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and Commercialize their IP Portfolios

1© Khurana & Khurana, 2020

KHURANA & KHURANA, ADVOCATES AND IP ATTORNEYS (K&K)

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IP and Technology Consulting and Licensing Firm

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OverviewAbout IIPRD:

IIPRD is an established IP Licensing and Patent Support Firm with a diversified business practice

focusing on complete IP Asset Management ranging from executing mandates from Patent Analytics to

Litigation/Prosecution Assistance to Licensing Support for Global Corporates, Licensing Firms, and

Law Firms, along with providing services in the domain of Commercialization, Valuation, Licensing,

and Technology Transfer Matters. IIPRD also assists Corporates in Regulatory Compliances,

Registrations, and Approvals, and Project Execution.

About Khurana & Khurana:

Khurana & Khurana is a leading Legal 500, MIP, IAM, Asia-IP, Acquisition-INTL, Corp-INTL, and

Chambers & Partners recommended/ranked full service IP Law Firm in India with exclusive affiliate

offices in Bangladesh, Vietnam, USA, Myanmar, and Nepal, and represents Indian and International

clients ranging from small start-ups to Fortune 10 companies through its team of over 180 professionals

spread across 6 offices in India and focusing on all aspects of IP, Commercial Law, and

Media/Entertainment Matters.

2

Presentation on Grants/Schemes

available under BIRAC to

Companies

BIRAC - OVERVIEW

Biotechnology Industry Research Assistance Council(BIRAC) is a non-profit public sector enterprise, set up byDepartment of Biotechnology (DBT), Government ofIndia as an Interface Agency to strengthen and empowerthe emerging Biotech enterprise to undertake strategicresearch and innovation, addressing nationally relevantproduct development needs. BIRAC is an industry-academia interface and implements its mandate through awide range of impact initiatives, be it providing access torisk capital through targeted funding, technology transfer,IP management and handholding schemes that help bringinnovation excellence to the biotech firms and make themglobally competitive.

The Schemes/Grants available

to Entities from BIRAC are

discussed in the following slides:

1. BIG (Bio-Technology Ignition) Grant

BIG is the flagship program of BIRAC, which provides the right

admixture of fuel and support to young startups and entrepreneurial

individuals.

BIG is the largest early stage biotech funding program in India to

build and refine idea to proof-of-concept.

The scheme supports high level innovation in the biotech sector

and is not meant for basic research projects.

The grant-in-aid is up-to Rs 50 lakhs for a maximum period of 18

months.

Call for proposal – Twice in a year i.e. 1st January and 1st June

Types of projects supported under this

scheme:-

BIG scheme supports innovation under Healthcare, Life sciences,

Diagnostics, Medical Devices, Drugs, Vaccines, Drug

Formulations and delivery systems, Industrial Biotechnology,

Agriculture, Waste Management, Sanitation and related areas.

Projects that propose a process/ product innovation with

significant potential impact or commercial potential.

Projects focused on establishing or validating proof-of-concept

for a technology idea.

Projects aimed at technology de-risking i.e., reducing

uncertainties in the technology.

Projects concentrated on producing and supplying the scientific

data necessary to show a concept.

Procedure to obtain the scheme

An individual or a company having an idea/concept that has scientificmerit and commercialization potential, or address an unmet national need,can register on the BIRAC website and submit an online application formto avail this scheme.

BIRAC issues a national call inviting applications under BIG at least twicea year (1st of January & 1st of July ).

The Call for Proposals is typically open for a period of up to one and ahalf month.

The Initial screening of the applications will be done by BIGPartners

The shortlisted participants will be called for a presentation toBIRAC office. Based on the proposal and presentation, the finalselection will be made by the BIRAC apex committee.

The applications will be broadly evaluated for the technology,execution capability, potential impact of the technology, business planetc.

Funding Support The funding support under BIG is in the form of grant-in-

aid.

The extent of the fund is up to INR 50 Lakhs

The fund are allocated in a milestone basis.

1st Installment – Approval and signing of contract – up to

30%

2nd Installment – Completion of 1st milestone – up to 30%

3rd Installment - Completion of 1st milestone – up to 30%

Final Installment – completion of project - Remaining

Who can apply?Individual

Indian Citizen

Project Leader of the proposal

NOC from the organization, in case of a student with anacademic or research organization.

In case of being employed in a company, shall terminate suchassociation.

Company

Registered under the Companies Act 1956/2013.

The incorporation date of the Company/LLP should not beearlier than 5 years from the date of closing of a particular BIGcall.

Payment of Royalty on Grant

BIG Grantees shall pay 5% royalty on net sale of

product/technology developed through BIRAC.

The royalty shall be made till the time such royalty

payment becomes equivalent to the grant-in aid assistance

disbursed by BIRAC for the Project.

BIRAC would also seek payment in case of transfer of

technology to any 3rd party

2. BIPP (Biotechnology Industry Partnership Program )

BIPP is a government partnership with Industries for support on

a cost sharing basis for path-breaking research in futuristic

technology having major economic potential and making the

Indian industry globally competitive.

Supports the development of appropriate technologies in the

context of recognized national priorities.

Support for high risk, accelerated technology development

especially in futuristic technologies.

