SIPP Scheme in India: Government Support for Startups in Intellectual Property Rights

Introduction to the SIPP Scheme:

The Scheme for Facilitating Start-ups Intellectual Property Protection (SIPP Scheme India) is a government initiative launched to strengthen startup intellectual property rights in India, making patents, trademarks, and designs more accessible. The SIPP Scheme was introduced as a form of government support for startups IPR, ensuring affordable access to patents, trademarks, and design protection in India.

Facilitators' professional fees are paid directly by the government, so the startup only needs to pay the statutory filing fees. This encourages innovation and creativity by making IP protection more affordable and accessible, nurturing emerging technologies, and supporting the commercialization of new ideas. The scheme is managed by the Controller General of Patents, Designs and Trademarks (CGPDTM) and aims to boost IP awareness and utilization among innovative Indian startups.

Objectives of the SIPP Scheme: The main objectives of the SIPP Scheme India:

1. One key goal is to strengthen startup intellectual property rights in India by encouraging patent and trademark filings.
2. Increase awareness and adoption of Intellectual Property Rights (IPRs) among startups, innovators, and educational institutes.
3. Nurture and mentor emerging technologies by guiding startups through the IP protection process.
4. Assists startups in securing and protecting patents, trademarks, and designs, both in India and abroad.
5. Help startups commercialize their innovations by providing access to high-quality IP services and resources.
6. Enable startups to access expert IP facilitators free of cost, covering various stages of the IP application, from advice and drafting to hearings and opposition.
7. Foster an innovation-driven economy by reducing barriers to IP protection and promoting creativity and competitiveness among startups.

Eligibility Criteria for Startups –

1. To benefit from the Scheme for Facilitating Startups' Intellectual Property Protection, startups must be DPIIT-recognized.
2. The startup must not have existed for more than 10 years from the date of its incorporation.
3. Should be incorporated as a Private Limited Company, Limited Liability Partnership (LLP), or Registered Partnership Firm.
4. The annual turnover should not exceed Rs 100 crore in any financial year since incorporation.
5. The entity should work towards innovation, development, or improvement of products, processes, or services with a scalable business model and potential to create wealth and employment.
6. The entity must not be formed by splitting up or reconstructing an already existing business.
7. Must declare that no funds from other government schemes were availed for paying IP facilitators or agents for the application.

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Facilitators under the SIPP Scheme:

Facilitators under the SIPP Scheme India are professionals and organizations officially empanelled by the government to assist startups with their intellectual property (IP) needs. Their role and details are:

Who Can Be Facilitators:

1. Patent Agents registered with the Controller General of Patents, Designs and Trade Marks (CGPDTM).
2. Trademark agents registered with CGPDTM.
3. Advocates entitled to practise law in India who specialize in IP filings and are recognized by the Bar Council of India.
4. Government departments, organizations, agencies, and authorized representatives from institutions like TIFAC, NRDC, BIRAC, MeitY, and CSIR.

Role and Responsibilities:

1. Provide general advisory on IP rights to startups at no professional charge.
2. Assist in drafting, filing, and disposal of patent, trademark, and design applications.
3. Prepare replies to examination reports and represent startups during IP hearings.
4. Contest oppositions, if any, and ensure final disposal of IP applications.
5. Advise on international IP protection and procedures.

Fee Structure:

1. Facilitators do not charge startups for professional services; the government pays the facilitator's professional fees directly.
2. Startups only pay statutory (government) filing fees.

Types of Intellectual Property Covered:

The SIPP Scheme India covers the following types of intellectual property –

1. Patents: Protection for new inventors and innovation processes.
2. Trademarks: Protection for brand names, logos, and symbols that distinguish goods or services.
3. Industrial Designs: Protection for the visual design, shape, pattern, or appearance of a product.

Government Support and Fee Reimbursement:

This initiative is one of the strongest forms of government support for startups IPR, reducing costs while providing expert legal assistance. The government support and fee reimbursement under the SIPP include:

1. The government directly pays the professional fees of facilitators involved in filing and prosecuting IP applications on behalf of startups. This excludes statutory or official filing fees and any professional fees for the startup.
2. Facilitators provide services such as advisory, drafting, filing, response to examination reports, hearings, oppositions, and final disposal of IP applications without charging startups any professional fees.
3. Startups bear only the official fees payable for patent, trademark, or design applications.
4. To make high-quality IP protection more affordable and accessible, the scheme empanels facilitators who deliver pro bono professional assistance funded by the government.

This arrangement encourages startups to protect and commercialize their intellectual property by reducing the financial burden of professional fees while ensuring comprehensive assistance throughout the IP filing and prosecution process.

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Process of availing SIPP Scheme benefits:

The following is the process for availing the SIPP Scheme India:

• Startup Recognition: Ensure your startup is recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Startup India initiative.
• Select a Facilitator: Choose a government-empanelled facilitator (patent agent, trademark agent, advocate, or authorized government organization) from the official CGPDTM website who will assist you with IP filings.
• Engage Facilitator for IP Services: The facilitator will provide advisory services, help prepare and file patent, trademark, or design applications, respond to examination reports, represent hearings, and handle oppositions, ensuring final disposal of IP rights.
• Submit Statutory Fees: The startup pays only the government statutory filing fees for the IP applications; the professional fees of facilitators are paid directly by the government.
• File Applications: Facilitator files the IP application with the relevant patent office, design office, or trademark registry on behalf of the startup.
• Monitor and Follow-up: Facilitator monitors the application, handles office actions, and ensures smooth processing and grant of IP rights.
• Claim Reimbursement Documents: Facilitators submit claims for professional fees to the respective IP offices with necessary documents such as invoices and proof of filing.

