The Role of Intellectual Property in Promoting Innovation in India

Trending Today ASSOCIATION FOR DEMOCRATIC REFORMS AND ANOTHER Vs. UNION OF INDIA AND OTHERS 2024 SSC ONLINE SC 312 The Role of Intellectual Property in Promoting Innovation in India Supreme Court Strikes Down Electoral Bond Scheme as Unconstitutional for Undermining Transparency and Democratic Principles on dated 15th February, 2024. Historic Verdict: Supreme Court Overturns 1998 Ruling P.V. Narasimha Rao v. State (CBI/SPE), Ends Immunity for Lawmakers Taking Bribes for Votes on 4th March, 2024 Supreme Court Overrules Synthetics and Chemicals Ltd The State or its instrumentality cannot tinker with the “rules of the game” insofar as the prescription of eligibility criteria Validity of LMV Driving License for Transport Vehicles Minority Status of educational institutions not affected by statute, date of establishment, or non-minority administration JAMMU AND KASHMIR POST ARTICLE 370 ANIMAL CRUELTY CONTROVERSY: HOW THE 2023 SCC DECISION AFFECT JALIKATTU The Role of Intellectual Property in Promoting Innovation in India 13 Mar 2025 Table of contents Historical Evolution of India’s Intellectual Property Framework Colonial Legacies and Post-Independence Reforms The National IPR Policy of 2016 Legal and Structural Reforms in the 2020s The 2024 Patent Rule Amendments The Scheme for Facilitating Startups Intellectual Property Protection (SIPP) Pharmaceuticals and Biotechnology: Balancing Patents and Public Health Information Technology and Electronics: From Piracy to Semiconductor Sovereignty Agriculture and Traditional Knowledge: GI Tags as Economic Multipliers Persistent Challenges in the IP Ecosystem Enforcement Inefficiencies: A Justice Delayed SME Exclusion: The Awareness-Access Gap The Innovation-Access Tightrope Digital Divide in IP Management Conclusion References India’s journey toward becoming a global innovation hub has been significantly influenced by its evolving intellectual property (IP) regime. Over the past decade, the country has undertaken substantial reforms to align its IP policies with international standards, aiming to foster creativity, attract foreign investment, and stimulate economic growth. Despite persistent challenges in enforcement and awareness, initiatives such as streamlined patent processes, specialized IP courts, and targeted support for startups underscore India’s commitment to leveraging IP rights (IPRs) as a catalyst for innovation. This report examines the multifaceted relationship between IP protection and innovation in India, analyzing historical developments, recent legal reforms, sector-specific impacts, and the challenges that remain in fully realizing the potential of IP-driven growth. Historical Evolution of India’s Intellectual Property Framework Colonial Legacies and Post-Independence Reforms India’s IP framework traces its origins to colonial-era laws, including the Patents and Designs Act of 1911, which prioritized foreign interests over domestic innovation. Post-independence, the government sought to rebalance this dynamic through the Patents Act of 1970, which excluded product patents for pharmaceuticals and chemicals to promote affordable access to medicines. This move catalyzed the growth of India’s generic drug industry but drew criticism for stifling innovation in high-technology sectors. The 1990s marked a turning point as India joined the World Trade Organization (WTO) and adopted the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, necessitating sweeping reforms to comply with global norms. The National IPR Policy of 2016 A landmark development came in 2016 with the launch of India’s first National IPR Policy, which consolidated patents, trademarks, copyrights, and geographical indications under the Department for Promotion of Industry and Internal Trade (DPIIT). The policy emphasized modernization of IP offices, digitization of application processes, and the establishment of the Cell for IPR Promotion and Management (CIPAM) to oversee awareness campaigns and enforcement strategies. While these measures improved administrative efficiency, gaps in enforcement and procedural delays persisted, keeping India on the U.S. Trade Representative’s Priority Watch List as of 2023. Legal and Structural Reforms in the 2020s The 2024 Patent Rule Amendments A major leap forward occurred in 2024 with amendments to India’s Patent Rules, which reduced the timeline for filing a Request for Examination (RFE) from 48 months to 31 months from the priority date. This change aimed to accelerate patent approvals, which had previously taken an average of 5–7 years. Additional reforms included simplified compliance procedures, inventor certificates, and discounted renewal fees for small and medium-sized enterprises (SMEs). These amendments aligned India’s patent system with global standards, contributing to a 24.64% increase in patent filings and a 149.4% surge in grants between 2022 and 2023. The Scheme for Facilitating Startups Intellectual Property Protection (SIPP) Launched in 2016 and expanded in subsequent years, the SIPP scheme provides startups with subsidized legal support, fast-tracked examinations, and access to the World Intellectual Property Organization’s Technology and Innovation Support Centers (TISCs. By 2023, over 5,000 startups had leveraged the program, filing patents in sectors ranging from biotechnology to renewable energy. This initiative has been instrumental in elevating India’s rank on the Global Innovation Index (GII) to 40th position, with the country recognized as an “Innovative Achiever” for 12 Sector-Specific Impacts of IP-Driven Innovation Pharmaceuticals and Biotechnology: Balancing Patents and Public Health India’s pharmaceutical sector, valued at $50 billion in 2024, remains a global leader in generic drug production while navigating the complexities of patent protection. The TRIPS-compliant Patents Act of 2005 restored product patents for novel drugs, enabling multinational corporations like Pfizer and Novartis to protect innovations such as mRNA-based therapies. However, Section 3(d) of the law—which prohibits “evergreening” of minor modifications to existing drugs—has preserved access to affordable generics, ensuring 80% of antiretroviral drugs used globally originate from Indian manufacturers. Recent advancements in biotechnology are equally transformative: domestic firms like Biocon and Bharat Biotech filed 1,450 patents for CRISPR gene-editing tools and mRNA vaccine platforms in 2024 alone, with 35% involving cross-licensing agreements with U.S. and EU partners The Department of Biotechnology’s 2023 IP Guidelines further incentivize commercialization, mandating non-exclusive licensing for high-TRL (Technology Readiness Level) research and preferential terms for SMEs. For instance, the National Institute of Immunology licensed a novel tuberculosis vaccine candidate to three Indian biotech startups under revenue-sharing agreements, ensuring affordability while recouping R&D costs. Despite these strides, foreign R&D investment in Indian pharma declined by 22% between 2020 and 2024, attributed to uncertainties around compulsory licensing provisions invoked during the COVID-19 pandemic. Information Technology and Electronics: From Piracy to Semiconductor Sovereignty Contributing 8% to India’s GDP, the IT sector has

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