25-February-2025-Editorial

INDIA’S INTELLECTUAL PROPERTY RIGHTS (IPR) ECOSYSTEM

Intellectual Property Rights (IPR) play a crucial role in promoting innovation, protecting inventions, and boosting economic growth. Over the last decade, India’s IPR ecosystem has witnessed significant improvements, with a rise in patent and trademark filings. However, recent data indicates stagnation in patent approvals, raising concerns about low investment in research and development (R&D).

Key Trends in India’s IPR Ecosystem

Growth in Patent Filings

• India ranks 6th globally in terms of patent applications, with 64,480 filings in 2023.
• Patent applications increased from 42,951 (2013-14) to 92,168 (2023-24), largely due to backlog clearance.
• The share of patents filed by Indian residents has improved from 25.5% in 2013-14 to 56% in 2023-24, indicating growing domestic innovation.
• Earlier, foreign multinational companies dominated filings, but now more Indian entities are applying for patents.
• However, in 2024-25, patent applications dropped to 78,264, with only 26,083 approvals, suggesting a decline in the approval rate.

Rise in Trademark Registrations

• As per the World Intellectual Property Organization (WIPO) 2024 report, India ranks 4th in global trademark filings after the US, China, and Russia.
• Trademark applications surged from 2 lakh (2016-17) to 4.8 lakh (2023-24), though the growth rate has slowed in recent years.

Increase in Industrial Design Applications

• Industrial design applications saw a 36.4% rise, particularly in textiles, machinery, and the healthcare sector.

Expansion of Patent Office Workforce

• The number of examiners in the patent office rose from 272 in 2014-15 to 956 currently.
• Despite this growth, India still lags behind major economies like China (13,704) and the US (8,132) in terms of manpower.

Challenges in India’s Patent Ecosystem

Low R&D Investment

• India’s R&D spending remains at 0.65% of GDP, much lower than the US (3.6%), China (2.4%), and Singapore (2.2%).
• The private sector contributes only 36% to R&D, whereas in the US, it is 79%, and in China, 77%.
• Many Indian companies operate on a global scale but invest minimally in R&D, leading to fewer innovations and patent filings.

Dependence on Foreign Patents

• While domestic patent filings have increased, foreign applicants still dominate approvals, accounting for 74.46% of patents granted in 2022.
• In contrast, China grants only 12.87% of its patents to foreign entities.
• Heavy reliance on imported technology impacts self-reliance and widens the trade deficit.

Shortage of Skilled Manpower

• India lacks sufficient patent examiners, leading to delays in processing applications.
• On average, it takes 58 months to grant a patent in India, whereas in the US, it takes only 21 months.
• A lack of experts in patent laws and examination further affects the efficiency of the system.

Poor Quality of Domestic Patent Applications

• Many domestic patents face rejection due to weak research, lack of originality, and poor-quality applications.
• Several filings contain plagiarized content, and startups often lack resources to conduct detailed research before applying.

Weak Intellectual Property Enforcement

• Patent infringement cases are increasing, but weak enforcement mechanisms and judicial delays hinder protection.
• Many Indian firms lack expertise in handling global IP regulations, making it difficult to safeguard their innovations.
• The rise of digital piracy and cross-border intellectual property violations has further complicated enforcement.

Way Forward

Simplifying Patent Filing Process

• Adopting AI-driven systems can help streamline digital patent processing and detect potential IP infringements faster.
• Tax incentives for corporate R&D spending can encourage more businesses to invest in innovation.
• Increased funding for startups and deep-tech firms can boost patent filings in high-tech industries.

Strengthening Legal and Enforcement Framework

• Establishing specialized Intellectual Property (IP) courts can fast-track patent disputes.
• Enhancing penalties for IP violations under the Copyright Act of 1957 can deter infringement and piracy.

Encouraging Global Collaboration

• India should actively participate in international patent treaties like the Riyadh Design Law Treaty to simplify cross-border filings.
• Strengthening collaborations with global institutions can attract foreign investment and improve India’s IP framework.

Promoting IP Awareness and Education

• Integrating Intellectual Property education into school and university curricula can create awareness among young innovators.
• Conducting regular workshops for businesses and startups can help them understand patent filing procedures and improve application quality.
• Encouraging joint R&D projects with international bodies such as WIPO can enhance domestic patent quality and approval rates.

Conclusion

India has made significant progress in Intellectual Property Rights, with rising patent and trademark filings. However, challenges such as low R&D investment, high dependence on foreign patents, inadequate manpower, and weak enforcement continue to hinder the ecosystem. By simplifying patent processes, improving legal enforcement, fostering global partnerships, and increasing awareness, India can strengthen its IPR framework and boost innovation-driven economic growth.