Significance of India’s Pharmaceutical Patent Laws – Explained!

In this article, you will learn about the significance of India’s pharmaceutical patent laws and how important it is to patent a drug.

The pharmaceutical industry has been one of the major beneficiaries of rapid technological advancement. Time and again, it is regarded as a highly knowledge-driven field, requiring years of research and experimentation to produce a single drug.

Furthermore, the majority of studies in this field are unexpected, with many failing to reach a conclusion. As a result, it is critical for pharmaceutical companies to make the most of whatever research results they receive.

This is where the Importance of Drug Patents comes into play for pharmaceutical companies in order to protect their interests. This article will explain why drug patents are important for the Indian pharmaceutical industry.

Drug Patent Definition

A patent is termed as documentation that is legally bound and allows the owner to safeguard their idea or invention from theft of intellectual property. It is a type of Intellectual Property Right that prohibits others from developing, using, selling, or marketing a design without the owner’s permission. It is granted by the Indian government and aids in ensuring that the proprietor has complete control over the creative idea or the creation of a piece.


However, before issuing a patent, a governing authority performs several specific checks to ensure that the plan, process, or product is creative and unique. The significance of a drug patent is limited to medicines or drugs, and it prohibits other companies from manufacturing, selling, or marketing a specific drug.

Significance of Drug Patent in India

Patents propose a technical solution to contemporary technical problems. The Patents Act of 1970 is responsible for the current patenting system in India. The Patents Act enabled people to file patents and file products.

Because the pharmaceutical industry is driven by knowledge, research and development are expensive. Furthermore, such research is highly unexpected, with only a small percentage of studies yielding new drugs and the vast majority failing. As a result, in order to succeed, pharmaceutical companies must be able to proficiently commercialise research that yields positive results. Patents enable pharmaceutical companies to do this in order to protect their interests.

Companies must safeguard their inventions, designs, and drugs from illegal use in order to remain prominent in a competitive market. Pharmaceutical companies in India can file various patent types that protect them from having their drugs and designs stolen. The various patents aid in the preservation of drugs, drug compositions, synergistic combinations, and even methods used to develop medicines.

As a result, it functions as an all-around system to stop any type of intellectual theft. The Indian patent legislation aids in balancing the interests of pharmaceutical companies and the public at large.

What Is the Significance of Drug Patents Aided by the Pharmaceutical Industry?

The patent of drugs became common in India at a time when Indian pharmaceutical companies struggled. Generic drug companies did not invest heavily in research. They lower the price of their drugs and then consolidate market share. Such drug companies were making things difficult for other companies that were assisting in the development of new drugs.

However, timely patent law initiatives aided pharmaceutical companies in dealing with the situation effectively. Though drug patents help pharmaceutical companies maintain a healthy profit margin, they should not attempt to monopolise the market. As a result, the addition of patent law to the Competition Act 2002 prevents monopolies in any field. As a result, the importance of drug patent laws aids in balancing IP protection and competition. It also ensures the well-being of both businesses and the public at large.

Intellectual Property Rights in the Indian Pharmaceutical Industry

Because the pharmaceutical industry relies on development and research, pharmaceutical companies must take intellectual property rights seriously. In India, pharmaceutical companies protect themselves by relying on Drug License. Now, India has developed its patent law structure, which aids in ensuring that both pharmaceutical companies and the general public get a fair deal.

Furthermore, India is a signatory to the General Agreement on Tariffs and Trade. GATT has aided India in becoming more proficient by demonstrating the significance of drug patents. The major shift occurred with the passage of the Patents Act of 1970, which allowed pharmaceutical companies to patent their drug manufacturing processes.

At the time, the validity period of a drug patent was seven years. India joined the General Agreement on Tariffs and Trade (GATT) in 1994, which resulted in several notable changes in the Indian market as the country was required to follow TRIPS and GATT laws.

After joining GATT, pharmaceutical companies in India were required to meet the minimum required standard set by the Trade-Related Aspects of Intellectual Property Rights Agreement (TRIPs). As part of this evolution, India pioneered product patent use, which was valid for a period of twenty years.

What is the Cost Involved in Patenting a Drug?

Pharmaceutical companies use Ever-Greening to protect their financial interests. Pharmaceutical companies use this strategy to make minor changes to an existing medicine and apply for a separate drug patent. For example, a pharmaceutical company might use the molecular formulae with a different structure to file a new drug patent.

They occasionally add a component that has no impact on the product and chooses to file for another drug patent. Furthermore, many pharmaceutical companies want to acquire their competitors. They also attempt to stymie the latter’s research by filing fictitious statements of infringement on these new drug patents. While these techniques are legal, they raise the cost of medicines and should be scrutinised.


In this article, we have discussed the significance of India’s pharmaceutical patent laws and how they function in India. The Importance of Drug Patent is made to be flexible enough to allow for licensing, allowing for cheaper outsourcing while also being stringent enough to prevent illegal copying. It also encourages scientific research because institutions and businesses can profit from licensing their patents to bigger pharmaceutical companies. As a result, such a patenting system is considered the foundation of the Indian pharmaceutical sector in many ways.


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