10 November 2020

Patents – Fees payable by a small entity reduced – Patent Rules amended

The Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry has on 4 November 2020 issued Notification No. G.S.R. 689(E) to notify the Patents (2nd Amendment) Rules, 2020 making certain changes in the Patents Rules, 2003 to bring small entities at par with start-ups.

Fees payable by a small entity has been reduced and brought in par with that payable by a natural person or a start-up. The reduction applies to both modes of filing applications – e-filing and physical filing.

Rule 7(3) and Table I of the 1st Schedule to the Patents Rules, 2003 have been amended to club a natural person, start-up and small entity under one bracket in respect of the fees payable under Section 142 of the Patents Act, 1970 and in respect of other matters for which fees is required to be paid under the Patents Act.

It may be noted that the latest provisions, effective from 4 November 2020, reiterate the earlier provisions in respect of situations where an application processed by a natural person or start-up or small entity is fully or partly transferred to a person other than a natural person, start-up or small entity.

Further, an Explanation has been inserted to state that in case a small entity ceases to be a ‘small entity’ due to increase in its turnover, etc., the difference in scale of fees (between what is payable by a small entity and that payable by other entity) is not payable. Identical provisions which were earlier available only in respect of start-ups, have been retained.

Similarly, small entities have also been brought in par with start-ups in respect of requests for expedited examination of applications. Proviso to Rule 24C(5) has been amended for this purpose.

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