Year in Review: Major Intellectual Property Developments in India

In 2024, India experienced significant advancements in intellectual property (IP) across various sectors, reflecting its growing role in the global innovation landscape!

Reforms in Patent Rules in India

The 2024 amendments to the Indian Patent Rules, focusing on enhancing the efficiency of patent filings, reflect the country’s proactive approach in strengthening its IP system. These changes aim to streamline the process for inventors and businesses, making it easier for them to protect their innovations while also ensuring that the patent system remains competitive on the global stage.

By reducing the timeline for filing a request for examination and introducing other procedural improvements, India is fostering a more efficient and predictable IP environment. This makes it more attractive for both domestic and international businesses to invest in R&D within the country. It also helps to encourage more Indian inventors to safeguard their intellectual property, further boosting India's innovation ecosystem.

Moreover, the focus on technology sectors such as semiconductors and electronics, combined with these regulatory reforms, positions India as a key player in the global IP arena. This strengthens its global competitiveness and makes it a favourable destination for IP-intensive industries looking for new markets. As India continues to enhance its IP policies, the country is likely to witness sustained growth in patent filings and an increase in international collaborations, which will contribute to its long-term economic success.

Although the processes have been improved, small and medium-sized enterprises (SMEs) may find it difficult to understand and implement the new patent system. A lack of resources and expertise in managing patent applications can present significant challenges, potentially limiting SMEs' ability to take full advantage of the changes. To address these issues, it is important to offer targeted support, such as training initiatives and simplified filing procedures that are specifically tailored to SMEs. Ultimately, start-ups and the R&D sector will benefit significantly from accelerated patent grant procedures. Improved patent protection offers these entities the motivation to invest in innovative ventures, attract funding, and remain competitive in the market. 

Lastly, the amendments are expected to encourage more international companies to pursue IP protection in India. By aligning with global standards and streamlining procedures, India becomes a more attractive option for foreign investors seeking to protect their innovations. This spike in foreign investment has the potential to drive economic growth, create employment opportunities, and boost India's technological capabilities.

To improve the Indian patent system even further, additional reforms are required. This should involve reducing the burdens on inventors and patent holders by simplifying the administrative processes, clarifying discretionary powers, and offering support to SMEs. Ongoing assessment and continuous refinement are crucial to ensure the patent system effectively meets the needs of inventors and the broader innovation landscape.

India signs the Riyadh Design Law Treaty (DLT) 

India recently signed the Final Act of the Riyadh Design Law Treaty (DLT), becoming a new member of this international agreement that aims to harmonize design protection practices across its signatory countries. By joining, India aligns its design protection policies with international standards and opens up greater avenues for Indian designers and businesses to protect their IP in member countries. This move is expected to promote innovation and boost the global competitiveness of Indian products. 

The treaty, finalised after nearly two decades of negotiations under the World Intellectual Property Organization (WIPO), aims to standardise industrial design protection processes worldwide, offering advantages to stakeholders across various sectors, including SMEs. Now, applicants can file multiple designs in one application, allowing them to speed up the process and reduce both time and costs. The treaty also encourages countries to adopt electronic systems for design registration and to promote the digital exchange of priority documents.

This shift can potentially lead to more innovation as designers and businesses are assured that their IP will be better protected internationally, giving them the confidence to expand and collaborate globally.

The treaty’s adoption can therefore be a “game-changer” for start-ups looking to expand and safeguard their creative innovations in global markets.

India-EU Free Trade Agreement Negotiations 2024 

The Free Trade Agreement (FTA) negotiations between India and the EU began in 2007 but stalled in 2013 due to disagreements over market access for certain goods, notably automobiles and wines and spirits. Talks resumed in 2022, but challenges remain in several areas, including rules of origin (ROO), which define the national source of a product.

Discussions have accelerated and nine rounds of talks were concluded in September 2024. Some progress has been made on intellectual property rights, rules of origin and dispute settlement, but the two sides' respective positions still diverge on the vast majority of key outstanding issues. The next round of negotiations is likely to take place in the first quarter of 2025. 

Geographical Indications 

On 8 May 2021, EU and Indian leaders agreed to restart negotiations for a "balanced, ambitious, comprehensive, and mutually beneficial" trade agreement. Additionally, they decided to initiate separate negotiations on an investment protection agreement and a geographical indications (GI) agreement.

The authors believe that reaching an agreement on GIs appears to be the most straightforward. However, they note that India must first establish its own implementation and control framework for GIs. As of the time of writing, two negotiation rounds had taken place—one in June-July 2022 and another in October 2022. These discussions were in-depth and constructive, resulting in the completion of the first reading of the draft text for the bilateral agreement.

