On January 25, 2021, the Ministry of Commerce and Industry (MCI) notified the Designs (Amendment) Rules, 2021 in the Official Gazette.

The following amendments have been made:

1. Rule 2(eb) has been introduced. The sections defines and recognizes start-ups as a category of applicant. To claim start-up status, the following criteria must be satisfied:
   1. Indian entities must be recognised as a startup by the competent authority under the Union Government’s Startup India initiative
   2. In the case of foreign entities, the criteria for turnover and period of incorporation or registration as per Startup India Initiative must be fulfilled. Further, a declaration to that effect to that effect must be submitted.

2. The Proviso in Rule 4 has been substituted to include mobile numbers in the address for service.

3. Rule 5(e) which specifies the payment of fees in case of transfer of application, has been substituted. In the event that an application filed by a natural person/start-up or a small entity is transferred (partially or completely) to an entity which does not qualify as a start-up, small entity or a natural person, then in such cases, the difference in the scale of fees (if any) between the fees charged from the natural person, startup or small entity and the fees applicable for the new entity are to be paid by the new applicant along with the request for transfer. This does not apply in a case where a start-up or a small-entity cease to be a start-up or a small-entity.

4. Rule 10 (1) which specifies the registration of designs, has been substituted. With this, India has now formally adopted the Locarno Classification. Previously, the Indian Designs Office maintained its own Classification system which was almost in line with the Locarno Classification. However, the new Amendment Rules have eliminated any discrepancies that existed previously. The Third Schedule, which provided the Indian Design classification, has now been omitted.

5. Schedule I, which specifies the fees, has been substituted. The revised Schedule now provides for differences in costs which may be imposed depending on the nature of the entities involved in proceedings. Similarly, the scale of Costs in Fourth Schedule has been substituted to include costs which depend on the nature/category of the applicant.
6. In Schedule II, Form 1 has been substituted. The amendment is minor and is made to include start-ups as an applicant category. Similarly, Form 24 has also been substituted to incorporate start-ups as a category of applicants.

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