Startups smile as Government gives 80% rebate in Patent Fee

By Aarushi Singh

Under the new definition any entity in India which is recognized as a Startup by the authority under the Startup India initiative will be eligible to access the fast track mechanism for filing patents which will cut down the time to obtain these rights.

The Indian government has tried to liberalize the definition for Startups, so that more of these can take the benefits which include lower fees. This amendment of the patent rules 2003 will be a great encouragement and will be a boost for the economy. The rules for the same were notified on September 2. This amendment is for both domestic as well as foreign entities.

Startups before this amendment were defined as companies which are only five year old along with a maximum turnover of Rs 25 crore per year and those whose main objective was innovation. But after this revised definition for Startups by the Department of Industrial Policy and Promotion (DIPP), there is addition of one more parameter of job opportunities. DIPP will bear the facilitation cost for the startups and provide rebates for filing of applications.

In the fast track route the application fee is ₹ 8,000 for Individuals and Startups against ₹ 60,000 for Companies, and for the procurement of rights and benefits the Startup has to get a Certificate of Recognition from DIPP.

These initiatives by the government will cut time for granting patents to two-and-a-half years from five to seven years and will be further reduced to one-and-a-half years by March 2018.

This liberal definition will make way for Startups to grow in the Indian sub-continent.