Intellectual property rights are a strategic business instrument that any company can use to improve its competitiveness, especially in the current scenario with increased business access to consumers.

Overview of SIPP

The (Start-Ups Intellectual Property Protection) SIPP scheme is a flagship initiative of the Government of India that aims to support and promote innovation and entrepreneurship in the country. This scheme provides financial and legal support to start-ups for securing and managing their intellectual property (IP) assets. 

The SIPP scheme is administered by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, and is implemented through a network of facilitators.

Objective of SIPP

The main objective of the SIPP scheme is to foster innovation and entrepreneurship in India by providing a supportive ecosystem for start-ups to protect and manage their IP assets. The scheme aims to create awareness among start-ups about the importance of IP protection, provide financial support for filing patents, trademarks and designs, and also offer legal assistance to protect their IP assets against infringement.

Eligibility Criteria for SIPP

To be eligible for the SIPP scheme, start-ups must fulfill the following criteria:

1. The start-up should be incorporated as a Private Limited Company or a Registered Partnership Firm or a Limited Liability Partnership (LLP) under the Companies Act, 2013 or the Limited Liability Partnership Act, 2008
2. The start-up should not be more than 10 years old from the date of its incorporation
3. The turnover of the start-up should not have exceeded ₹100 crores in any of the previous financial years
4. The start-up should have a unique business idea or a product that is innovative and has the potential to create a scalable business model with a high degree of employment generation or wealth creation.

You can check trademark availability with Vakilsearch’s free Trademark Search tool before registering a trademark.

Eligible Facilitator

The SIPP scheme is implemented through a network of facilitators, which are organisations that are registered with the DPIIT and have been empanelled for this purpose. The following organisations are eligible to act as facilitators under the SIPP scheme:

1. Technology Business Incubators (TBIs) approved by the Department of Science and Technology (DST), Government of India.
2. Centres of Excellence (CoEs) were established under the National Manufacturing Competitiveness Programme (NMCP) of the Ministry of Micro, Small, and Medium Enterprises (MSME).
3. Start-up incubators or accelerators established as legal entities under the Companies Act, 2013 or the Limited Liability Partnership Act, 2008, and funded by the Government of India, State Government or a Public Sector Undertaking (PSU).
4. Government-funded academic institutions, such as Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs), National Institutes of Technology (NITs), and National Law Universities (NLUs).

Responsibility for Facilitators

The facilitators registered under the SIPP scheme have several responsibilities, which include:

1. Creating awareness among start-ups about the importance of IP protection and assisting them in identifying and managing their IP assets
2. Providing legal assistance to start-ups in filing and prosecuting patents, trademarks, and designs
3. Providing financial support to start-ups for filing patents, trademarks, and designs
4. Conducting workshops and training programmes on IP management and related issues
5. Coordinating with the DPIIT and other stakeholders to implement the SIPP scheme effectively.

Duration of the SIPP Scheme

The SIPP scheme is a flagship initiative of the Government of India that provides financial and legal support to start-ups for securing and managing their intellectual property assets. The scheme is implemented through a network of facilitators who are responsible for assisting start-ups in filing and prosecuting their patents, trademarks, and designs. 

The duration of the SIPP scheme is currently for five years, which started from 2016 and is set to end in 2021. However, the government may decide to extend the scheme further based on its impact and effectiveness in promoting innovation and entrepreneurship in the country.

Operation of the Scheme

1. The scheme initially made to last until March 2020 has now been extended by three years to last until 31 March 2023. As many as 44,534 startups have already been recognised by the Department for the Promotion of Industry and Internal Trade (DPIIT) as of 24 February 2021. 
2. The government has also empanelled IP facilitators (patent agents and trademark attorneys) who will be working with startups in filing and prosecuting patent applications.
3. The plan includes a fast-track examination of a patent application and a rebate in fees.

Payment of Fees to Facilitators

The SIPP scheme is designed to provide financial assistance to start-ups for securing their intellectual property assets. The government provides a subsidy of up to 80% of the total cost incurred by the start-up in filing and prosecuting patents, trademarks, and designs. 

The start-up bears the remaining 20% of the cost, which is required to pay the fees to the facilitator providing assistance to them. The fees paid to the facilitator may vary depending on the nature of the IP asset, the complexity of the application, and the services the facilitator provides. 

The government decides the fee structure and is subject to change from time to time.

