How to Apply for the Karnataka Patent Reimbursement Incentive for Startups?

Introduction

Intellectual Property Rights (IPR) are legal rights granted by the government to individuals over their mental creations or Intellectual Property (IP), and such rights take the form of a patent, copyright, trademark, design, and so on. In India, both the Central and State governments have implemented various schemes and policies to assist startups in registering intellectual property by reimbursing the costs of doing so. The primary objective of this blog is to acquire knowledge on “Karnataka Patent Reimbursement Incentive for Startups.”

Briefing on Karnataka Patent Reimbursement Incentive for Startups

The Government of Karnataka provides Startup Incentives through state incentives and policies to accelerate the growth of startups. According to the Karnataka Startup policy, the cost of filing and prosecuting patent applications will be reimbursed to incubated startup companies up to INR 2 lakh per Indian patent awarded.

The reimbursement process is divided into two stages, with 75% of funds provided for filing the patent and the remaining funds disbursed after the patent is granted. The following article provides an overview of the Karnataka Patent Reimbursement Incentive for Startups.

Eligibility Criteria for availing Patent Reimbursement Incentive for Startups 

• The applicant must be a registered startup with the Karnataka Startup Cell and have a valid registration number.
• Only patents filed by a startup during the validity period of the Karnataka Startup Policy will be eligible for reimbursement.
• Patents created for a technology-based service or product, or that use technology to improve the functionality or reach of an existing product or service, are eligible for reimbursement.
• The applicant must have previously filed or been granted a patent with the relevant authority.

Application for Patent Reimbursement

• Application for reimbursement Post Filing of Patent

The applicant for reimbursement under this incentive must have already filed the patent for which reimbursement is being sought. The applicant may seek reimbursement for government fees paid to the appropriate authority, as well as attorney fees instead of drafting and consultancy fees, as applicable.

The reimbursement will be a one-time payment, and the applicant may not apply under this provision for the same patent application more than once.

• Application for reimbursement Post Grant of Patent

The applicant for reimbursement under this incentive must have already been granted the patent for which reimbursement is sought and must have previously claimed reimbursement for post-filing costs.

If the applicant has previously been reimbursed up to 2 lakhs (Rupees) for filing a domestic patent and/or 10 lakhs for filing a foreign patent, the applicant will be ineligible for reimbursement under this provision, even if the patent has been granted.

• Simultaneous Post-filing and Post-grant of Patent Reimbursement Application

The applicant for reimbursement under this incentive must already have been granted the patent for which reimbursement is sought.

The applicant may seek reimbursement for government fees paid to the appropriate authority, as well as attorney fees in lieu of drafting and consultancy fees, as applicable. Under this provision, the applicant is eligible for reimbursement up to a maximum of 2 lakhs (Rupees) for an Indian patent filing and 10 lakhs (Rupees) for a foreign filing.

Documents required for availing Patent Reimbursement 

• KBITS (Karnataka Biotechnology and Information Technology Services) identification number.
• Form of Application.
• A copy of the patent that has been filed with the appropriate authority.
• Patent Office Certificate of Patent Grant.
• A detailed statement of the expenses incurred in connection with the Patent Registration, including copies of invoices and receipts from the patent authority and legal counsel, as applicable.
• All invoices for government fees and legal agents submitted by the appropriate Patent Authority.
• A patent certificate with a valid serial number must be provided, as well as a valid form 27.
• The reimbursement amount will be released/disbursed based on seniority and the State Government’s budget allocation.

Procedure for availing Karnataka Patent Reimbursement Incentive for Startups

The Karnataka Patent Reimbursement Incentive for Startups application process is outlined here:

• To apply for the Karnataka Patent Reimbursement Incentive for Startups, the startup must visit the official website of Startup Karnataka.
• In the top right corner of the screen, click the Register / Login Button.
• Fill out an application form based on the instructions provided to register as a startup. Existing users can log in directly to the portal.
• Once logged in, go to the home page and click the ‘Incentives’ tab. Select the Karnataka Patent Reimbursement Incentive for Startups from the menu.
• The link will take you to a new page; click the Apply Now button to access the application form.
• Once you scroll down the page, you will see the Eligibility Criteria and other information about the Karnataka Patent Reimbursement Incentive for Startups.
• KITS will review the application for eligibility once all required documents are received.
• KITS will determine the amount of reimbursement due and payable after reviewing and assessing the Application. The Managing Director of KBITS will finally sanction the eligible amount for reimbursement, and this decision will be considered final. The reimbursement amount will be released/disbursed based on seniority and the State Government’s budget allocation.
• Nodal Officer Karnataka Startup Cell will scrutinise and perform necessary due diligence on the applicant’s expenses upon receipt of the required documents.
• The Startup Cell shall recommend the application to the MD, KBITS through the Nodal Officer for sanction the reimbursement of costs incurred in the filing or grant of Patent.
• Those applications that have been so approved will be eligible for reimbursement within 3 months of the application’s receipt.

Summing Up

The cost of filing and prosecuting a patent application will be reimbursed to incubated startup companies up to a limit of Rs. 2 lakh per Indian patent awarded, according to this Startup policy. Up to Rs. 10 lakh would be reimbursed for foreign patents granted on a single subject matter.