Why GoI’s new measures on IPR filings and fees amount to mere tokenism! Read here to understand our take on these measures.
The Government of India, recognizing the importance of Micro, Small and Medium Enterprises (“MSME”) and startups for growth and creation of a knowledge economy, has proposed to reduce the fees for various intellectual property in the following manner:
|
IPR type |
Activity |
Entity applicable to |
Current Fees (in INR) |
Revised Fees (In INR) |
|
Patents |
Filing |
MSME |
4,000 to 4,400 |
1,600 to 1,750 |
|
Request for examination |
10,000 to 11,000 |
4,000 to 4,400 |
||
|
Expediated examination |
25.000 |
8,000 |
||
|
Renewal |
2,000 to 20,000 |
800 to 8,000 |
||
|
Designs |
Filing |
MSMEs and startups |
2,000 |
1,000 |
|
Geographic Indicators |
Registration |
Authorized User |
500 |
NIL |
|
Issuance of Registration Certificate |
100 |
NIL |
||
|
Renewal |
1,000 |
NIL |
||
This revision in fees will be done further to the National IPR policy that the government had introduced in 2016. Since the introduction of this policy, there has been an increase of 18% in the number of patents filed since 2016.
Quick View
Although this move may ensure greater compliance, there are a few critical issues that the Government will need to address. For instance, it has been reported that there are 1,94,000 pending patent applications that have not been adjudicated on. Further, it is estimated that there are only 140 examiners in India to review all patent applications. Therefore, although the Controller General of patents has granted 13,045 patents in 2017, it will approximately take another 15 years to clear the current backlog of patent applications.
Another issue faced by entities is the enforcement of patents in India. It is reported that it takes on average anywhere between 3 and 5 years to obtain a permanent injunction from the appropriate court. The costs involved with such litigation is also significant. It is reported that a full trial can cost the party a minimum of $60,000. This is another reason why although entities have patents, they find it difficult to enforce them.
Therefore, although the Government has taken steps to make it more attractive for MSMEs and startups to file for patents, we feel that it is critical for the Government to address the above issues in order to truly make India a knowledge economy.
Disclaimer: This post has been prepared for informational purposes only. The information/or observations contained in this post does not constitute legal advice and should not be acted upon in any specific situation without seeking proper legal advice from a practicing attorney.