India’s IP Puzzle

AI and IP

Intellectual Property Rights (IPR) provide the essential nourishment for innovative ideas and thus fuel economic growth. The 2016 National IPR Policy of the DPIIT is an example: this national policy envisions protection and commercialization under the aegis of CIPAM to support schemes like Make in India and Start-Up India. Its motto is ‘Creative India; Innovative India’ and aims to leverage the vast traditional knowledge base that India has much less opportunity in its IPR system. This article talks about the different types of IPR, the current scenario in India, comparisons with the U.S., Europe, and Japan, and gives suggestions to strengthen the protection for geographical indications, traditional, and tribal art to put India and its IPR on a competitive map worldwide.

Current State of Intellectual Property Rights in India

The WIPO World Intellectual Property Indicators (WIPI) 2024 report highlights India’s outstanding growth in Intellectual Property Rights (IPR). India was at 6th rank worldwide in patent filings (64,480) and 4th rank in trademark filings in the year 2023, with 55.2% of patents being granted to Indian applicants. Economic impact remains behind as GDP-to-patent ratio increased from 144 (2013) to 381 (2023), indicating underutilization. Weak enforcement, court pendency, and piracy are a few of the weaknesses. NIPAM and SPRIHA and 3,500+ startups through Atal Innovation Mission are some of the efforts in order to increase awareness. Strengthening and enforcement of IP courts are essential for India’s vision to become a global innovation hub.

Challenges in India’s IP Ecosystem

India faces various challenges in its IP infrastructure which in return dampens any form of growth or innovation. Piracy and Counterfeiting in the pharma, fashion, and tech sectors are the order of the day. Consumers are put in danger while business houses lose out. Awareness for the same regarding its prevention must therefore be accorded utmost priority, accompanied by enforcement. ADR application may speed up cases. Lack of IP specialized courts and insufficient coordination between agencies bottleneck the enforcement as a tool of curbing IP rights protection. Improved enforcement agencies and creation of special courts would further maximize gains. Bureaucratic delays hinder patent and trademark registration, but web solutions can make it even easier. Small and medium enterprises and rural sectors do not have access to IP professionals, and therefore enhanced training and web-based legal advice services are required. With revamped law, improved enforcement, and increased awareness, India can be in a position to come up with a strong IPR mechanism to protect innovation.

The Impact of Technology and Digital Disruption on IP

This changing face of technology is driving dynamic reforms in IP legislation across the globe-even in India. The introduction of AI, blockchain, and digital platforms has suddenly made someone re-imagine the entire spectrum of possibilities and challenges of IP protection. Ownership of AI-generated content has proved to be the biggest defect, to which a solution has been given by blockchain about being the open yet an unalterable form of IP management. Piracy products, piracy on the web, and unlawful streaming remain to be some of the problematic issues rampant both on the Indian sides as well as in India’s jurisprudence. The Indian juridical system is bound to slowly reorient itself to deal with this kaleidoscope of challenges. Fast forward now to a landmark case on intermediary liability for copyright misuse. There is a vision in the draft Copyright (Amendment) Rules, 2021, to render the whole digital rights management system streamlined and hassle-free. A regulation of technology, plus global cooperation, can also robustify India’s IP enforcement mechanism.

International Comparisons and Lessons for India

India is among those countries where there has been a very fast-growing rate of patent applications, but it continues to lag behind other world leaders like the U.S., Europe, and Japan, not only in quantity but also in productivity. According to the WIPO World Intellectual Property Indicators (WIPI) 2024 report, the patents’ world filings in the year 2023 count at 3.55 million. With China standing at 1.64 million filings for U.S. 518,364, Japan at 414,413, and Germany at 133,053. Now that the population size of India has also expanded a bit, India is also incurring 64,480 and thus, it is also of double-digit growth rates of 15.7% on an annual basis in the year 2022 from the year 2000 when there was no change. Unlike the United States, and the EPO, and even Japan, which strengthened patent examination speed and urgency centers and even made some wait time cuts, reformed or otherwise, India still endures bureaucratic delay in grant delay. The innovative drive from inside the country has surged forward, but efficiency in processing and in enforcement has lagged behind in collective commercialization. Indian patent filings grew 15.7% in 2023, the highest among the top 20 economies. Asia accounted for 68.7% of world filings and was led by China, Japan, and South Korea. The technology of computers is common, being 12.4% of filings. India is 3.2 million for registering trademark filings with the United States but very weak in enforcing these filings. It will have to strengthen patent quality, streamline timeliness, and improve further enforcement to retaliate against overseas competition.

Recommendations and the Way Ahead

Expansion of the patent and trademark cases, by the involvement of the government in the speedy disposal of patent and trademark cases, accompanied by a fill-up of the infrastructure and human resource infrastructure of IP offices, would be welcomed. The enforcement should be made easier through setting up special IP courts and the introduction of punitive measures to punish infringement. Protection of IP through electronic means would cover works produced by AI and rights management via blockchain. The industries need to adopt collaborations while creating public awareness more engaged in enabling innovations instead of being out of compliance. Compliance of the Indian IP legislation with international standards like TRIPS would enhance investor confidence and improve trade relations. There will be balance in enforcement through, the one who intervenes, since there is protection of rights without losing the accessibility and innovation.

AI and IP
[Image Sources: Shutterstock]

While the policy landscape is changing, with growing patent applications, India’s IP system is in flux. These barriers to global competitiveness are further compounded by low awareness, bureaucratic inefficiency, and a lack of enforcement. Improving the IP courts, speeding up approvals, and utilizing AI and blockchain provide enhancement in terms of protection to the IP system. Polices should be so built that they nurture the innovation and, at the same time, make it accessible. Now if we start adopting global best practices, we can expect the growth of a robust IP culture that would turn India’s IP regime of sustainable growth, contributing to economic and technological development, positioning India as a global knowledge economy center.

Author: Vaibhav Pandey, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at Khurana & Khurana, Advocates and IP Attorney

References.

  1. https://pib.gov.in/PressReleasePage.aspx?PRID=2072706#:~:text=India%20ranks%20sixth%20globally%20for%20patents%20with,year%2C%20underlining%20the%20country’s%20fast%2Devolving%20IP%20ecosystem.
  2. https://aim.gov.in/
  3. https://www.wipo.int/web/wipo-magazine/articles/copyright-piracy-and-cybercrime-enforcement-challenges-in-india-42977
  4. file:///C:/Users/Lenovo/Downloads/JIPR-125+corrected+proof.pdf
  5. https://articles.manupatra.com/article-details/Enhancing-Entrepreneurial-Growth-Intellectual-Property-Rights-IPR-in-the-Context-of-Micro-Small-and-Medium-Enterprises
  6. https://www.wipo.int/edocs/pubdocs/en/wipo-pub-941-2024-en-world-intellectual-property-indicators-2024.pdf
  7. https://ssinternational.in/blockchain-and-ai-revolutionizing-intellectual-property-law/
  8. https://pib.gov.in/PressReleasePage.aspx?PRID=1710417