THE NEED TO REFOCUS INDIA'S PATENT STRATEGY

INDIA has seen a dramatic improvement in its patent-granting process, moving from fewer than 10,000 patents annually in 201617 to over 1,00,000 patents in 202324.

- ADITYA SINHA

This surge in patent approvals, driven by extensive reforms and increased efficiency in the patent office, signifies a significant transformation in India's intellectual property landscape.

However, caution is necessary when interpreting these figures. The rising number is often mistakenly taken as a direct measure of innovation. Yet, the patent for a sealed crustless peanut butter and jelly sandwich in the US from 1999 showcases how trivial and mundane "inventions" can dilute the true purpose of patent protections. This example starkly illustrates that not all patents drive meaningful technological progress. According to Fisch, Sandner and Regner (2017), and Danish, Ranjan and Sharma (2020), relying solely on patent filing numbers as a metric for innovation is not just misleading, it's deceptive. Without ensuring the quality matches the quantity, the integrity of the system is at risk, turning a potentially innovative ecosystem into a repository of the mundane.

When low-quality patents covering nonnovel or obvious inventions are granted, they disrupt the system's foundational purpose to incentivise innovation while balancing the costs of monopoly distortions. Although such patents may appear harmless due to their likely invalidity, their uncertain enforceability creates deadweight losses and distorts incentives for genuine research and development (R&D). This shifts the patent system from a stimulant to a deterrent of innovation.