INDIA’S PATENT LANDSCAPE: STATUS, CHALLENGES AND WAY FORWARD

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Picture Courtesy:   THE HINDU 

Context

India is rapidly shifting from a technology consumer to a creator, powered by domestic innovation and government reforms. This transformation is reshaping the country's patent landscape and positioning it as an emerging global R&D hub.  

What is a Patent?

A patent is a legal right that the government grants to an inventor for a new invention.

• It provides the inventor the exclusive right to make, use, sell, and import that invention for a limited period.
• In return for this temporary monopoly, the inventor must publicly disclose all the technical details of the invention.

Significance of Patents

Encourages Innovation: By providing a temporary monopoly, patents provide inventors a financial incentive to invest their time, money, and effort in research and development (R&D).

Drives Economic Growth: Strong patent system attracts foreign investment, boosts high-tech manufacturing, and creates skilled jobs.

• Companies are more willing to set up R&D facilities in countries where their intellectual property is protected.
• The Parliamentary Standing Committee on Commerce noted that an improvement in protection of IPR increases Foreign Direct Investment (FDI) and inflow of foreign exchange. For example, an improvement of 1% in protection of copyrights increases FDI by 6.8%.  

Promotes Knowledge Sharing: When a patent is filed, its technical details become public knowledge, enriches the public database of technical information, allowing other researchers and innovators to learn from, build upon, and improve existing technologies, which accelerates the pace of innovation.

What are the laws governing patents in India?

The Patents Act 1970, amended periodically (most recently in 2024), forms the primary legal framework for patents in India.  

Who manages the Indian patent system?: The Office of the Controller General of Patents, Designs and Trade Marks (CGPDTM), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. 

• The CGPDTM administer the Patents Act, Designs Act, and Trade Marks Act in India. 
• The headquarters in New Delhi.

Patentable inventions: An invention must meet three criteria: 

• Novelty: It must be new and not previously disclosed.
• Inventive Step: It must show a technical advancement or economic significance and not be obvious to someone skilled in the field.
• Industrial Applicability: It must be capable of industrial use. 

Non-patentable inventions: Sections 3 and 4 of the Act specify inventions that cannot be patented in India, including those against public order or morality, scientific principles, and new forms of known substances without enhanced efficacy (like Section 3(d) to prevent "evergreening" in pharmaceuticals).

• Excluded methods of agriculture or horticulture, discoveries of natural substances, mere admixtures, and inventions related to atomic energy. 

Patent term: Protection for 20 years from the filing date, upon the payment of annual renewal fees. 

First-to-file system: India follows the "first-to-file" system, granting patent rights to the first applicant, regardless of who invented it first. 

Compulsory licensing: Allows a third party to use a patented invention without the patentee's consent under specific conditions, such as during national emergencies (eg. COVID-19). 

Rights and obligations of a patentee: A patent holder has exclusive rights to prevent others from using, making, selling, or importing the invention in India and can license or assign the patent.

• Obligations include paying renewal fees and filing statements on working the patent in India. 

International Agreements

India is a signatory to key international agreements that harmonize patent laws globally:

• TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights): Agreement under the World Trade Organization (WTO) that sets minimum standards for IP protection that all member countries must adhere to.  
• Patent Cooperation Treaty (PCT): Simplifies the process of filing patent applications in multiple countries. An inventor can file a single "international" patent application under the PCT, which is valid in all the member countries.

What is the current status of the patent system in India?

Increased Filings and Grants: Increase in patent applications, recording 90,298 filings in 2023, up 17.2% from 2022.

• In 2023, India ranked 6th globally in terms of patent applications with 64,480 filings.
  
• Patent grants also surged, with 76,053 patents granted in 2023, reflecting increased efficiency in processing.

Rise of Resident Filings: For the first time in 2023, Indian residents filed over half (55.2%) of all patent applications, indicates a shift towards domestic innovation and a growing innovation culture.  

Global Standing: According to the World Intellectual Property Organization (WIPO) 2024 report, India ranked 4th globally in trademark filings, after the US, China, and Russia.

Rising industrial design applications: 36.4% increase in industrial design applications, driven by sectors like textiles, tools & machines, and health.

Workforce Lag: Manpower is patent office, 860 in march 2022, lags behind China (13,704) and the US (8,132).

Processing Delays: Nearly 1.6 lakh applications were pending at the controller level as of March 2022.

Startup Growth: India have over 1.57 lakh recognized startups as of December 2024, with 51% originating from Tier 2 and 3 cities. Government initiatives like Startup India and the Scheme for Facilitating Startups Intellectual Property Protection (SIPP) provide support for IP protection, including financial assistance and expedited processing.

