Government Schemes For Startups-SIPP
In January 2016, Department for Promotion of Industry and Internal Trade (DPIIT) launched Startups Intellectual Property Protection (SIPP) Scheme under Startup India Initiative.
SIPP Scheme was launched to encourage and facilitate startups for Intellectual Property Rights. This scheme was initiated to reach out to startups and protect and promote their Intellectual Property Rights (IPR) and thus encourage innovation and creativity among entrepreneurs.
This blog will be enlightening us about the government schemes & preferences for startups and why IP experts and legal advisors are needed.
SIPP Scheme was started on a pilot basis in January 2016 and was in force up to March 2020. The Department of Promotion of Industry and Internal Trade (DPIIT) has notified that the SIPP Scheme is now being extended further for a period of three years that is up to March 31, 2023.
What are the objectives of this scheme?
1.To promote awareness of IPR among startups, because the government is aware about how important IP is for businesses these days.
2.To nurture the innovative and emerging technologies in startups.
3.To assist startups in protecting and commercializing their IP Rights.
What are the benefits of this scheme?
1.Startups are provided with IPR Facilitators. IP Facilitator could be any registered patent agent, trademark agent or bar council approved lawyer.
2.The filing fee has been reduced. Patent fees have been reduced to 80% and trademark fee has been down to 50%, also, the fee of IP Facilitators has been fixed.
What does it mean when I say that the government filing fee for patents is 80%?
- The fee of Form 1 is ₹1600
- The fee of Form 9, i.e., the fee of early publication, is ₹2500
- The fee of Form 18, i.e., the request for examination, is ₹4000
- Similarly, the trademark filing has been reduced to 50%, i.e., ₹4500
- The fee of IP Facilitators has been fixed too, which is as follows: –
| Stage of Payment | Patent | Trademark | Design | |
| At the time of filing of Application | 10,000 | 2,000 | 2,000 | |
| At the time of final disposal of Application | Without Opposition | 10,000 | 2,000 | 2,000 |
| With Opposition | 15,000 | 4,000 | 4,000 | |
However, the biggest news is that facilitators will not charge anything from a startup. The fee is paid directly by the government.
3.Startups are provided end to end guidance under this scheme.
4.Startup applications can be expedited because normal patent grant processes are time-taking but if you own a startup, the process will be completed swiftly.
What startups can avail the SIPP Scheme?
So the answer is, to avail the benefit of the SIPP Scheme, startups recognized as Startups by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India Initiative. Startups recognized by DIPP can avail Intellectual Property Rights (IPR) related benefits such as the SIPP Scheme.
In easier words, any startup that is registered under Startup India or rather, owns a Startup India Certificate, can avail the SIPP Scheme.
What is the eligibility criteria for startups to get the Startup India Certificate?
- The date of registration of the startups should be of less than ten years ago
- Only those startups can avail the certificate that are either Pvt. Ltd. or LLP
- To get DPIIT Certificate of Recognition, the company should not have been incorporated by splitting up or recreating an already existing entity. That means if a company is formed from an existing company or by splitting, it is not eligible for the certificate.
Startups must have a scalable business model with high potential for the creation of wealth and employment.
Where should you apply to get this certificate?
The application of this certificate is an extremely easy process; one can apply for it on their own too. For this you need to make a presentation of your business plan and have to show your business scalability and need in the market. After you are done with that step, go to the web portal of Startup India, fill the form and submit it; you can then get the certificate after the Startup India team evaluates it.
Why is a patent attorney or IP attorney important for startups?
An IP advisor or IP attorney is required for startups to help you strategize your IP assets from the very start. It is immensely important to strategize your IP from the initial stages of your business and for that an IP attorney or IP advisor is a must to help you guide through it.
An IP attorney or IP advisor can help you
1.Identify what your IP assets are and what kind of protection is suitable for them
2.By guiding what to register and what not to register.
3.By guiding you for multiple IP protection for single work.
4.Draft, file, grant and commercialize your application.
5.Guide even about the right time and the right country.