The Start-Ups Intellectual Property Protection or SIPP scheme is a very important initiative of the Indian Government, designed for promoting innovation and entrepreneurship across the nation. It extends crucial financial and legal assistance to start-ups for safeguarding and effectively managing their intellectual property assets.
Administered by the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry, the scheme involves a network of facilitators, demonstrating a commitment to propel the growth of inventive enterprises.
Eligibility Criteria for SIPP
To participate in the Scheme for Intellectual Property Protection, start-ups must satisfy the following eligibility criteria:
1. Legal Structure:
The startup must be incorporated as either a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership.
2. Age of Start-up:
The start-up should not have been in existence for more than 10 years from the date of its incorporation.
3. Financial Parameters:
The turnover of the start-up should not have surpassed Rs.100 crores in any of the preceding financial years.
4. Innovative Business Idea:
The start-up should possess a distinctive business idea or an innovative product with the potential to establish a scalable business model, contributing significantly to employment generation or wealth creation.
Facilitators Under SIPP
The Scheme for Intellectual Property Protection is executed through a network of facilitators—organisations registered with the Department for Promotion of Industry and Internal Trade and empanelled for this purpose. These facilitators play a pivotal role in aiding start-ups in the filing and prosecution of their patents, trademarks, and design applications.
Facilitators under the scheme may encompass Technology Business Incubators, Centres of Excellence, start-up incubators or accelerators, and government-funded academic institutions.
Eligible Facilitator for SIPP
The implementation of the SIPP (Scheme for Intellectual Property Protection) involves a network of facilitators, registered with the Department for Promotion of Industry and Internal Trade and empanelled for the scheme. The eligible facilitators under the SIPP scheme include:
1. Technology Business Incubators:
TBIs approved by the Department of Science and Technology, Government of India.
2. Centres of Excellence:
CoEs established under the National Manufacturing Competitiveness Programme of the Ministry of Micro, Small, and Medium Enterprises.
3. Start-up Incubators or Accelerators:
Entities established as legal entities under the Companies Act, 2013, or the Limited Liability Partnership Act, 2008, and funded by the Government of India, State Government, or a Public Sector Undertaking.
Responsibility of Facilitators under SIPP
Facilitators enlisted in the scheme shoulder various functions and duties to ensure its effective operation. These responsibilities include:
1. Awareness and Guidance:
Creating awareness among start-ups regarding the significance of intellectual property (IP) protection and assisting them in identifying and managing their IP assets.
2. Legal Assistance:
Providing legal support to start-ups in the filing and prosecution of patents, trademarks, and designs applications.
3. Financial Support:
Extending financial assistance to start-ups for the filing of patents, trademarks, and designs, eliminating financial barriers to IP protection.
4. Capacity Building:
Conducting workshops and training programs on IP management and related issues to enhance the knowledge and skills of start-ups.
5. Coordination:
Collaborating with the DPIIT and other stakeholders to ensure the effective implementation of the SIPP scheme, maintaining streamlined communication channels.
Duration of the SIPP Scheme
The initial duration of the scheme was five years starting from year 2016 and to be over in 2020.
Operation of the Scheme
The SIPP scheme, initially slated to conclude in March 2020, has been extended by three years, now set to last until 31 March 2023. Additionally, the government has empanelled IP facilitators, including patent agents and trademark attorneys, who collaborate with startups in filing and prosecuting patent applications.
The scheme includes provisions for a fast-track examination of patent registration applications and offers a fee rebate, further enhancing its appeal and support for the innovative ventures it seeks to promote.
Procedure for Filing Application for IPR by Startups Under SIPP
The procedure for applying for IPR by a start-up under the SIPP scheme involves the following steps:
Step 1: Identification of Intellectual Property Asset
The initial step entails identifying the intellectual property asset that the start-up intends to protect. This may encompass inventions, designs, or brands.
Step 2: Prior Art Search
Before initiating the IPR application, conducting a prior art search is crucial to assess the novelty and non-obviousness of the invention or design.
Step 3: Drafting Detailed Specification
Based on the findings from the prior art search, the start-up should draft a comprehensive specification for the patent or design application. This includes claims, drawings, and a detailed description of the invention or design.
Step 4: Filing the Application
The start-up can choose to file the patent or design application either online or offline, depending on its preference and the assistance provided by the facilitator.
Step 5: Prosecution Process
Following the application filing, it undergoes the prosecution process, encompassing examination, objections, and responses to objections. Collaboration between the start-up and the facilitator is crucial to address objections and ensure the successful grant of the application.
This systematic procedure ensures that start-ups receive comprehensive support in the filing and prosecution of their intellectual property applications under the SIPP scheme. Effective collaboration with facilitators enhances the chances of successful IP protection for the innovative assets of the start-up under Startup India registration.
Final Thoughts
The SIPP Scheme for Intellectual Property Protection is a vital government initiative nurturing innovation and entrepreneurship in India. Through a well-structured framework, it provides crucial support to start-ups in safeguarding their intellectual property assets. Over its tenure, the scheme has empowered thousands of start-ups, fostering awareness about the importance of IP protection and offering financial and legal assistance. The three-year extension until March 2023 further underscores its commitment to catalysing a culture of innovation. As a catalyst for growth, SIPP remains instrumental in propelling India’s start-up ecosystem forward, driving economic development through the strategic protection of intellectual capital.