Fees for Patents, Designs, and Trademarks Application

The fees for filing and prosecuting patents, designs, and trademark applications under the SIPP scheme are based on the government-approved fee structure. The fee structure for patents, designs, and trademarks application is different and varies depending on the type of application and the number of claims made. 

The government provides a subsidy of up to 80% of the total cost incurred by the start-up in filing and prosecuting their patents, designs, and trademark applications. The start-up bears the remaining 20% of the cost, which is required to pay the fees to the facilitator providing assistance to them.

Facilitators Under SIPP

The SIPP scheme is implemented through a network of facilitators, which are organisations that are registered with the Department for Promotion of Industry and Internal Trade (DPIIT) and have been empanelled for this purpose. The facilitators are responsible for assisting start-ups in filing and prosecuting their patents, trademarks, and design applications. 

The facilitators registered under the SIPP scheme may include Technology Business Incubators (TBIs), Centers of Excellence (CoEs), start-up incubators or accelerators, and government-funded academic institutions.

Functions and Duties of Facilitators

The facilitators registered under the SIPP scheme have several functions and duties, which include:

1. Creating awareness among start-ups about the importance of IP protection and assisting them in identifying and managing their IP assets.
2. Providing legal assistance to start-ups in filing and prosecuting patents, trademarks, and designs applications.
3. Providing financial support to start-ups for filing patents, trademarks, and designs.
4. Conducting workshops and training programmes on IP management and related issues.
5. Coordinating with the DPIIT and other stakeholders to implement the SIPP scheme effectively.

The facilitators are responsible for ensuring that the start-ups receive effective and efficient assistance in filing and prosecuting their patents, trademarks, and designs applications. They play a crucial role in creating awareness about the importance of IP protection and supporting the growth of start-ups in India.

Fast-tracking of Startup Patent Applications

A patent provides a protective cover to a startup with an innovation. To this end, the government has promised to fast track the process of application for examination and disposal, so that startups can realise the value of IPRs at the earliest.

Check Here to more about : https://www.startupindia.gov.in/content/sih/en/startup-scheme.html

Rebate on Filing of Application

Startups are provided with an 80% rebate for the filing of patents vis-a-vis other companies. 

The Importance of IPR for Startups

The Startups Intellectual Property Protection (SIPP) scheme underscores the importance of securing intellectual property rights for a startup. Below, we briefly outline the advantages of securing rights over intellectual property.

It is ideal for an early-stage business to secure ownership over intellectual property, such as brand name, trademarks, and patents. This is so because, in case of a possible infringement, such as someone else using the same name, logo, or goodwill, it is easier to establish your rights over IP. Most investors, while taking a call on your startup business’s worth, also factor in the IP value that you may gain in future. For those into inventions of a scientific nature, it is absolutely imperative to seek a patent registration at the earliest as the average time taken from filing to the actual granting is about five years in India.

Why You Should Register Your Trademark As Soon As Possible

While creativity may vest in designing a logo, just like artwork or writing a catchy slogan, these are not covered by the Copyrights Act. Almost any logo (The ‘swoosh’ for Nike), brand name (Coca-Cola), word (Classmate), label (Chanel), numerals (Forever 21), or even a combination of colours used (The blue, white, and red of Pepsi), qualifies to be a trademark. Since a business uses all of these in its dealings, casting an impression of a certain standard of quality, the law prohibits anyone else from employing the same combination and giving the impression that the goods belong to someone else. 

Patents

From medical equipment to scientific expedition tools and computer programs, technology surrounds us everywhere. A patent protects the way something is made, its process, its composition, and the methodology of its creation. It covers all stages in the spectrum – from conceptualisation to development and improvisation.

Why Does Your Startup Need to File a Patent ASAP?

In India, a patent is granted for a period of twenty years. It is however advisable to file a patent as soon as possible, as claims in this regard are often decided on a ‘first to file basis. So, in case two people develop the same process independently, the one filing it first in the patent office has a superior claim. Moreover, in India, a patent takes an average of five years from the initial filing to be granted. After it’s granted, the patentee may sell, license, or assign the patent or make commercial use of the patent in his or her own interest. However, the government has enough power to obtain a patent and make it compulsorily licensed for use in the interest of the public. 

Vakilsearch’s legal experts, adept in the latest developments in intellectual property in India, can assist your company in filing trademarks and patents at the earliest.

