Date: 11/03/2023

Relevance: GS-3: Issues Relating to Intellectual Property Rights.

Key Phrases: imitate, innovate, and protect approach, patenting in India, intellectual property, artificial intelligence, Cross-Licensing of Patents, Chip Patents, global chip shortage, Licensing Agreements with Foreign Companies.

Why in News?

• The global chip shortage has brought about challenges for industries worldwide, but it has also led to a surge in innovation.
• In India, researchers and entrepreneurs have responded quickly to address supply chain issues by developing critical innovations such as efficient tracking systems, diagnostics, and alternative materials.
• However, as the chip shortage intensifies, industries need to stay ahead of global innovation to find long-term solutions.
• A three-pronged approach - imitate, innovate, and protect - can promote innovation and facilitate patenting in India.

Imitate:

• In India, it is legal to copy an invention if it is not patented. Patents are protected forms of intellectual property that allow the owner to exclude others from practicing the invention for a limited period of time within a territorial boundary.
• Thus, the protection of rights is limited to the country in which the patent has been granted.
• Since many technologies developed worldwide have not sought patent protection in India, one can take ideas and inventions from patents that have been granted outside India's jurisdiction and implement or further develop them if they have not been patented in India.

Innovate:

• Though it is legal to imitate and copy certain innovations as discussed above, building on existing inventions with new innovations may be more desirable.
• However, what innovation is a patentable invention could differ significantly for different technologies.
• In some areas like Computer Science (CS) or Information Technology (IT), patentable inventions do not necessarily require new experimental data.
• Patents in the field of CS or IT can be based on novel ideas, without actual reduction to practice, so long as the ideas can be practiced without undue experiments.
• On the other hand, biotech and chemical patents on novel molecules require that molecules are synthesized and that experimental data demonstrate reduction to practice.
• However, even in the area of drug discovery, experimentation can be substantially reduced if predictive tools using artificial intelligence and biology can predict which drugs are likely to work and for which diseases.

Protect:

• Once the innovation occurs, the immediate next step is to protect that innovation through patents before disclosing, using, or selling the product of the invention.
• Indeed, China employed this strategy in the early 2000s when they began to imitate, innovate and protect innovations based on foundational ideas obtained from all around the world.
• This strategy propelled China to be No. 1 in patent applications filed in 2020 by a considerable margin over the US (2) and India (9) — 1,497,159 versus 597,172 and 56,771 in the US and India, respectively.
• The domestic applications filed in China, the US, and India in 2020, based on the percentage of domestic filings, are 10.2 percent, 54.9 percent, and 59.2 percent, respectively.

Cross-Licensing of Patents:

• Cross-licensing involves the granting of licenses by the patent owner to another party in exchange for the grant of a license by the other party to the patent owner.
• Cross-licensing allows both parties to make and sell products that incorporate each other's inventions without infringing on each other's patents.
  • For instance, person A invented a pencil, and person B added an eraser to the pencil.
  • If person A did not file a patent for the pencil, person B is free to manufacture and sell the product.
  • If person A filed a patent for the pencil, person B would be infringing on the patent by adding the eraser to the pencil.

Strategies for Indian Tech Companies to Navigate the Chip Shortage:

• Explore Unpatented Chip Designs and Technologies:
  • Indian tech companies can consider exploring unpatented chip designs and technologies as a strategy to navigate the chip shortage.
  • This can involve investing in research and development to identify and create new chip designs that are not patented in India.
  • By doing so, these companies can develop innovative products that can help them stay competitive in the market.
• Innovate with Existing Chip Patents Through Development Tools:
  • Another strategy for Indian tech companies is to utilize chip development tools to innovate with existing chip patents filed in India.
  • This can involve exploring new ways to repurpose these designs to create new products that meet the needs of customers.
  • Companies can use simulation software and other development tools to experiment with different designs and identify the most efficient and effective options.
• Enter into Licensing Agreements with Foreign Companies:
  • Indian tech companies can also consider entering into licensing agreements with foreign companies as a way to manufacture and sell new chip designs at affordable prices.
  • This can involve collaborating with companies that have the necessary expertise and resources to develop and manufacture new chip designs.
  • By doing so, Indian companies can gain access to the latest technology and bring innovative products to market quickly and efficiently.
  • Additionally, licensing agreements can help reduce the risk of patent infringement and legal disputes.

Conclusion:

• India has shown impressive innovation in response to the global chip shortage, but more can be done to promote patenting and protection of inventions.
• By adopting a three-pronged approach of imitate, innovate, and protect, India can encourage innovation and facilitate patenting.
• Patenting not only protects an inventor's rights but also promotes licensing and cross-licensing, which ultimately benefits both innovators and consumers.
• With continued investment in innovation and patenting, India can play a more significant role in addressing supply chain issues and contributing to global innovation.

Source: The Hindu BL

Mains Question:

Q. How can the implementation of a three-pronged strategy, comprising imitation, innovation, and protection, aid in promoting innovation and streamlining patenting processes in India? Analyse.