Protecting MSME Innovations with the Patent Protection Scheme

New innovations are what reposition a company as a market leader. However, some MSMEs do not have the necessary financing to file for a patent for a technology they have developed. If you’re an MSME facing such financial shortages, you can benefit from the government’s Support International Patent Protection in Electronics and IT (SIP-EIT) scheme.

Overview

The SIP – EIT is a scheme initiated by the Department of Electronics and Information Technology (DeiTy) that provides financial support to start-ups and Micro, Small and Medium enterprises (MSMEs), allowing them to file for patents for technology, designs or products they have researched and manufactured.

Benefits

How does an MSME benefit from this scheme?

This scheme provides financial support for international filing in Information Communication Technologies and Electronics sector.

This scheme also reimburses up to ₹15 lakh per invention or 50% of the expenses incurred in filing a patent.

Expenditure Reimbursed

What types of expenditures are reimbursed?

The type of expenditures that are reimbursed during patent filing include all patent processing costs such as:

  • Attorneys’ fees
  • Patent office filing fees
  • Examination fees
  • Patent search cost
  • Additional cost for entering National Phase up to grant/issue.

Subsequently, after the grant, the cost will be borne by the industry.

Eligibility Criteria

What is the eligibility criteria for this scheme?

The following is the eligibility criteria for this scheme.

  • The applicant has to be a registered MSME.
  • The investment in plant and machinery must not exceed ₹10 crore for an MSME that engages in the manufacture or production of goods
  • The investment in plant and machinery must not exceed ₹5 crore for an MSME that engages in providing or rendering of services
  • The MSME’s in-house R&D department must be certified by DSIR
  • The technology incubation enterprises must be registered as companies with support under any government scheme

What are the criteria for acceptance of patent applications for consideration of financial support?

  • The applicants should have already filed a patent application for the said invention in India
  • The invention must be in the electronics/ICT technology domain
  • The application must be accompanied by prior art search report from an International Search Authority/Registered Attorney Firm or any other agency of repute
  • The patent applications are to be processed through a registered patent attorney in a patent attorney firm having an experience of at least 5 years in handling international patent applications
  • The applicant can apply for the support at any stage of international filing. However, reimbursement will only be applicable to expenditures incurred subsequent to the date on which application has been cleared for support 

Application

How can an MSME apply for this scheme?

An MSME can apply for this scheme online by clicking here.

Documents Required

Which are the documents that need to be submitted to apply for this scheme?

The following list of documents must be submitted in order to apply for this scheme:

  • Application form (giving requisite information about the applicant and the invention)
  • Reimbursement details (as per the format in the application form)
  • Patent search report
  • Product brochure (if any)
  • Copy of registration of the applicant industry
  • Copy of official filing with Indian Patent Office
  • Latest annual report of the company
  • Proof of DSIR recognition of in-house R&D in industry (preferred) / proof of government supported incubation enterprise
  • Declaration (as given in the application form)

For more information on this scheme, please click here.

Accelerate your start-up with the Technology Incubation and Development of Entrepreneurs (TIDE) Scheme

An idea has the potential to change the world. If you too have an idea that can revolutionize the technological industry, the Technology Incubation and Development of Entrepreneurs (TIDE) Scheme will be of use to you.

Overview

The Technological Incubation and Development of Entrepreneurs (TIDE) scheme aims to assist institutions of higher learning to strengthen their Technology Incubation Centres. This scheme acts as an accelerator for technology-based start-ups and provides MSMEs guidance and funding on implementing their brainchild.

Benefits

What are the benefits offered under this scheme?

The following are the benefits offered under this scheme:

  • Each institute has a kitty of ₹155 Lakhs. They can use up to ₹125 lakhs for providing financial support
  • An MSME can rent operating space for a period of up to 2 years (extendable by one year)
  • Further financial support may be sought in the form of a soft loan of up to ₹25 lakhs over two (or three) years’ period (subject to satisfactory performance). The amount sanctioned would be up to a maximum of 80% of the project cost of the incubating company
  • A 50% refund of the financial support is given at the end of two (or three) years and the remaining 50% is given as equity to the TIDE center, which can be encashed at the time of valuation

Eligibility Criteria

What is the eligibility criteria for this scheme?

An MSME is eligible to apply for the scheme if the start-up is in the field of electronics and IT.

List of Technology Incubation’s and Development centers

What is the list of Technology Incubation and Development centers?

The list of premier institutes that are affiliated with this program can be found here.

Documents Required

What are the documents required to apply for this scheme?

The following documents are required to apply for this scheme:

  • Submission of detailed techno-commercial proposal, including a business plan by prospective entrepreneur(s) before host institutions IITs, IIMs, NITs, IIITs, and other premier institutes
  • Approval by the Management Board of TIDE to support a prospective entrepreneur
  • On formation of a company and signing an agreement with TIDE

To refer to the list of TIDE start-ups click here.

For further details on this scheme, kindly click here.