Karnataka Patent Reimbursement Incentive for Startups
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.
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
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.
- 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.
- 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.
- 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.
Post by Renu Suresh
Renu is experience content writer specialised in compliances and company rules.