FICCI Online

Certificate
Course on
Intellectual
Property (IPPro)

STARTUPs AND IPRs

MODULE 10
The module facilitates a strategic tool for business and identifies different
applications of IP, which may provide a competitive edge. It further illustrate the
importance of IP for business success using familiar examples of value based on
IP, successful businesses built on IP and consistent IP strategies. . This module
aims to describe role of IPRs in growth and development of start-ups, Government
of India schemes and guidelines for IPRs to facilitate start-ups, start-up contracts,
agreements and IP facilitators.

Chapter Title Page No.

1 ROLE OF IPRS IN THE GROWTH AND 2-6
DEVELOPMENT OF STARTUPS
2 GOVERNMENT OF INDIA SCHEMES 7-35
3 GUIDELINES OF IPRS TO FACILITATE STARTUPS 36-38

STARTUPs AND IPRs 1.3 1

CHAPTER 1: ROLE OF IPRs IN THE
GROWTH AND DEVELOPMENT OF
STARTUPS
1. Constant Renewal is Vital to Entrepreneurs

Demand is a central prerequisite for business, new products and methods. Consumers demand
and buy new products and industries require better and more efficient equipment to keep up with
domestic and international competition. In order to make a product succeed, enterprises need
inventions, product development and belligerent marketing. New products also have a great
impact on occupation, particularly in small and medium-sized enterprises, as they secure existing
jobs and create new ones. Preparing for the future and for global markets is a long-term project.
New technologies change the fabric of the economy and facilitate an improved standard of living
and the creation of new jobs. Growth of the economy is mostly based on know-how and jobs
requiring expertise are multiplying. This has a great bearing on education as well. The world is
going through a period of vital change due to the rapid expansion of information technology and
its ever-increasing utilization and propagation to most fields of technology. The success of
businesses is founded in their dimensions for renewal and innovation. Commercial growth and
intellectual property rights are related in many ways. These include:

 The intellectual capital of an innovativeness and its development;

 Intellectual property and innovation strategies as parts of overall business strategy;
 Vision regarding the importance of intellectual property rights as a basis for business
success;
 Preparedness for intellectual and financial investment into product development and
innovation;
 Strong contacts with customers and stakeholders; and
 Need for new products, competitiveness, international expansion and successful business
operations.

STARTUPs AND IPRs 1.3 2

2. Patent Strategy and Policy

Technological and economic development worldwide supports heavily on new and competitive
products that can be classified based on their significance at different levels of sophistication and
in different sectors of the economy, from high-tech to conventional everyday products. Some
reach international success, while others are noted within their home region or country.
Technology and inventions promote general welfare and play an important role in the production
of services. Intellectual property rights, such as patents and their exploitation, hold key
significance in the development and commercialization of new products in most industries.
Businesses should have an intellectual property strategy as part of their corporate planning and
strategy.

An intellectual property tactic defines the ideologies for which intellectual property rights are
designed to serve i.e. how patent matters and other intellectual property matters are handled
within the enterprise. The purpose of patent policy is to support the business operations of an
enterprise. Disregarding patent matters may turn into a threat to development in an
internationally expanding business. The patent and intellectual property policy of a business
should include, among others, a definition of intellectual property rights, the organization of
corporate activity designed to protect intellectual property rights (or just patents), making and
acquisition of inventions and available sources, instructions on how to secure and maintain
adequate patent protection, instructions on acquiring, tracking and otherwise utilizing patent
information, protecting corporate patents, licensing behavior and publication policies. Corporate
patent policies may be divided, for example, into low and high profile policies, aggressive patent
policies of businesses involved in international markets and patent policies followed by
businesses engaged in the commercial exploitation of intellectual property rights or transfer
technology. The patent policies of diversified businesses can be classified as follows:

 Building a patent portfolio proportionate with the scope of operations, technological

sophistication and its exploitation in business;
 Respecting and avoiding infringing on the patents and intellectual property rights of
others;
 Implement and protect own intellectual property rights; and

STARTUPs AND IPRs 1.3 3

  Seek to enter into liberal cross-licensing arrangements and/or find an ally.

