Scheme for Facilitating Start-Ups Intellectual Property Protection (SIPP)
The Scheme for Facilitating Start-Up Intellectual Property Protection was launched by the Indian government to encourage start-ups (SIPP). This program was created to reach out to start-ups to safeguard and promote their intellectual property rights (IPR), thereby encouraging entrepreneurship and innovation. The Scheme began as a trial program in January 2016 and ran until March 2020. The SIPP plan has been extended for another three years, until March 31, 2023, according to the Department of Promotion of Industry and Internal Trade (DPIIT).
The objective of the SIPP
- The SIPP’s main goal is to raise awareness of intellectual property rights and help start-ups acquire them.
- The program also aims to support and mentor start-ups with innovative and emerging technology.
- By offering access to high-quality IP services and resources, we can help start-ups protect and commercialize their intellectual property rights.
SIPP Benefits for Start-Ups
- The Scheme for Facilitating Start-Ups Intellectual Property Protection (SIPP) was created to raise awareness and support IPR protection among start-ups.
- Professional fees are not included in the SIPP program, thus start-ups can only pay the required statutory fees for patent, trademark, and design services.
- The government would pay minor professional fees to the advocates or trademark agents in charge of the IPR process for services linked to obtaining Intellectual Property Rights (IPR).
- Under this SIPP scheme, start-ups can get a full range of services from beginning to end, including general advice, assistance in drafting applications, preparing and filing responses to examination reports, appearing at hearings, contesting opposition, and ensuring that the Intellectual Property Rights application is finally resolved.
- The DPIIT has appointed various facilitators to ensure that the plan is implemented effectively. These facilitators are responsible for providing IPR-related services to start-ups.
- Facilitators will not charge a Start-Up anything under the arrangement. The government is responsible for paying the fees.
According to the amended guidelines, Start-Ups registered in this plan will not be required to receive a certificate from the Inter-Ministerial Board of Certification as an eligible firm.
Start-Ups Eligibility Criteria for SIPP
Companies must be recognized as Start-Ups by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Start-Up India initiative in order to benefit from the SIPP scheme. Intellectual property rights (IPR)-related incentives, such as the SIPP scheme, are available to DIPP-recognized start-ups.
To receive the DPIIT Certificate of Recognition, the startup must complete the following requirements:
- The duration of a Start-existence Up’s and operations shall not exceed ten years from the date of formation.
- For Start-Ups that are incorporated as a Private Limited Company, a Limited Liability Partnership (LLP), or a Registered Partnership Firm, the DPIIT Certificate of Recognition is granted.
- For any of the financial years from its inception, the firm must have had an annual turnover of Rs. 100 crore.
- The company must not have been formed by splitting up or recreating an existing entity in order to receive a DPIIT Certificate of Recognition.
- The organization should be working on the creation of a new product, process, or service.
- The organization should be working on the creation of a new product, process, or service.
- The business should have a scalable business plan with a high potential for earning money and creating jobs. The business should be able to generate income and jobs.
The DPIIT Certificate of Recognition can be validated on the Start-Up India website.
- The Inter-Ministerial Board of Certification will not need Start-Ups covered by this scheme to get a certificate of an eligible business.
- Start-ups, on the other hand, will be required to self-certify that they have not used funds from any other government program to pay the facilitator, patent agent, or trademark agency for submitting and prosecuting their IP application.
Empanelment of Facilitators
The DPIIT has appointed various facilitators to ensure that the plan is implemented effectively. These facilitators are responsible for providing IPR-related services to startups. As previously stated, the facilitators should not charge the startup anything, and the payments should be paid directly by the government.
The Controller General of Patents, Designs, and Trade Marks will appoint the facilitators (CGPDTM). The CGPDTM will periodically update the list of eligible facilitators for the SIPP program. The list of facilitators is available on DPIIT’s official website for startups.
- Any Trademark Agent who is a member of the CGPDTM
- Any Patent Agent who is a member of the CGPDTM
- Any advocate, as defined by The Advocates Act, 1961, who is authorized to practice law in accordance with the Bar Council of India’s rules, is familiar with the requirements of the applicable Acts and Rules, and is actively involved in the filing and disposition of trademark applications.
- Through an authorized representative, a government department, organization, agency, or CPSU (such as TIFAC, NRDC, BIRAC, MeitY, CSIR, Patent Information Centers (PICs), and Technology and Innovation Centers) (TISCs)
Note: It should be noted, however, that the IP application must be signed by a person who is authorized to do so under the relevant Act and Rules.
