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GS 3 >> Intellectual Property
REFERENCE NEWS
Recently the Patents Rules 2024 has been notified. These rules introduce several provisions that aim to simplify the process of obtaining and managing patents to facilitate a conducive environment for inventors and creators.
PATENT REGIME IN INDIA
Patent- A patent is a form of intellectual property granted by the government to inventors. It provides the owner with the legal right to prevent others from making, using, or selling an invention for a specific period.
Patent Regime in India – In India, patents are governed by the Patents Act, of 1970. Under the act, patents are granted if the invention fulfills the following criteria: (a) It should be novel; (b) It should have inventive step/s, or it must be non-obvious; (c) It should be capable of industrial application; and (d) It should not attract the provisions of section 3 (what cannot be qualified as patents) and section 4 (inventions related to atomic energy) of the Patents Act 1970.
Indian Patent Act of 1970 was amended to align with the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement of WTO. The Amended Indian Patent Act of 2005, introduced patents for pharmaceutical products.
ABOUT PATENT RULES,2024
Introduction of Certificate of Inventorship
A new ‘Certificate of Inventorship‘ has been introduced to acknowledge inventors’ contributions to the patented invention.
Incorporation of Form 31
The provision for accessing Grace period benefits under Section 31 has been streamlined through the introduction of new forms like Form 31.
Reduction in Time frame
The time restriction for providing foreign application filing details in Form 8 has been modified from six months from the date of filing to three months from the date of issuing of the first examination report.
Decreased Time Restriction
Given the rapid advancement of technology, the time restriction for filing a request for inspection has been decreased from 48 months to 31 months from the date of priority of application or the date of filing of application, whichever occurs first.
Extension in Time Limit
The provision for extending the time limit and forgiving filing delays has been streamlined and made more explicit to make it easier to use. The period for performing any act or action may now be extended up to six months upon request in a regulated manner.
Reduction in Renewal Fees
Renewal fees have been reduced by 10% if paid in advance via electronic method for at least four years.
Reduced Frequency of filing patents
Patent statements in Form 27 are now required every three fiscal years instead of annually. Additionally, a provision allowing a three-month delay in filing upon request has been added.
Streamlining of Pre-Grant representation
The procedure for filing and disposing of the Pre-grant representation by way of opposition under section 25(1) has been further streamlined and made more explicit by providing ways to dispose of the representation and establishing filing fees.
SIGNIFICANCE OF PATENT RULES, 2024
Fostering an Innovation-Driven Ecosystem: This new legal framework is essential for nurturing an environment where research and grassroots innovations can flourish. It encourages inventors and innovators to develop solutions tailored to local challenges and needs, such as the invention of cost-effective menstrual pad manufacturing technology in India, thereby promoting a thriving culture of innovation.
Enhancing India's Attractiveness for International Investments: By establishing a more efficient and protective patent regime, India positions itself as a lucrative destination for multinational corporations looking for secure investment opportunities. Drawing parallels from China’s experience, where strengthened patent laws significantly boosted FDI in the manufacturing sector, India anticipates a similar influx of foreign investment, fostering economic growth and technological advancement.
Expanding India's Export Capabilities through Technological Advancements: The protection of unique technologies through patents enables India to enhance its export portfolio with high-value, niche products and services. Successful examples include indigenous vaccines like COVISHIELD and COVAXIN, showcasing India’s capacity to contribute to global healthcare solutions while boosting its export economy.
Leveraging Patents for Social and Environmental Impact: Beyond economic benefits, the reinforced patent system underlines the importance of addressing global challenges such as climate change and sustainability. By incentivizing innovations in areas like carbon capture and storage technologies, the patent rules align with broader objectives of tackling environmental issues and promoting social welfare.
Aligning with Global Intellectual Property Standards: The new patent rules signify India’s commitment to fulfilling its international obligations under treaties like the TRIPS Agreement, Berne Convention, and Budapest Treaty. Strengthening its intellectual property regime not only protects domestic innovations but also enhances India’s stature on the global stage, reinforcing its position as a key player in international innovation and commerce.
