Indian patent filing surpasses international patent filing

• India achieved yet another milestone in context of IP innovation ecosystem, wherein for the first time in the last 11 years, the number of domestic patent filing has surpassed the number of international patent filing at Indian patent office in the Quarter Jan-Mar 2022 i.e. of the total 19796 patent applications filed, 10706 were filed by Indian applicants against 9090 by non-Indian applicants.

Why the spurt?

• The Union Minister of Commerce and Industry, Consumer Affairs, Public Distribution and Textiles, Shri Piyush Goyal appreciated the consistent efforts made by DPIIT on strengthening the IPR regime in India by fostering innovation, and reducing compliance burden.
• The coordinated effort by DPIIT and IP office has led to increased IP awareness among all strata of society.
• These efforts have on one hand led to increase in the number of IPR filings, on the other hand has reduced the pendency of patent application at IP offices.
• He also mentioned that this will take India a step closer to India's ambitious target of being in the top 25 nations of Global Innovation Index.

Intellectual Property Rights (IPR)

• Rights acquired by an owner of an intellectual property.
• Intellectual property is a category of property that includes intangible creations of the human intellect.
• In simple terms, it refers to creations of the mind, such as
  • inventions
  • literary & artistic works
  • designs & symbols,
  • names & images used in commerce.
• The main purpose of intellectual property law is to
  • encourage the creation of a wide variety of intellectual goods &
  • strike the right balance between the interests of innovators & wider public interest.
• Types of IPR:

National IPR Policy, 2016

• The Policy aims to push IPRs as a marketable financial asset, promote innovation & entrepreneurship while protecting public interest.
• The plan will be reviewed every five years in consultation with stakeholders.
• To have strong & effective IPR laws, steps would be taken — including review of existing IP laws — to update & improve them or to remove anomalies & inconsistencies.
• The policy is entirely compliant with the WTO’s agreement on TRIPS.
• Department of industrial policy & promotion (DIPP) is the nodal agency for all IPR issues.
• The policy retains the provisions on Compulsory Licensing (CL) as well as preventing ever-greening of drug patents (Section 3(d) of India’s Patents Act).
• Under Indian Patents Act, a CL can be issued for a drug if the medicine is deemed unaffordable, among other conditions, & the government grants permission to qualified generic drug makers to manufacture it.
• Objectives:

International rules for Intellectual Property Rights (IPR)

• The importance of IPR was first recognized in the
  • Paris Convention for the Protection of Industrial Property (1883) &
  • Berne Convention for the Protection of Literary & Artistic Works (1886).
• Both are administered by the World Intellectual Property Organization (WIPO).
• IPRs have been outlined in Article 27 of the Universal Declaration of Human Rights.
• WTO governs IPR through Trade-Related Aspects of the Intellectual Property Rights (TRIPS).

Intellectual Property Rights Issues:

• Patent Evergreening Prevention
  • By multinational companies.
  • A strategy for extending the term of granted patent which is about to expire without increasing therapeutic efficacy in order to retain royalties.
  • So, section 3(d) in the Indian Patent Act (IPA) possesses one of the biggest issues with regards to IPR.
  • This act bars the grant of patents to new forms of substances.
  • This has discouraged investments from western countries.
• Subsidies & IPR Issues
  • For the complete implementation of TRIPS agreements, one needs to reduce or eliminate these subsidies.
  • Thus, GOI needs to create a balance between providing subsidies & providing IP rights in India.
• The Product Patents Process
  • A product patent protects a product.
  • It offers high protection to the original inventor to reduce the competition for the same product.
  • Whereas a process patent protects the process through which one manufactures the product & not the product.
• It reduces the element of monopoly in the market.
  • As India is a part of the TRIPS agreement, the agreement requires all its members to shift their patent regime from process to product patent.
  • This remains a challenge for India, as process patents would be more helpful to a country like India.
  • This is since India is a developing country & ordinary people are struggling with basic necessities like food.
• Protecting traditional knowledge
  • GOI is bound to protect traditional knowledge by not allowing MNCs to get patents on traditional culture.
  • Above all, the government has created a Traditional Knowledge Digital Library (TKDL) to prevent the patenting of traditional knowledge.
  • So, this is one of the intellectual property rights issues in India.
• Compulsory Licensing & Drug Price Control Order
  • One of the most important intellectual property rights issues that the government needs to address is the use of compulsory licensing.
  • Compulsory licenses are authorizations given to a third-party by the Government to make, use or sell a particular patented product without the need of the permission of the patent owner.
  • The provisions regarding compulsory licences are given in the Indian Patents Act, 1970 & in the TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement.
  • It is a relaxation available to the developing countries under the TRIPS agreement, something which organisations misuse sometimes.
• Trademark Violations:
  • India has very high level of trademark counterfeiting against which the authorities in India do not take proper actions.
• Enforcement of IPR regulations
  • Weak in India because of two important reasons
    • India is key exporter of counterfeit fake products such as foodstuffs, textiles, shoes, electronics etc
    • Judicial delays in IPR disputes

Conclusion:

• India has made a number of changes in its IPR regime to increase efficiency and has cut down the time required to issue patents.The culture of innovation is taking centre stage in the country. India is well poised to focus on R&D. This has been reflected in its improved ranking in Global Innovation Index over the years.
• Government’s effort to strengthen National IPR policy, IP appellate tribunal, e-governance and commitment to abide by the TRIPS agreement of WTO in letter and spirit will help in improving perception of India globally.
• An efficient and equitable intellectual property system can help all countries to realize intellectual property’s potential as a catalyst for economic development and social & cultural well-being.

Exam Track

Prelims Takeaway

• IPR
• Types
• National IPR Policy
• International rules and regulations

Mains track

Q. For the first time in 11 years, the number of domestic patent filing surpasses the number of international patent filing in India during Jan-Mar 2022. This is a major achievement for India’s IPR Regime. Discuss the major issues that need to be resolved in order for India to maintain this legacy.