MSMEs and Tech start-ups over the years have formed the crux of the Indian Economy but hundreds of them need external help and support to survive in the market. Many SMEs are unable to protect their Intellectual property because of the high investments required for IPR (Intellectual Property Rights) protection especially in cases of international filing which is a necessity for entering the global competition. SIP-EIT is an initiative by the Department of Electronics and Information Technology for lending financial aid to start-ups and MSMEs to increase competitiveness through innovation and protection.
The SIP-EIT Scheme comprises of two schemes:
- Support for International Patent Protection in E&IT
This is to promote the filing of International Patents. The Scheme Supports International Patent Protection in Electronics & IT by SMEs and Technology Start-Up Companies
- Scheme to Support IPR Awareness Seminars/Workshops in E&IT Sector
This is to provide financial support to Education Institutes, DeitY societies, etc. for organizing seminars & workshops on IPR awareness among various stakeholders.
What does the SIP-EIT Scheme consist of?
- It provides financial aid for international filing in the Information Communication Technologies and Electronics sector. It also allows reimbursement up to a maximum of Rs 15 Lakhs per invention or 50 % of the expenses incurred in filing patents.
- In respect of ownership of the patent, the application filed in the name of the owner may also be considered and the applicant may be asked to assign it to the company after DeitY’s approval to provide support under the SIP-EIT-II scheme, however, the individual at the time of applying under SIP-EIT-II scheme must be an existing employee or should be in the Board of Directors of the company.
- Under the scheme, only one application for foreign filing in all countries for a particular invention will only be considered.
- Being a pure grant subject to approval by Deity, no stake in the supported patent is envisaged.
What is in it for MSMEs and Tech Start-ups?
The main benefit that MSMEs and Tech Start-ups will gain from this scheme is the financial aid and support required specially to sign up for IPR protection. This will help them protect their research and development and also their unique technology. This scheme will also help them enter the global competitive market where they can compete with other similar companies across the globe. With Intellectual Property Rights, companies will be able to focus more on innovation as the necessary protection will be employed. The scheme also plans to conduct IPR awareness programmes and workshops to help stakeholders and MSMEs understand the concept and push them towards innovation and development.