3. Benefits of Patenting

A patent gives the inventor the right to decide the fate of the invention. International
acknowledgment of rights is also a common denominator for intellectual property rights. The
originator may manufacture and sell the product himself or may assign his rights to someone
else. All international property rights are subject to international agreements.

The legal fortification afforded to intellectual property has profitable significance to the owner
since the owner may; for instance, preclude others from taking advantage of the protected
intellectual property in their business. Businesses constructors, merchants, etc. need to, establish
a name or brand for their products so that customers can tell them apart from other products.
Likewise, an inventor must secure an exclusive right to his invention, a patent, so that no one
anyone can exploit the invention in his or her business. Some of the important reasons for
rationales provided by businesses for their patent interest are:

 Fortifying the basis for continued manufacturing operations.

 Utilizing patent publications in merchandise development.
 Averting competitive market entry.
 Using a patent in marketing.
 Monitoring competitors by following patent publications.
 Avoiding patent infringements and disputes.
 Assessing the level of technology in an industry.
 Using patents as a medium of exchange.
 Licensing agreements.

Components of the benefit usually economic derived from important patents include:

 Pre-eminent market position.

 Pre-empting competitive entries.
 Pricing springiness with new technologies.
 Quick payback period for investments.

STARTUPs AND IPRs 1.3 4

  International expansion.
 Strategic patent alliances.
 Patent possession as an advantageous negotiating tool.
 Breathing space afforded by patent protection.
 Favorable image.

The fortification afforded to the inventor or inventing association by a patent is an indisputable

advantage, which does, however, require some expenditures. Filed patent applications can also
be used to coerce competitors through, for instance, corporate communications. Patents assist as
flexible tools of trade through licensing and sublicensing, thereby opening opportunities to earn
substantial income and to expand internationally. However, during disputes patents must be
enthusiastically defended. Patent databases1 also function as a vast source of information for
inventors and businesses who wish to find the latest technology in their field or are trying not to
infringe on competitors’ patents.

4. Businesses Investment in Patents

An individual, research team, corporate employee or a product development team may come up
with an invention. An individual owns his or her invention individually, whereas a corporation
owns an invention made by its employee if it is related to the employers business. Ownership of
the inventions of university scientists varies by country, but often they are the property of the
university. Successful businesses know to invest in research and development. Even though
individuals and small and medium-sized companies agonize from lack of resources, know-how
and invention can still produce inventions and patents. The result is apparent in the form of new
products, improved attractiveness and success.

5. Earmarks of a Good Invention

To remain innovative, successful and competitive, an enterprise must continually make or

acquire new inventions. Simplistically, one could say that an idea or invention has established its
worth when it has offered a novel solution has turned into a product and has been an economic
success. Successful inventions are innovations. Success is always more easily recognized in

1
www.patents.ibm.com or http://ep.dips.org.

STARTUPs AND IPRs 1.3 5

retrospect and the real difficulty lies often in evaluating an idea’s or invention’s chances for
success, planning its execution and the execution itself. The following earmarks may recognize a
good idea, invention or innovation and related products in advance:

 The product is market driven; it is in demand.

 The product is inventive, novel and patentable.
 The product is significant to the business and to employment.
 The product is functional, capable of being produced and economical.
 The product can be launched quickly.

There is organizational commitment behind the development project and the product. Investors
are interested in the venture. It is easier to raise development financing for a good, promising
invention because public or private backing or investment is required if the venture is to succeed.

Several stages are involved in the progress of an idea or technological invention into a
marketable product, such as:

1. Planning, evaluation and primary technical and commercial studies.

2. Patenting or other intellectual property protection domestically and internationally.

3. Product development and related planning, experimentation and testing.

o technical
o commercial
o production

4. Business planning or licensing of invention.

5. Pilot production runs and test marketing.

6. Production and marketing.

STARTUPs AND IPRs 1.3 6

CHAPTER 2: GOVERNMENT OF INDIA
SCHEMES
The Indian government has introduced over 50+ startup schemes in past few years. Each startup
scheme is missioned towards boosting the Indian startup ecosystem.

Here is a list of startup schemes2 launched by the Indian government, run under different
ministries and are further headed by different departments.

