IP registration is very beneficial for many companies as it gives the owner the exclusive rights over their IP assets through which they can gain profits. In order to boost IP Registration in the country, there are multiple Government schemes available, using which IP expenses may be reimbursed, some of the being as follows, especially for the companies registered in Karnataka:
- Scheme 1- By Ministry of Micro, Small and Medium Enterprises
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 commercialisation through establishment of Intellectual Property Facilitation Centres (IPFCs) across the country.
Eligibility Criteria
Under Ministry of Micro, Small and Medium Enterprises, IP reimbursement application can only be filed by start-ups who are registered under MSME (Udhyam registration).
If not registered the Registration of MSME (Udhyam registration) can be done with link given: https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
In order to get Udhyam registration, the required documents are:
- Pan card
- Aadhaar card
- Business address proof
- Bank statement
- GSTIN
- Certificate of incorporation or partnership deed
Benefits of the scheme
- Will enhance the awareness of Intellectual Property Rights (IPRs) amongst the MSMEs and to encourage creative intellectual endeavour in Indian economy;
- Will help take suitable measures for the protection of ideas, technological innovation and knowledge-driven business strategies developed by the MSMEs for their commercialization and effective utilization of IPR tools.
- Will provide appropriate support and facilities for the protection and commercialisation of IP for the benefit of the MSME Sector.
- Offers assistance to Small and Medium Enterprises with effective use of IPR tools for technology development, market and business promotion, and enhancement of competition
Documents required for IP Reimbursement:
The following documents are required for MSME IP reimbursement:
- Application form: This can be downloaded from the website of the Ministry of Micro, Small and Medium Enterprises (MSME).
- Udyog Aadhaar Memorandum (UAM): This is a registration certificate for MSMEs.
- Copy of the patent/trademark/GI registration certificate: This is proof that the MSME has successfully registered its intellectual property.
- Statement of expenditure: This is a detailed account of the expenses incurred by the MSME during the registration process.
- Receipt/proof of payment: This is proof that the MSME has paid the registration fees. Any query regarding the scheme, can be sent to mayapandey.dgca@gov.in
Reimbursement given:
| S. No. | Item | Maximum Financial Assistance |
| 1. | Foreign Patent | Rs. 5.00 lakh |
| 2. | Domestic Patent | Rs. 1.00 lakh |
| 3. | GI Registration | Rs. 2.00 lakh |
| 4. | Design Registration | Rs. 0.15 lakh |
| 5. | Trademark | Rs. 0.10 lakh |
Links to apply for IP Reimbursement:
- Patent Reimbursement link-https://my.msme.gov.in/mymsme/Reg/COM_IprGopAppForm.aspx
- Trademark Reimbursement link -https://my.msme.gov.in/mymsme/Reg/COM_IprTradeAppForm.aspx
- Design Reimbursement link- https://my.msme.gov.in/mymsme/Reg/COM_IprDesignAppForm.aspx
- Scheme 2- SIP-EIT (International Patents only)
The Department of Electronics and Information Technology (DeiTY) has launched a scheme entitled “Support for International Patent Protection in E&IT (SIP-EIT)” to provide financial support to MSMEs and Technology Start-Up units for international patent filing. SIP-EIT Scheme captures the growth opportunities in the area of information technology and electronics. This scheme encourages indigenous innovation and also recognise the value and capabilities of global IP. In this article, we look at the SIP-EIT Scheme in detail.
Benefits of the Scheme
- Financial support is provided for international filing in Information Communication Technologies and Electronics sector.
- The Reimbursement limit has been set to the maximum of Rs. 15 Lakhs per invention or 50% of the total charges incurred in filing and processing of a patent application, whichever is lesser.
- This support scheme can be applied at any stage of international patent filing by the applicant. However, the reimbursement will only be applicable to expenditures incurred from the date of acceptance of a complete application by DeiTY subject to the approval of the competent authority.
Eligibility Criteria
In general, to qualify for the SIP-EIT scheme, the companies should fall under any of the following criteria:
- The company must be registered with the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 of Government of India.
- The applicant must be a registered company following the Companies Act of Government of India and must fulfil the investment limits in plant and machinery or equipment as defined in the MSMED Act 2006 as amended from time to time
- A company to be a registered Software Technology Park unit and its amount of investments in PME must be lower than the limits specified under the MSMED Act, 2006.
