Cost of Patents in India: All Types of Patent Fees: Here we will be discussing the Patent Costs for Indian Startups. Patents provide legal safeguarding for new inventions, granting exclusive rights and deterring unauthorized usage or duplication. Startups need to file patent applications promptly to establish priority rights and mitigate the risk of potential losses resulting from prior disclosure. The cost of patent registration in India can vary depending on several factors, including the type of patent (provisional or complete), the nature of the invention, and the entity filing the patent (individual or startup). A startup in India could benefit from reduced patent filing fees under the Startup India scheme. Also, Read: Government Support for Indian Startup Companies
The government has introduced various incentives to encourage startups to protect their intellectual property, including patents. Under the Startup India scheme, startups may be eligible for an 80% rebate on the patent filing fees.
Meaning of Startup-
“Startup” refers to
(a) an entity in India that has been designated as a startup by the competent authority under the Startup India initiative.
(b) In the case of a foreign entity, an entity that meets the Startup India Initiative’s turnover and period of incorporation/registration criteria and submits a declaration to that effect.
The Patents (Amendment) Rules of 2016 defined startups as
Entities engaged in the innovation, development, deployment, or commercialization of new products, processes, or services based on technology or intellectual property that has not been in operation for more than five years from the date of incorporation/registration and have a maximum annual turnover of INR 25 crore. Also, Read: Patent drawing services
Cost of Patents in India: All Types of Patent Fees
Patent registration costs in India for Startups
The cost of obtaining a patent/filing a patent in India is divided into two components:
- Fees charged by the government for forms and requests.
- Professional fees for a patent professional such as a patent agent or attorney
Government Fees- (For Natural Person/s i.e., an individual or a group of individuals)
Step: 1 Application Filing Fees
The following are the base and additional fees for filing Indian patent applications for Startups:
For e-Filing:
| Application fee for up to one priority, up to 30 pages, and up to ten claims | Rupees 1600 |
| For every page in excess of 30 pages | Rupees 160 |
| For each claim in excess of ten claims | Rupees 320 |
| For each additional priority | Rupees 1600 |
For Physical Filing-
| Application fee for up to one priority, up to 30 pages, and up to ten claims | Rupees 1750 |
| For every page in excess of 30 pages | Rupees 180 |
| For each claim in excess of ten claims | Rupees 350 |
| For each additional priority | Rupees 1750 |
Rebate on filing of application- Startups are provided with an 80% rebate in filing of patents vis-a-vis other companies, bringing down the cost from INR 8,000 to INR 1,600. This enables cost cutting in their early years. (https://www.startupindia.gov.in)
Step 2: Early publication (Optional step)
A request for early publication can be made by submitting Form-9 and paying the prescribed fee of Rs.2,500 for Startups (other than natural persons). When a request is made, the application is published any time after one month of the request date. Also, Read: Utility patent drawings
Step 3: Request for Examination
Only after receiving a request for examination, or RFE, is the patent application examined. Within 48 months of the filing date or priority date, the inventor/applicant must file a request for examination (RFE). This RFE is submitted using Form 18, and the government fees are listed in the table below.
| The request for examination of the application for patent (Form 18) | Rupees 4000 |
| Request for Expedited examination of the application for patent under rule 24C Form 18A | Rupees 8000 |
For Physical Filing-
| The request for examination of the application for patent (Form 18) | 4400 |
An applicant may request expedited examination for E-filing in Form 18A, along with the fee, on any of the following grounds:
- that the applicant is a Start-Up.
- You have a woman applicant or co-applicant on your patent application.
The fee structure mentioned on the patent office website in India is- Schedule_1.pdf (ipindia.gov.in)
Professional Patent Fees
The cost of a patent in India typically ranges from ₹ 50,000 to ₹ 70,000 if you work with an experienced patent agent/attorney (firm) for patent research, patent drafting (writing), patent filing, and subsequent steps.
However, it can sometimes exceed 70,000, depending on the first examination report, response to objections, and hearings (if necessary) prior to the patent grant. It should be mentioned that different patent firms may charge different prices based on factors like volumes, required work, etc. Also, Read: Design patent drawings
Total Patent Costs (For Natural Person/s): From Filing to Grant
Step 1: Disclosure Of Invention
This is the initial phase in which you disclose your invention to a patent professional (patent agent) by signing a non-disclosure agreement. Here you should submit every known fact about your invention, including drawings, diagrams, or sketches that explain how the invention works. They are critical to comprehending your invention. After you have completely captured your innovative idea with all technical details, you conduct a preliminary search.
Costs: No costs are involved in this phase.
Step 2: Patentability Search
During this phase, the patent professional conducts a thorough search for prior art in all available databases for patents, articles, theses, and so on. Furthermore, it generates a patentability search report based on the closest prior art found for your invention.
A novelty search or patentability search report can save you a lot of time, effort, and money by preventing you from filing an invention that is not novel. As a result, while it is optional, it is a recommended step in the patent procedure. Typically, it takes 5-7 working days for this step. Also, Read: Patent Invalidity Search
Costs: A patentability or novelty search typically costs between Rupees 5,000 – 30,000 in attorney fees.
Step 3: Patent drafting
Writing a patent is a specialized task that needs a lot of practice and experience with patent law. You have to understand the field of the invention and know the rules for patents. It’s not just about describing the invention; you have to follow specific rules to make sure your patent is strong.