Name Of The Industry Fiscal Incentive

Headed By
Scheme Applicable (*T&C applied)

Up to INR 15 Lakhs
Support for
per invention or 50%
International Patent Department of IT Services,
of the total expenses
Protection in Electronics and analytics, enterprise
incurred in filing and
Electronics & Information software, technology
processing of the
Information Technology hardware, Internet of
patent application
Technology (SIP- (DeitY) Things, AI
upto grant, whichever
EIT)
is lesser.

Limited to a
maximum of INR 2
Department of IT Services,
Cr per project and the
Electronics and analytics, enterprise
Multiplier Grants duration of each
Information software, technology
Scheme (MGS) project should,
Technology hardware, Internet of
preferably, be less
(DeitY) Things, AI
than two years. For
industry consortiums

2
https://inc42.com/startup-101/startup-scheme-indian-government-startups/

STARTUPs AND IPRs 1.3 7

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

these figures would

be INR 4 Cr and
three years.

Sales in the DTA up

to 50% of the FOB
value of exports is
Software
Software IT services, fintech, permissible and
Technology
Technology Park enterprise software, depreciation on
Parks of India
(STP) Scheme analytics, AI computers at
(STPI)
accelerated rates up
to 100% over 5 years
is permissible.

IT Services, Companies will get

Department of
analytics, enterprise risk capital from
Electronic Electronics and
software, technology "Daughter Funds" set
Development Fund Information
hardware, Internet of up by Electronic
(EDF) Policy Technology
Things, AI, Development Fund
(DeitY)
nanotechnology (EDF).

STARTUPs AND IPRs 1.3 8

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Technology
hardware, Internet of
Majorly provides
Things,
Department of capital subsidy of
aeronautics/aerospace
Modified Special Electronics and 20% in SEZ (25% in
& defence,
Incentive Package Information non-SEZ) for units
automotive, non-
Scheme (M-SIPS) Technology engaged in
renewable energy,
(DeitY) electronics
renewable energy,
manufacturing.
green technology,and
nanotechnology

Department of IT services, analytics,

Scheme to Support Organisations are
Electronics and enterprise software,
IPR Awareness provided with a grant
Information technology hardware,
Seminars/Workshops between INR 2 Lakhs
Technology Internet of Things,
in E&IT Sector to INR 5 Lakhs.
(DeitY) AI

STARTUPs AND IPRs 1.3 9

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Chemicals,
technology hardware,
healthcare &
lifesciences,
aeronautics/aerospace
& defence,
agriculture, AI,
AR/VR (augmented
+ virtual reality),
NewGen automotive, Provide a limited,
NewGen Innovation
Innovation and telecommunication & one-time, non-
and
Entrepreneurship networking, recurring financial
Entrepreneurship
Development computer vision, assistance, up to a
Development Centre
Centre (NewGen construction, design, maximum of INR 25
(NewGen IEDC)
IEDC) non-renewable Lakhs.
energy, renewable
energy, green
technology, fintech,
Internet of Things,
nanotechnology,
social impact, food &
Beverages, pets &
animals, textiles &
apparel.

STARTUPs AND IPRs 1.3 10

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

The quantum of
SFAC Venture
Small Farmers’
Capital Assistance
The Venture Capital Agri-Business
Agriculture will depend on the
Assistance Scheme Consortium
project cost, location
(SFAC)
and the promoter's
status.

Both term loans

Credit Guarantee
and/or working
Fund Trust for
capital facility up to
Credit Guarantee Micro and Small Sector-Agnostic
INR 100 Lakhs per
Enterprises
borrowing unit are
(CGTMSE)
being provided.

National Small The incentives are

Performance &
Industries proportional to the
Credit Rating Sector-agnostic
Corporation turnover of the
Scheme
(NSIC) MSMEs.

STARTUPs AND IPRs 1.3 11

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

MSMEs will be
helped to avail
economics of
purchases like bulk
National Small purchase, cash
Raw Material Industries discount, etc. Also,
Sector-agnostic
Assistance Corporation all the procedures,
(NSIC) documentation and
issue of letter of
credit in case of
imports will be taken
care of.

Funds limited to a
Revamped Scheme Khadi and maximum of INR 8
of Fund for Village Cr to support soft,
Sector-agnostic
Regeneration of Industries hard and thematic
Traditional Commission interventions are
provided.

