India: Ministry of Commerce and Industry Proposes reduction in IP filing fees for Start-Ups and MSMEs - SSRANA

India: Ministry of Commerce and Industry Proposes reduction in IP filing fees for Start-Ups and MSMEs

September 18, 2019

The Ministry of Commerce and Industry has proposed to reduce application filing fees for Patent, Design and Geographical Indications for start-ups and micro, small and medium enterprises (hereinafter referred to as ‘MSMEs’) to promote innovation in India.

According to the current procedural regime, an individual, commercial entity, group or industry has to pay a certain amount of fees at several stages of the registration and filing of the application for Intellectual Property Rights. The proposed changes are:

  • Patents

The proposed reduction for Patent filing fees for MSMEs and start-ups will reduce the price from INR 4,000/4,400 (56/62 USD Approx.) to INR 1,600/1,750 (22/24 USD Approx.). The reduction proposed by Ministry of Commerce and Industry (hereinafter referred to as the ‘Ministry’) in the amount of the Patent filing fees and other such fees that has to be paid at different stages in the registration process for MSMEs are given in the table below. It also includes stage wise proposed reduction.

Activity Current Fees Proposed Fees Reduction%
Filing INR 4,000/4,400 (56/62 USD Approx.) INR 1,600/1,750 (22/24 USD Approx.) 60%
Request for Examination INR 10,000/11,000 (139/153 USD Approx.) INR 4,000/4,400 (56/62 USD Approx.) 60%
Expedited Examination (Only e-filing) INR 25,000 (348 USD Approx.) INR 8,000 (112 USD Approx.) 68%
Renewal INR 2,000 to 20,000 (+10% for physical filing)

(28 to 280 USD Approx.)

800 to 8,000 (+10% for physical filing) (11 to 112 USD Approx.) 60%
  • Designs

The Design application filing fees for MSMEs and startups has also been reduced from INR 2,000 (28 USD Approx.) to INR 1,000 (14 USD Approx.) which amounts to a 50% deduction in the price.

Activity Current Fees Proposed Fees Reduction
Filing INR 2,000 (28 USD Approx.) INR 1,000 (14 USD Approx.) 50%
  • Geographical Indications

The Ministry has proposed to reduce the price for GI application filing fees for Authorized Users from the current INR 500 (7 USD Approx.), INR 100 (1.4 USD Approx.) and INR 1,000 (14 USD Approx.) for Registration, Issuance of Registration Certificate and Renewal respectively to nil. Given below is the list of proposed reductions in GI filling fees:

Activity Current Fees Proposed Fees Reduction
Registration INR 500 (7 USD Approx.) Nil. 100%
Issuance of Registration Certificate INR 100 (1.4 USD Approx.) Nil. 100%
Renewal INR 1000 (14 USD Approx.) Nil. 100%

 

Increment in the rate of Filing and Disposal of IP Applications

According to the Ministry, the National IPR Policy adopted by the Government in 2016 has paved the way to further strengthen the IPR regime in the country. The steps in the past 5 years have seen IP filings rise:

Filing of IP Applications Increase from 2013-14 to 2018-19
Patents 18%
Trademarks 69%

 

As per the ministry, Domestic filing for patents has increased from 22% in 2013-14 to 34% in 2018-19. The government states that the increment has been a result of promoting Intellectual Property Law in Schools, Colleges and Universities.

The government believes that efforts like these to make the process more efficient and reduce pendency have paid dividend in the form of increment in the rate of disposal of applications. The increment in the rate disposal can be seen below:

Disposal of IPR Applications Increase from 2013-14 to 2018-19
Patents 353%
Trademarks 395%

 

The Ministry’s proposal is a welcome step as it will promote and boost innovation and R&D in the country and also aid India in becoming an IP intensive economy.

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