post trips patenting trends -2000-2006

8/6/2019 Post Trips Patenting Trends -2000-2006

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POST TRIPS PATENTING TRENDS IN INDIAPOST TRIPS PATENTING TRENDS IN INDIAWITH SPECIAL REFERENCE TO USAWITH SPECIAL REFERENCE TO USA

Mr. Kadri H AMr. Kadri H ADr. Saykhedkar M V Dr. Saykhedkar M V

N B THAKUR LAW COLLEGE, NASHIK.N B THAKUR LAW COLLEGE, NASHIK.MAHARASHTRA.MAHARASHTRA.

NATIONAL CONFERENCE ON IPR,IIT KANPUR NATIONAL CONFERENCE ON IPR,IIT KANPUR ..


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AA country country without without a a patent patent office office and and good good patent patent law law was was like like a a crab crab and and wouldnt wouldnt go go anyway anyway but but sideways sideways or or backwards backwards

-- Mark TwainMark Twain


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IntroductionIntroduction-- IndiaIndia- - storehousestorehouse of of traditionaltraditional knowledgeknowledge andand

richrich culturalcultural heritageheritage

-- ScholarsScholars & & scientistsscientists ThereThere waswas nono desiredesire totouseuse ideasideas commerciallycommercially. .

-- CommercializationCommercialization is is aa westernwestern concept,concept, thetheproductproduct of of aa culture,culture, withwith soundsound materialisticmaterialisticfoundationsfoundations

-- TheThe westwest - - evaluationevaluation of of inventiveinventive ideasideas ononcommercialcommercial scalescale whichwhich providedprovided incentivesincentives forforideasideas oror inventionsinventions


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Why pa tents ?Why pa tents ?-- Encourage disclosure of invention in theEncourage disclosure of invention in the

publicpublic

-- Channelize knowledge into wealth.Channelize knowledge into wealth.

-- Promote innovation, technological progressPromote innovation, technological progressand impel technology driven economicand impel technology driven economicgrowth.growth.

-- Motivate investment, foster innovation,Motivate investment, foster innovation,revolutionize industries, improve productrevolutionize industries, improve productquality, expand educational opportunities,quality, expand educational opportunities,increase the demand for skilled labour andincrease the demand for skilled labour and

promote economic development.promote economic development.


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Why pa tents ? C ontd.Why pa tents ? C ontd.

Promise explosive, expansive, unplannedPromise explosive, expansive, unplannedeconomic growth and its consequenteconomic growth and its consequentbenefits under the proper circumstancesbenefits under the proper circumstancesPatentsPatents promotepromote growthgrowth byby leveragingleveraging ideasideasandand knowledgeknowledge intointo securities,securities, securitiessecurities intointocapital,capital, capitalcapital intointo investmentsinvestments andandinvestmentsinvestments intointo growthgrowthTo move ahead in the global innovationTo move ahead in the global innovationracerace

Maximum IP protection & exploitation forMaximum IP protection & exploitation forkeeping the rate of developmentkeeping the rate of developmentconsistent and longconsistent and long - -lifelifeTo encourage further innovation andTo encourage further innovation andserve society , ultimately, Social Welfare.serve society , ultimately, Social Welfare.


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Why TR IPS ?Why TR IPS ?ToTo extendextend thethe exploitationexploitation beyondbeyond

geographicalgeographical & & politicalpolitical boundariesboundariesToTo reducereduce distortionsdistortions & & impedimentsimpediments in ininternationalinternational tradetrade

