MSME INNOVATIVE SCHEME

(A component of MSME Champions Scheme)

By

Development Commissioner Micro, Small & Medium Enterprises (MSME),

Government of India

 

INTRODUCTION

MSMEs are the strongest drivers of Nation’s economic development, innovation and employment. It becomes imperative to strengthen MSME’s ecosystem by developing innovative solutions and applications which will help them to move up the value chain. The Government of India, therefore, envisioned creating MSME Innovative Scheme through combination of Incubation, Design intervention and IPR protection initiatives to enhance MSME competitiveness and transform them as National and International Champions.

ABOUT “MSME INNOVATIVE” SCHEME

MSME Innovative Scheme will be an amalgamation of the Incubation, Design and IPR Schemes of the Ministry of MSME. These erstwhile three schemes will operate as separate verticals with interflows and connections. These verticals will also be integrated sequentially and parallelly into one singular formulation to promote and encourage innovative activities for improved synergy and higher efficiency.

MSME Innovative is a new concept for MSMEs with a combination of innovation in incubation, design intervention and by protecting IPR in a single mode approach to create awareness amongst MSMEs about India’s innovation and motivate them to become MSME Champions. This will act as a hub for innovation activities facilitating and guiding development of ideas into viable business proposition that can benefit society directly and can be marketed successfully.

MSME Innovative Champions is a holistic approach to unify, synergize and converge 3 sub- schemes and interventions with a single purpose. The implementation agencies (Host Institutes, IISc, IITs, NITs and IPFCs, etc.) will be common for these sub schemes for taking them through the initial stage of idea conceptualization to handholding to business development to final growth and outreach.

SCHEME OBJECTIVES

  • To provide appropriate facilities and support for development of concept to market, design competitiveness and protection & commercialization of intellectual creations of MSME sector.
  •  To promote a culture of innovation and creative problem solving through knowledge sharing and collaboration amongst industry, academia, government institutions, research laboratories etc.
  •  To serve as a connecting link between industrial/academia leaders and innovators, in order to encourage new product development and hand-holding.
  • To focus on developing affordable innovations that can benefit a large number of people and at the same time being commercially viable and sustainable.
  • To enhance the awareness of Intellectual Property Rights (IPRs) amongst the MSMEs and to encourage creative intellectual endeavour in Indian economy;
  •  To take suitable measures for the protection of ideas, technological innovation and knowledge-driven business strategies developed by the MSMEs for their commercialization and effective utilization of IPR tools.

INTELLECTUAL PROPERTY RIGHT (IPR) COMPONENT:

This component offers legal and intellectual property filing support including Patents, Trademarks, Copyrights, Designs, and Geographical Indications (GI) etc. The programme also provides IP advisory, Consultation, Patentability Searches, Technology Gap Analyses and IP Commercialisation through establishment of Intellectual Property Facilitation Centres (IPFCs) across the country.

Eligibility for Reimbursement of Patent/ Geographical Indications/ Trademarks/ Design 

A) For Patent, Trademark and Design Reimbursement: 

  • The applicant/entity/unit must have a valid Udyam Registration.
  • Patents/Trademarks/Designs registered in the name of individuals are also eligible for reimbursement subject to holding an Udyam Registration in their name and have full ownership of the enterprise. In case of partnership firm, applicant has to provide proof of ownership of at least 51% shareholding in the enterprise.
  • Applicant has to submit a self-declaration for not claiming funding from any Central/State Government for the same patent/trademark/design.  

B) For Geographical Indication Reimbursement:

All Agencies, Institutions, Associations, Institutes, Non-Profit Bodies, NGOs, Societies, Trust, Or Similar Other Non-Commercial Bodies having valid incorporation/establishment documents, PAN number etc.

