Date: 17/09/2022

Relevance: GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Relevance: GS-3: Issues relating to intellectual property rights.

Key Phrases: Evolved Intellectual Property Rights Regime, Healthy Start-Up Ecosystem, Knowledge-Based Economy, Global Innovation Index, WTO Trips Agreement

Context:

• An evolved Intellectual Property Rights (IPR) regime is an essential prerequisite for a knowledge-based economy and a healthy start-up ecosystem.
• Changes ranging from procedural simplification and use of digital technology to additional manpower have led to a visible increase in filings and grants and improved the ecosystem for patents and trademarks, but this is still far from adequate.

Where does India stand in terms of patenting?

• The number of patent applications rose from 45,444 in 2016-17 to 66,440 in 2021-22.
• For the first time in the last 11 years, the domestic patent filing has surpassed the number of patents filed by non-Indians at the Indian Patent office in the last quarter (Q4) of 2021-2022.
• The share of Indian residents in total applications has more than doubled in the last decade i.e., the number of patent applications from Indian residents has increased from 20 percent in 2010-11 to around 44 percent in 2021-22.
• Consequently, India’s ranking in Global Innovation Index has climbed 35 ranks, from 81st in 2015-16 to 46th in 2021.

Issues with the Indian Patenting System:

• Lagging behind its global counterparts:
  • In 2020, the number of patents filed in India was 56,771 which is merely 4 percent of China’s 15 lakh and 9.5 percent of the US’s 6 lakh applications in the same year.
  • Similarly, the patents granted in India were 26,361 in 2020 compared to 5.3 lakh in China and 3.5 lakh in the US.
• Manpower Shortage:
  • It is the major factor hampering applications in India.
  • India’s Patents Office employed only 860 people (including both examiners and controllers) as of March 2022 end compared to 13,704 in China and 8,132 in the US.
  • As a result, approximately 1.64 lakh applications were pending on March 31, 2022, at the controller level after the first examination reports.
• No fixed timelines for various process steps:
  • For instance, it takes about 58 months on average to dispose of a patent application compared to about 20 months in China and 23 months in the US.

Where does India stand in terms of trademark activity?

• The filing of trademark applications also increased from about 2.8 lakh in 2016-17 to 4.5 lakh in 2021-22.
• India’s Trademark Registry Office was at the fifth position in terms of the number of filings.
• China is at the top with 93.4 lakh applications and the US is at the No 2 position with 8.7 lakh applications in 2020.
• India is one of the fastest in first examination reports.
• The time taken for final disposal of applications averages 18 months, which is in line with global peers.
• This is quite a remarkable efficiency as India has only 156 examiners compared to 2,000 in China and 633 in the US.
• However, if any opposition is filed against a trademark application, the disposal time is 5-10 years.

• At the end of June, about 2.4 lakh applications were pending at the opposition stage, with a total of about 2.8 lakh objections.
  • The reason for delays is the lack of sufficient manpower at the level of the assistant registrar and above, who are authorized for hearing purposes.
  • At present, there are only 12 people out of the sanctioned strength of 54 at the post of the assistant registrar or above in the Trademark Registry Office.

Way Forward:

1. Increase in manpower:
   • This will help dispose of the backlog of applications and free the office to accept fresh applications in greater numbers.
2. Increased investment:
   • Fiscal consideration should not get in the way of reforms as patent and trademark registrations generate revenues for the government.
   • Indeed, the government spent barely ₹200 crores in 2020-21 on the IPR registration system, but earned ₹1,000 crores.
3. Quality Management teams in the Patent Office:
   • India should establish Quality Management teams in the Patent Office to recruit and manage future recruitments and compliance.
4. Public awareness and training:
   • India needs to invest in Public awareness and training related to Patent Filing among the population.
5. Utility Patents:
   • Introducing Utility patents in India can be a game-changer considering the start-up culture flourishing in India.
   • A utility patent is a unique form of a patent awarded by a state to an inventor for a fixed period where the basic requirements are less stringent, the term of protection is shorter, and these are cheaper to acquire.
6. Locking up timelines:
   • In the current system, the timeline for various steps is not fixed; for instance, there is no fixed timeline for raising opposition against any patent application, which leads to delays.
   • The Patent Office must lock the timeline for every step for efficient functioning.
7. Revisiting Complicated compliance requirements:
   • Specific provisions of the Patent Act 1970 lead to complicated compliance requirements. For example, some conditions require an applicant to occasionally present details relating to prosecuting foreign patent applications.
   • This may have been an essential requirement in the past. However, this is not required now. All these compliances should be revisited.
8. Real-time status of Patent applications:
   • In addition to improving the web portal for patent applications, India should facilitate and enhance the real-time status of Patent applications and bring together all related documentation.
   • Applicants should be able to use the searchable Patent databases easily.
9. Increased autonomy and flexibility to Office of Controller General of Patents, Designs & Trademarks:
   • The Office of Controller General of Patents, Designs & Trademarks is presently a subordinate office of the Ministry of Commerce.
   • More autonomy to the office has to be provided by supplying Financial and Staffing Flexibility.

Conclusion:

• India’s dedication to streamlining a robust, cost-effective, transparent patent ecosystem that suffices the needs of its creative and rapidly growing economy is commencing to pay off.
• India’s impression during this uncertain period of trust, diplomacy, cooperation, and peace gives India an exceptional edge, which can only be nourished if India enhances its Patent Ecosystem in the coming years and matches the best in the world.
• As India becomes one of the world’s largest economies, it must aspire to be at the cutting edge of innovation.
• However, India has to overcome the given obstacles if it has to be the flag-bearer in accountable and advanced patent safeguard amongst other developed and developing countries.

Source: The Hindu BL

Mains Question:

Q. India has to overcome a number of obstacles if it has to be the flag-bearer in accountable and advanced patent safeguard among other developed and developing countries. Critically examine. (250 words).