PromotePromote transfertransfer of of technologytechnologyPromotionPromotion of of effectiveeffective & & adequateadequatemeasuresmeasures for for protectionprotection of of IPRIPRToTo removeremove thethe barriersbarriers withinwithin thethemeasuresmeasures andand proceduresprocedures of of enforcingenforcingIPRIPR forfor thethe legitimatelegitimate tradetradeToTo harmonizeharmonize intellectualintellectual propertyproperty

protectionprotection & & enforcementenforcement standardsstandards


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TR IPSTR IPSIntroduction of TRIPs by developedIntroduction of TRIPs by developed

countries, more so the USA, with a strongcountries, more so the USA, with a strongindustrial setup coupled with enormousindustrial setup coupled with enormousresearch & developmentresearch & developmentIndia signed TRIPS out of compulsionIndia signed TRIPS out of compulsionConcessions have been given to theConcessions have been given to thedeveloping & least developed countries sodeveloping & least developed countries soas to cope up with the circumstancesas to cope up with the circumstancesarising due to TRIPSarising due to TRIPSIndia had to amend its domestic laws inIndia had to amend its domestic laws inconsonance with requirements of TRIPSconsonance with requirements of TRIPSand other international requirementsand other international requirements


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OBJE CT IVE SOBJE CT IVE SThis paper is to examine:This paper is to examine:

-- Whether concessions (transitionWhether concessions (transitionperiod) helped India?period) helped India?

-- Whether TRIPS and consequentWhether TRIPS and consequentamendments really helpedamendments really helped

India?India?-- The position of India in the PatentThe position of India in the Patent

protection as compared to USA.protection as compared to USA.


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Pre TR IPS P a tenting TrendsPre TR IPS P a tenting TrendsIn the period between 1975/76 & In the period between 1975/76 & 1984/85 the Indian Patent Office1984/85 the Indian Patent Officereceived an average of about 3000received an average of about 3000applications a year and issued anapplications a year and issued an

average of less than 2000 patents aaverage of less than 2000 patents ayear.year.By contrast the USPTO issued anBy contrast the USPTO issued an

average of 56,500 patents a yearaverage of 56,500 patents a yearduring the same period.during the same period.Hence, India issued only 3.5% of Hence, India issued only 3.5% of

the patents issued by the USPTO.the patents issued by the USPTO.


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GLOBAL PATENTING TRENDS GLOBAL PATENTING TRENDS Worldwide filing of patent applications hasWorldwide filing of patent applications has

grown at an annual rate of 4.5% sincegrown at an annual rate of 4.5% since1995.1995.China, Japan, European Patent Office,China, Japan, European Patent Office,Republic of Korea & USA amount for 77%Republic of Korea & USA amount for 77%

of all patents filed and 74% of all patentsof all patents filed and 74% of all patentsgranted.granted.Patent filing by residents has increased atPatent filing by residents has increased atan annual average of 6.6% and nonan annual average of 6.6% and non- -residents by 7.6%.residents by 7.6%.Patent applicants from USA, Japan & Patent applicants from USA, Japan & Germany are the largest filers of patentsGermany are the largest filers of patentsapplied in other countries. These threeapplied in other countries. These threecountries account for 57% of thecountries account for 57% of theworldwide patent filings by nonworldwide patent filings by non- -residents.residents.


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A PPLI C A TION S FILED IN IND I A & US A FR OM 2000 T O 2006 A PPLI C A TION S FILED IN IND I A & US A FR OM 2000 T O 2006

COUNTRYCOUNTRY 20002000 20012001 2000220002 20032003 20042004 20052005 20062006

IndiaIndia 48244824 85038503 1059210592 1146611466 1261312613 1746617466 2450524505

IncreaseIncrease byby ---- 77..66%% 2424%% 88..22%% 1010%% 3838%% 4040%%

USAUSA 295926295926 326508326508 334445334445 342441342441 356943356943 390733390733 425967425967

IncreaseIncrease byby---- 1010%% 22..44%% 22..44%% 44..22%% 99..44%% 99..11%%

The filing has increased by 40% in 2005 & The filing has increased by 40% in 2005 & 2006.2006.Post amendment in 2005, there has been aPost amendment in 2005, there has been asubstantial growth in filings in India.substantial growth in filings in India.In case of USA, there is an average increaseIn case of USA, there is an average increase

of 9.2% in filing of patents in 2005 & 2006.of 9.2% in filing of patents in 2005 & 2006.Filing is much higher in India as compared toFiling is much higher in India as compared toUSA.USA. i.e. it is 40% in India in 2006i.e. it is 40% in India in 2006whereas it is only 9.1% in USA for thewhereas it is only 9.1% in USA for the

same year.same year.