Financial Assistance for MSMEs:

Reimbursement for registration of Patent, Trademark, Geographical Indications (G.I.), Design: 

  • The applicant shall file the reimbursement application through the portal of the scheme. The same will be duly forwarded after comprehensive scrutiny by the IPFC to MoMSME for requisite approval. Upon approval of the application by MoMSME, the reimbursement will be done by the IPFC. 
  • The maximum financial assistance to the eligible applicants under the IPR component is as follows: 

S. No.

Item

Maximum Financial Assistance

1

Foreign Patent

Rs. 5.00 lakh

2

Domestic Patent

Rs. 1.00 lakh

3

GI Registration

Rs. 2.00 lakh

4

Design Registration

Rs. 0.15 lakh

5

Trademark

Rs. 0.10 lakh

5

Foreign Trademark

Rs. 1.5 lakh

5

Foreign Design

Rs. 1.5 lakh

 

  • The financial assistance under the scheme for the reimbursement of expenditure incurred towards registration of Patents/ Trademarks/ Designs/ GIs, will be a onetime support from GoI subject to condition that same has not been claimed by the applicant under any other scheme of Central Govt./ State Govt.
  • Patent: The applicant may receive 100% reimbursement of the actual costs or expenses incurred towards the Patent registration with competent authority [including but not limited to facilitation fees, all government fees, design/ diagram and drawing fees, attorney fees, consultancy charges, prior art search and analysis charges, patent application drafting (provisional and complete specifications) charges, charges for patent application prosecution and hearings, examination and publication fees, fee and charges associated with PCT/international/foreign patent fillings, other incidental charges]. This should be duly supported by original invoices/bills/receipts with a maximum upper limit of Rs. 1 lakh for an Indian patent and up to Rs 5 lakh for a foreign patent. However, it will not cover the cost incurred on renewal of applications or any other expenditure incurred towards assignment of IP, correction in application etc.
  • Trademark: The applicant may receive 100% reimbursement of the actual costs or expenses incurred towards registration of a trademark with competent authority (including but not limited to facilitation fees, all Government Fees, Attorney Fees, consultancy charges, Search Fees, application drafting charges, charges for TM application prosecution and hearing, Examination fees, fee and charges associated with international/foreign TM fillings, other incidental charges etc.) duly supported by original invoice/bills/receipts with a maximum upper limit of Rs. 10,000/- for each registered trademark irrespective of classes.
  • Design: The applicant may receive 100% reimbursement of the actual costs or expenses incurred towards registration of a design with competent authority (including but not limited to facilitation fees, all Government Fees, Attorney Fees, consultancy charges, Search Fees, application drafting charges, charges for design application prosecution and hearing, Examination fees, fee and charges associated with international/foreign design application fillings, other incidental charges etc.) duly supported by original invoice/bills/receipts with a maximum upper limit of Rs. 15,000/- for each registered design irrespective of classes.
  • Geographical Indication (GI): The applicant may receive 100% Reimbursement of the actual costs or expenses incurred towards registering the a GI with competent authority (including but not limited to facilitation fees, Attorney Fees, Maintenance Fees, all Government Fees, consultancy charges, application drafting charges, charges for GI application prosecution, hearing and meeting with GI registry/consultative group, expenditures incurred on information collection, GI logo charges, design/ diagram and drawing charges, scientific/lab testing, other incidental charges etc.) with a maximum upper limit of Rs. 2 lakhs for each registered GI.
  • There can be any number of applications may be submitted by the MSME unit for reimbursement; however, the amount will be restricted to the ceilings as per table cited above for per IP registration. 
  • Reimbursement will be made to eligible MSME enterprise subject to receipt of copy of MSME Udyam Registration certificate, copy of patent/trademark/Design/GI registration certificate, copy of bank mandate form & Bills/Vouchers in original.

EXTRACT OF GUIDELINES

Implementation of the Scheme

Building Awareness on Intellectual Property Rights (IPR)

For Micro, Small and Medium Enterprises

By

Development Commissioner Micro, Small & Medium Enterprises (MSME),

Government of India

1.0 INTRODUCTION

Intellectual Property (IP) is one of the key players involved in the market success of an innovation. IP plays a major role in enhancing competitiveness of technology-based businesses and facilitates the process of taking innovative technology to the market place.

In today’s global competitive business scenario, issues pertaining to intellectual property rights (IPRs) have become quite critical for the sustainability of Micro, Small & Medium Enterprises (MSME). In order to compete with global standards and technological challenges, IPR protection plays a very crucial role in achieving competitive advantage and technological gains as they are important tools to promote marketing and innovation.

