How to Claim MSME Subsidy on Trademark and Patent Fees in India

Last Updated on July 16, 2026

Protecting your brand name, logo, invention, or product design is an important step for any growing business. However, the cost of obtaining intellectual property (IP) protection can be a concern, especially for Micro, Small, and Medium Enterprises (MSMEs). To encourage innovation and brand protection, the Government of India provides financial assistance to eligible MSMEs for registering trademarks, patents and other intellectual property under the MSME Innovative Scheme, Intellectual Property Rights (IPR) Component.

If your business has a valid Udyam Registration, you may be eligible to claim reimbursement for certain expenses related to trademark and patent registration, subject to the applicable scheme guidelines and eligibility conditions.

This blog explains who can claim the subsidy, the benefits available, eligibility criteria, required documents, the application process and common mistakes to avoid.

Registering your intellectual property not only protects your business assets but may also make you eligible for government support under applicable MSME schemes.

What is the MSME IPR Scheme?

The MSME Innovative Scheme – Intellectual Property Rights (IPR) Component is an initiative of the Ministry of Micro, Small and Medium Enterprises (MSME) aimed at encouraging innovation and protecting intellectual property among MSMEs.

The scheme promotes awareness and supports eligible enterprises in securing legal protection for their innovations and brands by providing financial assistance for certain intellectual property registration expenses.

The objectives of the scheme include: –

• Encouraging innovation among MSMEs.
• Promoting intellectual property protection.
• Supporting brand development.
• Improving business competitiveness.
• Helping MSMEs commercialise their innovations.

Should Your Business File a Trademark or Patent First?

Many MSMEs ask this question when they discover both are covered under the scheme. The answer depends on your business:

If You Have	Protect First	Why
A unique brand name/logo	Trademark	Brand copying is more immediate and common than invention theft
A new technical invention/product	Patent	12-month priority window from the first disclosure means time is critical
Both brand and the invention	Both simultaneously	Competitors can exploit protection gaps in either
A distinctive product design	Design registration	Faster and cheaper than patent; covers appearance

For most small businesses and D2C brands, trademark registration is the more immediately valuable protection. For tech startups with novel technology, patent first because public disclosure before filing destroys patent eligibility permanently.

Can MSMEs Get Reimbursement for Trademark and Patent Fees?

Yes, eligible MSMEs may claim reimbursement for certain expenses incurred on intellectual property registration, subject to the applicable scheme guidelines and prescribed limits.

Financial assistance is available only after fulfilling the eligibility conditions and following the prescribed application process.

The actual amount of reimbursement depends on: –

• Type of intellectual property
• Applicable scheme provisions
• Eligible expenses
• Supporting documents
• Approval by the competent authority

What Types of Intellectual Property Are Covered?

The scheme supports various categories of intellectual property.

These generally include: –

Intellectual Property	Eligible for Assistance
Trademark	Yes
Patent	Yes
Industrial Design	Yes
Geographical Indication (GI)	Yes
Other eligible IP categories	As per the applicable scheme guidelines

Subject to the eligibility criteria and provisions of the MSME Innovative Scheme in force at the time of application.

Benefits of Claiming the MSME IPR Subsidy

Eligible MSMEs may benefit in several ways.

1. Reduces the Cost of Intellectual Property Protection

Trademark and patent registration involve government fees and, in many cases, professional expenses. The reimbursement support can reduce the financial burden on eligible businesses.

2. Encourages Brand Protection

Registering a trademark helps protect: –

• Business name
• Logo
• Product name
• Brand identity
• Tagline

A protected brand can strengthen customer trust and reduce the risk of infringement.

3. Supports Innovation

Businesses investing in new technologies, products or manufacturing processes can seek patent protection for eligible inventions. Government support encourages MSMEs to invest in research and innovation.

4. Improves Business Credibility

Registered intellectual property enhances the credibility of a business among: –

• Customers
• Investors
• Financial institutions
• Business partners
• Government agencies

It also adds value to the enterprise as an intangible asset.

5. Promotes Long-Term Business Growth

Protecting intellectual property helps businesses create a competitive advantage and supports expansion into new markets.

What Expenses Are Actually Reimbursable?

Not all costs related to trademark and patent registration qualify for reimbursement. Understanding what’s covered prevents rejected claims:

Typically Covered:

• Government filing fees paid to the Trade Marks Registry / Patent Office
• Official processing fees
• Facilitation charges through empanelled agencies/IPFCs

May Be Covered (Subject to Scheme Guidelines):

• Attorney or agent professional fees for filing
• Translation costs for international applications
• Search and examination fees

Generally NOT Covered:

• Trademark watch services
• IP maintenance/renewal fees (after initial registration)
• Litigation costs
• Consultancy fees not directly related to filing

Always confirm the specific expense category with the IPFC before incurring costs if you plan to claim reimbursement. Certain professional fee components require prior approval to become eligible.