Micro and small

enterprises will get
National Small exemption from
Single Point
Industries payment of Earnest
Registration Scheme Sector-agnostic
Corporation Money Deposit
(SPRS)
(NSIC) (EMD) and will be
issued tender sets free
of cost.

STARTUPs AND IPRs 1.3 12

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Aspire - Scheme for

Steering Agriculture, pets &
promotion of Based on nature of
Committee, animals, social
innovation, existence of the
Ministry of impact, healthcare &
entrepreneurship and incubator
MSME life sciences
agro-industry

For a deposit of six

National Small
Infrastructure months refundable
Industries
Development Sector-agnostic rent, an office space
Corporation
Scheme of 467 sq.ft. to 8,657
(NSIC)
sq.ft. is provided.

Provides air fare

reimbursements
based on category
entrepreneur lies in
Office of the
MSME Market (General, women,
Development
Development Sector-agnostic SC/ST/PwD). The
Commissioner
Assistance total subsidy on air
(MSME)
fare & space rental
charges will be
restricted to INR 1.25
Lakhs per unit.

STARTUPs AND IPRs 1.3 13

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

The Selected
Office of the National awardee is
National Awards Development facilitated with a cash
Sector-agnostic
(Individual MSEs) Commissioner prize of INR 1 Lakh,
(MSME) INR 75K, INR 50K
in order of ranking.

The amount of bank

credit will be 55% of
the total project cost
after deducting 40%
Coir Udyami Yojana Coir Board Agriculture margin money
(subsidy) and
owner’s contribution
of 5% from
beneficiaries.

Office of the The incentives vary

International Travel & tourism,
Development as per the
Cooperation (IC) human resources,
Commissioner organisation
Scheme events, advertising
(MSME) category.

STARTUPs AND IPRs 1.3 14

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Ceiling on loans
under the scheme has
Credit Linked Office of the been raised from INR
Capital Subsidy for Development 40 Lakhs to INR 1 Cr
Sector-agnostic
Technology Commissioner while the rate of
Upgradation (MSME) subsidy has been
enhanced from 12%
to 15%.

National Small
Bank Credit Industries
Sector-agnostic N/A
Facilitation Scheme Corporation
(NSIC)

STARTUPs AND IPRs 1.3 15

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Chemicals,
technology hardware,
healthcare &
lifesciences,
aeronautics/aerospace
& defence,
agriculture, AI,
AR/VR (augmented
+ virtual reality),
automotive,
AIM will provide a
telecommunication &
grant-in-aid of INR
Atal Incubation Atal Innovation networking,
10 Cr to each AIC for
Centres (AIC) Mission (AIM) computer vision,
a maximum of five
construction, design,
years
non-renewable
energy, renewable
energy, green
technology, fintech,
Internet of Things,
nanotechnology,
social impact, food &
beverages, pets &
animals, textiles &
apparel.

STARTUPs AND IPRs 1.3 16

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Chemicals,
technology hardware,
healthcare &
lifesciences,
aeronautics/aerospace
& defence,
agriculture, AI,
AR/VR (augmented
+ virtual reality),
AIM will provide
automotive,
grant-in-aid that
telecommunication &
includes a one-time
networking,
establishment cost of
computer vision,
Atal Tinkering Atal Innovation INR 10 Lakhs and
construction, design,
Laboratories Mission operational expenses
non-renewable
of INR 10 Lakhs for
energy, renewable
a maximum period of
energy, green
five years to each
technology, fintech,
ATL.
Internet of Things,
nanotechnology,
social impact, food &
Beverages, pets &
animals, textiles &
apparel.
Eligibility: Schools
(Grade VI – XII)
managed by the

STARTUPs AND IPRs 1.3 17

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Government, local
body or private
trusts/society can
apply to set up an
ATL.

