Karnataka Patent Reimbursement Incentive For Startups

The Government of Karnataka is providing Incentives for Startups through state incentives and policies to elevate the startup's growth. The Karnataka Startup policy defines that the cost of filing and prosecution of patent applications will be reimbursed to the incubated startup companies subject to a limit of Rs. 2 lakh per Indian patent awarded. The reimbursement process entails two stages, according to which 75% of funds would be provided for filing the patent, while the remaining would be disbursed after the grant of the patent. The present article briefs the Karnataka Patent Reimbursement Incentive For Startups.

Patent Incentives for Startups

The Government of Karnataka is providing the following type of Patent Incentives for Startups:

Fiscal Incentives for Domestic Patents

The Government of Karnataka will reimburse the cost of filing and prosecution of the patent application to incubated startup companies upto a limit of Rs. 2 lakh per Indian patent awarded

Fiscal Incentives for Foreign Patents

For foreign patents on a single subject matter, upto Rs. 10 lakh (Rs. 1 Million) will be reimbursed to incubated startups Note: The reimbursement will be done in 2 stages - 75% after the patent is filed and the balance 25% after the patent is granted.

Eligibility Criteria

The eligibility Criteria to avail of the benefit of the reimbursement on the filing of a patent application are as follows:

The applicant should be a Startup registered with the Karnataka Startup Cell with a valid Karnataka Startup Cell registration number
Only patents that have been filed by a startup within the validity of the Karnataka Startup Policy will be eligible to claim this reimbursement
Patents that are created for a technology-based service or product or use technology for enhancing the functionality or reach of an existing product or service are eligible to apply for patent reimbursement.
The applicant should have already filed or been granted a patent with the concerned authority.

Note: The applicant should have paid the mandatory government fees/attorney fees in this regard

Documents Required

The documents required for the Karnataka Patent Reimbursement Incentive For Startups are as follows:

KBITS registration number
Application Form
A copy of the patent filed at the appropriate authority
Certificate of Patent Grant from Patent Office
A detailed statement of expenses incurred towards the Patent Registration along with the copies of invoices & receipts from the patent authority and legal counsel as applicable
All Invoices submitted by the appropriate Patent Authority towards Government fees and legal agents
The certificate of Patent with a valid serial number must be furnished and valid form 27 to be enclosed.
The reimbursement amount will be released/disbursed on the seniority basis depending upon the Budget allotment of the State Government

Application for reimbursement Post Filing of Patent:

The applicant to claim reimbursement under this incentive should have already filed the patent for which this reimbursement is claimed. The applicant may claim reimbursement for the Government fees paid to the appropriate authority and for attorney fees instead of drafting and consultancy charges as applicable. The reimbursement will be like a one-time payment and the applicant cannot apply under this provision more than once for the same patent application.

Application for reimbursement Post Grant of Patent:

The applicant to claim reimbursement under this incentive should have already been granted the patent for which reimbursement is claimed and should have already claimed reimbursement of costs incurred post-filing of the patent. If the applicant has already been reimbursed upto 2 Lakhs (Rupees) for filing a domestic patent and/or 10 Lakhs (Rupees) for a foreign patent filing, then the applicant will not be eligible for reimbursement under this provision even if the patent has been granted.

Application for reimbursement Post Filing and Post Grant of Patent Simultaneously:

The applicant to claim reimbursement under this incentive should have already been granted the patent for which reimbursement is claimed. The applicant may claim reimbursement for the Government fees paid to the appropriate authority and for attorney fees instead of drafting and consultancy charges as applicable. The applicant under this provision is eligible for reimbursement subject to a maximum limit of 2 Lakhs (Rupees) for an Indian patent filing and 10 Lakhs (Rupees) for a foreign filing.

Application Procedure for Karnataka Patent Reimbursement Incentive For Startups

The application procedure for Karnataka Patent Reimbursement Incentive For Startups is explained here:

The startup needs to access the official website of Startup Karnataka to apply for Karnataka Patent Reimbursement Incentive For Startups.

Karnataka Patent Reimbursement Incentive For Startups - Homepage

Click on the Register / Login Button available in the Top Right Corner of the Screen.
Sign Up as a Startup by filling out an application form based on the instructions provided. Existing Users can directly log in to the portal.

Karnataka Patent Reimbursement Incentive For Startups - Login

Once logged in, select the ‘Incentives’ tab available on the home page. From the menu select the Karnataka Patent Reimbursement Incentive For Startups.
The link will redirect to a new page, click on apply now option, and the application form will open.

Karnataka Patent Reimbursement Incentive For Startups

The Eligibility Criteria and other details about Karnataka Patent Reimbursement Incentive For Startups are mentioned on the Landing page once you scroll down the page.
On receipt of all necessary documents, KITS will duly analyze the application for eligibility.
Post review and assessment of the Application, KITS will arrive at the quantum of reimbursement due and payable. The Managing Director, KBITS will finally sanction the eligible amount for reimbursement and the decision shall be deemed final in this regard. The reimbursement amount will be released/disbursed on a seniority basis depending upon the Budget allotment of the State Government.
Nodal Officer Karnataka Startup Cell, on receipt of the required documents, will scrutinize and perform necessary due diligence on the expenses incurred by the applicant.
The Startup cell shall recommend the application to the MD, KBITS through the Nodal Officer for sanction the reimbursement of costs incurred towards filing or grant of Patent
Those applications that have been so approved will be eligible for reimbursement within 3 months from the receipt of the application.

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Frequently Asked Questions

Common questions about Karnataka Patent Reimbursement Incentive for Startups.

The Karnataka Patent Reimbursement Incentive for Startups is a government initiative that reimburses the cost of filing and prosecution of patent applications to eligible startups incubated in Karnataka. The reimbursement is subject to a limit of Rs. 2 lakh per Indian patent awarded and Rs. 10 lakh for foreign patents.

To be eligible for the Karnataka Patent Reimbursement Incentive, the applicant must be a startup registered with the Karnataka Startup Cell, having a valid registration number. The patent should have been filed or granted within the validity period of the Karnataka Startup Policy, and it should be related to a technology-based service, product, or enhancement.

The reimbursement process is divided into two stages. Upon filing the patent, 75% of the eligible amount is reimbursed. The remaining 25% is disbursed after the patent is granted.

The incentive covers the government fees paid to the appropriate patent authority and attorney fees for drafting, consultancy, and prosecution of the patent application. However, it does not cover any other expenses.

Startups can apply for the incentive through the official Startup Karnataka website. They need to log in, navigate to the 'Incentives' section, and fill out the application form for the Karnataka Patent Reimbursement Incentive.

The required documents include the KBITS registration number, a copy of the filed or granted patent, a statement of expenses with invoices and receipts, and any other relevant certificates or forms issued by the patent authority.

No, the reimbursement is a one-time payment, and a startup cannot apply for the same patent application more than once.

If a startup has already been reimbursed up to the maximum limit of Rs. 2 lakh for an Indian patent or Rs. 10 lakh for a foreign patent after filing, they will not be eligible for further reimbursement upon grant of the same patent.

The reimbursement process may take up to 3 months from the date of application receipt, subject to the budget allocation and application scrutiny by the nodal officer and KBITS.

Yes, a startup can claim reimbursement for multiple patents simultaneously, provided they meet the eligibility criteria and submit separate applications for each patent. However, the total reimbursement amount will be capped at the specified limits.