Problems faced by Entrepreneurs in Registration of IP assets in India

The startup ecosystem in India has experienced remarkable growth within the past few years, with over 1,61,150 startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as of January 31, 2025. These businesses aid in innovation, solve real-world problems and ultimately lead to economic progress in a country. Yet, one critical aspect often overlooked is the protection of Intellectual Property Rights (IPR).

Today, we are going to dive deep into the actual challenges faced by the entrepreneurs who lead the formation of such startups while registration of their Intellectual Property assets in India. The some of the most common challenges faced by entrepreneurs are lack of awareness while registering IP assets; high costs of filing, registration and legal assistance; registry issues, backlogs and delays; technical complexity and errors in filing; language and accessibility barrier; weak enforcement mechanism; trademark oppositions and IP disputes; global market complexities; rapid technological advancement; disclosure of information and trade secrets; counterfeiting; piracy; limited access to expert support etc.

Let’s take up all these problems and discuss the measures to resolve them one by one along with the solutions.

1. Lack of Awareness while registering IP assets:

Firstly, the entrepreneurs, generally face the problem of lack of awareness while registering their IP assets. This problem is common, especially in Tier-II and Tier-III cities. Many startups are unaware of what kind of protection they need, the correct classification of their IP and the risks of not registering their IP. Them, being unaware of their rights and the importance of protecting their intellectual property- this lack of knowledge might lead to the misuse or infringement of IP rights, resulting in significant financial losses and legal disputes.

This can be solved by promoting IP education through various channels, including academic institutions, online platforms, and public awareness campaigns. Legal consultations and legal advice play a significant role in educating individuals and businesses about their IP rights and protecting the same.

2. High Costs of filing, registration and legal assistance:

Limited financial resources and manpower often hinder startups from allocating sufficient resources to IP protection efforts, including filing patents, registering trademarks etc. Apart from this, engaging legal professionals to navigate the IP registration process can add to the financial burden and even the cost of filing and maintaining patents, trademarks, and copyrights can be substantial for startups and SMEs.

Reduction in litigation costs can be achieved through various means, such as introducing alternative dispute resolution mechanisms, providing financial assistance to small businesses, and streamlining court procedures to make the process more affordable and accessible.

3. Registry issues, backlogs and delays:

Entrepreneurs often face prolonged delays in registering patents, trademarks, copyrights, and designs due to overburdened systems, limited manpower and procedural complexities. Patent applications can take 2–5 years to be examined, largely due to the shortage of examiners and rising application volumes. The trademark registration process in India typically takes 18 to 24 months if there are no objections or oppositions. This timeline can extend to 36 months or more if legal hurdles arise. The Trademark Registry reviews applications, and if no objections are filed, the trademark is published for public review. Copyright and design registrations face the problem of outdated procedures, poor tracking systems, and inconsistent communication. Despite the presence of an online IP portal, applicants frequently report a lack of real-time updates and transparency, which can result in missed deadlines or even abandonment of applications. Manual workloads, regional disparities, and the requirement for physical hearings further compound the problem. Even after reforms such as digitization, fast-track mechanisms, and startup-focused IP schemes, these efforts have not fully resolved the systemic issues. For entrepreneurs, these delays hinder business growth, decrease investment, and increase the risk of IP infringement, making IP registration a time-consuming and frustrating process.

4. Technical complexity and errors in filing:

Registering IP, especially patents, requires technical know-how, including drafting claims, specifying inventions, and aligning with global standards. Many entrepreneurs, without professional help, make common errors such as wrong classification of IP, poorly drafted patent specifications or trademark descriptions or Incomplete documentation. These mistakes often lead to objections, delays, or complete rejection of the application.

5. Language and accessibility barrier:

The majority of filings must be done in English. This poses a hinderance to entrepreneurs from non-English-speaking backgrounds. Also, the online IP portal, while improved, still lacks user-friendliness and regional language support. This digital gap prevents many small entrepreneurs from navigating the system independently.

