Startups with limited resources and manpower can only withstand by constantly evolving their development and innovations. This increases the importance of the protection of intellectual property rights for startups. With this in mind, we provide information about a scheme called the IPS Scheme.
The goal of the SIPP system for the protection of intellectual property
- The scheme aims to increase intellectual property rights registration, raise awareness, and foster innovation and creativity.
- The program aims to empower emerging technologies and assist startups in commercializing them by providing access to high-quality intellectual property services and resources.
Eligibility to Enroll in the Scheme
- Under the scheme, a start-up is an entity that has not more than seven years before the application was incorporated or registered in India.
In any preceding financial year, the annual turnover shall not exceed 25 crores. - The company must work towards innovation, the development or marketing of new technology-driven products and processes or services.
- Furthermore, the organization does not form an already existing company through division or reconstruction.
- Moreover, the entity will not be formed by the division or rebuilding of an existing company.
- If the entity’s turnover for the preceding financial years has exceeded Rs. 25 crores or it has been in operation for more than 7 years, it will no longer be considered a startup.
- Only after obtaining certification from the startup certification board will a startup be entitled to benefit from this scheme.
Functioning of the Scheme
- The scheme, which was supposed to terminate in March 2020, has now been extended for another three years, until March 31, 2023. As of February 24, 2021, the Department for the Promotion of Industry and Internal Trade (DPIIT) had already acknowledged 44,534 startups.
- IP facilitators have also been appointed by the government to assist entrepreneurs in filing and litigating patent applications.
- The concept involves a fee reduction and a fast-track examination of patent applications.
Startup patent applications for fast-tracking
A patent offers a protection cover for an innovation startup. In this regard, the government has promised to quickly track the process for the exam and disposal application, so that startups can as soon as possible realize the value of IPRs.
IPR’s significance for start-ups
SIPP emphasizes the importance of the safeguarding of intellectual property rights for start-ups. Intellectual property protection (IPP) Below, we outline briefly the benefits of securing intellectual property rights.
It is advisable to secure ownership of intellectual property such as brand name, trademarks, and patents in an early-stage business. This is because it is easier to establish your IP rights in the case of a possible infringement such as someone using the same name, logo, or goodwill. Most investors also consider the IP value to be gained in the future while calling your startup company. For scientific inventions, a patent registration must be sought at the earliest, as the average time span between filing and granting in India amounts to around five years.
What are the benefits of trademark registration?
While creativity can shape a logo as artwork or the writing of a slogan, it does not fall within copyright law. Almost any logo (Nike’s ‘swoosh’), brand name (Coca-Cola), word (Classmate), label, numeral (Pieper’s 21), or even combination of colors, is a mark (Pepsi’s blue, white and red). Because a business uses all of these to create a certain quality impression, it prohibits anyone else from using the same combination and creating the impression that the goods are another company’s properties.
Why is it so important for your startup to get a patent as soon as possible?
A patent is given in India for a period of twenty years. However, it is advisable to file a patent as quickly as possible, because patent claims are frequently decided on a “first to file” basis. As a result, if two people independently create the same procedure, the one who files the patent first has a superior claim. Furthermore, it takes an average of five years in India for a patent to be granted after the original filing. After the patent is awarded, the patentee may sell, license, assign, or use the patent commercially for his or her own benefit.
FileMyBrand’s legal experts are able to assist your company in filing marks and patents as early as possible, supported by the latest intellectual property developments in India.
