The Department of Industrial Policy and Promotion (DIPP) has notified that the government has opened a special window just for this process. With this window, the time period to process the applications will diverge from the normal route and is now reduced to two and a half years immediately. This process will be further reduced to one and a half years by March 2018.
Adding the definition of “startups’ in the new rules, the startups will be able to enjoy special benefits government has in mind for them. In the current followed process, which will soon be obsolete, startups had to file an application “requesting for examination’. The patent offices would then take 5-7 years just to get this examination done and another 12 months for contests or questions by other parties to give a final answer. The faster the applicant replies to the queries, the faster it gets to get patent. With new rules, this process will be expedited with the “tatkal’ option.
The Patent (Amendment) Rules, 2016 (hereinafter as “new rules”) incorporate various provisions that provide cheaper and faster means to Startups for obtaining a patent. To start with, a Startup is treated as a natural person and not as a company. Therefore, the fees for startups as well as an individual are the same (Schedule I of the new rules has categorized startups and natural person under the same head). If a startup qualifies the definiton of Rule 2 (fb) of the new rules, it shall be eligible for an 80% rebate on patent filing fees and shall also be eligible for filing Tatkal Patent.
Benefit to Startups
The amended rules seek to cut the time period for grant of patents from five-seven years to two and a half years immediately and one and a half years by March 2018.
- Expedited examination: Section 11B r/w Rule 24C; FORM 18A
The new rules allow applicants to put applications on a fast-track mode if they select India as International Search Authority or International Preliminary Examining Authorities and file applications in India first. Besides, all startups are also eligible to use of this facility of expedited examination.
Under the faster clearance route, application fee for individuals and startups is Rs. 8,000 while for companies it is Rs 60,000. (Schedule I Article 14A of the new rules)
Rule 24C (3) requires that where a request for expedited examination has been filed by an applicant, the same shall be accompanied by a request for expedited publication under Rule 24A.
- Expedited publication: Section 11A (2) r/w Rule 24A; FORM 9
The e-filing fee for a Startup for expedited publication is prescribed under Article 12 of Schedule I of the new rules as Rs. 2500 whereas, for companies it is Rs. 12500.
Startups defined
Rule 2 (fb) of the new rules defines a Startup as an entity, where –
- more than five years have not lapsed from the date of its incorporation or registration;
- the turnover for any of the financial years, out of the aforementioned five years, did not exceed rupees twenty-five crores; and
- it is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
According to Rule 2 (fb), an entity shall cease to be a startup on completion of five years from the date of its incorporation/ or registration or if its turnover for any previous year exceeds rupees twenty-five crores.
According to Rule 2 (fb) a Startup must be either be–
- a private limited company (as defined in the Companies Act, 2013); or
- a registered partnership firm registered under section 59 of the Partnership Act, 1932; or
- a limited liability partnership under the Limited Liability Partnership Act, 2002.
FAQs
What is the Tatkal Scheme for Patents?
The Tatkal Scheme for Patents is a fast-track service offered by the Indian Patent Office to expedite the patent application process. This scheme allows applicants to get their patent applications processed faster than through the regular procedure.
Who can apply under the Tatkal Scheme?
Any individual or entity (such as companies, startups, or research organizations) can apply under the Tatkal Scheme if they want to expedite the patent application process. However, priority is often given to startups, female applicants, and small entities under the scheme.