The ‘Startup India’ initiative undertaken by the Government provides express recognition to startups that work towards services and processes driven by information technology and intellectual property. The initiative aims at encouraging innovation, development and commercialization of new products by startups. It has therefore been rendered indispensable to ensure adherence to information technology and intellectual property laws in order to ensure adequate protection to its businesses and customers.

In the prevailing technology driven era, it is crucial for a startup to ensure compliance with information technology specific laws for effective mitigation of risks. The terms of use for electronic transactions and the privacy and data security policies are to be formulated keeping in view the variety of potential liabilities arising there from.

For commercial activities and transactions which are effected on the internet, the Information Technology Act, 2000 makes provisions to validate digital signatures, positions and liabilities of intermediaries (such as online payment sites, network service providers, cyber cafes, online market places etc.), regulation of content that is distributed and made available on the internet. These aspects of the law are required to be viewed from the correct legal perspective in order to afford adequate protection from third party risks.

Innovation being a key element of the startup regime, it is vital for entrepreneurs to protect their innovation from third party violations.

At the same time, it is essential to ensure that such innovation is not in violation of another person’s proprietary rights. Prior to the introduction of an innovation in the public domain, it is important to protect the same by making requisite applications before the appropriate authorities. For example, once published, an invention may not remain patentable or an idea may not remain a trade secret. This creates a need for securing one’s right in such inventions or ideas against third parties. For entrepreneurs aiming in the direction of valuations to be derived at on a global platform, it is important to protect intellectual property at the relevant and potential markets by identifying the correct geographical locations. One needs to remember the territorial limitation of intellectual property laws and act accordingly. The law provides several forms of protections on the basis of the innovation sought to be protected. These include registration of intellectual property as trademarks, patents, copyrights, geographical indications, designs and trade secrets. Once registrations are obtained, maintenance thereof through renewals is important. Such renewals are to be procured by filing appropriate applications along with the payment of fees, as prescribed under the relevant legislations.

The interests of a startup as envisaged in the Startup India initiative can be said to have been afforded adequate protection, inter alia, upon a conjoint consideration of the relevant information technology and intellectual property laws in force

Hence, it is incumbent upon any startup to conduct timely intellectual property audits of the organization to ensure compliance with the rules and procedures of the applicable intellectual property laws for adequate protection there under.

It appears that the present and futuristic legal position with respect to information technology vis-a-vis intellectual property in relation to startups undoubtedly goes hand in glove. Intellectual property rights are instrumental in promoting and safeguarding technology driven business development. Hence, the interests of a startup as envisaged in the Startup India initiative can be said to have been afforded adequate protection, inter alia, upon a conjoint consideration of the relevant information technology and intellectual property laws in force. Laws specific to information technology are required to be considered as a whole in order to ensure mitigation of liabilities associated with the digitalization era. Similarly, it is advisable to be mindful of the applicable intellectual property laws in order to prevent dilution of the valuable intellectual property of the organization.