Impact of the SIPP Scheme on Startups:

The SIPP has had a significant positive impact on startups in India by:

1. The scheme has played a major role in expanding startup intellectual property rights in India, improving innovation and competitiveness.
2. It has increased the understanding and importance of intellectual property rights among startups, encouraging them to protect their innovations.
3. By covering the facilitator's professional fees, the scheme has made the complex and costly IP filing process more affordable for startups.
4. Startups receive comprehensive assistance from consultancy, filing, prosecution, to final disposal of patents, trademarks, and designs through empanelled facilitators.
5. The scheme nurtures emerging technologies and fosters an innovation-driven ecosystem by helping startups legally safeguard and commercialize their ideas.
6. Protected IP assets strengthen startups' marketability, attract investments, and enhance export potential.
7. Wide adoption of the scheme has contributed to India's rise in the Global Innovation Index, reinforcing its position as an emerging innovation hub.

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Challenges and Limitations of SIPP Scheme:

The challenges and limitations of the SIPP Scheme India include:

1. Ensuring fair and timely payment to facilitators and maintaining strict quality control over their services can be complex. Cases of professional misconduct or refusal to serve startups sometimes arise, requiring robust enforcement and regulation by CGPDTM.
2. Despite the scheme's benefits, many startups remain unaware of the SIPP scheme or lack understanding of intellectual property rights and procedures, restricting the scheme's reach and impact.
3. The inherent time-consuming nature of patent or trademark prosecution, often taking several years, can be challenging, especially for startups needing rapid market entry and protection.
4. While facilitator fees are covered, startups still bear statutory filing and maintenance fees, which may remain a financial burden for some.
5. Navigating IP protection across multiple countries poses administrative and financial challenges, especially for startups aiming to globalize.
6. Ongoing training and support for startups on IP strategy, management, and commercialization are necessary to maximize benefits but are not fully institutionalized.

Overall, while the SIPP scheme greatly aids startups' IP protection, addressing these challenges through enhanced awareness, streamlined processes, and better facilitation will strengthen its effectiveness in nurturing innovation.

Recent Updates and Developments in SIPP Scheme:

Recent updates and development in the SIPP scheme include:

1. Initially launched as a pilot, the scheme has been extended multiple times and is currently valid through the financial year 2025-26 to continue supporting startups.
2. Facilitator professional fees for patent application filing and processing have been increased to INR 15,000 (from INR 10,000 previously). For trademarks and designs, fees have also increased to INR 3,000 from INR 2,000, reflecting the growing scope and quality of services offered.
3. The DPIIT has empanelled over 2200 patent and trademark attorneys (also known as IP Mitras) nationwide to provide comprehensive IP services to startups under the scheme.
4. The fees for facilitators are paid directly by the government, making IP protection affordable. Startups still pay only the statutory fees applicable for patent, trademark, or design filings.
5. The scheme continues to prioritize innovative startups, including biotechnology startups with a longer eligibility window (up to 10 years), helping them nurture and protect emerging technologies.
6. The scheme now covers end-to-end IP support, from advisory to final disposal of rights, with improved guidance and monitoring of facilitators' performance.

Conclusion: Boosting Innovation through IPR Protection:

The Scheme for Facilitating Start-ups Intellectual Property Protection (SIPP Scheme India) has been a transformative initiative driving innovation and entrepreneurship in India. By providing startups with affordable and comprehensive access to intellectual property rights protection, the scheme empowers them to safeguard their inventions, brands, and designs effectively. This legal protection enhances startups' competitive edge, attracts investment, and facilitates market expansion, both domestically and globally.

The government's focus on nurturing vibrant IP ecosystems through SIPP has helped India gain recognition as an innovative hub, reflected in its improved rankings on the Global Innovation Index. Ultimately, the SIPP scheme plays a crucial role in fostering a culture of creativity and innovation, fuelling sustainable economic growth and positioning startups as key drivers of the nation's future. By lowering costs and simplifying filings, the SIPP scheme empowers startup intellectual property rights in India, making innovation a driving force of the economy.

At TM India, we specialize in providing comprehensive IPR services, including trademark, patent, and copyright support. Our expert team assists startups and businesses in protecting their innovations and intellectual assets through end-to-end solutions, ensuring compliance, efficiency, and government scheme benefits for long-term growth and brand security.

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Frequently Asked Questions (FAQs) –

Q.1. What is the SIPP Scheme?

The SIPP is a government initiative to help startups in India protect their patents, trademarks, and designs by providing access to professional IP facilitators at no cost.

Q.2. Who is eligible for the SIPP Scheme?

Startups recognized under the DPIIT, not older than 10 years, with annual turnover below Rs 100 crore, and incorporated as a Private Limited Company, LLP, or Partnership Firm are eligible.

Q.3. What types of intellectual property does the SIPP Scheme cover?

1. Patents
2. Trademarks
3. Industrial Designs

Q.4. Who can act as facilitators under the SIPP Scheme?

Facilitators include registered patent and trademark agents, IP-specialized advocates, and authorized government agencies or institutions like TIFAC, NRDC, BIRAC, MeitY, and CSIR.

Q.5. What costs does a startup bear under the SIPP Scheme?

Startups only pay statutory government filing fees. The facilitator's professional fees are directly covered by the government.