STARTUPs AND IPRs 1.3 18

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Chemicals,
technology hardware,
healthcare &
lifesciences,
aeronautics/aerospace
& defence,
agriculture, AI,
AR/VR (augmented
+ virtual reality),
automotive,
Grant-in-aid support
telecommunication &
Scale-up Support to of INR 10 Cr will be
networking,
Establishing NITI Aayog provided in two
computer vision,
Incubation Centres annual instalments of
construction, design,
INR 5 Cr each.
non-renewable
energy, renewable
energy, green
technology, fintech,
Internet of Things,
nanotechnology,
social impact, food &
Beverages, pets &
animals, textiles &
apparel.

STARTUPs AND IPRs 1.3 19

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

INR 750 Cr has been

Udaan Training National Skill
earmarked for the
Programme For Development Education, human
implementation of the
Unemployed Youth Corporation resources
scheme over a period
Of J&K (NSDC)
of five years

Chemicals,
technology hardware,
healthcare &
lifesciences,
aeronautics/aerospace
One time grant up to
& defence,
25% of the cost of the
agriculture,
Enhancement of technology
Department of automotive,
Competitiveness in acquisition of each
Heavy Industries construction, non-
the Indian Capital technology.
(DHI) renewable energy,
Goods Sector Maximum amount
renewable energy,
given shall not
green technology,
exceed INR 10 Cr
Internet of Things,
nanotechnology,
social impact, food &
beverages, textiles &
apparel.

STARTUPs AND IPRs 1.3 20

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

REDA would provide

funds received from
NCEF by way of
refinance to
Indian
scheduled
Renewable
National Clean Renewable energy, commercial banks
Energy
Energy Fund clean energy, green and financial
Development
(NCEF) Refinance energy plants. institutions (including
Agency
IREDA). Maximum
(IREDA)
refinance amount
INR 15 Cr per
project.

Upto 75% of the

invoice value pending
for maximum six
months from the date
Indian
of application subject
Renewable
IREDA Scheme For Renewable energy, to a maximum bill
Energy
Discounting Energy clean energy, green discounting facility of
Development
Bills energy INR 20 Cr. The
Agency
minimum amount of
(IREDA)
transaction covering a
set of bills shall not
be less than INR 1
Cr.

STARTUPs AND IPRs 1.3 21

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

The projects will get

up to 80% of the
existing pending
eligible capital
Bridge Loan Against Bridge Loan Renewable energy,
subsidy claim, as
MNRE Capital Against MNRE clean energy, green
verified by the
Subsidy Capital Subsidy energy
IREDA with a
minimum loan
assistance of INR 20
Lakhs.

Indian
Bridge Loan Against Renewable A minimum loan
Renewable energy,
Generation-Based Energy assistance of INR 20
clean energy, green
Incentive (GBI) Development Lakhs is provided
energy
Claims Agency under this scheme.
(IREDA)

The quantum of loan

from the IREDA
Indian
shall be 70% of the
Renewable
Loan for Rooftop Renewable energy, project cost with
Energy
Solar PV Power clean energy, green minimum promoter’s
Development
Projects energy contribution of 30%.
Agency
IREDA may extend
(IREDA)
the loan upto 75% of
the project cost.

STARTUPs AND IPRs 1.3 22

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Provide credit
Indian enhancement by way
Renewable of unconditional and
Renewable energy,
Credit Enhancement Energy irrevocable partial
clean energy, green
Guarantee Scheme Development credit guarantee to
energy
Agency enhance the credit
(IREDA) rating of the proposed
bond.

The incentives differ

National Bank
Dairy Agriculture, pets & with respect to the
for Agriculture
Entrepreneurship animals, social cost of the required
and Rural
Development impact, food & equipment or
Development
Scheme beverages. establishment of the
(NABARD)
facilities

STARTUPs AND IPRs 1.3 23

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Up to 90% of the
project cost with
minimum loan
amount of INR 10
Lakhs and maximum
loan amount not to
Small Industries exceed INR 150
4E (End to End Development Lakhs per eligible
Sector-agnostic
Energy Efficiency) Bank of India borrower can be
(SIDBI) granted. The MSME
unit has to pay only
INR 30,000 and
applicable taxes and
the balance fee will
be paid by SIDBI to
auditors.

