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27th May 2024 (12 Topics)

India's Patent System & Challenges

Context

India's patent system has faced criticism for arbitrary refusals, procedural inconsistencies, and allegations of corruption. Recent legal challenges and complaints highlight the need for reform in the administration of intellectual property (IP) rights.

Key Findings:

  • Instances of arbitrary rejection of patent applications have raised concerns about the functioning of India's patent office.
  • Allegations of corruption, including a case involving a Deputy Controller demanding a bribe, have further tarnished the office's reputation.
  • Despite government efforts to address shortcomings, such as manpower shortages and procedural inefficiencies, challenges persist, leading to a high rate of withdrawn patent applications.
  • The Delhi High Court's intervention in cases and the filing of complaints with oversight bodies like the Central Vigilance Commission (CVC) underscore the seriousness of the issues.

Challenges in the system

  • Shortage of manpower in the patent office has contributed to delays and inconsistencies in processing patent applications.
  • Allegations of corruption and mismanagement have eroded trust in the patent granting process.
  • Engagement of contractual manpower and delegation of duties to external agencies have raised questions about the legality and effectiveness of administrative practices.

Implications:

  • Delayed or arbitrary patent approvals hinder innovation and economic growth by discouraging investment in research and development.
  • Allegations of corruption damage India's reputation as a destination for intellectual property protection and foreign investment.
  • Reform efforts, including increased transparency, stricter oversight, and streamlined processes, are necessary to restore confidence in the patent system and promote innovation.
Fact Box: India’s Patent System
  • A patent grants exclusive rights to its holder for an invention. In India, patents last for 20 years from the date of application.
  • To qualify for a patent under the Indian Patent Act of 1970, the innovation must meet these criteria:
    • Novelty: It must be new.
    • Non-obviousness: It should not be obvious to someone skilled in the field.
    • Industrial Applicability: It should be usable in industries.
    • Patentable Processes: Only manufacturing techniques or processes can be patented.
    • Exclusions: It shouldn’t be subject to sections 3 and 4 of the Patents Act of 1970’s provisions.
  • International Compliance: India aligns its patent laws with international standards.
    • It joined the World Trade Organization in 1995, leading to compliance with the TRIPS Agreement.
    • Amendments in 2005 introduced pharmaceutical product patents in line with TRIPS.
    • India is also part of various intellectual property conventions, including the-
      • Berne Convention for copyright
      • Budapest Treaty
      • Paris Convention for Industrial Property protection
      • Patent Cooperation Treaty for patent matters
PYQ
  • In a globalised world, intellectual property rights assume significance and are a source of litigation. Broadly distinguish between the terms – copyrights, patents and trade secrets. (2014)
  • Bringing out the circumstances in 2005 which forced an amendment to the section 3(d) in Indian Patent Law, 1970, discuss how it has been utilized by the Supreme Court in its judgement in rejecting Novartis’ patent application for ‘Glivec’. Discuss briefly the pros and cons of the decision. (2013)

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