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P A TEN TS GR A N TED IN IND I A & US A FR OM 2000 T O 2006 O F T O T A L P A TEN TS GR A N TED IN IND I A & US A FR OM 2000 T O 2006 O F T O T A L A PPLI C A TION S IN THE RE SP E CTIVE YE A R A PPLI C A TION S IN THE RE SP E CTIVE YE A R

CountryCountry 20002000 20012001 2000220002 20032003 20042004 20052005 20062006

IndiaIndia 18811881((3939%%))

13181318((1515..55%%))

15911591((1515..0202%%))

13791379((1212..0505%%

24692469((1919..66%%))

19111911((1010..99%%))

43204320((1717..66%%))

IncreaseIncrease byby---- 120120%%

USAUSA 157494157494((5353..22%%))

166036166036((5050..88%%))

167331167331((5050..%%))

169023169023((4949..44%%))

164291164291((4646%%))

143806143806((3636..88%%))

173771173771((4040..88%%))

Increase/Increase/DecreaseDecrease fromfrom

previousprevious yearyear

55..44%% 00..88%% 11..66%% --22..88%% --1212..55%% 2020..88%%

In 2006 the filing of patents in IndiaIn 2006 the filing of patents in Indiaincreased by 40% whereas the grantingincreased by 40% whereas the grantingrate increased by 120% as to the previousrate increased by 120% as to the previousyear , may be due to mail box provision.year , may be due to mail box provision.From 2005 to 2006, it is only 20.8%From 2005 to 2006, it is only 20.8%

increase in USA .increase in USA .


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A PPLI C A TION S O F IND I A N O RIGIN FILED & GR A N TED IN US A A PPLI C A TION S O F IND I A N O RIGIN FILED & GR A N TED IN US A

20002000 20012001 2000220002 20032003 20042004 20052005 20062006

ApplicationApplication 438438((00..1515%%))

643643((00..22%%))

919919((00..2727%%))

11641164((00..3434%%))

13031303((00..3636%%))

DATADATANANA DATADATANANA

GrantsGrants 131131((00..11%%))

180180((00..11%%))

267267((00..11%%00

356356((00..22%%))

376376((00..22%%))

403403((00..33%%))

506506((00..33%%))

There is a gradual increase in the numberThere is a gradual increase in the numberof applications & grant of patents by USAof applications & grant of patents by USAto inventors of Indian originto inventors of Indian origin ranging fromranging from

0.1% to 0.3% of the total applications & 0.1% to 0.3% of the total applications & grant respectively in USA.grant respectively in USA.But the number is negligible whenBut the number is negligible whencompared to the total number of compared to the total number of

applications & grant of patents in USA.applications & grant of patents in USA.


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NO . O F A PPLS. O F U S A O RIGIN FILED IN IND I A FR OM 2000 T O 2006 . NO . O F A PPLS. O F U S A O RIGIN FILED IN IND I A FR OM 2000 T O 2006 . YearYear 20012001 20022002 20032003 20042004 20052005 20062006

NoNo.. Of Of ApplAppl..(Percentage)(Percentage)

29162916((3434..33%%))

32923292((3131..11%%))

30553055((2626..66%%))

36003600((2828..55%%))

52655265((3030..11%%))

80488048((3232..88%%))