STARTUPs AND IPRs 1.3 24

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

MUDRA offers
incentives through
these interventions:
>Shishu: covering
loans upto INR
Micro Units
50,000/-
Pradhan Mantri Development
> Kishor: covering
Mudra Yojana and Refinance Sector-agnostic
loans above INR
(PMMY) Agency Ltd.
50,000/- and upto
(MUDRA)
INR 5 Lakhs
> Tarun: covering
loans above INR 5
Lakhs and upto INR
10 Lakhs

Composite loan
between INR 10
Small Industries Lakhs and INR 1 Cr
Development to cover 75% of the
Stand Up India Sector-agnostic
Bank of India project cost can be
(SIDBI) taken up, inclusive of
term loan and
working capital.

STARTUPs AND IPRs 1.3 25

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Suitable assistance by
Green Energy, Non- way of term loan /
Small Industries
renewable Energy, working capital to
Sustainable Finance Development
Technology ESCOs implementing
Scheme Bank of India
Hardware, EE / CP / Renewable
(SIDBI)
Renewable Energy Energy project
provided.

SIDBI Make in India The loan amount

Small Industries
Soft Loan Fund for granted is based on
Development
Micro Small and Sector-agnostic category entrepreneur
Bank of India
Medium Enterprises lies in. (General,
(SIDBI)
(SMILE) women, SC/ST/PwD)

The financial
Small Industries assistance provided is
Startup assistance Development need-based, subject to
Sector-agnostic
Scheme Bank of India a maximum of INR
(SIDBI) 200 Lakhs and equity
kicker

MSMEs are helped to

Small Industries
leverage equity / sub
Growth Capital and Development
Sector-agnostic debt assistance from
Equity Assistance Bank of India
SIDBI for raising
(SIDBI)
higher debt funds.

STARTUPs AND IPRs 1.3 26

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Events, chemicals,
technology hardware,
healthcare &
lifesciences,
aeronautics/aerospace
& defence,
agriculture, AI,
AR/VR (augmented
+ virtual reality),
automotive,
Assistance to Science and telecommunication & The incentives
Professional Bodies Engineering networking, include nominal
& Research Board computer vision, support for pre-
Seminars/Symposia (SERB) construction, design, operative expenses
non-renewable
energy, renewable
energy, green
technology, fintech,
Internet of Things,
nanotechnology,
social impact, food &
beverages, pets &
animals, textiles &
apparel.

STARTUPs AND IPRs 1.3 27

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Support is primarily
given to encourage
Chemicals, participation of
Science and
healthcare & life young scientists and
Ayurvedic Biology Engineering
sciences, research professionals
Program Research Board
nanotechnology, in such events along
(SERB)
social impact. with nominal support
for pre-operative
expenses.

The industry share

should not be less
than 50% of the total
Science and
budget. Overhead is
Industry Relevant Engineering
Sector-agnostic provided to the
R&D Research Board
academic partner.
(SERB)
The SERB share shall
not exceed INR 50
Lakhs for a project.

STARTUPs AND IPRs 1.3 28

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Chemicals,
technology hardware,
healthcare &
lifesciences,
aeronautics/aerospace
& defence,
agriculture, AI,
AR/VR (augmented
The research grant
+ virtual reality),
covers equipment,
automotive,
consumables,
Science and telecommunication &
contingency and
High Risk-High Engineering networking,
travel apart from
Reward Research Research Board computer vision,
overhead grants. No
(SERB) construction, design,
budget limit is
non-renewable
prescribed for these
energy, renewable
projects.
energy, green
technology, fintech,
Internet of Things,
nanotechnology,
social impact, food &
beverages, pets &
animals, textiles &
apparel.

STARTUPs AND IPRs 1.3 29

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Chemicals,
technology hardware,
healthcare &
lifesciences,
aeronautics/aerospace
& defence,
agriculture, AI,
AR/VR (augmented
Provided support for
+ virtual reality),
project staff salaries,
automotive,
equipment, supplies
Science and telecommunication &
Technology and consumables,
Engineering networking,
Development contingency
Research Board computer vision,
Programme (TDP) expenditure, patent
(SERB) construction, design,
filing charges,
non-renewable
outsourcing charges,
energy, renewable
etc.
energy, green
technology, fintech,
Internet of Things,
nanotechnology,
social impact, food &
beverages, pets &
animals, textiles &
apparel.

