Start-Ups - Start Patenting Your Inventions
Intellectual property rights refer to rights given to people over creations of their minds. These rights are for a certain period and in a globalized economic scenario, it has become imperative to protect the rights of creators and inventors.
Intellectual property is a collective reference for intangible rights owned by an individual or business over their non-monetary products. Although intangible, intellectual property (also known as IP) can be sold, assigned, licensed much like ordinary assets.
Intellectual property is enormously valuable to a business but often remains disregarded and unprotected.
The ownership of IP rights could be in any form such as:
- Trademark and Designs
Having one of these marked on your brand can not only increase the brand value but also the competitiveness of the companies. IP rights hold a significant value for the start-ups, and most importantly in deciding a company’s providence.
Registering IP Rights In India
The recent developments in India acknowledge that Indian government is emphasizing on getting the business registered under one of IP Rights. Recognizing multiple benefits of Intellectual Property for Startups, the government of India has come forth in helping these businesses by offering hassle free Intellectual Property Rights process.
On 16th January 2016, the Government of India declared its new action plan for evolving Start-Up and small businesses in India. The startup action plan comprises of several important acknowledgement explaining the role of Patents and its significant measures. For instance, the government of India has introduced ownership of Indian patent rights as one of the important bases that will make start-up companies eligible for accessing various government schemes comprised in this action plan.
The most crucial element of this ACTION PLAN is the reassurance of IP protection for the Start-Ups which is referred to as “Scheme for Facilitating Startup Intellectual Property Protection (SIPP) . In this scheme, the government of India has highlighted on offering exceptional services and fiscal support to Start-Up companies for guarding their inventions by way of patent protection.
Key features of the Start-Up Intellectual Property Protection
To promote and encourage the awareness about Intellectual Property Protection Rights in Start-Ups, government of India is accentuating to adopt IPRs, protect and commercialize their IPRs. The Start-Up India platform ensures that the Start-Up companies get a hassle free access to IPR services and its resources. The measures taken by the government of India are mentioned as below:
- Speedy patent examination
The government of India is offering a speedy process when it comes to examination of patent applications filed by the Start-Up companies. The primary goal is to grant patents to start-ups quickly and minimize the back logs and the delays in registration of IPR.
- Appointing Legal Facilitators
The government of India has come forth in offering legal help while processing the IPR formalities. The companies no more have to worry about the expenses incurred during the process of IPR excluding statutory fees. Government of India has anticipated roping in expert patent agents, trademark agents and advocates as legal facilitators for A- Z IPR Process.
- Funding IPR & Patent Processing
The government of India announced of bearing legal costs (excluding the statutory fees) for filing patent, design, and trademark applications for Start-ups by appointing legal facilitators. This means the government of India will bear the expenses of legal facilitators on behalf of the Start-Up companies which are keen on filing their patents, trademarks, and design applications.
- Discount In Patent Fees
Another significant measure that government of India took to encourage Start-Up companies was reducing statutory patent fees by 80% (A huge discount). This factor surely holds a big impact in reducing the stress of expenses involved in IPR protection.
The initial uncertainties about how Start-Up companies can make themselves eligible for accessing this new scheme, companies believed that this new IPR scheme for Start-Up India action plan comes equipped with several benefits.
The best part is the speedy examination which will ensure that the Start-Ups companies can quickly enjoy the fruits of their labors, and can use IPR rights as one of the tools for accessing value for their venture.
The above mentioned measures by the government of India will be acknowledged by the StartUp Companies and encourage them to file patent applications which is done at affordable expenditure. These steps of facilitating legal expert help and reduction in the fees will allow the Start-Up companies to invest their savings in commercializing efforts.
The start-up benefits as provided by the Indian government are not restricted to Indian companies but are also extended for foreign start-up companies which fulfil the criteria for being a start-up.
Such involvement from Indian government shows the awareness for IPR when it comes for Start-up companies. This encouraged development will bring significant change in the ecosystem of the country, and will add fuel to fire to genius ideas that are keen to show up in Indian markets.
 Annexure 1 (Lists the definition of Start-Up and eligibility criteria for accessing government schemes)
Definition of Start Up according to the Start-Up India Scheme
As per the recent development; a fresh scheme has been introduced defining Start-Ups.
Start-Up is a body, incorporated of registered in India not prior to 5 years, not exceeding its yearly turnover of INR 25 Crore (Approx 3.7 Million USD) in any former financial year, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
The primary rules that require taking care of are mentioned below:
- Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence.
- Provided that an entity shall cease to be a Start-up if the turnover of the former years has exceeded INR 25 crore (approx. 3.7 million USD) or, it has accomplished 5 years from the date of incorporation/registration.
- Provided further that a Start-up shall be eligible for tax benefits only after it has attained certification from the Inter-Ministerial Board, setup for such purpose.
Image courtesy:The Hacker Street
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