Who is Eligible to Claim the Subsidy?

To claim assistance under the MSME IPR Scheme, businesses generally need to satisfy the prescribed eligibility conditions.

Typically, the applicant should: –

• Be a valid Udyam-registered MSME.
• Apply under the applicable scheme guidelines.
• Own or be the applicant for the intellectual property.
• Submit the prescribed documents.
• Fulfil any additional conditions specified by the implementing authority.

Eligibility should always be verified with the latest scheme guidelines before applying.

MSME IPR Scheme: Approximate Reimbursement Amounts

IP Type	Reimbursement Available	Notes
Domestic Trademark	Up to ₹10,000	Government fees + facilitation charges reimbursed
International Trademark	Up to ₹2,00,000 per application	Subject to scheme provisions
Domestic Patent	Up to ₹1,00,000	Government fees + attorney charges
International Patent	Up to ₹5,00,000 per application	Subject to filing country and scheme limits
Industrial Design	Up to ₹15,000	Government fees
Geographical Indication	Up to ₹2,00,000	Per application

Important: These figures reflect the scheme’s historically published limits; verify current amounts directly with the Ministry of MSME or your nearest IPFC before applying, as scheme budgets are revised annually and current allocations may differ.

MSME IPR Scheme vs Startup India IP Benefit

If your business is both a DPIIT-recognised startup AND a Udyam-registered MSME, you have access to two different IP benefit schemes, and they are not the same:

Feature	MSME IPR Scheme	Startup India IP Scheme
Trademark rebate	Reimbursement after registration	50% rebate at the filing stage
Patent fees	Reimbursement (up to ₹1 lakh)	80% rebate on filing fees
Eligibility	Udyam registration required	DPIIT recognition required
Application timing	After incurring expense	At the time of filing
Administered by	Ministry of MSME	DPIIT / IP Offices

For DPIIT-recognised startups, the Startup India scheme is generally more beneficial, as you pay less upfront rather than paying full fees and waiting for reimbursement. Claiming both simultaneously for the same IP application is not permitted; choose the more beneficial scheme before filing.

Documents Required

Applicants should keep the following documents ready before initiating the reimbursement process.

Document	Purpose
Udyam Registration Certificate	MSME eligibility
PAN	Business identification
Aadhaar (where applicable)	Identity verification
Trademark or Patent Application Details	IP verification
Registration Certificate (where applicable)	Proof of registration
Payment Receipts	Proof of eligible expenditure
Bank Account Details	Reimbursement processing
Cancelled Cheque	Bank verification
Supporting declarations	As required under the scheme

Additional documents may be requested depending on the nature of the claim and the implementing agency.

Step-by-Step Process to Claim MSME Subsidy on Trademark and Patent Fees

The process may vary slightly depending on the implementing agency or Intellectual Property Facilitation Centre (IPFC). However, the general steps are as follows.

Step 1: Obtain Udyam Registration

Ensure that your enterprise has a valid Udyam Registration before applying for the subsidy. See our complete guide on MSME registration for e-commerce sellers and D2C brands to register or verify your status.

Step 2: Apply for Trademark or Patent Registration

File your trademark, patent or other eligible intellectual property application through the prescribed authority.

Trademark applications often receive examination reports requiring a response. Our guide on how to respond to a trademark examination report helps ensure your application proceeds smoothly.

Step 3: Preserve All Supporting Documents

Keep copies of: –

• Application forms
• Payment receipts
• Registration certificates
• Professional invoices (where applicable)
• Acknowledgements

These documents are generally required when claiming reimbursement.

Step 4: Contact the Appropriate IPFC or Implementing Agency

Approach the designated Intellectual Property Facilitation Centre (IPFC) or the implementing authority responsible for processing applications under the MSME Innovative Scheme.

Step 5: Submit the Reimbursement Application

Complete the prescribed application form and submit the required supporting documents for verification.

When to Apply for Reimbursement

The timing of the reimbursement application matters significantly:

IP Type	When to Apply
Trademark	After the application is filed (even before registration is granted)
Patent	After the application is filed
Design	After the application is filed

Many MSMEs mistakenly wait until the trademark or patent is fully registered before applying for reimbursement; this is unnecessary and can delay the benefit. The scheme generally permits applications based on the filing date and payment of government fees, not registration completion.

However, if you’re claiming professional/attorney fees in addition to government fees, wait until those invoices are received and paid before submitting.

Maintaining complete records of your intellectual property applications and related payments can make the reimbursement process smoother.

What is the Role of an Intellectual Property Facilitation Centre (IPFC)?