If you’re new to patent writing, you might miss important things like drafting claims, giving detailed descriptions, and explaining the inventive step. Neglecting these can result in your invention not being well-protected or even your patent getting rejected. Therefore, a patent application can be significantly enhanced by a qualified patent professional (patent agent) with the necessary experience.
Costs: The cost of professional fees for drafting a patent typically ranges from Rs. 10,000 to Rs. 1,00,000.
Step 4: Patent Application Filing-
Once the drafting of the patent has been completed and you are satisfied with the technical details and scope of the patent, you can file the patent application properly. After 18 months, the patent application will be published if you don’t submit a request for early publication. Filing a patent application does not require professional fees as long as the costs of patentability searches and patent drafting are covered. The relevant form to submit with a patent application is Form 1, which is always accompanied by either provisional or complete specification in form 2.
Costs: Startups that file a patent application at the patent office must pay a government fee of Rupees 1600. (Government fee)
Step 5: Early publication (Optional step)
Usually, 18 months after the filing date, the application is automatically published. The innovator need not pay anything or take any action. An early publication request, along with the required fees, can be made if you would prefer not to wait the full 18 months. When a request is made, the application is published within one month of the request date. Also, Read: Freedom-to-operate searches
Rule 24A. Request for publication. — An application for publication pursuant to sub-section (2) of section 11A should be submitted using Form 9.
Costs: The prescribed fee of Rs.2,500 is to be paid for Startups. (Government Fee)
Step 6: Request for examination (RFE)
Only after receiving an RFE (request for examination) is the patent application examined. Requests for examinations (RFEs) must be submitted by the applicant or inventor within 48 months of the priority date or filing date. No professional cost is involved in this step. The government fees associated with submitting this RFE using Form 18 are listed in the table below.
| The request for examination of the application for patent (Form 18) | Rupees 4000 |
| Request for Expedited examination of the application for patent under rule 24C Form 18A | Rupees 8000 |
Step 7: Respond to Objections (if any)
Receiving objections in an examination report is a standard part of the patent application process. These objections, raised by the patent office, highlight issues in the claims, references, or the description of the invention. To address these concerns, applicants submit a formal response, which is a crucial step in convincing the examiner to grant the patent. This response usually includes arguments, amendments, and supporting evidence.
It is advisable to analyse the report with a patent agent or attorney and formulate a response to the objections. This step provides an opportunity for the inventor to highlight the uniqueness and non-obviousness of the invention, tailored to the specific objections received. As an inventor or applicant, it is crucial to answer the objections within the stipulated 12-month period from the date of receiving the initial examination report. Working in collaboration, the inventor and patent agent create and submit a response to the objections, aiming to demonstrate to the controller that the invention is indeed patentable and meets all the required patentability criteria. Also, Read: Patent Landscape Search
Costs: The patent agent/attorney fees may range from Rs. 10,000 to Rs. 25000 to respond to objections, depending on the complexity of the objections and the number of objections received.
Step 8: Grant of Patent
Once all patentability requirements are met, the application will be placed in order for a grant. Once the patent office seals it, it is immediately granted the inventor/applicant, and published in the patent journal from time to time. The normal route takes over two or three years to grant a patent, while the expedited route takes one or two years.
Costs: There is no professional or government fees required for the grant of patent.
Note: Form 28 is to be submitted for claiming the status of a small entity or startup.
Obtaining A Patent for Your Startup Company Through DPIIT-
The government launched the Start-ups Intellectual Property Protection (SIPP) scheme in 2016 to make it easier for startups to file applications for designs, patents, and trademarks through registered facilitators. The SIPP scheme is overseen by the Controller General of Patents, Designs, and Trade Marks (CGPDTM). The CGPDTM helps startups file and process applications for designs, patents, and trademarks.
The registered facilitators under this scheme will assist startups in filing their Intellectual Property Rights (IPR) applications with the appropriate Intellectual Property (IP) Offices by paying only the statutory fees. The facilitators’ professional fees will be reimbursed by the CGPDTM’s office. Also, Read: Freedom to Operate FTO Search Report Sample
Patent Cost Benefits-
If you are certified as a start-up by DPIIT under the Scheme for Facilitating Startups Intellectual Property Protection (SIPP) for Patent and Trademark registration, you do not need to pay any professional fees for Patent filing in India. Official fees is only needed to be paid to the relevant Government Patent Office. Fees for patent agents/attorneys are paid by the government, not by you (the startup).
The official patent filing fee in India is (filing fees 1,600+ early publication 2,500 + expedited examination 8,000) = 12,100. When compared to the standard route or ordinary patent application process, which requires 40,000 to 60,000 as attorney fees for the patent process, you would end up saving quite a bit of money in this case.
Conclusion
Paying the cost of a good patent application that protects your invention with the broadest possible protection is a good investment with a high Return on Investment if it has commercial value in the market and can generate profits through patent licensing or selling. By emphasizing the strategic importance of securing intellectual property, we aim to empower startups with the knowledge needed to protect their innovations and thrive in the competitive business landscape. As you embark on this journey, remember that safeguarding your ideas is not just a legal requirement but a forward-thinking investment in the future success of your startup.
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