CHALLENGES
Underinvestment in Research and Development: Relative to its GDP, India's investment in R&D is significantly lower than that of developed countries, with only about 0.7% of its GDP allocated to this crucial area. This contrasts sharply with countries like the United States and China, which invest 2.8% and 2.1% of their GDP respectively, predominantly through private sector contributions. The limited investment from India's private sector in patent development hinders the country's ability to innovate and compete globally.
Concerns Over Compulsory Licensing: The concept of compulsory licensing, where the government allows third parties to produce, use, or sell a patented product without the consent of the patent owner, creates apprehension among innovators and investors. Instances like the compulsory licensing of Nexavar, a critical cancer medication, underscore the potential risks and uncertainties patent holders face, impacting the overall climate for patent development in India.
Restrictions on Patent Evergreening: Indian patent law, particularly Section 3(d) of the Indian Patent Act of 1970, aims to prevent the evergreening of patents—a practice that extends the monopoly period of patents through minor modifications. While this provision protects against undue monopolies, it has raised concerns within industries reliant on patent extensions for their products, notably the pharmaceutical sector, as evidenced by the landmark case of Novartis vs. Union of India.
Disbandment of the Intellectual Property Appellate Board (IPAB): The abolition of the IPAB in 2021 and the subsequent transfer of its responsibilities to Commercial Courts and High Courts have complicated the dispute resolution process, leading to longer wait times and increased backlog of cases. This shift has made the patent litigation landscape more daunting and less efficient.
Inadequate Enforcement and Implementation: Criticism from international bodies, such as the U.S. Trade Representative's Special 301 report, highlights India's struggle with the stringent enforcement of patent laws and the implementation of its intellectual property regulations. This scenario creates a deterrent for patent filings and leaves existing patents vulnerable to infringement, particularly noticeable in the pharmaceutical industry.
Infrastructure and Resource Constraints: The Indian patent office grapples with infrastructural inadequacies and a shortage of skilled personnel, contributing to delays in the patent filing and granting processes. The disparity in the number of patent officers compared to countries like the United States exacerbates these challenges, affecting the system's capacity to handle patent applications efficiently.
Protectionism Towards Generic Pharmaceuticals: India's cautious stance on awarding patents to foreign pharmaceutical companies is influenced by its intention to safeguard the domestic generic drug industry. This protective approach, while supporting local manufacturing and ensuring affordable medication availability, can sometimes act as a barrier to international pharma companies seeking patent protection for their innovations in the Indian market.
WAY FORWARD
Quality Assessment of Patents: Introducing a post-patent issuance analysis, possibly under the guidance of the Office of the Principal Scientific Adviser, could be instrumental. This evaluation, based on citation frequency, would help in recognizing patents of significant impact, encouraging the filing of more meaningful and high-quality patents.
Fortifying the Intellectual Property Regime: Strengthening the IPR regime is essential to motivate a wider array of entities to engage in innovative activities and patent filing. A robust IPR environment not only protects but also rewards innovation, crucial for technological and scientific advancements.
Reinstating the Intellectual Property Appellate Board (IPAB): The re-establishment of the IPAB, with enhanced autonomy and better resources, is vital for swift and efficient resolution of patent disputes. This move would alleviate the judicial system's load and ensure a faster adjudication process for IPR issues.
Increasing Public Awareness of IPR Benefits: Broadening the understanding of IPR's economic, social, and cultural advantages is key. Awareness initiatives can help build a society that values and supports innovation and its legal protections, fostering a conducive environment for intellectual creativity.
PRACTICE QUESTION
Q: "Assess the effects of the Patent Rules, 2024, on enhancing India's innovation ecosystem and compliance with global IP standards. Address the continuing challenges within India's patent system and propose strategies to strengthen its intellectual property framework."(15M, 250W)