%% IncreaseIncrease fromfrompreviousprevious yearyear

1212..99%% --77%% 1717..88%% 4646..0101%% 5252..99%%

0 1 0 0 0 2 0 0 0 3 0 0 0 4 0 0 0 5 0 0 0 6 0 0 0 7 0 0 0 8 0 0 0 9 0 0 0

2 0 0 1

2 0 0 22 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

N o . O f A p p l . ( P e r c e n t a g e ) B a r 2 B a r 3

The rate of growth of applications filed byThe rate of growth of applications filed byUSA in India is steady when compared toUSA in India is steady when compared tothe total applications filed in India, but itthe total applications filed in India, but itis significantly higher i.e. 32.8% , whenis significantly higher i.e. 32.8% , whenwe compare it to the applications of Indianwe compare it to the applications of Indian

origin in USA i.e.0.3%.origin in USA i.e.0.3%.


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N o. O F A PPL. & GR A N T O F P A TEN TS O F F O RE IGN O RIGIN IN IND I A & US AN o. O F A PPL. & GR A N T O F P A TEN TS O F F O RE IGN O RIGIN IN IND I A & US AYearYear 20002000 20012001 20022002 20032003 20042004 20052005 20062006 AverageAverage

PatentPatent applappl. . of of foreignforeign originorigin inin IndiaIndia 26182618((5555%%))

63246324((7474%%))

82218221((7777%%))

87728772((7676..66%%))

93959395((7474..55%%))

1383613836((7979%%))

1998419984(81%)(81%)

7373..99%%

PatentPatent grantgrant of of foreignforeign originorigin inin IndiaIndia 13241324((7070%%))

919919((6969..77%%))

937937((5959%%))

885885((6464%%))

15241524((6161..77%%))

11471147((6060%%))

29242924(67.6%)(67.6%)

6464..66%%

PatentPatent applappl. . of of foreignforeign originorigin inin USAUSA 131131131131((4444..33%%))

148997148997((4545..66%%))

150200150200((4444..99%%))

153500153500((4444..88%%))

167407167407((4646..99%%))

182866182866((4646..88%%))

204183204183(47.9%)(47.9%)

4545..99%%

PatentPatent grantsgrants of of foreignforeign originorigin inin USAUSA 7242672426((4646%%))

7843678436((4747..22%%))

8036080360((4848%%))

8113081130((4848%%))

8002080020((4848..77%%))

6916969169((4848..11%%))

8394883948(48.3%)(48.3%)

..4747..77%%

In IndiaIn India No. of appls is increasing and on anNo. of appls is increasing and on anaverage 73.9% applications in India are fromaverage 73.9% applications in India are fromforeign inventors; while 64.6% patents areforeign inventors; while 64.6% patents are

granted to foreign applicants.granted to foreign applicants.In USA 45.9% applications and 47.7% grantsIn USA 45.9% applications and 47.7% grantsare from foreign inventors;are from foreign inventors;The rate of filing by foreign inventors in IndiaThe rate of filing by foreign inventors in Indiahas significantly risen from 55% in 2000 to 81%has significantly risen from 55% in 2000 to 81%in 2006in 2006


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P A TEN TS GR A N TED IN IND I A TO RE SIDEN TS & NONP A TEN TS GR A N TED IN IND I A TO RE SIDEN TS & NON- -RE SIDEN TS RE SIDEN TS

20002000 20012001 20022002 20032003 20042004 20052005 20062006

ResidentsResidents 557557 399399 654654 494494 945945 764764 13961396

%% of of Increase/decreaseIncrease/decrease --- --- --2828..44%% 6363..99%% --2424..4646%% 9191..33%% --1919..22%% 8282..77%%

NonNon ResidentsResidents 13241324 919919 937937 885885 15241524 11471147 29242924

%% of of Increase/decreaseIncrease/decrease --- --- --3030..66%% 22%% --55..55%% 7272..22%% --2424..77%% 155155%%

0

50 0

1 0 0 0

1 5 0 0

2 0 0 0

2 5 0 0

3 0 0 0

3 5 0 0

20 00 20 01 2 00 2 2 00 3 2 00 4 2 00 5 20 06

Re s id e n t s No n Re s id e n ts

On comparing the rate of patents granted to residents & On comparing the rate of patents granted to residents & nonnon-- residents in India, there seems to be a parallel growthresidents in India, there seems to be a parallel growthtill 2005;till 2005; bu t in 2006, the rate of patents granted tobu t in 2006, the rate of patents granted tononnon- - residents in India has do ub led as compared toresidents in India has do ub led as compared to

the residents.the residents.