6. Weak Enforcement Mechanism:

Enforcing IP rights in India can be challenging due to the slow judicial process, lack of specialized IP courts, and inadequate enforcement mechanisms. This often leads to prolonged legal battles, making it difficult for IP holders to protect their rights effectively. This is mainly due to Limited resources for law enforcement agencies, Complex legal processes that can be hard to navigate

To improve enforcement, it is essential to establish specialised IP courts with trained judges and staff who understand the complexities of IP law. Additionally, enhancing cooperation between law enforcement agencies and IP offices can help in the faster and quick resolution of IP disputes.

7. Oppositions and IP disputes:

Once a trademark application is published in the Trade Marks Journal, it is open to opposition for four months. Third parties can oppose the registration, causing delays and complications. These opposition cases take years to resolve, delaying the registration process.

This can be overcome by properly and precisely responding to oppositions to prevent delays. Proactive communication can sometimes resolve disputes in an easy manner. Apart from that, A trademark attorney can represent the startup during opposition proceedings, ensuring a strong defence and in many instances, engaging in pre-litigation discussions can resolve disputes without formal opposition.

8. Global Market Complexities:

Protecting intellectual property internationally can be complex and costly, especially for businesses looking to expand globally. Different countries have varying IP laws and regulations, which makes it challenging to secure international protection.

To facilitate international IP protection, India should strengthen its participation in international treaties and agreements, such as the Madrid Protocol and the Patent Cooperation Treaty (PCT). Additionally, providing guidance and support to businesses seeking international protection can help navigate the complexities of global IP laws.

9. Rapid Technological Advancement:

In fast-paced industries such as technology and software development, startups face the challenge of keeping pace with rapid technological advancements while simultaneously protecting their innovations from being rendered obsolete or surpassed by competitors.

10.Disclosure of Information and Trade secrets:

Startups unintentionally disclose confidential information during funding rounds, partnerships, or team collaborations and this leads to them facing the problem of already registered domains and sometimes already registered trademarks in the International market. To solve this, the entrepreneurs can use non-disclosure agreements (NDAs), restrict access to sensitive data, and train employees on confidentiality practices to further strengthen their measures to prevent data leak.

11.Counterfeiting and Piracy:

Counterfeiting and piracy are major issues in India. These illegal activities not only harm businesses but also mislead consumers. Many products, especially in fashion and technology, are often copied and sold at lower prices. This creates unfair competition and can damage the reputation of original brands. To combat this, a combination of stronger enforcement, legal reforms, and public awareness is essential. Authorities must enhance their capacity to detect and act against fake goods, especially in vulnerable sectors like fashion and electronics. Strengthening IP laws and ensuring faster prosecution will stop violators. Customs officials should tighten border checks to prevent the entry of counterfeit imports. Brands can adopt anti-counterfeit technologies like QR codes or holograms for product verification. Additionally, educating consumers about the risks of buying fake products will reduce demand. A collaborative effort can protect both businesses and consumer trust.

12.Limited access to expert support:

Access to specialized legal expertise in IP law can be limited, particularly in rural areas and smaller cities. This can make it challenging for individuals and businesses to seek proper legal advice and representation. This can be solved by enhancing access to legal expertise and the same can be achieved by promoting online legal consultations and creating networks of IP law experts who can provide remote assistance. Legal advice online can bridge the gap, offering affordable and accessible services to those in need.

To Conclude, trademark registration is a cornerstone for startups aiming to build a strong brand identity and safeguard their innovative ideas. While the process is fraught with challenges—ranging from choosing a distinctive mark to navigating legal complexities—the benefits far outweigh the hurdles. By adopting a proactive approach, leveraging expert assistance, and utilizing government initiatives, Indian startups can successfully overcome these challenges and unlock their full potential in the competitive market.

Startups must recognize that investing in intellectual property is not an expense but a strategic move that secures their future. With a robust trademark strategy, they can confidently carve their niche in the ever-evolving Indian startup ecosystem.