The IPR policy launched by the Indian government in 2016 under Start-up India program has seen considerable success, with several start-ups filing patent applications under SIPP scheme, receiving patent grants in quick turnaround time and at a fraction of the cost.
One of the key action plans of the Start-up India program is “funding support and Incentives” for development and growth of innovation-driven enterprises. To execute the action plan for the development of Innovation-driven enterprises and start-up culture several states in India have come up with their own start-up policy. Several Indian states have also set up an innovation council/ body for the governance of such start-up policies.
In this article, we shall take a look at the initiatives taken by several state governments to support start-ups, MSMEs and individual innovators with respect to intellectual property protection.
Our research shows that barring a few north eastern states of India, almost all the state governments have come up with a very well defined policy to promote start-ups and innovation by providing support – financial and otherwise. The financial support is largely in the form of reimbursement towards patent filing and prosecution costs involved in international patent filings such as attorney fee, professional fee, statutory fee of the patent office, examination fee, search fee etc.
Overall, the basic minimum criteria to qualify for availing these financial benefits are that the entity must be:
- A registered Indian Micro, Small and Medium enterprise, or
- A registered Start-up/Entrepreneur
Each state has a distinct procedure towards reimbursement, different costs associated towards reimbursement and incentives, and eligibility criteria. The following table provides the benefits offered by several states towards reimbursement of patent filing and prosecution costs, the name of policy under which benefits are offered, and eligibility of the entity for financial benefit.
|
Sr. no: |
States |
Incentives for Patents and IPR |
Links to State policies |
Policy Name |
Eligibility |
|
1 |
Andhra Pradesh |
Patent Filing Cost: The cost of filing patents will be reimbursed to the companies having their headquarters in Andhra Pradesh, subject to a limit of ` 5 lakh (0.5 mil) per domestic patent awarded and ` 10 lakh (1 Mil) per international patent awarded. |
https://www.apindustries.gov.in/APIndus/Data/Industry1/Triad%20of%20Policies.pdf |
AP IT Policy 2014-2020 |
MSMEs |
|
2 |
Bihar |
In order to encourage the registration of IPRs (Intellectual Property Right) by Start-ups and provide facilitation support for protection and commercialization of IPRs, Government shall: a. Bear all costs associated towards filing domestic patents. b. Provide additional financial assistance in form of reimbursement for awarded foreign patents towards filing fees. |
Bihar Start-up Policy |
Entities incorporated or registered in Bihar not before 5 years from policy date (2016) and not having a turnover exceeding Rs 25 Cr |
|
|
3 |
Chhattisgarh |
MSME units established in Chhattisgarh in the space of Electronics, IT and ITES. 50% of the patent costs for a maximum of 2 patents per annum |
Electronics, IT and ITeS Investment Policy of Chhattisgarh 2014-19 |
MSME |
|
|
4 |
Goa |
For start-ups registering patents at National and International levels, the cell will reimburse up to 50% of the cost incurred by the start-up concerned in fees and all other costs associated with patent application, if the patent is registered successfully, subject to a cap of Rs. 2 lacs for national patents and Rs. 5 lacs for international patents. |
https://www.goa.gov.in/wp-content/uploads/2017/09/GoaStart-up-Policy2017-dated-19-9-2017.pdf |
Goa Start-up Policy-2017 |
Start-up |
|
5 |
Gujarat |
The selected start-ups will be provided with financial assistance of up to INR 2 lakh and INR 5 lakh, for obtaining national and international patents, respectively. They will also get power tariff subsidy of INR 1 per unit along with 50% of electricity duty back for five years. |
http://www.startupindia.gov.in/uploads/pdf/Gujarat_in_the_States_Conference.pdf |
Gujarat State Start-up Initiatives |
Start-up |
|
6 |
Jharkhand |
National/International Patent filing Cost: The Government of Jharkhand shall reimburse 100% reimbursement of patent filing cost by the start-ups registered and headquartered in Jharkhand. The reimbursement will be done in 3 stages, i.e during filing, prosecution and award. |
http://www.startupindia.gov.in/uploads/pdf/imp_DraftStart-UppolicyforJharkhand2016.pdf |
Jharkhand Start-Up Policy -2016 |
Start-up |
|
7 |
Kerala |
Patent filing cost: The cost of filing and prosecution of patent application will be reimbursed to the incubated 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 10 lakhs (1 million) would be reimbursed. The reimbursement will be done in 3 stages, i.e during filing prosecution and award. Patent support scheme delivered through KSUM shall be aligned to national scheme for patent support and the scheme of support under KSCSTE. The scheme which is currently a patent filing cost reimbursement scheme shall be enhanced to facilitate generation of patents by identifying patentable innovations and supporting the innovator/inventor to develop it to a patentable form |
https://kerala.gov.in/documents/10180/46696/Kerala%20Technology%20%20Startup%20Policy%202014 |
Kerala Technology Start-up policy, 2014 |
Start-up |
|
8 |
Karnataka |
Claim reimbursements on your patent filing cost here! For Domestic Patents: The cost of filing and prosecution of patent application will be reimbursed to incubated start-up companies up to a limit of Rs. 2 lakh per Indian patent awarded For Foreign Patents: For foreign patents on a single subject matter, up to Rs. 10 lakh (Rs. 1 Million) will be reimbursed to incubated start-ups The reimbursement will be done in 2 stages - 75% after the patent is filed and the balance 25% after the patent is granted |
