the International Search Report (ISR) report, 25% of the costs associated with submitting a PCT application will be refunded. If the report is favorable, 25% of the costs associated with the examination will be repaid.
- b. 25% of the costs associated with submitting the national phase application abroad. c. After the patent is granted, 75% of the costs incurred after the national filing up to the grant will be reimbursed.
The extent of support given to institutions or organizations for conducting IPR workshops or seminars is as follows:
| Institution/Organization | Maximum Aid | |
| 1. | Educational institutes | Rs. 2 Lakhs |
| 2. | Industry bodies like MAIT, ELCINA, CII, NASSCOM, FICCI, IESA, ASSOCHAM, etc. | Rs. 3 Lakhs |
| 3. | Societies of the Ministry of Electronics and Information Technology | Rs. 5 Lakhs |
Application Procedure for reimbursements under SIP-EIT
- Must confirm that an application satisfies the eligibility requirements by carefully reading the SIP-EIT brochure.
- A login ID must be made in order to apply online; this ID will also be used for any subsequent contacts. The Ministry of Electronics and Information Technology’s official website, where the login ID must be formed, is located at http://www.ict-ipr.in/sipeit/registration.
- After creating a login ID, the applicant can submit an online application by filling out the form. The following paperwork needs to be uploaded to the portal:
- Proof of registrations as per eligibility criteria.
- Scanned copy of Last Audited Balance Sheet.
- If applied for Waiver under Section 39 for international filing, then Scanned copy of Official filing with Indian Patent office.
- If an international application has already been filed, then Proof of PCT/Paris convention or direct international filing.
- If Applicant is an Employee or Member of the Board of Directors, then it has to be substantiated by a scanned copy of the Documentary proof.
- Technical write-up of Present Invention has to be given in *.pdf format filled as per the format. Download the format of the technical write-up.
- Patent search report.
- A scanned copy in*.pdf format of The Details for Transfer of e-Payments has to be duly filled up as per the format. Download format of details for e-transfer of payments
- Scanned copy in pdf format of Declaration Forms duly signed and sealed.
- Before being submitted, the uploaded documents and declarations must be checked.
- The applicant must self-declare in order to guarantee accurate information disclosure.
In conclusion, we understand that the government of India provides support for technology research and development. It encourages research that can be commercialized by the robust patent law in the country. And encourages companies to file more patents in Electronics & Information Technology areas by providing hefty financial incentives for foreign patent filings. Inventors should take advantage of this scheme and seek patent protection in overseas markets of interest.