Responsibility for Facilitators
According to the Scheme for Facilitating Start-Ups Intellectual Property Protection, facilitators will be accountable for the following tasks (SIPP).
- Facilitators will be required to provide free general advice on various intellectual property rights (IPR) to Startups.
- On a pro gratis basis, providing knowledge on preserving and promoting IPRs to startups in foreign countries.
- Under the CGPDTM, the facilitator will aid with the filing and disposal of IP applications related to patents, trademarks, and design at national IP offices.
- Developing provisional and comprehensive patent requirements for startup inventions
- The facilitator is responsible for preparing and filing responses to the IP office’s examination reports and other inquiries, notices, or letters.
- Attending hearings on behalf of a startup
- If there is any opposition from other parties, it will be contested.
- Obtaining a final decision on the IPR application
Duration of the SIPP Scheme
As previously stated, the Scheme for Facilitating Start-Up Intellectual Property Protection (SIPP) will be in force for three years beginning April 1, 2020.
Fees for Patents, Designs, and Trademarks Application
The fee structure listed above will apply to any number of patents, trademarks, or designs that a Startup may apply for.
The facilitator will not charge the startup or the entrepreneur anything; instead, the government will pay the facilitator directly through the CGPDTM office and the fees will be disbursed by the local IP office.
|Sl.No||Stage of Payment||Patent||Trademark||Design|
|1||At the time of filing of Application||10,000||2,000||2,000|
|2||At the time of final disposal of the Application||Without Opposition||10,000||2,000||2,000|
Payment of Fees to Facilitators
The fee for a facilitator can be claimed from the IP office depending on the stage of work done. The fee bill must be accompanied by a self-declaration from the concerned startup stating that it has not used funds from any other government program to pay the facilitator, patent agent, or trademark agency for filing and prosecuting its IP application.
If an application is withdrawn or abandoned before it is decided, the facilitator will only be entitled to costs for the filing of the application, not for the decision. In order to be eligible for fee reimbursement, you must first complete the following steps. the facilitator must send an invoice to the appropriate IP Office, referencing the DPIIT Registration Number for the startup for which the facilitator has submitted an IP application. In the case of a trademark application, the application’s ultimate disposition entails the trademark’s registration.
The startup must pay the statutory fees for any applied patent, trademark, or design.
Procedure for filing applications for Patents, Designs, and Trademarks
The procedure for applying for Patents, Designs, and Trademarks under the Scheme for Facilitating Start-Ups Intellectual Property Protection (SIPP) is as follows:
Procedure for Patent Application
Start-ups interested in filing a patent application can choose a facilitator from a list of facilitators available on the CGPDTM official website.
For the preparation of the SIPP scheme application, startups can contact him directly. If startups are unable to choose a facilitator, they should contact the respective patent officer’s head office, obtain three facilitator names, and choose one from the three.
After examining the patentability of the invention and other aspects in accordance with the Patents Act and Rules, the facilitator is satisfied that the patent application will be granted. The Facilitator will next file a complete Patent specification on behalf of the start-up with the appropriate Patent Office according to jurisdiction, following the required procedure under the Patent Act and Rules. The startup will cover the cost of filing a patent application as well as other statutory expenses. After the Patent Office receives a patent application, the facilitator can file a claim for fees in accordance with the fee schedule outlined above. For fee reimbursement, please provide the following papers.
- a letter addressed to the relevant Patent Office’s Head of Office
- As a Registered Patent Agent Invoice, I claimed a fee for the drafting of the application ID evidence.
After receiving the claim from the facilitator, the Head of Office will verify the facilitator’s ID and determine the propriety of payment before arranging for the payment of a fee to the facilitator. Simultaneously with making the payment to the facilitator, the Head of Office will send the information of the application and payment to the facilitator to the Office of the CGPDTM. The facilitator will oversee and carry out the next steps in the patent application process for the startup, including preparing a response to any Patent Office queries and attending hearings.
The list of Facilitators for Patents will be applicable for filing and processing design applications. The fees will be claimed by the Facilitator, and the application and ion will be processed according to the above-mentioned Designs Act and Rules.
Trade Marks Application
The list of Facilitators for Trademarks will be used for filing and processing trademark applications. After filing a trademark application for a startup in accordance with the Trade Marks Act and Rules, the Facilitator can submit a claim for fee payment to the Trade Marks Registry’s respective Head of Office, who will follow the same procedure as described above.
Rishiraj is a keen learner and eager to learn more about the financial world. As a content writer at Finaxis, he hopes to capitalise on his newfound inclination for technology and language.