19 May 2016

Government introduces ‘tatkal’ patent registration for startups

After unveiling the new IPR policy last week that focused on expediting approval process patents and trademarks, the government has introduced ‘tatkal’ option for speedy clearance of patent application for startups and enterprises filing their first application in India. This move will encourage startups to file more patent applications in India and expedite clearances for entities that are planning to route patent application through Indian Patent office. Patent office’s now can streamline patent filings and expedite examination process for the patent to be granted. Currently, after the patent application is filed, a separate request for examination has to be submitted which takes an average time of five-seven years. However, under the tatkal option, the time will reduce to less than a year. This fast-track option is only applicable to entities that file their patent applications in India and agree to select as the International Search Authority (ISA). This move will restrict stream of patent applications filed in other countries by Indian entities as the process of patent filing was long, complex and involved several legal formalities that negatively restricted inventions in India.

Cost Arbitrage

Under the option, the patent filing fee has been revised. While the application fee for startup is INR 8000 and for large entities the fees can be as much as INR 60000. However, the fees will be refunded in case of withdrawal of patent application.

Startup Support

Under the amended patent rules, startups are classified as an individuals rather than companies and provide them special benefits for patent filing process and make it easier for them to file patents at faster and lower cost. This will also make them eligible for 80{e376cc23ceea11f30dfb577cba2b5547d047ebb7628b6ef4583aa3e610522d69} rebate under the startup India initiative, thus creating a positive environment for startups to do business. Besides this, the government has also announced several tax benefits under the startup India initiative.

The government has also started to streamline patent examination process and bring down to 18 months by 2018. To clear the backlog, the amended rule allows not fee will charged for the patents withdrawn from the registration process. Also, any payments made twice due to errors in online transaction will be refunded. This move will encourage domestic patent filings and unclog the patent regime.

According to industry estimates, there are nearly 237 patent applications are pending and 2 lakh patent application are in the examination stage. The tatkal option will allow companies to file more applications in India, thus making India has a hub of patent filing. On the other hand, patent applications in India came down to 1400 in 2015 unlike in the US were the number touched 57000 mark. To obtain a patent in the US, it usually takes 32 months and Indian government will reduce this time period through this move allowing more foreign startups to file patent applications in India.

Leave a Reply

Your email address will not be published. Required fields are marked *