INDIAN PATENTS REPORT

26th April, 2022 Economy

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Context

Technology innovation is gaining pace in India with Indian companies having filed 1,38,000 tech patents in India from 2015 to 2021, according to the India Patents report.

About the Report

Indian Patents Report has been launched by the National Association of Software and Services Companies (Nasscom).
The report is one among a series of Nasscom’s Emerging Technology-focused reports.
The Report aims to understand how Indian technology companies are creating IP assets in their largest market.
It marks the start of our IP charter for FY2023, which will be followed by a deep dive analysis into the tech patents filed in India.

Findings of the Report

US — a key market

As per the report, the US remains a key export market for India. Over 9,500 patents were filed by India domiciled companies in the US between 2015-2021, an increase of ~47 per cent over 2015 and 2019.
US accounted for ~62 per cent of tech exports in FY2022, and would continue to drive share of tech patents, the report said.
65 per cent of the total patents filed in the US in 2020/21 by India domiciled companies were in the technology domain, as compared to 55 per cent in 2019. Further, ~45 per cent of the technology patents filed has been granted.

Role of start-ups

Start-ups have been key contributors in terms of technology innovation. Over 60 per cent of the technology patents were filed by Indian companies and start-ups.
7 per cent of the tech patents were filed by Individual inventors/Academia-Research which witnessed the highest growth of 60 per cent.
Overall, more than 400 technology patents were filed by Indian start-ups during 2015-2021, an increase of ~45 per cent from 280 patents in the 2015-2019 period.
In terms of key segments, 21 per cent of the tech patents were related to Software Applications and Healthcare and Medical Devices, the leading segments.
Focus for start-ups continue to be led by Health and Medical Devices, while it continues to be led by software applications for the larger assignee group.
Share of Communication Technology, IoT and Cyber Security patents have increased over the last two years.

Emerging technologies

The share of emerging technologies continues to grow in technology patents. Over 50 per cent of the patents filed during 2015-2021 were related to emerging technologies.
AI patents more than doubled in the period 2015-2021 compared to 2015-19. Over 1,300 patents were filed in the AI domain during 2015-2021.
Artificial Intelligence (AI) continues to lead in terms of total patents filed under various emerging technology domains. Machine Learning patents grew by over 2X maintaining its lead in AI.
In growth terms, IoT was in the lead with a growth of 45 per cent in 2015-2020/21 compared to 2015-19.
Cloud Computing remained another key emerging area accounting for a growth of 33.6 per cent while cyber-security accounted for the majority share of granted patents in 2015-2020/21 at 27.4 per cent.

What can India do to become a thriving base for innovation and IP?

Encourage Business

The GOI, along with state authorities, must develop new ways to encourage businesses, old and new, to formulate their IP strategies and optimize their IP portfolios.

Robust Dispute Settlement System

A robust dispute settlement system could be a game-changer. The entire rationale behind creating IPR comes into question if the rights cannot be enforced.

Alternate dispute resolution machinery

Excessive delays in the justice system also need to be addressed at the earliest. Alternate dispute resolution machinery could do wonders for the Indian IP ecosystem.

Clear laws and straightforward processes

In addition, although there is legislation covering almost the entire IPR spectrum, the legislative process is often uncertain and lengthy. Clear laws and straightforward processes can prove immensely beneficial.

Generate IP awareness

IP awareness is another area where a great deal of work needs to be done. While Indian companies do take measures to protect their trademarks, patents are often overlooked.
Indian entrepreneurs need to know about the benefits of the IPR and the pitfalls of failing to protect their technological inventions with proper rights.
Governing bodies can collaborate with academic institutions, business organizations and other stakeholders to conduct regular workshops and seminars to enhance IP awareness and understanding.

Incentive Programs

The GOI could also invest in incentive programs. Several countries around the world have reward programs to spur creativity in technology.
Such incentive programs could push businesses in India to conduct research and commercialize IP. The idea has already been explored.
The Support for International Patent Protection in Electronics & Information Technology (SIP-EIT) scheme provides financial support to MSMEs and technology startups in the ICT sector.
It offers Inventors reimbursement of up to INR 15 lakh for each international patent filing.
Under the Scheme for Facilitating Start-Ups Intellectual Property Protection (SIPP), appointed facilitators provide IP-related information and advisory, and assist startups with their IPR applications.
Several state governments are also reimbursing the filing and prosecution costs to encourage startups to patent their innovations. For instance, Karnataka Startup Cell is reimbursing up to INR 2 lakh for every Indian, and INR 10 lakh for every foreign patent granted. India needs more such incentive programs with effective and widespread implementation.

Active Role by Businesses

The onus to change the intellectual property scenario in India is not only on the governing bodies. An active role by businesses can help ensure the swift emergence of a new IP climate.
They must focus on training and work on establishing a proper process of capturing ideas to make the most of the new IP regime that is cropping up. Any business that leads the charge will gain the upper hand in the times to come.

Case studies

Case studies wherein IP has played a pivotal role in aiding businesses in positioning themselves in the market or generating additional revenue streams are needed. Such case studies are already in the making.
These will help transform the way stakeholders such as founders and investors view IP. Startups will also understand the importance of IP in their plans for international expansion.

Final Thoughts

There is no argument that this is the era of knowledge economy where intellectual capital is more critical than ever before.
The sooner Indian companies realize the true potential of their IP assets and the need to protect these resources, the quicker they will be able to sustain and compete on the global stage.

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