During the 6th round of EU-India negotiations on the protection of GIs, the Parties held two sessions on 12 and 13 March 2024. A key outcome of these discussions was the agreement to exchange their respective GI shortlists for pre-screening purposes only, with formal opposition procedures to be initiated later. Additionally, both sides provided further clarifications on various aspects of their GI systems, including control mechanisms, fee structures, opposition procedures, and the treatment of homonymous names. 

As of 31 March 2024, India has registered over 600 Geographical Indications (GI) products, with Uttar Pradesh leading the count at 69. Notably, Varanasi holds the distinction of having the highest number of GI-certified products from a single geographical location. The city boasts 30 registered products, including Banaras Thandai, Banaras Shehnai, Banaras Tabla, Banaras Lal Peda, and Banaras Mural Painting, among others.

India’s Global Position in 2024

Around 92,000 patent applications were filed in India during 2024 signifying India's growing maturity as a hub for technological and scientific development. 

World Intellectual Property Indicators 2024: India, with 64,480 global patent applications, moved up to sixth place, experiencing a notable 15.7% increase primarily due to a surge in resident filings, bolstered by its rapidly expanding economy. For the first time, India ranks in the top 10 across all three major IP categories in the World Intellectual Property Indicators. Between 2018 and 2023, its patent and industrial design applications more than doubled, while trademark applications grew by 60%.

WIPO Patent Landscape Report on Agrifood 2024: India has seen the fastest annual growth in patent applications, followed closely by China and the Republic of Korea. 

Economic Survey 2023-2024: India has demonstrated notable progress in research and development (R&D), as highlighted in the Economic Survey 2023-24 presented in Parliament. India's R&D sector has shown remarkable progress, with nearly 100,000 patents granted in FY24, a significant rise from fewer than 25,000 in FY20.

World Intellectual Property Report 2024: The number of scientific and technological capabilities that India is specialised in, jumped from 42% to 68% and 9% to 21% respectively. The report highlights how India's historical connections with related sectors—such as bicycles, automobiles, and aviation—have shaped its distinctive specialisation within a highly innovative and complex industry. Indian motorcycle manufacturers have become major global players, driven by the country's expertise in cost-efficient production and a strong focus on fuel-efficient engine technology.

International IP Index 2024: According to the Index 2024, India maintained its 42nd position with a score of 38.64%, unchanged since 2022. The report highlighted concerns over India's IP regime, pointing out the dissolution of the Intellectual Property Appellate Board in 2021 and a judiciary that lacks adequate resources.

Other News

The Department of Promotion of Industry and Internal Trade (DPIIT) announced its support for extending data exclusivity for biologics. The DPIIT's stance on extending data exclusivity for biologics signals a potential shift in India's approach to protecting intellectual property in the healthcare sector. 

EFTA & India: Trade and Economic Partnership Agreement: On 10 March 2024, Member States of the European Free Trade Association (EFTA) – Iceland, Liechtenstein, Norway, and Switzerland – and the Republic of India signed a comprehensive Trade and Economic Partnership Agreement (TEPA). The landmark agreement between India and EFTA is expected to bring significant economic benefits. These include enhanced integration and resilience of supply chains, new opportunities for businesses and individuals on both sides, increased trade and investment flows, job creation, and economic growth.

Initiative to Incentivize Intellectual Property Creation in Technical Textiles: India is in the process of creating a framework to incentivise both industry and academia to create copyrights, trademarks and patents in technical textiles, which are primarily designed for non-aesthetic purposes. The Ministry of Textiles has come up with a proposal that would give industry players exclusive rights to commercialise IP for a period of 10 years if their financial contribution is at least 50% of the projects funded under the National Technical Textiles Mission (NTTM).

MoU between India and the European Commission on Working Arrangements on Semiconductors Ecosystems: The Union Cabinet approved the Memorandum of Understanding (MoU) signed on 21st November, 2023 between the Government of Republic of India and the European Commission on Working Arrangements on Semiconductors Ecosystems, its supply chain and innovation under the framework of EU-India Trade and Technology Council (TTC). The MoU intends to strengthen cooperation between India and EU towards enhancement of semiconductor for the advancement of Industries and digital technologies. Both G2G and B2B bilateral Cooperation to boost the resilience of the semiconductor supply chains and leverage complementary strengths to promote collaboration in the field of semiconductors.