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(Startups Intellectual Property Protection) SIPP Scheme


Last Updated on May 29, 2024 by D. Lalitha B.L (Hons)

The Startups Intellectual Property Protection or SIPP scheme is a vital motivation for the Indian Government, intended to encourage creativity and entrepreneurship in the country. It provides crucial financial and legal support to new businesses for defending and conversing in earnest with their intellectual property assets.

Eligibility Criteria for SIPP

To participate in the Scheme for Intellectual Property Protection, startups must fulfil the following eligibility criteria:

  1. Legal Structure: The startup must be commenced as a Private Limited Company, Registered Partnership Firm, or Limited Liability Partnership.
  2. Startup Age: Within ten years of its incorporation date, the startup should have ceased operations.
  3. Financial Standards: The new business company’s turnover could not have exceeded Rs. 100 crores in any of the fiscal years prior.
  4. Innovative Product or Business Idea: The new business should own a creative product or business concept that may establish a scalable company structure and make a substantial contribution to the generation of income or employment opportunities.

Facilitators Under SIPP

A group of associations that have registered with the Division for Promotion of Industry and Internal Trade and been empanelled specifically for this purpose serve as facilitators for the Scheme for Intellectual Property Protection. These mediators are pivotal in aiding new companies document and seek after their patent, trademark, and design applications.

The program’s facilitators could include government sponsored academic institutions, technological business hatcheries, centres of excellence, hatcheries, and accelerators.

Eligible Facilitator for SIPP:

The SIPP includes a network of facilitators registered with the Division for Promotion of Industry and Internal Trade and empanelled for the scheme. The experienced facilitators under the SIPP scheme incorporate:

  1. Technology Business Incubators: TBIs approved by the Division of Science and Technology, Government of India.
  1. Centres of Excellence: CoEs are laid out under the National Manufacturing Competitiveness Program of the Ministry of MSMEs.
  1. Startup Incubators or Accelerators: Organisations are organised as legitimate under the Companies Act, 2013, or the Limited Liability Partnership Act, 2008, and funded by the government of India, the state government, or a public sector undertaking.

Responsibility of Facilitators under SIPP:

Facilitators enlisted in the scheme handle a variety of tasks and duties to ensure its effective operation. These responsibilities include:

  • Awareness and Guidance: Creating awareness among new businesses on the importance of intellectual property (IP) protection and assisting them in identifying and managing their IP
  • Legal Assistance: Granting new businesses legal support for the submission and prosecution of trademark, patent, and design applications.
  • Financial Support: Removing financial obstacles to IP protection by offering firms financial support for the filing of patents, trademarks, and designs.
  • Capacity Building: Putting on seminars and training sessions on intellectual property management and associated topics to hone startups’ expertise.
  • Coordination: Working together with the DPIIT and other relevant parties to maintain efficient communication channels and guarantee the successful execution of the SIPP programme.
  • The time span of the SIPP Scheme: The first time frame of the scheme was five years, starting in 2016 and ending in 2020.

Operation of the SIPP Scheme:

The scheme includes provisions for a fast-track analysis of patent registration applications and provides a fee rebate, improving its appeal and support for the creative endeavours it seeks to promote.

Method for Filing Application for IPR by Startups Under SIPP

The process for applying for IPR by a startup under the SIPP scheme involves the following steps:

Step 1: Identification of Intellectual Property Asset

The first action entails identifying the intellectual property asset that the startup hopes to protect. This may encompass inventions, designs, or brands.

Step 2: Previous Art Search

Before starting the IPR application, directing a past art search is necessary to evaluate the novelty and non-obviousness of the invention or design.

Step 3: Drafting Detailed Specification

Based on the findings from the earlier artwork search, the startup should draft a comprehensive specification for the patent or design application. This includes claims, drawings, and a detailed description of the invention or design.

Step 4: Filing the Application

The startup can decide to file the patent or design application either on the online or offline, depending on desire, and the support was given by the facilitator.

Step 5: Prosecution Process

Following the application filing, it undergoes the process of prosecution, which includes the investigation and objections, and responses to objections. Collaboration between the startup and the facilitator is crucial to address objections and ensure the successful grant of the application.

This methodical procedure ensures that startups receive comprehensive support in the filing and prosecution of their intellectual property applications under the SIPP scheme. Effective collaboration with facilitators enhances the chances of successful IP protection for the creative resources of the startup company.


  1. In my SIPP, how are the assets split between those that have entered drawdown and those that haven’t?

Your SIPP fund will be notionally divided between the drawdown and non-drawdown parts if it is partially crystallised, allowing you to hold both drawdown and non-drawdown funds. This allows you to give value to each part without genuinely adding particular resources to each part.

  1. What are Patent charges for New companies?

The patent fees for new businesses may vary depending on the type of use, quantity, cases, and different elements. Be that as it may, under the Startup Intellectual Property Protection (SIPP) scheme presented by the Indian government, suitably new businesses can avail of an 80% discount in filing costs for patents.

  1. How does IPR benefit Startups?

Intellectual Property Rights (IPR) give legal protection for the creations of new businesses, similar to patents, trademarks, and copyrights. These legitimate securities give new companies exclusive privileges over their creations or products.

  1. How are facilitator fees managed in the SIPP Scheme?

Facilitator fees under the SIPP Scheme are paid directly to the empanelled facilitators by the Central Government via the CGPDTM office. The various phases of the IP application procedure, which includes filing and disposal, are taken into consideration when determining these fees. The government handles facilitator fees for qualified applicants through the relevant IP office; they are not required to pay them.

  1. Who can profit from the Startup Intellectual Property Protection Scheme (SIPP)?

Adequate India’s innovators, startups, and educational institutions are qualified to profit from the SIPP Scheme. Moreover, Indian candidates filing international patent applications can also benefit from the benefits given by SIPP.

  1. Who is accountable for the legal charges in the SIPP Scheme?

Eligible candidates themselves bear the legal charges related to their patent, trademark, or design applications. This includes PCT fees for international patent applications and expenses related to the Madrid System applications for international trademarks.

D. Lalitha B.L (Hons)

D. Lalitha, B.L (Hons)., MBA., PGDIPL is a seasoned legal professional with extensive experience in contract drafting and reviewing, now ventures into the realm of content writing. With 6 years of experience, she brings a deep understanding of complex legal concepts and a knack for clear communication. Eager to leverage her expertise to craft compelling legal content, she committed to producing informative and engaging articles that resonate with diverse audiences.