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How Do Patents Encourage Competition?

When inventions get patented, it encourages others to invent something new and valuable. Here's an overview of patent rights and how they promote competition and advancement in different industries.

How Do Patents Increase Competition?

The Indian Patents Act, 1970 governs the issuing and litigation of patents. Patents enable scientists and businesses to freely commercialise their inventions without fear of infringement.

As a result, patent rights and competitiveness within the scientific community are strongly intertwined. Patents, for example, provide intellectual property rights that prevent the copying and replication of inventions and products. Hence, they promote fair market behaviour by complementing competition within the industry. 

Patent Registration India – Meanwhile, competition laws prohibit patent holders from abusing their rights and establishing a commercial monopoly. As a result, a balance between competition and Patent Rights is required to foster competition and fair practices. By achieving this balance, the patent system can stimulate innovation while also allowing for market competition.

What Role Do Patents Play in Fostering Innovation and Competition?

  • For scientists, researchers, and companies, patents allow intellectual property rights that give them a temporary monopoly
  • By gaining exclusive rights for their invention, they can generate higher returns and more profits. This, in turn, gives them a higher incentive to do more research and help with the advancement of science and technology
  • Over the last 50 years, historians and economists believe that patents have led to an increased number of inventions
  • The possibility of generating higher returns drives people to work harder, innovate more, and promote research
  • Patents allow companies and researchers to generate 50% higher returns on their products
  • When it comes to high-tech firms, like medicine and software, the profits increase by 60%, whereas the electronics industry gains 40% more revenue
  • Since patents lead to significant fiscal gains, more firms and researchers are willing to research and innovate
  • As per reports by the Intellectual Property Research Institute in Australia, patents encourage people to invent things and innovate significantly
  • They found by analysing a list of licenses that people’s willingness to invent would drop by 13% if they can’t get a patent on their product
  • Patents also make technologies available to scientists around the world, prompting further discoveries and collaborations.

Invent with confidence! File a provisional patent to ensure your ideas are legally shielded. Take the first step towards securing your intellectual property

Using the Patent System to Encourage More Innovation

Here’s a list of things we can do to inspire more innovation in the future:

  • Clarify more clearly what can and cannot be patented 
  • Improve the quality of existing patents
  • Make the Indian Patent Act, laws, and system more transparent
  • Prevent intervention of other laws in the patent process
  • Facilitate the lawful upholding of Patent Rights.

What Role Do Patents Play in the Advancement of Technology and Science?

Innovation is the most integral step that helps in the progression of science and technology. Therefore, anything that encourages innovation paves the way for advancement in science.

  • Intellectual property rights refer to the ownership of any intellectual finding in the field of art, literature, industry, and science
  • Such systems give inventors exclusive rights over their inventions to encourage further innovation and drive progress in these fields
  • By allowing inventors to receive fair remuneration for their effort, such systems support progressive activity
  • Patents provide fiscal incentives while also giving them recognition for their efforts
  • It serves as a business tool capable of gifting innovators a formidable market position, gaining them additional revenue via licensing.

What Role Does the Patent Play in India’s Pharmaceutical Industry?

  • Known mainly for generic drugs, the Indian pharmaceutical industry is now investing more in research than ever before
  • Between 2013 and 2015, almost 15% of the 1.3 lakh patents filed in India came from the pharmaceutical industry
  • Over 45 Indian pharma companies patented more than 135 unique molecules in total
  • Between 2011 and 2016, top pharma companies have raised their research spending by 6%
  • Concerning the list of patents, the top filers are Cadila Healthcare, Dr Reddy’s, Cipla, Lupin, and Sun Pharma. 

How Can You Apply for Patent Rights in India?

In India, one can file for patent rights by following the steps outlined below:

  • Collect all the relevant information, including description, advantages, sketches, and lab reports
  • Ensure that the invention is patentable as per the Indian Patent Act
  • Draft a detailed patent application, and publish the application within 18 months
  • Request the council to examine the application, and move into the patent prosecution
  • Respond to all the objections raised and draft a response to clear them and get the patent granted:


Investors are constantly on the search for the most marketable concepts. You’ll perform even better if you can demonstrate the value of your patents and demonstrate how successful your company and concepts have already been with a dedicated client base. Contact Vakilsearch specialists to begin the patent application process.

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