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LexUpdate
February 5, 2016 New Delhi, INDIA
INSPIRING INNOVATION IN START-UPS – PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

If you have questions or would like additional information on the material covered herein, please contact:

If you have questions or would like additional information on the material covered in this Newsletter, please contact the authors:
-Seema Jhingan, Partner
(sjhingan@lexcounsel.in)
-Sitikanth Nayak, Associate
(snayak@lexcounsel.in)
-Sukanya Lal, Associate
(slal@lexcounsel.in)

INSPIRING INNOVATION IN START-UPS – PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

India has become the fastest growing Start-Up base worldwide and stands third in the global Start-Ups ecosystem
as per NASSCOM Start-Up Ecosystem Report 2015. With more Start-Up ventures taking shape, the ecosystem
for establishing a successful a Start-Up is not only competitive but also tough to survive. In this scenario, novelty
and innovation plays a pivotal role in attracting potential clients and investors. Inventions and creativity generates
valuable intellectual property such as symbols, designs, content, marks, patents and images which can be
protected under various legislations inter alia, Indian Copyright Act, 1957, Trade Mark Act, 1999, The Patents Act,
1970 and Designs Act, 2000. Consequently, proper implementation and enforcement of IP rights by a Start-Up is
imperative. IP protection not only provides security against third-party infringements but also enhances the
valuation and attractiveness of a Start-Up to investors.

Start-Up Intellectual Property Protection Initiative:
The Government of India’s recently launched ‘Start-Up India, Stand Up India Initiative’ focuses on the importance
of IP Rights (“IPRs”) with the intent of making Start-Ups aware of this valuable but undervalued resource. Pursuant
to this, the Government recently announced the scheme of Start-Up Intellectual Property Protection (“SIPP”) for
enabling Start-Ups to protect their IPRs whereby the Government will facilitate filing of patents, trademarks and
designs by Start-Ups in the following manner:
 Fast-tracking of Start-Up patent applications in order to enable the Start-Up to realize the value of its registered
and protected IPRs;
 Providing legal assistance to Start-Ups through a panel of Facilitators in general advisory, filing and prosecution
of IP applications. The cost of such facilitation shall also be borne by the Government;
 Providing a rebate of 80% in the statutory fee for the filing of the patent application.

For effective implementation of SIPP, Facilitators shall be empanelled by the Controller General of Patent,
Trademark and Design (“CGPDTM”). The CGPDTM shall regulate conduct and functions of empanelled Facilitators
from time to time.

Who can be a Facilitator:

i. Any patent agent registered with the CGPDTM.
ii. Any trademark agent registered with the CGPDTM.
iii. Any advocate entitled to practice law and involved in filing and disposal of applications for patents, trademarks
and designs.
iv. Government departments/organizations.

Functions of Facilitators:

Facilitators will be responsible for:
 Providing general advisory on different IPRs on a no charge basis.
 Providing information on protecting and promoting IPRs in other countries on a no charge basis.
 Providing assistance in filing and disposal of the IP applications related to patents, trademarks and design under
relevant Acts.
 Drafting specifications for inventions of Start-Ups.
 Preparing and filing responses to examinations reports and other queries, notices or letters by the IP office.
 Appearing on behalf of Start-Ups at hearings, contesting opposition and ensuring final disposal of the IP
applications.
The facilitator shall be paid directly by the Government through the office of the CGPDTM.
The SIPP will be initially run on a pilot basis and will be applicable for a term of one year from the date of launch
of Start-Up India campaign.

Conclusion:
The SIPP provides a platform for Indian Start-Ups to come at par with the existing players by fast tracking the
valuation of their IPRs with easy access to facilitators, professional advice and minimization of cost of registration
for protection of the IPRs. However, there is a concern that various promising Start-Ups may be left out of the
benefits of SIPP just because they do not fall within the ambit of definition of Start-Ups as envisaged by the
Government of India. Nevertheless, SIPP is another positive step by the Government to promote innovation,
resourcefulness and realization of the untapped potential of otherwise cash strapped entrepreneurs.

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