Written by: Lex Protector|September 20, 2017
Written by: Stuti Raibagkar and Stuti Yagnik
It’s now easier for startups from all over world to file a patent in India. The Patent (Amendment) Rules, 2016, an amendment by DIPP (Department of Industrial Policy and Promotion) which have made the startups eligible to get 80% rebate on their patent application fees. This amendment hasn’t only provided the rebate but also lessen the time taken for grant of patent and widened the definition of startup.
The rules have not only made startups eligible for getting 80% rebate on their application fee, but also brought changes to make it beneficial for larger number of entities. The application fee to be paid by startup for taking this fast track route is Rs.8000 where old companies have to pay application fee of Rs.60000. To encourage more startup businesses, more entities have been included in the definition of startup. The earlier definition of start-ups included the companies, LLP or registered partnerships which are not more than five years old and have turnover of not more than INR 25 crores, where the new definition has also included any foreign entity which fulfills the turnover and incorporation or registration criteria as per Startup India initiative. It is further stated that a startup should be working towards innovation, development or improvement of products, processes or services. Thus, innovation is must for an entity to be covered under startup. This has made it possible for more entities to avail benefit of patent fee rebate. For getting this benefit, the startups will have to get certificate of recognition from DIPP. Even for the far track route of filing application, start-ups will have to pay application fee of Rs.8000 where old companies have to pay Rs.60000. These rules have been brought to promote awareness and encourage more patent filings. With these rules, the period of granting patents will be cut down from five to seven years to two and a half year. This will be proven beneficial for businesses which could not get patent because of the costs or the long and tedious procedure. These changes show that the government wants to see rise in intellectual properties of the country. Startups with lack of resources can survive in this competition only when they protect themselves with IPRs.
We surely agree to the fact that it’s a tough task to start a venture in today’s competitive market. But thinking about an idea that is innovative or non-existing is a big task which needs to be protected. It’s a welcome move by the government and by making a policy that reduces the cost of protecting them, the government has taken a big step towards promoting Indian IPR regime among start-ups which can act as torch bearers in the future for enhancing awareness about IPRs in India.
For more information about IPRs, contact Lex Protector ')}
