India: 'Small Entity' criteria for classification under various IP Enactments broadened

Various IP enactments, including the Patents Act, Trade Marks Act and Designs Act, provide for a discounted official fee for ‘small entities’ that are defined as entities meeting the criteria of 'medium enterprise' under the Micro Small and Medium Enterprises Development Act, 2006 (MSME Act). Further benefits for ‘small entities’ include expedited examination of their patent applications which can be requested under the provisions of the Indian Patents Act.

The applicable criteria for evaluation of a 'small entity' will be revised with effect from July 1, 2020. As per the revision, an enterprise that meets the following criteria (investment limit and turnover limit) may avail the fee benefits of ’small entity’ under the Indian IP laws:

After revision:

Before the revision, the criteria for classification as a ‘small entity’ was the investment limit of an enterprise. To be categorized as a “small entity”, the investment limits were as follows:

Before revision:

With the revision in the definition, separate assessment requirements for a service firm and a manufacturing firm have been eliminated and a broader and uniform approach has been adopted. The full notification can be accessed here.

Should you have any question regarding small entity eligibility criteria, please feel free to contact us.