Before entering the startup ecosystem, awareness about Intellectual Property Rights (IPR) is something that most founders should consider as it offers long-term value. And this is where India lags. “In US or China, founders are trained to think about innovation protection from day one. In India, many are still focused on market entry and funding and IP comes much later, often too late,” points out Dr Sudarkodi.
The Awareness Gap
For a country like India, the problem isn’t just about regulation or process, it’s also about mindset. “The culture of innovation protection is not deeply rooted here,” explains Dr Sudarkodi. But on the policy side, there is an improvement these days. The government has reduced fees for startups, introduced fast-track examination and made digital filing easier. “Even then, the mindset shift is the bigger gap.” Dr Sudarkodi highlights.
Five years ago, maybe one in ten founders thought about IP. But now, it’s more like six or seven. The startup boom, investor pressure and global exposure have all helped. Many founders now realise that patents and trademarks are not just legal shields but are business assets that improve valuation, attract investors and deter copycats. Dr Sudarkodi also shared her experience about a startup that she helped with to file three patents and got them granted within a year. She says that in a startup ecosystem, patent is a moat for all the entrepreneurs, and they should understand the importance.
Challenges on the ground
When we look at the flip side of the coin, some entrepreneurs who try to get the IPR for their startups get caught in local agent services. As Dr Sudarkodi points out, the local agents will not do proper drafting, and some can even be detrimental. Thus seeking professional support is necessary.
Speaking of challenges that startup face, Dr Sudarkodi, having worked with both Indian and international startups, said that she sees a clear contrast. Global startups, even early-stage ones, build their IP strategy into their business plan. They begin with setting targets like to file one patent in first year and then expand into five geographies in second year, so on. On the other end, Indian founders often treat it reactively. They file only when some breach of copyright happens or when they are about to raise a fund. “The approach needs to become proactive, not defensive,” points out Dr Sudarkodi. This difference, she believes, defines the gap between India’s potential and its patent performance.
To ease Indian founders, the government has implemented the Start-ups Intellectual Property Protection (SIPP) scheme. Under this, registered startups can apply for rebates and subsidies on patent, trademark and design filings. This encourages first-time founders to start the IP journey without fearing cost and such initiatives are crucial to make IP protection accessible.
The Innovation Transfer Gap
A lot of high-quality research comes out from top-class institutions and universities, but not much is commercialised. Many innovations die in labs as they lack mentorship or support. Dr Sudarkodi highlights that universities should create stronger linkages between academia, startups and IP cells, and have in-house IP mentors to guide researchers. Institutions should recruit more people and have a proper ecosystem where a lot of interactions can happen. “If that support system is in place, more research can actually move from papers to patents and then products,” points out Dr Sudarkodi.
For startups eyeing international markets, IP protection becomes even more critical. If a startup wants foreign IP protection, there are two options. One is the conventional route, where one can file in another country within 12 months of the Indian filing. The second is the Patent Cooperation Treaty (PCT) route, which allows the startup to file a single international application that reserves its right in multiple countries. It gives up to 30 months to decide which countries they actually want to enter. Many founders don’t know about this, and they lose their international rights because of that lack of awareness. “When targeting foreign markets or investors, protecting IP in those regions is essential. Otherwise, even with a great product, someone else can register it abroad blocking entry and creating a huge risk,” stresses Dr Sudarkodi.
Understanding IP before Fundraising
IP literacy can help to bridge all the IPR gaps in the startup ecosystem. Founders, employees and even students must be made to understand the value of innovation ownership. “Just like financial literacy or digital literacy, this too should start in schools and colleges. When engineers, designers, or researchers start thinking on protection of their work, that is when India will truly become an innovation-driven economy,” highlights Dr Sudarkodi.