Since India’s independence in 1947, the patent system has been a cornerstone of the country’s economy. Over the years, the patent system has undergone several changes and reforms to protect the rights of inventors and protect their inventions from unauthorized exploitation. This comprehensive guide to the history of Indian patent system provides an overview of the key developments, milestones and policy changes that have shaped the current patent landscape in India. It also takes a look at the importance of patents in fostering innovation and providing economic development. From the formation of the first patent office in the 1950s to the implementation of the Patents Act, 1970 and the Patents (Amendment) Act, 2005, this guide provides an insightful look into the development of India’s patent system.
Overview of the Indian Patent System
A patent is a right granted to an inventor that gives the inventor the exclusive right to make, use or sell the patented invention (also known as the product or process) for a limited period of time. A patent can be granted for an invention or an improvement to an invention. An invention is a new and useful process, machine, article of manufacture or composition of matter. An improvement to an invention is an addition that makes an invention more useful or commercially exploitable. The Indian patent system is administered and regulated by the Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry. The primary objective of the patent system in India is to promote innovation and foster research and development (R&D) in the country. The Indian patent system is largely based on the first-to-invent principle.
Pre-Independence Patents
The first patent in India was granted in 1633 to the East India Company by Emperor Shah Jahan, the ruler of the then Mughal Empire. The patent was granted to the East India Company to undertake the opium trade. The East India Company was a London-based trading company that was granted a royal charter by King Charles II. The East India Company had its headquarters in London, but it had a significant presence in India as well. The company operated in India from 1619 to 1858 when it ceased operations after the Indian Rebellion of 1857. The East India Company was granted several patents over the years, including the first patent in India. The patent granted by the emperor was valid for two years and was renewable by paying an annual fee. Over the years, several patents were granted to individuals and companies, many of which were related to the opium trade. Patents were also granted to individuals to protect their inventions and innovations, such as the invention of a boat propeller by a British engineer Henry Steers and the invention of a type of loom.
The Patents and Designs Act, 1911
The first formal legislation governing the patent system in India was the Patents and Designs Act, 1911. The Act was promulgated by the British government in 1911, and it came into effect from January 1, 1912. The provisions of the 1911 Act were applicable to the whole of British India (including Pakistan, Bangladesh, Bhutan, and Myanmar). Introduced primarily to generate revenues for the British government, the 1911 Act focused on awarding patents as a reward for invention. Under the 1911 Act, a patent could be granted only if the invention was new, involved an inventive step, and had utility. The Act also required the applicant to disclose the invention in full detail in the patent application. The 1911 Act did not provide for product patents and did not allow for the filing of divisional patents. Additionally, the Act did not provide for the grant of patents for industrial processes. The 1911 Act was replaced by the Patents Act, 1970.
The Patents Act, 1970
The Patents Act, 1970 was enacted by the Indian government on June 19, 1970. The Act replaced the Patents and Designs Act, 1911 and came into effect on August 17, 1970. The primary objective of the 1970 Act was to encourage research and development and to promote the transfer of technology to India. The 1970 Act granted protection to both new and inventive inventions and processes that had industrial application. The 1970 Act provided for the grant of both product patents and process patents for a period of 20 years. The 1970 Act also allowed for the filing of divisional patents. The Act, however, did not provide for patent protection for plants and animals, thus excluding the agricultural sector from patent protection.
The Patents (Amendment) Act, 2005
The Patents (Amendment) Act, 2005 was enacted by the Indian government on August 22, 2005. The Act amended the 1970 Act to provide for patent protection for plants and animals. The 2005 Act was introduced to promote innovation and foster research and development. The 2005 Act provided for a period of 20 years of exclusive rights for both product and process patents. The 2005 Act also provided for the grant of both product patents and process patents. The 2005 Act also allowed for the filing of divisional patents. The 2005 Act also provided for the grant of compulsory licenses. The 2005 Act, however, did not provide for patent protection for computer software.
Recent Policy Changes
In January 2019, the Indian government announced that it will soon amend the Patents (Amendment) Act, 2005 to protect computer software. The government’s decision followed the recommendations of the Controller General of Patents, Designs and Trademarks. The recommendations of the Controller General of Patents, Designs and Trademarks were based on a report prepared by an expert group formed to study the current patent system in India. The expert group suggested several changes to the patent system in India, including the introduction of Section 3D of the Patents Act, 1970, which would provide for the protection of computer software. The introduction of Section 3D of the Patents Act, 1970 would mark the first major change to the patent system in India since 2005, when computer software was excluded from patent protection. In May 2019, the Department of Industrial Policy and Promotion released a consultation paper on the proposed changes to the patent system in India. The changes, if implemented, would provide for the protection of computer software, among other things. The proposed changes are expected to be finalised and implemented soon.
Impact of the Patent System in India
The Indian patent system has played a key role in promoting innovation and fostering research and development in the country. A strong patent system is critical for fostering innovation and a vibrant entrepreneurial culture. It helps to build up and/or strengthen the country’s intellectual property rights regime. The patent system also provides incentives to companies to invest in research and development and to invent new technologies, products, and processes. A robust patent system can also help India attract investment from foreign investors, who may consider this as a positive sign when deciding where to make their next investment. A robust patent system can also help Indian companies to expand into new markets with the confidence that their innovations and inventions are protected. A robust and strong patent system can also help to drive economic growth and development.
Conclusion
The Indian patent system has undergone significant changes over the years. From the introduction of the first patent in the country to the implementation of the 2005 Act and the proposed changes, the Indian patent system has undergone several changes. The patent system has been a cornerstone of the Indian economy and has played a key role in promoting innovation and fostering research and development. The patent system has helped to build up and strengthen the country’s intellectual property rights regime. A robust patent system can also help to attract investment from foreign investors, who may consider this as a positive sign when deciding where to make their next investment. A robust patent system can also help to drive economic growth and development in the country.