Qualifying norms for start-up patent subsidy scheme now relaxed

Filing of patents in the country, meant to provide ownership of intellectual property to its inventor, is an expensive and tedious process

Many technology start-ups and small and medium enterprises could benefit from a government initiative that provides financial assistance to file global patents, as the Centre has eased the qualifying norms.

The move came after the funds allocated under the first phase of the policy remained under-used because of the strict eligibility criteria.

Earlier, only those firms whose research and development was recognised by the department of scientific and industrial research were eligible.

But the government has done away with this requirement.

“That was a major limitation,” said A S Rao, who chaired the review and is a founder circle member of Indian Software Product Industry Round Table (iSPIRT). “Now, all start-ups, incubated anywhere in India, are made eligible.”

In India, the filing of patents is a costly and long process.

A number of patents for intellectual property (IP) originating in the country are being filed abroad due to this. Simplifying the process and making it affordable has been one of top demands of the sector.  

The second phase of the policy runs for five years and was introduced in December by the department of electronics and information technology (DeitY).

Rajat Tandon, senior director, Nasscom 10,000 Startups, said, “The first phase had limited uptake due to restrictions in the eligibility criteria, which have been modified based on inputs from Nasscom and sectoral members.”

Both Rao and Tandon said it was too soon to measure the impact of the second phase of the policy since the guidelines were notified only recently and the awareness about the policy was still low.

The government will consider five applications in a financial year for reimbursement from a single applicant during the scheme period of December 2014 to November 2019. Also, according to DeitY, Rs 15 lakh per invention or 50 per cent of the total expenses incurred in filing and processing of patent application up to grant, whichever is less, will be reimbursed under the scheme. This will include expenses incurred in filing and processing of foreign applications filed in respect of the same invention.

Official fees including filing, examination, processing charges, attorney charges, expenses on search and the cost towards translation, if required, will be covered by the scheme. The costs involving Patent Cooperation Treaty (PCT) application would also be part of the expenses. Similarly, expenses involved in filing applications directly in other countries (not through the PCT route) will be covered under the scheme. However, costs incurred after the grant of patent will not be reimbursed.

The second phase also has a programme for promotion separately budgeted for awareness on intellectual property rights among various stakeholders by organising seminars and workshops.

“Processes need to be further simplified to improve fund utilisation,” Rao added. According to him, liberal funding is needed to make a global impact. The government will need to activate many of the initiatives approved and announced, added Rao.
DON’T BE IM-PATENT

• Filing of patents in the country, meant to provide ownership of intellectual property (IP) to its inventor, is an expensive and tedious process
• Many patents for IP originating in the country are being filed abroad due to this