When Jodha, the founder of a burgeoning Jaipur-based home decor label, received a takedown notice from a popular e-commerce platform in early 2025, she was bewildered. Her designs were original, her business registered with Udyam and her social media was buzzing. What went wrong? The missing piece: She hadn’t registered her intellectual property legally, nor did she track digital infringements- a classic but avoidable stumble for Indian MSMEs in a rapidly digitizing world.

This scenario is increasingly familiar across India’s more than 6 crore MSMEs, as IP compliance, digital transformation and new government standards converge in the wake of a record 44% rise in IP filings in just five years (PIB, July 2025). With over 95% of IP processes now online (Union Budget 2025 document), MSMEs are under unprecedented pressure-and opportunity-to modernise, safeguard, and monetise their intellectual property for growth.

The Digital Shift: IP Goes Online

The Government of India’s massive push toward digitization is reshaping the IP landscape for MSMEs. In 2025, filing for trademarks, patents, designs and even geographical indications is entirely online. Waiting periods for registration have dropped by over a year, costs rebates are utilised significantly and automation is making compliance easier.

But for MSMEs, this convenience introduces complexity:

• Continuous Monitoring: Digital filings require constant attention to deadlines and renewal windows- missed alerts can mean losing protection.
• IP Data Security: Online documentation means exposure to cyber threats, making data privacy as important as legal compliance.

Jodha’s predicament is a warning: IP protection isn’t only about getting a registration- it’s about ongoing vigilance in a digital-first, fast world.

Opportunities: Government Supports & Digital Tools

The Government of India has ramped up incentives for MSMEs:

• Fee Subsidies: Up to 80% reduction for patents and 50% for trademarks under new MSME schemes.
• Reimbursement Programs: MSMEs can claim reimbursements for domestic and even select global IP filings.

• IP Digital Management Tools:

• TROM, The Smart Way to Manage Your Brand Digitally: TROM (Trademark Online Management) is an innovative digital platform designed to make trademark management effortless for Indian MSMEs. From filing to monitoring renewals and receiving real-time compliance alerts, TROM automates the entire trademark life-cycle using a seamless online dashboard. This tool not only enables businesses to register their brands with expert oversight, but it also tracks, manages, and safeguards valuable intellectual property- all from one secure portal. By integrating legal expertise, technology and long-term support, TROM helps MSMEs protect their business identity, stay ahead of deadlines and focus on growth without the usual hassles of paperwork, tracking and legal complexities.

The ecosystem of progressive Government Supports and Digital Tools support MSMEs to not only secure IP but also leverage it for brand value, partnerships, and funding. More than 47,000 MSMEs accessed such digital government support programs in 2024 alone.

The Flip Side: Compliance Challenges and Pitfalls

Despite these advances, real challenges persist:

• IP Awareness: As of May 2025, only 12% of MSMEs in a NITI survey reported full awareness of their IP compliance obligations.
• Digital Skill Gaps: Many entrepreneurs lack the know-how to navigate modern IP portals or understand cyber risks associated with online IP portfolios.
• Infringement Risks: The move online has made copying and unauthorised reproductions faster. MSMEs must use digital monitoring tools or risk losing out to fast-moving imitators.

According to an Economic Times report from 2024, a Surat textile exporter registered her original saree designs but soon found copies being sold in foreign markets. Thanks to the digital IP protection, she quickly sent infringement notices and used fast online takedown procedures, safeguarding her creative investment from being lost.

The Road Ahead: Digital IP Mindset for MSMEs

To succeed in 2025 and beyond, MSMEs must view IP compliance as a journey, not just a task:

• Start Early, Update Often: File for IP before going public and track it throughout its lifecycle.
• Adopt Digital Tools: Use complaint government and third-party apps for monitoring, renewals, and infringement alerts.
• Continuous Learning: Stay updated with government schemes, legal updates (like India’s Data Protection Act, 2025), and digital security best practices.

Government bodies and industry associations are now rolling out digital IP literacy sessions, bringing real-time support and step-by-step guidance to MSMEs in Tier 2 and Tier 3 cities- a move that may finally close the compliance gap for good.

Digital modernization and IP compliance are more than regulatory checkboxes- they’re strategic levers that can propel Indian MSMEs into global markets. By investing in the right tools, skills, and proactive strategies, MSMEs can turn compliance from a burden into a competitive edge. As hundreds of thousands of Indian small businesses embark on this digital IP journey in 2025, the winners will be those who adapt, stay vigilant and make intellectual property their high-speed growth engine.

References:

1. Ministry of Commerce & Industry, Government of India, IP Filing Surge (July 21, 2025): https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146928
2. MyScheme, IP Rights for MSMEs: https://www.myscheme.gov.in/schemes/ipr
3. India SME Forum, MSME Innovation Scheme: https://www.indiasmeforum.org/ciprpf_guidelines.php
4. MSME Samadhaan Portal: https://samadhaan.msme.gov.in/