I.P. related Sanctions for MSME's and Start-ups

The Indian government is focused on promoting IP rights and thus are providing a 10% rebate on the online filing of trademark application and 50 % fee reduction for MSME in trademark filing. Encouraging the start-ups by giving a 50% rebate on trademark filing fees.

A trademark is the most potent weapon in any entrepreneur’s arsenal and can be held in perpetuity thus saving their idea or product from possible misuse.

The amendment of 2017 in the trademark rules brought in the division in the legal status of the applicant. The division has implication over the fees of trademark filing. The trademark applicant has to provide information in Form TM-A about the type of category the proprietor will fall into.

The division of category as per CGPDTM is:

• Individual
• Start-Up
• Small Enterprise(MSME)
• Companies.

MSME

Small and Medium-sized industry in developing country like India require support to enhance their technological advancement.  The significant change in respect MSME was brought in with amendment of trademark rules, 2017 and Make in India initiative.

Following is the cost breakup of trademark filing

MSME certification provides following benefits

I.P Related Benefits

• All registered MSME will be provided one-time support ranging up to Rs.25,000 for national Patent application and Rs. 2 lakh for International patent application.
• GOI will grant total support of 65 lakh for establishing IP facilitation centres. That includes a one-time grant of Rs 45 lakhs and Rs 18 lakhs as recurring expenses for 3 years.

Tax-related Benefits

• MSME certificate holder has special schemes dedicated to the sector as per which they can avail loans at a lower interest rate.
• MSME's have to pay 5% less tax as compared to other companies.
• The small-scale industry is provided with a subsidy on Power bills and taxes.

Start-up India

Start-up India Action Plan was brought in by Govt. Of India to facilitate a healthy eco-system for nurturing innovation in Startups. The government came up with the plan to provide credit guarantee comfort for them from all the formal banking system in India.

With Start-up India initiative protecting the IP right in India is friendlier now, as earlier for any sanction they had to wait for approval from Inter-ministerial Board (IMB) but now the process has now been expedited by DIPP.

I.P Related Benefits

• Setting up of facilitators that will advise on different Intellectual Property rights. Currently, there are 596 facilitators for the trademark itself. Such Facilitators will also provide end-to-end advisory from making applications till the stage of final disposal of the IPR application.
• Rebate of 80% on patent filing. Till date, 32 companies have successfully received the 80% rebate on the products.
• 50% rebate on trademark filing fee for start-ups as per Trademark Rules, 2017.

Eligibility and Coverage for Start-Ups

Start-ups, as the name suggests, is the new business venture with the underlying business model to provide product in the market through innovative method.

As per the scheme following entity shall be considered as a start-up

1. Companies or entity with turnover not exceeding 25 crore
2. If the entity is working toward innovation, development or process that is driven by innovation and technology.
3. Has not exceeded the period of  5 years from the date of incorporation.