Context:
For the first time, domestic patent applications in FY24 have exceeded those from foreign applicants, driven by a surge in fields such as computer science, IT, pharmaceuticals, and chemicals. However, foreign entities still hold a significant share of the patents awarded in India, accounting for nearly two-thirds of all approved applications.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- What is a Patent?
- Domestic Patent Applications in India
- Foreign Patents in India
- Government Initiatives to Boost the Intellectual Property (IP) Ecosystem
What is a Patent?
- Definition: A patent is an exclusive right granted by the government to an inventor for a novel, non-obvious, useful industrial product or process.
- Criteria for Patenting:
- Novelty: The invention must be new and not previously disclosed.
- Non-obviousness: The invention must not be obvious to someone skilled in the relevant field.
- Utility: The invention must be useful and have practical application.
- Patentable Subject Matter: It must fall within the categories defined by national law.
- Protection Duration: Patents provide legal protection for up to 20 years from the filing date.
- Administration: In India, the Indian Patents Act 1970 outlines what is patentable. The Controller General of Patents, Designs & Trademarks (CGPDTM) is responsible for overseeing the patent system.
Domestic Patent Applications in India
- Trend: There has been a steady increase in domestic patent applications, with residents’ share rising from 34% in FY19 to 53% in FY24.
- Challenges:
- Approval Delays: High application numbers have not always translated into approvals due to the quality of applications and procedural delays.
- Examiner Shortage: India has a lower number of patent examiners (597) compared to countries like Germany (821) and the US (over 8,000), impacting the efficiency of the patent approval process.
- Time Lag: Patents often involve a time lag due to procedural requirements.
Foreign Patents in India
- High Foreign Patent Approvals:
- Statistics: In 2022, 74.46% of patents approved in India were for non-resident entities, one of the highest globally. In comparison, China’s figure was 12.87%.
- Leading Entities: Global IT giants like Qualcomm, Samsung, Huawei, and Apple dominate the foreign patent approvals in India.
- Reasons for High Foreign Patents:
- R&D Inefficiencies: The disparity reflects inefficiencies in India’s R&D capabilities, with lower private and stagnant government investment.
- International Agreements: The Patent Cooperation Treaty (PCT) and Paris Convention facilitate patent filings by foreign entities, with PCT being a significant source.
India and the Patent Cooperation Treaty (PCT)
- Ratification: India ratified the PCT in 1998, allowing for easier patent filings across multiple countries.
- PCT Members: Around 142 countries are PCT members, simplifying the process for multinational companies to secure patents internationally.
India’s R&D Spending and its Impact
- Stagnation: R&D spending as a percentage of GDP in India has decreased from 0.83% in 2008 to 0.65% in 2022, compared to a global average of 2.62%.
- Consequences:
- Dependence on Imports: Limited R&D spending leads to reliance on imported machinery, parts, and foreign technicians.
- Trade Deficit: India has a trade deficit with many top trade partners, with imports from China alone exceeding $100 billion in FY24.
Government Initiatives to Boost the Intellectual Property (IP) Ecosystem
- Scheme for Startups Intellectual Property Protection (SIPP):
- Objective: To support startups by providing access to IP services and resources for protection and commercialization.
- National Intellectual Property Rights (IPR) Policy:
- Launch: Introduced in 2016 by the DPIIT.
- Goal: To promote innovation and creativity in India.
- Draft Model Guidelines for Academic Institutions:
- Purpose: To establish fair and transparent processes for IP ownership and revenue sharing in academic institutions.
- National Intellectual Property Awareness Mission (NIPAM):
- Aim: To educate 1 million students about intellectual property and their rights.
-Source: Indian Express