STARTUPs AND IPRs 1.3 30

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Chemicals,
technology hardware,
healthcare &
lifesciences,
aeronautics/aerospace
& defence,
Grant-in-aid are
agriculture, AI,
provided for projects.
AR/VR (augmented
Also, overheads on
+ virtual reality),
projects are provided
automotive,
National Science & at the rate of 10% of
Department of telecommunication &
Technology the total project cost
Science and networking,
Management for educational
Technology computer vision,
Information System institutions and
(DST) construction, design,
(NSTMIS) NGOs and 8% for
non-renewable
laboratories &
energy, renewable
institutions under
energy, green
Central Government
technology, fintech,
departments/agencies.
Internet of Things,
nanotechnology,
social impact, food &
beverages, pets &
animals, textiles &
apparel.

STARTUPs AND IPRs 1.3 31

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Support is provided
Biotechnology for high-risk,
Industry accelerated
Biotechnology
Research Healthcare & life technology
Industry Partnership
Assistance sciences development
Programme (BIPP)
Council especially in
(BIRAC) futuristic
technologies.

Biotechnology
Industry Innovation Industry The loan and grant
Programme on Research Healthcare & life are provided
Medical Electronics Assistance sciences according to the
(IIPME) Council startup stage.
(BIRAC)

STARTUPs AND IPRs 1.3 32

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

Chemicals,
technology hardware,
healthcare &
lifesciences,
aeronautics/aerospace
& defence,
agriculture, AI,
AR/VR (augmented
+ virtual reality), The research grant
automotive, covers equipment,
Science and telecommunication & consumables,
Extra Mural Engineering networking, contingency and
Research Funding Research Board computer vision, travel apart from
(SERB) construction, design, overhead grants. No
non-renewable budget limit is
energy, renewable prescribed.
energy, green
technology, fintech,
Internet of Things,
nanotechnology,
social impact, food &
beverages, pets &
animals, textiles &
apparel.

STARTUPs AND IPRs 1.3 33

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

SPARSH (Social Biotechnology

Innovation Industry The loan and grant
programme for Research Healthcare & life are provided
Products: Affordable Assistance sciences according to the
& Relevant to Council startup stage.
Societal Health) (BIRAC)

Support grant is
Promoting provided under
Council of
Innovations in categories such as
Scientific &
Individuals, Startups Sector-agnostic PRISM Phase I,
Industrial
and MSMEs PRISM Phase II and
Research
(PRISM) PRISM-R&D
Proposals.

Science and Department of

Technology of Yoga Science and Healthcare & life
Not specified.
and Meditation Technology sciences
(SATYAM) (DST)

STARTUPs AND IPRs 1.3 34

 Name Of The Industry Fiscal Incentive
Headed By
Scheme Applicable (*T&C applied)

RGYI provides
startup grants to
young investigators
across the country
working in different
settings such as
Rapid Grant for Department of
Healthcare & Life central government
Young Investigator Biotechnology
sciences funded institutions,
(RGYI) (DBT)
state government-
funded university
departments,
scientists at DSIR-
approved private
institutions etc.

Up to INR 50 Lakhs
Biotechnology
for research projects
Industry
with a
Biotechnology Research Healthcare & life
commercialisation
Ignition Grant (BIG) Assistance sciences
potential with
Council
duration of up to 18
(BIRAC)
months are provided.

STARTUPs AND IPRs 1.3 35

CHAPTER 3: GUIDELINES OF IPRS TO
FACILITATE STARTUPS
The Government of India has announced the Startups Intellectual Property Protection
(SIPP) scheme as per the notifications below:

• 22nd April 2016: Notification regarding IP Facilitation for Start-ups on Indian Patent
Office3

• 16th May 2016: Patent Amendment Rule 2016: Announcing the government fees for
filing the patent application for Start-ups4

• 6th June 2016: List of Facilitators for Patents and Designs for Start-ups5

• 6th June 2016: List of Facilitators for Trademarks for Start-ups6

• 6th June 2016: Guidelines for facilitators and Start-ups7

• 6th June 2016: Flow chart for Patents8

• 6th June 2016: Flow chart for Designs9

• 6th June 2016: Flow chart for Trademarks10

Definitions / General Information:

