In a bid to ensure maximum spread of benefits over start-ups, government has introduced an even liberal definition for start-ups including lower fee under the latest patent framework. The rules notified on September 2 will now allow start-ups to avail a rebate on patent fee.
Under the new definition, any entity in India recognised as a start-up by Department of Industrial Policy and Promotion (DIPP) under the Startup India initiative will be eligible for the rebate. In order to encourage patent filing, the government has amended the Patent Rules 2003.
As per an official notification, a foreign entity fulfilling the criteria for turnover and period of incorporation or registration as per Startup India Initiative will be covered under the umbrella of the patent filing benefits meant for start-ups.
With the revision of the rules, start-ups will be eligible for an 80 per cent rebate on patent fees. The DIPP will bear the facilitation cost on behalf of start-ups and provide rebates in the statutory fee for the filing of applications.
For the speedy patent registration, the start-ups have to pay double the fee against thrice the amount for other companies. Under the faster clearance route, the application fee for individuals and start-ups is Rs 8,000, while for established and older companies it is about Rs 60,000. To avail of intellectual property rights-related benefits, a start-up is required to obtain a Certificate of Recognition from DIPP.
The amended rules may cut the time taken for granting patents to two-and-a-half years from five to seven years immediately and to one-and-a-half year(s) by March of 2018.