Patent Reimbursement Incentives: Karnataka Startup Policy

• Karnataka-based startups seeking reimbursement for patent filing costs.

About this scheme

The Karnataka Startup Policy offers essential patent reimbursement incentives, specifically tailored for incubated startups officially registered with the Karnataka Startup Cell. This program is spearheaded by the Karnataka Biotechnology and Information Technology Services (KBITS), a pivotal agency under the Government of Karnataka. KBITS is dedicated to fostering and nurturing the state's technology and startup ecosystem, providing strategic support and resources to promote innovation and entrepreneurship. The policy's primary goal is to alleviate the significant financial expenditures associated with securing intellectual property rights, which are crucial for promising technology-driven ventures within Karnataka to protect their innovations and maintain a competitive edge.

Eligible startups can claim reimbursement for costs related to both the filing and subsequent prosecution of their patent applications. This covers mandatory government fees and professional attorney/drafting fees. For Indian patents that are successfully awarded, the program provides reimbursement up to a limit of INR 2 lakh. Startups securing awarded foreign patents on a singular subject matter are eligible for a more substantial reimbursement, capped at INR 10 lakh. This higher limit for international patents reflects the increased costs and strategic importance of global IP protection, encouraging Karnataka-based startups to safeguard their innovations on an international scale.

The reimbursement process is structured into two distinct stages to provide timely support. An initial 75% of the approved costs is disbursed to the startup immediately following the successful filing of the patent application. The remaining 25% of the reimbursement is provided once the patent has been officially granted by the relevant patent authority. This structured approach ensures financial assistance throughout the patenting journey, directly assisting startups in safeguarding their technological innovations and fostering a stronger IP landscape in the state.

Who can apply

• Startups must be registered with the Karnataka Startup Cell and possess a valid KBITS registration number, ensuring their integration and recognition within the state's official startup ecosystem.
• Startups are required to be incubated, either physically or virtually, indicating they are part of a structured support environment conducive to innovation and growth.
• The patent for which reimbursement is sought must have been filed within the active validity period of the Karnataka Startup Policy, aligning with the program's operational timeline.
• The patent must pertain to a technology-based service or product, or demonstrate the use of technology to enhance the functionality or reach of an existing product or service, reinforcing the program's focus on technological innovation.
• The applicant must have already filed or been granted the patent and paid all mandatory government fees and attorney fees prior to applying for reimbursement, confirming that expenses have been incurred and are verifiable.

Benefits & funding

• Reimbursement for patent filing and prosecution fees, including government and attorney fees.
• Up to INR 2 lakh for Indian patents, INR 10 lakh for foreign patents.
• Funds disbursed in two stages: 75% after filing, 25% upon grant.
• Aims to alleviate financial expenditures for securing intellectual property rights.

How the application process works

The journey below is informational, compiled from the official program guidelines. Applications are submitted directly with KBITS, Government of Karnataka, in your own name.

1. 1

   Initial inspection and verification of documents by Karnataka Startup Cell.

2. 2

   A Nodal Officer performs due diligence on expenses.

3. 3

   Startup Cell recommends to KBITS Managing Director for final sanction.

Documents checklist 7

• KBITS Registration Number
• Duly filled Forms A, B, and/or C and Annexure I, II (and III if applying through a GoK-supported incubator)
• Copy of the patent filed at the appropriate authority
• Certificate of Patent Grant from Patent Office (as applicable)
• Detailed statement of expenses with copies of invoices and receipts from patent authority and legal counsel
• All invoices from Patent Authority towards government fees and legal agents
• Certificate of Patent with valid serial number and valid Form 27

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Frequently asked questions