- A company must be a technology incubation startup or an enterprise or located in an incubation centre/park and registered as a company. A startup must also have a certification from the incubation centre/park in case it is located on such premises. These companies, too, have to meet the investment limits for PME defined under the MSMED Act, 2006
Documents required
The applicants must furnish the following documents along with the Application Form to apply for the SIP-EIT Scheme:
- In case you are an MSME unit under MSME Development Act 2006, then upload scanned copy of Registration Certificate in *.pdf format, Or
- In case you are a Company under Companies Act of Government of India then upload scanned copy of Registration Certificate in *.pdf format, Or
- In case you are a registered Software Technology Park of India unit, then upload scanned copy of such Registration, Or
- In case you are a Technology Incubation Enterprise/Startup and registered as a company, then upload a scanned copy of Registration Certificate issued by a competent authority in *.pdf format and a certification from the incubation centre/park in *.pdf format.
- Upload a scanned copy of last audited Balance Sheet in *.pdf format
- If Applicant is an employee or Member of Board of Directors, it has to be substantiated by Documentary proof and uploaded in *.pdf format
- Upload the copy of product brochure if any.
- Upload the copy of latest Annual Report, if any.
- Copy of official filing receipt (OFR) with Indian Patent Office or copy of waiver under section 39 of Indian Patent Act in case of patent application filed in countries outside India.
- If you have applied for PCT/ Paris Convention or Direct International Filing, then upload the copy of proof of the same in *.pdf format (A consolidated copy can suffice)
- Attach the copy of technical write-up of invention duly fill it up as per the format of technical writeup and upload the same in *.pdf format
- Upload the patent search report in *.pdf format
- Attach a duly filled scanned copy of Details for transfer of e-payments, as per the format and upload the same in *.pdf format.
- Attach a scanned copy of Declaration form duly signed and sealed as per the format and upload the same in *.pdf format.
- A statement by the auditor of the enterprise that they fulfil the criteria of investment in plant and machinery or investment in capital equipment (as the case may be) as stipulated in the MSMED Act 2006. Upload the same in *.pdf format.
Reimbursement given:
The Reimbursement limit has been set to the maximum of Rs. 15 Lakhs per invention or 50% of the total charges incurred in filing and processing of a patent application, whichever is lesser.
The applicants can visit the DeiTY website or ICT-IPR portal to apply for the SIP-EIT Scheme. Then the applicant has to fill out the application form in a prescribed format online. After completing, upload all the specified records along with the application form. The recommended applications will then be processed finally at DeiTY for the approval. Any query regarding the scheme, can be sent to ipr@meity.gov.in
The link to apply for SIP-EIT scheme is as below:
https://www.ict-ipr.in/sipeit/login
- Scheme 3-Karnataka Patent Reimbursement Incentive for Startups
The policy defines that the cost of filing and prosecution of patent application will be reimbursed to the incubated startup companies subject to a limit of Rs. 2 lakh (0.2 million) per Indian patent awarded. For awarded foreign patents on a single subject matter, up to Rs. 10 lakhs (1 Million) would be reimbursed. The reimbursement will be done in 2 stages, i.e., 75% after the patent is filed and the balance 25% after the patent is granted.
Reimbursement given:
| Domestic patents | 2 lakhs |
| Foreign patents | 10 lakhs |
Reimbursement in 2 stages 75% when patent is filed and 25% when patent granted
Eligibility criteria
The eligibility Criteria to avail of the benefit of the reimbursement on the filing of a patent application are as follows:
- The applicant should be a Startup registered with the Karnataka Startup Cell with a valid Karnataka Startup Cell registration number
- Only patents that have been filed by a startup within the validity of the Karnataka Startup Policy will be eligible to claim this reimbursement
Documents Required
The documents required for the Karnataka Patent Reimbursement Incentive for Startups are as follows:
- KBITS registration number
- Application Form
- A copy of the patent filed at the appropriate authority
- Certificate of Patent Grant from Patent Office
- A detailed statement of expenses incurred towards the Patent Registration along with the copies of invoices & receipts from the patent authority and legal counsel as applicable
- All Invoices submitted by the appropriate Patent Authority towards Government fees and legal agents
- The certificate of Patent with a valid serial number must be furnished and valid form 27 to be enclosed.
- The reimbursement amount will be released/disbursed on the seniority basis depending upon the Budget allotment of the State Government. Any query regarding the scheme, can be sent to startupcel@karnataka.gov.in
The link to apply for this scheme is as below: https://www.missionstartupkarnataka.org/incentives?patent-reimbursement incentives?en#
Compiled by: Ritesh Warikallamath, BA, LLB from Christ University, Bangalore
Please contact us at info@origiin.com to know more about our services (Patent, Trademark, Copyright, Contract, IP Licensing, M&A of companies)
Subscribe to YouTube Channel HERE
Join LinkedIn Group: Innovation & IPR
WhatsApp: +91 74838 06607