 Start-up, as per Scheme for Startup Intellectual Property Protection (SIPP) is defined
as:
 An entity, incorporated or registered in India not prior to five years, with annual
turnover not exceeding INR 25 crores in any preceding financial year, working

3
http://ipindia.nic.in/Whats_New/statupUps_Scheme_05May2016.pdf
4
http://ipindia.nic.in/IPActs_Rules/Patent_(Amendment)Rules_2016_16May2016.pdf
5
http://ipindia.nic.in/Whats_New/patent_Facilitators_09June2016.pdf
6
http://ipindia.nic.in/Whats_New/startUps_Trademarks_22April2016.pdf
7
http://ipindia.nic.in/Whats_New/Guidelines_Startups_09June2016.pdf
8
http://ipindia.nic.in/Whats_new/Patent_FlowChart_09June2016.pdf
9
http://ipindia.nic.in/Whats_New/Design_FlowChart_09June2016.pdf
10
http://ipindia.nic.in/Whats_New/TMR_FlowChart_09June2016.pdf

STARTUPs AND IPRs 1.3 36

 towards innovation, development, deployment or commercialization of new
products, processes or services driven by technology or intellectual property.
 Provided that any such entity formed by splitting up or reconstruction of a business
already in existence shall not be considered a startup.

 Eligibility Criteria:
 Entity shall be certified by the start-up certification board as having an innovative
business; and
 Start-up shall be eligible for availing the benefits of this scheme only after it has
obtained certification from the Start-up Certification Board.

 Who can be a facilitator:

 Any Patent Agent registered with Controller General of Patents, Designs & Trade
Marks (CGPDTM).
 Any Trademark Agent registered with the CGPDTM.
 Any Advocate as defined under The Advocates Act, 1961 11
who is entitled to
practice law as per the rules laid down by Bar Council of India from time to time,
who is well versed with the provisions of the relevant Acts and Rules, and is
actively involved in filing and disposal of applications for trademarks.
 Government departments, organizations agencies like Technology Information,
Forecasting and Assessment Council (TIFAC), National Research Development
Corporation (NRDC), Biotechnology Industry Research Assistance Council
(BIRAC), Department of Electronics & IT (DEITY), Department of Scientific and
Industrial Research (DSIR) etc.

 Intellectual Property Facilitation Center (IPFACE):

 Intellectual Property Facilitation Center (IPFACE) is a project of the Venture
Center supported by the Ministry of Micro, Small and Medium Enterprises,
Government of India and National Chemical Laboratory, Council of Scientific and

11
http://www.barcouncilofindia.org/wp-content/uploads/2010/05/Advocates-Act1961.pdf

STARTUPs AND IPRs 1.3 37

 Industrial Research (CSIR), India. IPFACE is located at the National Chemical
Laboratory (NCL) Innovation Park, Pune, India.
 IPFACE aims to promote awareness and adoption of intellectual property rights
amongst entrepreneurs and Ministry of Micro, Small & Medium Enterprises
(MSMEs) in India while also making accessible high quality IP services and
resources.

 Venture Center:
 The Venture Center is a technology business incubator specializing in technology
startups offering products and services exploiting scientific expertise in the areas of
materials, chemicals and biological sciences & engineering.
 Venture Center strives to nucleate and nurture technology and knowledge-based
enterprises by leveraging the scientific and engineering competencies of the
institutions in the "Pune region" in India.
 The Venture Center aims to empower and enable scientists and engineers in
pursuing technology, innovation and entrepreneurship objectives.

 Policy for facilitating start-ups IP protection:

Policy for facilitating start-ups IP protection under the Scheme for Start-ups Intellectual
Property Protection IPFACE, Venture Center has studied the SIPP scheme and
notifications pertaining to the said scheme. IPFACE, Venture Center appreciates and
supports CGPDTM’s efforts relating to the Startups Intellectual Property Protection.
However, IPFACE is currently unable to participate in the SIPP program of CGPDTM for
various reasons.

Disclaimer: The study material mentioned in the module is for academics purpose to
provide information and understanding; it should not be interpreted as a legal advice or opinion.

STARTUPs AND IPRs 1.3 38