Procedure for Filing Application for IPR by Startups Under SIPP

The SIPP scheme is a government initiative that supports start-ups in securing and managing their intellectual property assets. The procedure for applying IPR by a start-up under the SIPP scheme is as follows:

• Step 1: The first step is identifying the intellectual property asset that must be protected. This may include inventions, designs, or brands.
• Step 2: Before applying IPR, conducting a prior art search is important to determine if the invention or design is novel and non-obvious.
• Step 3: Based on the prior art search, the start-up should draft a detailed specification for the patent or design application, which includes the claims, drawings, and description of the invention or design.
• Step 4: The start-up can file the patent or design application either online or offline, depending on the preference of the start-up and the facilitator providing assistance.
• Step 5: Once the application is filed, it goes through the prosecution process, which includes examination, objections, and responses to objections. The start-up and the facilitator should work together to respond to objections and ensure that the application is granted.

Procedure for Filing Patent Application by a Startup Under SIPP:

Patents are an important form of intellectual property protection that provide exclusive rights to the inventor for a limited period. The procedure for filing a patent application by a start-up under the SIPP scheme is as follows:

• Step 1: The first step is to identify the invention that needs to be protected. The invention should be novel, non-obvious, and have industrial applicability.
• Step 2: Before filing a patent application, it is important to conduct a prior art search to determine if the invention is novel and non-obvious.
• Step 3: Based on the prior art search, the start-up should draft a detailed specification for the patent application, which includes the claims, drawings, and description of the invention.
• Step 4: The start-up can file the patent application online or offline, depending on the preference of the start-up and the facilitator assisting.
• Step 5: Once the application is filed, it goes through the prosecution process, which includes examination, objections, and responses to objections. The start-up and the facilitator should work together to respond to objections and ensure that the patent is granted.

Procedure for Filing Designs Application by a Startup Under SIPP:

Designs are an important form of intellectual property protection that provide exclusive rights to the designer for a limited period. The procedure for filing a designs application by a start-up under the SIPP scheme is as follows:

• Step 1: The first step is to identify the design that needs to be protected. The design should be original and not disclosed to the public before.
• Step 2: Based on the design, the start-up should draft a detailed specification for applying the design, including the drawings and description.
• Step 3: The start-up can file the design application either online or offline, depending on the preference of the start-up and the facilitator assisting.
• Step 4: Once the application is filed, it goes through the prosecution process, which includes examination, objections, and responses to objections. The start-up and the facilitator should work together to respond to objections and ensure the design is granted.

Procedure for Filing Trademark Application by a Startup Under SIPP:

Trademarks are an important form of intellectual property protection that provide exclusive rights to the brand owner for a limited period. The procedure for filing a trademark application by a start-up under the SIPP scheme is as follows:

• Step 1: The first step is to identify the trademark that needs to be protected. The trademark should be unique, distinguishable, and not infringe on existing trademarks.
• Step 2: Before filing a trademark application, it is important to conduct a trademark search to determine if the trademark is available for registration.
• Step 3: Based on the trademark search, the start-up should draft a detailed specification for the trademark application, which includes the mark, the class of goods or services, and the description of the mark.
• Step 4: The start-up can file the trademark application online or offline, depending on the preference of the start-up and the facilitator assisting.
• Step 5: Once the application is filed, it goes through the prosecution process, which includes examination, objections, and responses to objections. The start-up and the facilitator should work together to respond to objections and ensure the trademark is registered.

SIPP FAQs

How does IPR benefit Startups?

Intellectual Property Rights (IPR) provide legal protection to the creations of startups, such as patents, trademarks, and copyrights. These legal protections give startups exclusive rights over their inventions or products.

What is Patent fees for Startups?

The patent fees for startups may vary based on the type of application, number of claims, and other factors. However, under the Startup Intellectual Property Protection (SIPP) scheme introduced by the Indian government, eligible startups can avail of an 80% rebate in patent filing fees.

Which ministry introduced a Startup Intellectual Property Protection Scheme?

India's Ministry of Commerce and Industry introduced the Startup Intellectual Property Protection (SIPP) scheme.

Which country started IPR first?

Intellectual Property Rights (IPR) can be traced back to ancient civilizations such as Greece and Rome, which recognized the importance of protecting literary and artistic works. However, the first country to introduce a modern patent law was the United States of America, with the Patent Act of 1790.

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