Intellectual Property Facilitation Centres (IPFCs) play an important role in helping eligible MSMEs protect and manage their intellectual property. These centres work with the Ministry of MSME and implementing agencies to promote awareness and facilitate access to the benefits available under the MSME Innovative Scheme – IPR Component.

Depending on the applicable guidelines, an IPFC may assist businesses with: –

• Understanding different types of intellectual property.
• Guidance on trademark, patent, design and GI registration.
• Awareness programmes and training.
• Assistance with documentation.
• Support in the reimbursement process under the scheme.
• Coordination with the concerned authorities, where applicable.

Businesses should contact the designated IPFC or implementing agency in their region to understand the current application procedure and eligibility requirements.

How is the Reimbursement Claim Processed?

After the reimbursement application is submitted, it is reviewed by the concerned implementing authority.

The authority may: –

• Verify the applicant’s Udyam Registration.
• Review the intellectual property application or registration details.
• Check payment receipts and supporting documents.
• Seek additional information if required.
• Process the claim in accordance with the applicable scheme guidelines.

If the application is approved, the eligible reimbursement is released as per the prescribed procedure and subject to the applicable limits.

Common Reasons Why MSME Subsidy Applications Are Rejected

Applications may be rejected or delayed if they do not comply with the scheme requirements.

Some common reasons include: –

• The applicant is not eligible under the scheme.
• Invalid or inactive Udyam Registration.
• Incomplete application form.
• Missing supporting documents.
• Incorrect payment proofs.
• Mismatch in business details.
• Failure to meet the prescribed timelines, where applicable.
• Claiming expenses that are not covered under the scheme.

Reviewing the application carefully before submission can help minimise errors.

Tips to Improve Your Chances of Approval

Following these best practices can help make the application process smoother: –

• Ensure your Udyam Registration details are up to date.
• Apply under the correct category of intellectual property.
• Keep original invoices and payment receipts safely.
• Submit only complete and accurate information.
• Follow the latest scheme guidelines issued by the Ministry of MSME.
• Respond promptly if the implementing authority requests additional documents or clarification.

Proper documentation and timely submission are among the most important factors in a successful reimbursement claim.

Common Mistakes to Avoid

Many MSMEs lose the opportunity to claim benefits because of avoidable mistakes.

Avoid the following: –

• Assuming every trademark or patent expense is automatically reimbursable.
• Applying without checking eligibility under the current scheme.
• Not preserving invoices or payment receipts.
• Providing inconsistent business information.
• Delaying the reimbursement application.
• Ignoring communications from the implementing authority.
• Relying on outdated scheme guidelines.

Keeping your records organised and referring to the latest official instructions can help avoid unnecessary delays.

Best Practices for MSMEs Seeking Intellectual Property Protection

To maximise the benefits of intellectual property registration: –

• Register your trademark before launching your brand widely.
• Consider patent protection for eligible inventions and innovations.
• Maintain proper documentation for all IP-related expenses.
• Monitor the status of your trademark or patent applications regularly.
• Stay informed about updates to MSME support schemes and reimbursement policies.
• Seek professional guidance where necessary to ensure accurate filing and compliance.

Protecting your intellectual property is not only a legal safeguard but also a valuable investment in the long-term growth of your business.

Conclusion

The MSME Innovative Scheme – IPR Component encourages eligible enterprises to protect their intellectual property by providing financial assistance for trademark, patent and other eligible IP registrations. For businesses with a valid Udyam Registration, this support can help reduce the cost of securing valuable intellectual property while promoting innovation and brand development.

Before applying, verify your eligibility, retain all relevant payment records and supporting documents and follow the latest scheme guidelines issued by the Ministry of MSME. A well-prepared application can improve the chances of receiving the available reimbursement and help your business make the most of government support for intellectual property protection.

Frequently Asked Questions (FAQs)

1. Can MSMEs claim reimbursement for trademark registration fees?

Yes. Eligible Udyam-registered MSMEs may claim financial assistance for trademark registration under the MSME Innovative Scheme – IPR Component, subject to the applicable guidelines and reimbursement limits.

2. Is patent registration also covered under the scheme?

Yes. Eligible MSMEs may receive financial assistance for domestic patent registration, subject to the prescribed eligibility conditions and reimbursement limits.

3. Is Udyam Registration mandatory to claim the subsidy?

Yes. A valid Udyam Registration is generally required to avail of benefits under the MSME Innovative Scheme.

4. Can startups also apply for the MSME IPR subsidy?

If the startup also qualifies as an eligible MSME with valid Udyam Registration and meets the scheme conditions, it may apply for the available assistance.

5. What types of intellectual property are covered?

The scheme generally covers eligible expenses related to trademarks, patents, industrial designs, geographical indications (GI) and other intellectual property categories specified in the applicable guidelines.