Intellectual Property Right (IPR) Scheme under MSME Innovative Scheme

What is the IPR Scheme under the MSME Innovative Scheme?

The Intellectual Property Right (IPR) scheme is one of three sub-components of the MSME Innovative Scheme, run by the Ministry of Micro, Small and Medium Enterprises. The MSME Innovative Scheme merges three earlier initiatives: Incubation, Design and IPR, into a single umbrella programme aimed at helping small enterprises turn ideas into protected, marketable products.

The IPR component exists because most micro and small enterprises cannot afford the legal and filing costs of protecting an invention, brand or design. According to the MSME Innovative Scheme guidelines, the IPR component does two things: it reimburses enterprises for the cost of registering intellectual property, and it funds IP Facilitation Centres (IPFCs) that provide hand-holding to MSMEs across a region.

What the scheme reimburses

Under the published guidelines, an eligible enterprise can claim reimbursement up to the following ceilings:

• Foreign patent; up to Rs 5,00,000
• Domestic patent: up to Rs 1,00,000
• Geographical Indication (GI) registration; up to Rs 2,00,000
• Design registration: up to Rs 15,000
• Trademark, up to Rs 10,000

These are reimbursements of actual, documented costs — filing fees paid to the Controller General of Patents, Designs and Trade Marks and associated attorney/agent charges; not upfront grants.

IP Facilitation Centre grant

For institutions, the scheme provides a grant of up to Rs 65,00,000 to set up and run an IP Facilitation Centre. An IPFC is hosted by a university, industry association, technology institute or similar body, and helps MSMEs in its area understand and file for patents, trademarks, GIs and designs.

Who is eligible for the IPR scheme?

You can apply for reimbursement if:

• Your enterprise holds a valid Udyam Registration as a micro, small or medium enterprise.
• You have filed for, or been granted, a patent, GI, design or trademark and can produce the application number or certificate.
• You have invoices and receipts for the fees you want reimbursed.

An institution can apply for an IPFC grant if:

• It is a registered university, technology institute, industry association, R&D institution or similar body capable of hosting and running the centre.
• It agrees to serve MSMEs in its region and meet the scheme's reporting norms.

You cannot apply if:

• You are a large enterprise or a firm without Udyam Registration, you are not eligible for the individual reimbursement.
• You are an individual inventor with no registered enterprise; the reimbursement is tied to a registered MSME, so a private individual cannot apply for a personal benefit outside that structure.
• You are seeking upfront funding to file, the component reimburses costs already incurred, it does not advance the fee.

What documents are required for the IPR scheme?

How to apply for the IPR scheme

1. Go to the MSME Innovative portal at innovative.msme.gov.in.
2. Register or log in with your enterprise's Udyam Registration details.
3. Select the IPR component from the MSME Innovative Scheme menu.
4. Enter your intellectual property details, the type (patent, GI, design or trademark), the application or registration number, and the office where it was filed.
5. Upload the supporting documents; invoices, fee receipts and proof of filing or grant.
6. Submit the claim and note the application reference number for tracking.
7. Institutions seeking an IP Facilitation Centre grant apply through the same portal under the IPFC route, attaching their registration and a proposal.

After submission, the claim is examined by the ministry's implementing agency, and the approved reimbursement is paid to the enterprise's bank account.

How much benefit does the IPR scheme provide?

The IPR component reimburses documented IP filing costs up to the ceilings listed above: Rs 5,00,000 for a foreign patent down to Rs 10,000 for a trademark, and provides institutional grants of up to Rs 65,00,000 for an IP Facilitation Centre. Because reimbursement is capped and tied to actual costs, the benefit for a single enterprise is usually modest; the larger strategic value lies in the IPFC network that reduces the cost and complexity of protecting IP for many MSMEs at once.

Help and where to verify

• MSME CHAMPIONS helpline: 1800-111-955
• Portal: innovative.msme.gov.in

Because scheme ceilings and eligibility can be revised, confirm the current reimbursement limits and the IPFC grant amount on innovative.msme.gov.in before you file. No agent or middleman can guarantee approval of an IP reimbursement claim, and no fee is charged for registering on the portal.

How to check your application status

1. Visit innovative.msme.gov.in and log in with the credentials used at the time of submission (linked to your enterprise's Udyam Registration number).
2. Open the "My Applications" or "Track Application" section on the dashboard, this lists every claim filed under the IPR component along with its current stage: submitted, under scrutiny, sent back for clarification, approved or disbursed.
3. Click on the specific application to see remarks left by the reviewing officer, if any document was flagged as unclear or missing, it will show here.
4. Keep the application reference number generated at submission handy, you will need to quote it if you contact the helpline or the district industry office.
5. If the portal shows no movement for several weeks, call the MSME CHAMPIONS helpline at 1800-111-955 and quote your Udyam number and application reference number so the operator can look up the file with the implementing agency.
6. Institutions that applied for an IP Facilitation Centre grant should also check for any separate communication (email or letter) from the ministry's implementing agency, since IPFC proposals often go through an additional appraisal or site-visit step that may not update automatically on the portal.
7. Once a claim is approved, the reimbursement is sent by Direct Benefit Transfer, so also watch your registered bank account and the SMS or email alert linked to it for confirmation of the credit.

There is no separate SMS-based tracking system for this scheme; the portal dashboard and the CHAMPIONS helpline are the two reliable channels.

Common reasons for rejection

• Udyam Registration does not match the applicant enterprise. The claim is filed by, or the invoices are billed to, an entity or individual different from the one holding the Udyam certificate. Fix: ensure the enterprise name, PAN and Udyam number on the invoices, IP filing and the portal application all match exactly.
• Reimbursement claimed for fees that were never actually paid, or paid before the enterprise held a valid Udyam Registration. Some applicants file for IP protection first and register on Udyam later, then try to claim those older costs. Fix: check the scheme guidelines on the eligible period for claims, and where possible, register on Udyam before incurring the fees you intend to claim.
• Proof of filing or grant is incomplete or unverifiable. A screenshot or informal acknowledgment is submitted instead of the actual application number or certificate issued by the Controller General of Patents, Designs and Trade Marks. Fix: upload the official filing receipt or certificate, not an email confirmation or a third-party agent's invoice alone.
• Invoices do not clearly itemise the fee type. Consolidated bills from an attorney or agent that bundle statutory fees with professional service charges make it hard for reviewers to compute the reimbursable amount. Fix: ask the attorney or filing agent for an invoice that separates the official government fee from their own service charge, since only the eligible portion is reimbursed.
• Claim amount exceeds the prescribed ceiling for that IP type. Applicants sometimes claim the full invoice value even when it is above the scheme's cap (for example, more than Rs 1,00,000 for a domestic patent). Fix: claim only up to the published ceiling for that category and be prepared to bear the balance yourself.
• Bank account details are inactive, mismatched, or not seeded with Aadhaar/PAN as required for DBT. A rejected or bounced disbursement is common when the account name does not match the enterprise's registered name. Fix: verify the bank account is active, in the enterprise's own name, and correctly linked before submission.
• Institutional applications for an IP Facilitation Centre lack proof of capacity. A proposal without a credible host institution, defined manpower plan, or regional outreach strategy is unlikely to clear appraisal. Fix: attach the institution's registration, a clear operating plan and evidence of its ability to serve MSMEs in the proposed region.
• Application submitted for an IP type or activity not covered by the scheme. For instance, claiming for a copyright registration or a trademark renewal, where only trademark, patent, GI and design filings under the defined ceilings are covered. Fix: confirm the exact list of reimbursable IP activities on innovative.msme.gov.in before filing a claim.