Intellectual property rights (IPRs) are developing as a strategic business tool for every company organisation looking to improve its industrial competitiveness. Start-ups, with limited resources and staff, can only survive in this highly competitive world by focusing on continual growth and development-oriented innovations; consequently, it is critical that they preserve their IPRs. The Start-ups Intellectual Property Protection Scheme (SIPP) is intended to assist the protection of innovative and interested Start-ups’ Patents, Trademarks, and Designs.

The SIPP strives to raise IPR knowledge and adoption among start-ups. Scheme is geared toward nurturing and mentoring new and developing technologies among start-ups, as well as assisting them in protecting and commercialising them through access to high-quality IP services and resources.

It is marked here that a start-up can claim a 50% reduction in the official fling fee of a trademark application in India under the Trademark Rules, 2017. The goal of this reduction is to relieve small enterprises of the additional expenditure of legal compliances such as trademark registrations.

Who can apply?

SIPP is open to any start-up that has been accredited by the Start-up Certification Board as having an innovative business. In this context, a start-up is defined as an entity that is incorporated or registered in India not prior to five years, with an annual turnover of less than INR 25 crores in the previous fiscal year, and is working toward the innovation, development, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property.

However, such an entity is not formed by dividing up or reconstructing an existing firm. Moreover, a firm ceases to be a start-up if its preceding fiscal year’s turnover exceeds INR 25 crores or it has completed 5 years from the date of incorporation. Furthermore, a start-up will be eligible for the benefits of this plan only when it has been certified by the Start-up Certification Board.

Facilitation of Trademark Registration: –

The Start-up India Action Plan proposes the appointment of a panel of facilitators to assist in the submission of trademark registration applications. The facilitators will assist in advising, filing, and disposing of the intellectual property registration relating to trademark including appearing on behalf of Start-ups at hearings and contesting opposition by other parties, if any, until the IPR application is finally disposed of.

Why Trademark registration is important for start-ups?

Legal Protection: – It aids in the protection of the company’s intellectual property. If someone uses company’s trademark, company has the right to sue them.

Increases the firm’s profitability: – Buyers are frequently enticed to purchase things because of the appealing design of the brand or coloured lettering. The significance of Professional Brand Logo Designing is crucial, particularly in today’s digital age.

Increased brand image and goodwill: – The Company can improve popularity by portraying the distinctive aspects of the product through the creation of an appealing logo, graphic, or text.

To cap it all, start-ups have grown dramatically in India in recent years, thanks to the incentives provided by numerous government schemes, initiatives, and laws. Reducing trademark registration costs is another important method in which the government has successfully lowered the burden of cost and expenses for such small and emerging firms, in addition to protecting their intellectual rights from abuse and imitation. Not only does trademark registration give Start-ups with protection, but it also allows them to sue third parties who violate their intellectual property rights. As a result, we strongly advise start-ups to obtain Trademarks and other intellectual property registrations at the government’s reduced rate.

-Kiranpreet Kaur

Associate at Aggarwals & Associates, S.A.S. Nagar, Mohali


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