http://www.startup.karnataka.gov.in/docs/Startup_Policy_Karnataka.pdf |
Karnataka Start-up Policy 2015-2020 |
Start-up |
|
9 |
Maharashtra |
Patent Filing Cost – Start-ups will be compensated for the cost of obtaining an Indian patent (up to ₹.2 Lacs) and an international patent (up to ₹.10 Lacs) in following three stages: 1. During filing 2. Prosecution 3. Award Ø Start-ups will be compensated for the cost of obtaining an Indian patent (up to ₹.2 Lacs) and an international patent (up to ₹.10 Lacs) |
https://aaplesarkar.maharashtra.gov.in/file/Innovation-Startup-Policy-2017-English.pdf |
Draft Maharashtra State Innovation and Start-up Policy-2017 |
Start-up |
|
10 |
Madhya Pradesh |
Patent/Quality Promotion Subsidy • Cost reimbursement for max 3 Patent/Quality certification per Unit up to a limit of INR 2 lacs for domestic & INR 5 Lacs for International Patent/Quality certification upon successfully receiving them. |
http://www.startupindia.gov.in/uploads/pdf/imp_MPIncubation&StartupPolicy.pdf |
MP Incubation & Start-up Policy 2016 (Draft version) |
Start-ups/Incubators |
|
11 |
Rajasthan |
Reimbursement of patent filing costs up to INR 3 Lakhs, per patent awarded per year. Patent Filing Costs The Government of Rajasthan is keen to encourage the filing of patents by companies located within the State. The Government will, therefore, reimburse the cost of filing patents to companies having their headquarters in Rajasthan for successfully receiving patents. Reimbursement of such cost will be limited to a maximum of Rs.3 lakh per patent awarded per year. |
http://resurgent.rajasthan.gov.in/uploads/media-centre/publication/it-policy-2015.pdf |
|
Start-up |
|
12 |
Telangana |
Patent Filing cost: The cost of filing and prosecution of patent application will be reimbursed to the incubated start-up 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 lakh (1 Million) would be reimbursed. The reimbursement will be done in 2 stages, i.e., 50% after the patent is filed and the balance 50% after the patent is granted. |
http://www.telangana.gov.in/PDFDocuments/Telangana_Innovation_Policy_2016.pdf |
Innovation Policy of the State of Telangana |
Start-up |
|
13 |
Uttarakhand |
Patent Filing Cost: The cost of filing and prosecution of patent application will be reimbursed to the incubated start-up 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 lakh (1 Million) would be reimbursed. The reimbursement will be done in 3 stages, i.e., during filing, prosecution and award. |
http://www.startupindia.gov.in/uploads/pdf/imp_StartupPolicy_Uttarakhand.pdf |
Start-up Policy Uttarakhad |
Start-up |
|
14 |
Uttar Pradesh |
Patent Filing Cost • The cost of filing patents will be reimbursed to the companies having their headquarters in Uttar Pradesh, subject to a limit of INR 5 Lakhs per domestic patent awarded and INR 10 Lakhs per International patent awarded • Patent Filing Cost: The cost of filing and prosecution of patent application will be reimbursed to the incubated start-up companies subject to a limit of INR 2 lakh per Indian patent awarded and INR 10 lakh per Foreign awarded patents |
http://itpolicyup.gov.in/wp-content/uploads/2017/09/suggestions-invited.pdf |
Uttar Pradesh Information Technology & Start-Up Policy 2017-2022 |
Companies, Start-up |
|
15 |
Haryana |
Innovation promotion subsidy: Cost reimbursement for max 3 Patent/Quality certification per Unit up to a limit of INR 2 lacs for domestic & INR 5 lacs for International Patent/Quality certification upon successfully receiving them |
Haryana_StartUp_ActionPlan |
Haryana Start-up Policy 2017 |
Start-up |
|
16 |
Assam |
Incentives for Patents and IPR § Incentives for Patents and IPR – The Government shall reimburse up to 50% of the actual costs (including filing fees, attorney fees, search fees, maintenance fees) with a maximum limit of Rs 1 lakh for filing a domestic patent and up to Rs 5 lakh for filing an international patent. This reimbursement shall be payable 75% after the patent is filed and the balance 25% after the patent has been granted |
ASSAM STARTUP POLICY DRAFT 2017 |
Start-ups with a valid MASI |
|
|
17 |
Himachal Pradesh |
Patent Filing Cost: The cost of filing and processing of patent application will be reimbursed to the incubated start-up companies subject to a limit of Rs. 2 lakh (0.2 million) per Indian patent awarded or actual cost incurred, whichever is less. For awarded foreign patents on a single subject matter, up to Rs. 10 lakh (1 Million) or actual cost incurred, whichever is less 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. This incentive shall be routed through the incubator concerned. |
https://himachalwatcher.com/wp-content/uploads/2016/11/hp-startup-scheme-form.pdf |
Chief Minister’s Start-up/Innovation Projects/New Industries Scheme” |
All Start-ups/ new industries/Innovation Projects such as Start-up/New Industries, Innovation Project., Incubator, Venture Capital Fund, Angel Investors, Host Institutes |
|
18 |
Tamil Nadu |
50% subsidy on the cost of filing a patent application subject to a maximum of Rs.2.00 Lakh per application. 50% of the cost of the application for trade mark registration or Rs.25, 000/- whichever is less. |
http://cms.tn.gov.in/sites/default/files/documents/msme_e_pn_2016_17.pdf |
MICRO, SMALL AND MEDIUM ENTERPRISES DEPARTMENT Policy Note 2016-17 |
MSMEs |
As can be seen from the above, the financial support offered by the various state governments is substantial enough to meet the IPR budgets of start-ups and small-scale entrepreneurs. While higher costs for securing patent rights cannot be denied, the benefits by way of reimbursements certainly go a long way in helping start-ups and SMEs to take IPR seriously. We encourage start-up and SME community to utilize these opportunities to finance their IPR needs in India and abroad while continuing to grow the business.
P.S: The policies of few states in the table provided are draft policies.
