Abhishek Satish and Adarsh Warrier were students pursuing engineering in the south Indian town of Vellore when they founded Vicara - a startup that develops wearable technology devices. Soon after, Satish and Warrier filed a patent for a gesture recognition device they'd created called Kai. “When we created the technology, we knew there would be competition. It doesn’t take long for someone to copy your work and pass it off as theirs. For a hardware startup, a patent serves as a form of insurance,” says Satish.
Despite being common practice in other parts of the world, the importance of filing patents has only just become apparent to young startups in India, as the country increasingly moves towards becoming an innovation hub in Asia. Moreover, the Indian government has begun offering incentives to encourage innovators to file patents, including attractive tax rebates and speedy documentation processing.
Tackling Rising Costs
One of the most significant factors that keep startups from filing patents is cost. Filing a patent in India involves a pre-filing cost priced between $920 and $1530, a first-action cost of up to $2300 followed by a patent maintenance cost of another $2300. The collective fee of filing a patent can be a burden on several early-stage startups so private IP firms are helping startups manage these costs.
Bangalore-based BananaIP is one such firm that bears the expenses of patent filing for select startups. In addition, if a startup offers equity, BananaIP also takes care of a nominal patent filing fee to be paid to the government. Dr. Kalyan C Kankanala, senior partner and chief IP attorney at BananaIP, says, “Several startups don’t prioritize patent filing as an early stage activity. It’s important for them to understand that once an idea or product goes public, the possibility of acquiring a patent is lost under most circumstances.”
Startups Seize Patent Filing Opportunities
Vicara’s Satish and his cofounder started off by approaching IP Dome Strategy Advisors, a Chennai-based law firm that assists startups with filing patents. While anyone can file a patent, it is recommended to seek the help of IP law firms, which conduct patentability analysis to verify the authenticity of an idea and suggest amendments in patent documents. Based on findings by the Indian Patent Office, the process of filing patents in India has improved of late. Applications went up by 10% last year compared to the year before, and growth has been credited to the improvement of online services, availability of IP specialists across the country as well as the incentives provided for startups under the government’s Startup India initiative.
IP Dome has been supporting the government’s Make In India initiative by educating startups on the value of intellectual property, as well as the strategic use of intellectual property to gain a competitive advantage in the global marketplace. Swapna Sundar, CEO of IP Dome Strategy Advisors, says, “An increasing number of product startups in India are embracing the need for filing patents at an early stage of product development, which is very sensible. The Indian government’s Startup India initiative is creating awareness towards minimizing legal risk against IP infringement.”
Startups Receive Incentives For Filing Patents
The rising awareness around patent filing is having a positive impact as more startups are investing in onboarding good IP lawyers at initial stages of commercialization of their product. Kankanala says, “About five years ago, we would do about five to six patent filings a year. This year, we have already filed about 20 patents for startups, and expect more.” Sundar stated that IP Dome is witnessing an increased growth in IP awareness as well as filings this year. “We have helped around 35 startups in building successful IP portfolios for their businesses,” she said.
In addition, the government’s Startup India initiative provides a slew of benefits to Indian startups, which includes an 80% rebate on patent filing. Application fees for startups to file patents has been reduced to just $25. The Indian government has introduced mechanisms for speedy processing of patent applications, and it’s now possible to acquire a patent in India within a year of its filing. Unlike earlier, the Indian Patent Office is processing foreign filing permits quickly, with which Indian startups can now file patents overseas.
Lawyers recommend startups file a patent application in India first as it is cost-effective and provides priority rights for international filings. Once a patent application is filed in India, the startup can either file directly or opt for a Patent Cooperation Treaty (PCT), which provides international patent protection. "Opting for a PCT grants the startup at least thirty months to perfect the product, test the market, and/or raise funds to file in other countries," says Kankanala.
Protected Ideas Lead To High Investor Confidence
The eagerness to file patents has also led to improved investor confidence. Having seen both the sides of the ecosystem, Sateesh Andra, an entrepreneur-turned-venture capitalist with Endiya Partners believes that patent filing is an integral part of the overall product strategy as benefits outweigh the timelines and costs involved. The owner of multiple patents himself, Andra says, "As startups go global, how quickly you go to the market is paramount. Entrepreneurs must be aggressive in their market outreach plan as patent filing not only increases the credibility when they scale but also bolsters investor support."
As awareness around patent filings and quality of legal assistance improves, startups can now push the boundaries of innovation and creativity in India, establishing new benchmarks in the fast-growing ecosystem.
Source >> https://www.forbes.com/sites/sindhujabalaji/2017/10/16/indias-startups-are-filing-more-patents-than-ever-before-heres-why/#68a17c069f57