State-Level Incentives: Some states offer IP incentives like reduced fees and fast-track examinations. Tamil Nadu, for example, leads in patent filings due to government subsidies and a strong R&D ecosystem.  

What are the main challenges in India's patent system?

Low R&D investment: Low R&D spending around 0.7% of GDP, compared to the US (3.6%), China (2.4%), and Israel (5.6%).

• Private sector's contribution account for around 36% compared to 79% in the US and 77% in China.

High dependence on foreign patents: In 2022, foreign entities received 74.46% of approved patents, higher than China (12.87%).

• India dependency on imported technology, result to a trade deficit and hindering self-reliance in innovation. 

Manpower shortage: Patent examination capacity is limited due to a lack of skilled examiners. On average, it takes about 58 months to grant a patent in India, longer than the 21 months in the US. 

Quality of patent applications: Domestic patent filings face lower approval rates due to poor-quality applications, weak research, plagiarized content, and a lack of resources, especially among startups.

Weak IP enforcement: Patent violation cases are increasing, but weak enforcement mechanisms and high judicial backlogs hinder effective protection.

• In the digital age, Generative AI, easy copying, anonymous infringers, and cross-border piracy complicate IP enforcement, difficult to protect intellectual assets effectively. 
• The US Trade Representative's Special 301 report criticized India for poor IP implementation.

Global integration challenges: Navigating complex global IP systems and legal frameworks remains a challenge for Indian firm, limit their ability to protect and commercialize their innovations worldwide. 

Steps taken by government to improve the Patent system?

National IPR Policy 2016: Operates under the motto "Creative India; Innovative India", integrates all IP types under unified administration, transferring copyright and semiconductor design oversight to DPIIT.

Seven key objectives drive implementation:

• IPR awareness and outreach programs
• Enhanced IP generation through innovation
• Improved legal and legislative frameworks
• Modernized administration and management
• Commercial IP utilization promotion
• Stronger enforcement and adjudication
• Human capital development in IP fields

Startup Support Programs

• SIPP scheme provides comprehensive assistance: Startups Intellectual Property Protection scheme offers 80% patent fee discounts and free professional services. Government-empanelled facilitators assist throughout the entire filing process.
• Fast-track examination accelerates grants: DPIIT-recognized startups receive expedited patent processing. This reduces time-to-grant and helps startups commercialize innovations faster.

State-Level Initiatives

• Karnataka Startup Cell reimburses up to Rs2 lakh for Indian patents and Rs10 lakh for foreign patents.
• The Department of Science and Technology established 24 Patent Information Centers across states. These centers created 84 university-based IP cells to broaden support networks.

Way forward for strengthening India's patent system 

Technological modernization: Real-time tracking, video conferencing for hearings, and electronic processing reduce delays.

• Indian Patent Office has introduced AI-powered trademark search technology and the IP Saarthi Chatbot to enhance examination consistency. 
• Advanced technologies like machine learning can help predict patent grant likelihood, allowing applicants to make more informed decisions.  

Boost R&D Spending: Create a national mission to increase R&D expenditure to at least 2% of GDP through public-private partnerships and targeted incentives.

Strengthen Enforcement: Establish dedicated benches in high courts and specialized tribunals to fast-track the resolution of patent violation disputes.

• Restructuring the Intellectual Property Appellate Board (IPAB) with structural autonomy to expedite dispute resolution.

Global Collaboration: Participates in the Patent Cooperation Treaty (PCT) and Patent Prosecution Highway (PPH) programs, to accelerate international patent processing.

• India signed the Riyadh Design Law Treaty in 2024 to simplify cross-border filings and attract foreign investment, aligning with global standards for industrial design protection.

Technology Licensing Frameworks: Adopt FRAND (Fair, Reasonable, and Non-Discriminatory) licensing requirements for Standard Essential Patents (SEPs) to balance innovation incentives with market access.  

Quality over quantity focus: Implement systematic patent quality assessment through the Office of Principal Scientific Adviser. Post-facto patent analysis, including source analysis and impact measurement, through blockchain technology.

IP awareness and capacity building: Integrating IPR education into academic curricula and conducting awareness programs in universities and businesses can boost IP literacy.

Joint R&D Projects: Encourage joint R&D projects with international institutions like WIPO to enhance the quality and quantity of domestic patent filings.

Conclusion

To cement its position as a global innovation leader, India must leverage its record-breaking patent success by boosting R&D investment and building a high-quality, enforceable IP framework.

Source: THE HINDU