Support is for complete process/ technology development

leading to commercialization and not limited to just specific

events in the commercialization chain

BIPP covers these following four broad categories:-

Category I - Areas with major social relevance but uncertain market driven demand

Category II - High risk, discovery innovation research with relevance for making India globally competitive.

Category III A- Evaluation & validation of already existing products of high national importance promoting local innovation (Clinical Trials).

Category III B - Evaluation & validation of already existing products of high national importance promoting local innovation (Agriculture Field Trials)

Category IV - Shared cost major facilities, critical for enabling innovation

Eligibility CriteriaWho can apply?

Single or consortia of companies

LLP, with or without academic institution/national labs/NGOs.

Company hall have minimum 51% of the shares held by Indian Citizens

How to apply?

Proposals to be submitted online during the proposal calls only.

3 proposal calls a year i.e. 15th Feb to 31st March, 15th June to 31st July and 15th Oct to 30th Nov

Funding Grant

This scheme provides BIRAC contribution up to 50% of

project cost as Grant- In-Aid and remaining cost is to be

met through the company/LLP’s contribution.

Milestone basis fund grant:

1st Installment – Signing of contract – 30%

2nd Installment - completion of 1st technical milestone -

20%

3rd Installment - completion of 2nd technical milestone – 20%

4th Installment - completion of 3rd technical milestone- 20%

5th Installment – Submission of project – 10%

Royalty Guidelines The Company/LLP shall pay royalty to BIRAC at the rate

of 5 per cent on annual Net Sales of the product

developed with BIRAC’s assistance.

Payment of royalty shall fall due beginning with the first

sale of the product.

Liability to pay royalty shall terminate when the royalty

paid equals to the amount of grant received or in case of

termination of project.

In case of transfer or sale of the product, BIRAC shall

recover the royalty amount or 5% of the income of such

transfer or sale, whichever less

3. SBIRI (Small Business Innovation Research

Initiative) SCHEME

This Scheme was launched to boost Public-Private-

Partnership (PPP) efforts in the country.

It has facilitated innovation, risk taking by small and

medium companies and bringing together the private

industry, public institutions and the government under

one roof to promote the research and innovation in the

Indian Biotech Sector.

The projects supported under the scheme have resulted in

prominent outcomes in the form of some products which

have already come to the market and some promising

research leads seeing ray of hope for commercialization.

Eligibility Criteria Who can apply?

Solely by any company

LLP

Joint Ventures by Company/LLP with any private or

public partner organization

Minimum 51% of the shares of the Company should be

held by Indian Citizens holding Indian passport

Minimum half of the persons who subscribed their names

to the LLP document as its Partners should be Indian

citizens.

Participating companies should have adequate in-house

facility to address the project implementation aspects

Proposal Submission

Proposals are required to be submitted online only by

logging on to the BIRAC Website. Online proposal

submission can be done by registered users during an

active proposal call only. Generally, 3 calls are

advertised each year i.e. 15th February to 31st March,

15th June to 31st July and 15th October to 30th November.

Funding Granted:

Up to Rs 50 lakh - 100% grant from BIRAC (primary

applicant + collaborating company, if any)

More than 50 lakh - BIRAC grant would be Rs. 50 Lakhs +

50% of the Cost over and above Rs. 50 Lakhs. Remaining

cost would be borne by the company.

The fund disbursement shall be on a milestone basis

similarly to that of BIPP

Royalty Payment

The Royalty payment shall be on similar lines as to the BIPP

Scheme

4. ACE FUND (Accelerating Entrepreneur

Fund)

This fund is an equity based fund operated by BIRAC.

ACE Fund shall enable creation of an ecosystem for

providing risk capital to young enterprises to undertake

research and development in high priority technology

areas.

It will enrich the intellectual property in the country and

encourage more entrepreneurs to work towards product

and technology development of high quality at affordable

economies in sustainable manner.

ACE Fund is being promoted by DBT through BIRAC,

under the aegis of Make in India initiative.

Funding Guidelines It is a “fund of funds” and will aim to partner with fund managers

(“AcE Fund Partner”) and invest in SEBI-registered AIFs(“Daughter Funds”) managed by Fund Managers.

AcE Fund shall act as a catalyst to attract private investors,corporates and LPs to such Daughter Funds.

The AcE Fund shall make a maximum capital commitment of upto Rs 30 crores or up to 30% of the total aggregate capitalcommitment amount.

The assistance to a start-up will be up to INR 7 crores againestequity.

The AcE partner shall commit to invest at least twice the amountcommitted by the AcE Fund into start up in the biotech/LifeScience sector over the term of daughter fund.

The selection of the Daughter Funds for support by AcE Fundshall be made through a detailed application and evaluationprocess

Procedure to choose ACE Fund Partner

BIRAC will constitute a BIRAC AcE Fund Committee

(“AcE Apex Committee”) that will include members having

experience in investment, startups, and entrepreneurship

development.

BIRAC will select Daughter Funds through Advertisement

or other means for its AcE fund implementations.

The Applicant shall have experience

Over a period of preceding five years particularly in

Biotechnology/Health-Science

Three years in science related field

The potential ACE fund applicant should be a SEBI-

registered AIF at the time of application

It shall submit a detailed proposal including the Fund

Manager’s track record and experience in fund

management.

Preference shall be given to AcE Fund partner that have

already received commitments or in principle approvals

from other contributors in the Daughter Fund.