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N o. O F P A TEN TS GR A N TED IN US A TO RE SIDEN TS & NON RE SIDEN TSN o. O F P A TEN TS GR A N TED IN US A TO RE SIDEN TS & NON RE SIDEN TS

20002000 20012001 20022002 20032003 20042004 20052005 20062006

USAUSA residentsresidents 8506885068 8760087600 8697186971 8789387893 8427184271 7463774637 8982389823

%% of of

Increase/deIncrease/de

creasecrease

------ 33%% --00..77%% 11%% --44%% --1111. .44%% 2020. .33%%

Non Non residentsresidents 7242672426 7843578435 8036080360 8113081130 8002080020 6916969169 8394883948

%% of of

Increase/deIncrease/de

creasecrease

------ 88..33%% 22..44%% 00..9696%% --1414%% --1313. .66%% 2424. .44%%

0

2 0 0 0 0

4 0 0 0 0

6 0 0 0 0

8 0 0 0 0

1 0 0 0 0 0

2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6

U S A r e s

d e n t s

N o n r e s

d e n t s

L

n e 3

When the rate of granting patents to residents & When the rate of granting patents to residents & nonnon-- residents was compared for USA we observe aresidents was compared for USA we observe agradual decline from 2000 to 2005, but a suddengradual decline from 2000 to 2005, but a suddenspurt in both groups in 2006spurt in both groups in 2006

But Indias share in USA is only 0.3% in2006.But Indias share in USA is only 0.3% in2006.


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CONC LUSI ONCONC LUSI ONTheThe green green picturepicture of of risingrising raterate of of filingfiling of of patentspatents in in

IndiaIndia doesdoes notnot seemseem allall thatthat green,green, halehale & & heartyhearty. .

RatherRather it it maymay bebe aa redred signalsignal forfor thethe IndianIndian

innovationinnovation policy,policy, sincesince aa majormajor chunkchunk of of thethe

applicationsapplications filedfiled inin IndiaIndia areare of of foreignforeign origin,origin,particularlyparticularly fromfrom USAUSA.. TheThe growinggrowing GDPGDP raterate inin

IndiaIndia atat presentpresent is is independentindependent of of innovationinnovation &&

patentingpatenting. . RatherRather IndiaIndia hashas becomebecome a a richrich & & readyreadymarketmarket forfor othersothers toto convertconvert theirtheir ideasideas intointo millionsmillions

& & billionsbillions. .


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CONC LUSI ON ContdCONC LUSI ON ContdEvenEven thoughthough thethe IndianIndian economyeconomy seemsseems toto bebe onon

anan upswing,upswing, thethe realreal benefitsbenefits maymay wellwell bypassbypass thethe

IndiansIndians. . InIn thethe eventualityeventuality of of suchsuch aa situationsituation

occurring,occurring, Vision Vision IndiaIndia 20202020 mightmight onlyonly remainremain a a

dreamdream. . ItIt isis clearclear thatthat unlessunless & & untiluntil thethe IndianIndian

inventors,inventors, corporatecorporate & & thethe governmentgovernment awakenawaken

fromfrom itsits slumberslumber andand overcomeovercome thethe temporarytemporary highhigh

of of shortshort burstsbursts of of patentingpatenting activityactivity; ; therethere areare rarerare

chanceschances of of thethe benefitsbenefits of of aa growinggrowing economyeconomy

comingcoming toto thethe IndianIndian nationnation. .


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A A Big Big Thank you! Thank you!

post trips patenting trends -2000-2006

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