Patent Term Extension in India – What Businesses Need to Know

Last Updated at: Sep 20, 2021
patent term
Patent Term Extension in India - What Businesses Need to Know?
Information management software company Mphasis reported that its artificial intelligence program to detect, handle and interpret data from unstructured data sources has recently been issued a US patent. The patent covers the efficient collection and interpretation of data from physical and digital outlets.


In the world of innovation, India has an old reputation: it remains a minnow when it comes to patents. If over 600,000 applications were filed in the US and more than twice that number in China in 2017, in India, there were only 46,600 – and patent grants came to just over 12,000 in a country of 1.37 billion people. In a nondescript building on a narrow, congested lane in central Mumbai, the Office of the Controller General of Patents, Designs and Trade Marks is bent on changing this.


Patent denotes to enforceable elite rights provided to the creator in return for his/her creation and making it open to the public. A patent is one of the Intellectual Property Rights among the other four – Copyright, Trademark, Industrial Designs, and Geographical Indications.

Patent term extension in India:

A proposition to extend the existing 20-year-long patent term for pharmaceuticals or any other business running in India.

Purpose of Intellectual Property Rights:

  • To promote development
  • It encourages invention

2005 Amendment of the Patent Law

Relevant features of the Patents (Amendment) Act 2005 associated with product patents:

  1. Firstly, the extension of patent assurance to products in areas of medications, nourishment, and chemical
  2. The term for protection of patent will be for a time span of 20 years
  3. Introduction of an arrangement for allowing permit of mandatory license for the export of drugs to countries which are lacking or no manufacturing facility. If such importing nation has either conceded a necessary permit for import or by warning or generally permitted the importation of the patented pharmaceutical items from India (as per the Doha Declaration on TRIPS and Public Health)
  4. Section 3 (d) regarding patentability.

Impacts of patent term extension:

    • RCEP (Regional Comprehensive Economic Partnership) looks to expand and regulate the grace time frame permitted to patent applications while surveying the uniqueness of an innovation guaranteed in a patent application.
    • This extended grace period would imply that an earlier publication that would somehow or another demonstrate the absence of freshness of an invention guaranteed in a patent application would not be allowed as a major aspect of the examination or resistance-proof.
    • This extended grace period is intended to make patenting simpler for organisations.
    • Any extension of the patent period will unfavourably influence access to the less expensive medications that conventional pharmaceutical organisations produce in India.
    • Providing a longer patent term for pharmaceutical patents will result in deferrals in the passage of conventional forms and could unfavourably influence access to reasonably priced medications.

Patent Your Innovation Right Now

Term of selectiveness

  • The term of a patent is the utmost timeframe amid which it is valid can be authorised.
  • The longer the patent term, the greater the selectiveness for the innovation. And the more prominent the time is taken for the innovation secured by the patent to enter the public domain, consequently making a high-tech lock-in.
  • A patent could have a shorter term than the predetermined 20-year time span for multiple reasons. For instance, non-payment of the patent cost could result in its elapse, and a patent may result in its initial negation.

Reactions identified with patent term extension:

  • In a few divisions like information technology and scientific devices, where innovation is consistently changing. However, conceding 20-year patent protection do not justify.
  • The basic term of security that applies to all technologies no matter what the pace of mechanical improvement originated from an arrangement of the TRIPS (Intellectual Property Rights) agreement.
  • In a business where costs steadily decline within an initial couple of years of the presentation of the new innovation. Such a broad time of protection without a monetary premise is outlandish.
  • Having a technology-agnostic patent term makes a pointless deadweight reduction where shorter insurance is required for innovation. In this manner, considering the developing quality of innovation, it is enterprises, to encourage information and inventions in the market.

Debates identified with Patent-term extension:

  • Developed nations, for their pharmaceutical organisations, look for a term expansion opposing that it is important to recover the research and development (R&D) costs.
  • The advocates further argue that patent-term extension could compensate for the loss of powerful patent term-time lost in getting administrative sanction or inferable from deferrals at the patent office.
  • Many pharmaceutical organisations report benefits that are ordinarily more than the costs engaged with Research and Development.
  • Any further extension in the patent term will have an effect in corporate welfare at the expense of social welfare
  • Given India’s quality as a world-class provider of moderate conventional drugs, providing a longer patent term will result in deferrals. Especially, in the passage of nonexclusive forms and could unfavourably influence access to prescription.

As India talks the RCEP (Regional Comprehensive Economic Partnership), a free trade agreement that can transform the intellectual property (IP) scene of its member nations. We have to take a look at the proposition in the more extensive setting. Indeed, this shows how the term of the patent for IP rights has expanded relentlessly throughout the years. India has been a worldwide innovator in making a patent law that adjusts the privileges of innovators and public health. Indeed, the nation must shield its dynamic patent law.

Furthermore, in the event that trade dealings will genuinely intend to profit society. However, at that point, they should liberate from their covers of mystery and bring into the public domain. In this streak, a procedure for open oversight and contribution to RCEP’s negotiations must be direly settled.