2.0 OBJECTIVE

It is important for the MSME sector in India to realise the important role IPR protection plays in boosting the innovation ecosystem in competitive business environment, which impacts the sustainable economic growth of the country and its global standards in the technology space. Efforts have been made by the Government to improve the IP culture in India with the following objectives:

To enhance the awareness of Intellectual Property Rights (IPRs) amongst the MSMEs to encourage creative intellectual endeavour in Indian economy;

To take suitable measures for the protection of ideas, technological innovation and knowledge-driven business strategies developed by the MSMEs for;

To provide appropriate facilities and support for protection and commercialization of Intellectual Property (IP) for the benefit of MSME sector;

To assist SMEs in effective Utilization of IPR Tools for technology up- gradation, market and business promotion and competitiveness enhancement.

3.0 ACTIVITIES UNDER THE SCHEME

 

 

 

Maximum

 

 

 

 

Reimbursement per

 

 

S. No

Activity

Application/

 

 

 

 

Proposal

 

 

 

 

(Rs. In Lakh)

 

 

 

ACTIVITIES

 

 

 

 

Financial assistance on grant of patent/ registration under

 

 

 

 

geographical indications of goods/trademarks

 

 

 

a.

(i) Domestic Patent

1.00

 

 

(ii) Foreign Patent

5.00

 

 

 

 

 

 

(iii) GI Registration

2.00

 

 

 

(iv) Trademark

0.10

 

4.0MODALITIES FOR IMPLEMENTATION, EVALUATION AND MONITORING

Project Monitoring and Advisory Committee(PMAC): At the highest level, PMAC will guide, review, monitor and provide overall direction for implementation of the scheme. PMAC will have overall responsibility for policy formulation, Scheme implementation and monitoring. It will be empowered to take all key decisions related to the scheme and to approve minor modifications/procedural changes in the guidelines for operational expediency. PMAC would also deliberate on the issues put up by NMIU. It would also consider the recommendations of NMIU on each proposal. The PMAC will hold its meetings periodically or as and when required.

The constitution/members of the PMAC will be:

1.

AS & DC(MSME)

Chairman

 

 

 

2.

Joint Secretary/ADC/JDC, O/o DC(MSME)

Vice Chairman

 

 

 

3.

EA(IFW)/Representative

Member

 

 

 

4.

JS DIPP/Representative

Member

 

 

 

5.

In-Charge, NMIUs

Member

 

 

 

6.

Representative Associations

Member

 

 

 

7.

ADC/JDC in Charge of MSME-DIs at O/o

Member

 

DC(MSME)/Director of MSME-DI Concerned/Invitee

 

8

JDC/Director/Nodal Officer handling IPR in DC,

Member-Secretary

 

MSME

 

9.

Special invitees/experts/consultants/IAs/SPVs

 

 

 

 

National Monitoring and Implementing Unit (NMIU)

National Monitoring and Implementing Unit (NMIU) shall be an expert organisation or a group of consultants hired for the purpose. NMIU will be responsible for facilitating, implementation and monitoring of the scheme. It will monitor every stage of the programme, on behalf of the Development Commissioner (MSME).

5.0COMPONENTS OF THE SCHEME

5.1FINANCIAL ASSISTANCE ON GRANT OF PATENT/ REGISTRATION UNDER GEOGRAPHICAL INDICATIONS OF GOODS/ TRADEMARKS

A)Eligibility Criteria:

For Patent, Geographical Indication and Trademark Reimbursement:

a.For reimbursement of actual costs or expenses incurred towards registration of Patents or Trademarks, from the Office of Development Commissioner (MSME), Ministry of MSME, Government of India, the applicant/entity/unit must have a valid Udyog Aadhar/UAM and registered at MSME- Data bank. Patents/Trademarks filled/registered in the name of individuals are also eligible for reimbursement subject to holding a valid Udyog Aadhar/UAM.

b.For reimbursement of actual costs or expenses incurred towards registration of GI, the agency, institutions, associations, Institutes, non-profit bodies, NGOs, societies, trusts, or similar other non- commercial bodies, other entity which might not have Udyog Aadhar, should provide relevant incorporation/establishment documents, PAN number of entity.

B)How To Apply:

Applicants can apply for reimbursements through CIPRPF by furnishing all the relevant details. To know more click here