July 23, 2025 by Abhishek Chauhan
In the evolving global innovation landscape, Indian Micro, Small, and Medium Enterprises (MSMEs) and DPIIT-recognized startups are increasingly developing high-value, export-oriented, and technologically advanced products and services.
Limiting patent protection to India alone leaves these inventions vulnerable to imitation or misappropriation in major foreign markets.However, international patent filing can be financially burdensome.
To facilitate equitable access to IP protection, the Indian government—through targeted initiatives and schemes—has institutionalized reimbursement and facilitation mechanisms to reduce the financial and procedural barriers for MSMEs.
| Benefit | Rationale |
|---|---|
| Market Expansion | Prevents unauthorised use or replication in foreign markets |
| Licensing & Monetization | Enhances commercial value through global licensing deals |
| Investor Attractiveness | Enhances credibility during funding or due diligence rounds |
| Legal Enforcement | Allows assertion of rights in key jurisdictions |
| Global Branding | "Patent Pending" status improves consumer trust and exclusivity |
Governing Authority: Ministry of MSME
Objective: To empower MSMEs to protect their IP globally
Features:
Financial Assistance: Reimbursement of up to ₹5,00,000 for foreign patent applications (via PCT or Convention route)
Covered Expenses:
Drafting charges
Translation and filing fees
Agent or attorney professional fees
Mode of Implementation: Only through registered IP Facilitation Centres (IPFCs)
Reimbursement Deadline: Within 1 year from the date of payment or filing, as per the latest 2024 guidelines
Portal: https://msme.gov.in
Governing Authority: DPIIT and CGPDTM
Revised Validity: Extended till March 31, 2026 under the 2024 guidelines
Key Highlights:
Eligibility: DPIIT-recognized startups
Facilitator Panel: Government-approved IP professionals assist in end-to-end prosecution
Coverage Includes:
Drafting & Filing
Office Action Responses
Grant Proceedings
Applicable Routes: Both PCT and Paris Convention filings
Professional Fee Waiver: 100% of facilitator charges borne by the government (official fee not waived)
Portal: https://www.startupindia.gov.in
The PCT, administered by WIPO, allows Indian MSMEs to file one international patent application to secure rights in up to 157 member states.
Key Features:
Preserves Priority for 30/31 Months
Delays High Costs of National Filings
Access to ISR & IPRP to assess patentability before entering national phases
Facilitates Fundraising, Market Testing, and Partner Onboarding
Allows Indian MSMEs to file directly in one or more member countries within 12 months of the Indian priority date.
When to Choose:
Targeting limited jurisdictions
Faster filings without delay
Avoiding the cost and procedural delay of PCT
| Filing Stage | Estimated Cost (USD) |
|---|---|
| PCT Filing (WIPO) | $1,400 – $2,000 |
| National Phase Entry (per country) | $3,000 – $8,000 |
| Translation & Agent Fees | $1,000 – $4,000 |
| Potential Reimbursement | Up to ₹15,00,000 (Govt. Schemes) |
Note: Amounts depend on the number of claims, pages, legal representatives, and translation complexity. Latest guidelines cap support based on documentary proof.
| Document | Purpose |
|---|---|
| Copy of International Patent Application | Proof of foreign filing |
| Invoices/Receipts of Expenses | Proof of actual expenditure (filing, translation, agent) |
| MSME Certificate or Udyam Registration | Mandatory for MSME scheme |
| DPIIT Recognition Certificate | Mandatory for SIPP scheme |
| Facilitator Invoice (SIPP) | In standard format approved by DPIIT |
| CA-Certified Cost Sheet | Required for reimbursement verification |
| Undertaking/Declaration | Compliance with scheme conditions |
With multiple schemes in place and renewed commitment from the Government of India, Indian MSMEs now have a credible and cost-effective pathway to secure international IP protection.
Action Points for MSMEs:
Register on the Udyam portal or Startup India portal
Approach IPFCs or registered SIPP facilitators early
Maintain proper documentation for all filing-related expenses
Leverage the PCT system for broad global coverage
Remember: International IP protection is not a luxury—it is a strategic necessity. Take advantage of these schemes to future-proof your innovations and gain a competitive edge globally.
Q1. Is SIPP available for non-startups?
👉 No. It is strictly for DPIIT-recognized startups. MSMEs must use IPFC schemes.
Q2. Can I get post-facto reimbursement for filings done last year?
👉 Possible only if documents were maintained and the application was made within the scheme’s prescribed deadlines.
Q3. Can one invention get funding under both SIPP and MSME schemes?
👉 No. Double reimbursement is strictly disallowed. Choose the applicable scheme.
Q4. Are renewals or annuity fees reimbursable?
👉 No. These schemes only cover up to the grant phase, not post-grant maintenance.
Q5. Do I need a facilitator for SIPP?
👉 Yes. Only government-notified facilitators are eligible for claiming support.