WHAT ARE THE IPR SCHEMES PROVIDED BY GOVERNMENT FOR STARTUPS

INTRODUCTION

Startups are those businesses that are built with motive of creating a big brand name in the respective industry while fostering innovation and invention. Startups are an important piece in the growth of an economy. Over the years, there are increasing numbers of startups as the fear of failure is not scaring businesses much. This is partly due to the support of the government through its policies and schemes.

IPR has a big role to play in any startup. Intellectual Property Rights are the rights associated with the brand`s reputation. They protect the person`s exclusive right to innovation. These rights are important for any business. The recognition of protection to trademarks, copyright, patent, etc. motivates any business to look for innovation in products or techniques . Other reasons shall be dealt in detail in this article.

Government have made number of schemes and policies for promotion of Startups. The central policy or foundation scheme is Startup India. This scheme has generated around 1.75 lakh jobs since its inception in 2016. It focused on easing compliance requirement and generating self-certification along with creating funding opportunities, conducting mentorship programs and declaring rankings to provide the positioning of any brand.

Other Startup schemes are Startup India Seed Fund Scheme (SISFS), Credit Guarantee Scheme for Startups (CGSS), Atal Innovation Mission (AIM), Pradhan Mantri Mudra Yojana (PMMY), etc.

The government also have made IPR related schemes specifically for startups to help motivate them towards innovation and to create a brand identity in marketplace with ease. Start-Ups Intellectual Property Protection (SIPP) is the most important one of them implemented in 2016 by Controller General of Patents, Designs and Trade Marks (CGPDTM). This scheme was focused on promoting adoption and awareness of Startups in India. Other schemes will be sealt in later part.

Why are Intellectual Property Rights Important for Startups?

Protecting Innovation          
Patents and trademarks as well as copyrights can be viewed as a legal recognition of such innovations as the intellectual property rights. Startups are thus protected from people emulating their ideas without prior approval and this in a way ensures that they do not lose market territory to competitors and earn good revenue from their products.        

Attracting Investment          
Accordingly, a good IP portfolio is likely to play a crucial role in startup attractiveness for the same reason, as it signals a competitive, albeit shadow, advantage in the future. The IP assets can also be used to negotiate a loan and can act as an asset which one can use to bargain with potential financiers, partners or investors.

Building Brand Value         
Trademarks and other intellectual properties that companies use during their functioning become essential when it comes to the formation of their brand value. The results indicated that a brand can assist with attracting and developing customer relationships while improving the perceived value of the company.  

Enforcing Rights      
IP rights do need to be registered as this gives such startups legal grounds to act against the alleged infringers through demanding letters, legal suits or otherwise. This is so especially where markets are saturated or parties offering similar products and services are many and cases of IP infringement frequent      .
Licensing Opportunities      
Another way startups are able to generate income from IP assets is by selling the patents and other forms of IP to other firms or persons at insist on a fee. This may be a major source of income for the small business since others may find the technologies or processes developed valuable for use.  .
International Expansion     
Thus, IP rights play a vital role for startups that plan to go international in order to protect their innovations and brands in the foreign countries. The regulatory rules of many countries demand local IP registration, thus, it becomes quite challenging to protect rights of startups without following laws of international IP protection.

IPR schemes by Government for Startups:

1. Start-Ups Intellectual Property Protection (SIPP)

This is the most significant scheme of all IPR schemes by government.

Launch and Duration: Began in 2016; phased till 2019 to 31. 03. 2023.  
Implementing Authority: Under the regulation of the CGPDTM or the Controller General of Patents, Designs and Trade Marks.       
Facilitator Support: Startups are helped to apply for patents, designs, and trademarks using applications presented to CGPDTM with the actual professional fees paid by the government.
Objective-
1.Advocate for IPR knowledge and their use by start-ups.   
2. Consult on the startup of innovative technologies  .
3. Help in the protection and monetization of innovations.   
Eligibility Criteria-  
General: Indian incorporated startups having their operation for a maximum of 7 years (10 years in biotechnology).          
Financial: Lowest up to Rs.25crore turnover of the previous year. 
Focus: New venture organizations involved in creation, application, or marketing of new systems, goods, or services.          

Even for promotion of registration of Industrial Designs by StartUps as per the new design amendment rules 2021, the Government has reduced filing and prosecution fees for small entities.

2. Patent Facilitation Programme: The Patent Facilitation Program (PFP) is designed to assist startups and Micro, Small, and Medium Enterprises (MSMEs) in navigating the patent process.

Objectives-
Promote Innovation: Promote innovation among new generation businesses and the micro-, small- and medium-sized enterprises to patent their inventions.
Support Patent Filing: Offer support in a very technical and sometimes tedious process of searching, writing and filing of patents.  
Increase Patent Awareness: Increase knowledge concerning the advantages of applying for patents and other forms of protection for inventions and creations by small business establishments.
Eligibility Criteria-  
Type of Entity: Registering businesses in India include startups and the micro, small and medium-sized enterprises.     
Implementing Authority:    
Technology Information, Forecasting and Assessment Council 
Benefits to Startups-
Cost Reduction: It also makes the overall cost attributed to the process of patenting to be lower as compared to the conventional procedures           .

STARTUP INDIA:

Startup India is a key initiative by the Government of India designed to boost the startup culture and create a robust, inclusive environment for innovation and entrepreneurship across the country.

The Startup India Initiative offers several benefits for legal support and Intellectual Property Rights (IPR) facilitation:

1. Expedited Patent Processing: Patent applications from startups are prioritized to help them quickly realize their intellectual property value.

2. IP Filing Assistance: A panel of facilitators is available to help with filing IP applications, with their contact details provided above.

3. Fee Coverage: The Central Government covers all facilitator fees for patent, trademark, or design applications, with startups only responsible for the statutory fees.

4. Discounted Filing Costs:Startups receive an 80% discount on patent filing fees compared to other companies. For further details, please reach out to the patent facilitators.

Conclusion

Intellectual Property Rights (IPR) play a crucial role in the success of startups by safeguarding innovations, attracting investment, building brand value, and creating licensing opportunities. Government initiatives, such as Startup India and various IPR facilitation schemes, offer substantial support to startups. These programs expedite patent processing, provide financial assistance for IP filings, and promote innovation, thus creating a favorable environment for new businesses to thrive. By leveraging these benefits, startups can secure their intellectual property, enhance their market position, and pursue international expansion more effectively.