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A country without a patent office and good patent law was like a crab and wouldnt go anyway but sideways or backwards
- Mark Twain
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Introduction
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IndiaIndia- storehouse of traditional knowledge and rich cultural heritage Scholars & scientists There was no desire to use ideas commercially. commercially. Commercialization is a western concept, the product of a culture, with sound materialistic foundations The west - evaluation of inventive ideas on commercial scale which provided incentives for ideas or inventions
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Why patents ?
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Promote innovation, technological progress and impel technology driven economic growth. Motivate investment, foster innovation, revolutionize industries, improve product quality, expand educational opportunities, increase the demand for skilled labour and promote economic development.
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Promise explosive, expansive, unplanned economic growth and its consequent benefits under the proper circumstances Patents promote growth by leveraging ideas and knowledge into securities, securities into capital, capital into investments and investments into growth To move ahead in the global innovation race Maximum IP protection & exploitation for keeping the rate of development consistent and long -life To encourage further innovation and serve society , ultimately, Social Welfare.
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Why TRIPS ? To extend the exploitation beyond geographical & political boundaries To reduce distortions & impediments in international trade Promote transfer of technology Promotion of effective & adequate measures for protection of IPR To remove the barriers within the measures and procedures of enforcing IPR for the legitimate trade To harmonize intellectual property protection & enforcement standards
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TRIPS
Introduction of TRIPs by developed countries, more so the USA, with a strong industrial setup coupled with enormous research & development India signed TRIPS out of compulsion Concessions have been given to the developing & least developed countries so as to cope up with the circumstances arising due to TRIPS India had to amend its domestic laws in consonance with requirements of TRIPS and other international requirements
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OBJECTIVES
This paper is to examine: - Whether concessions (transition period) helped India? - Whether TRIPS and consequent amendments really helped India? - The position of India in the Patent protection as compared to USA.
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In the period between 1975/76 & 1984/85 the Indian Patent Office received an average of about 3000 applications a year and issued an average of less than 2000 patents a year. By contrast the USPTO issued an average of 56,500 patents a year during the same period. Hence, India issued only 3.5% of the patents issued by the USPTO.
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Worldwide filing of patent applications has grown at an annual rate of 4.5% since 1995. China, Japan, European Patent Office, Republic of Korea & USA amount for 77% of all patents filed and 74% of all patents granted. Patent filing by residents has increased at an annual average of 6.6% and nonnonresidents by 7.6%. Patent applicants from USA, Japan & Germany are the largest filers of patents applied in other countries. These three countries account for 57% of the worldwide patent filings by non-residents. non-
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The filing has increased by 40% in 2005 & 2006. Post amendment in 2005, there has been a substantial growth in filings in India. In case of USA, there is an average increase of 9.2% in filing of patents in 2005 & 2006. Filing is much higher in India as compared to USA. i.e. it is 40% in India in 2006 whereas it is only 9.1% in USA for the same year.
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PATENTS GRANTED IN INDIA & USA FROM 2000 TO 2006 OF TOTAL APPLICATIONS IN THE RESPECTIVE YEAR
Country India 2000 1881 (39%) 39% Increase by-by-2001 1318 (15.5%) 15. 20002 1591 (15.02%) 15.02% 2003 1379 (12.05% 12.05% 2004 2469 (19.6%) 19. 2005 1911 (10.9%) 10. 2006 4320 (17.6%) 17. 120% 120%
USA
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In 2006 the filing of patents in India increased by 40% whereas the granting rate increased by 120% as to the previous year , may be due to mail box provision. From 2005 to 2006, it is only 20.8% increase in USA .
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Application
DATA NA
Grants
403 (0.3%)
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There is a gradual increase in the number of applications & grant of patents by USA to inventors of Indian origin ranging from 0.1% to 0.3% of the total applications & grant respectively in USA. But the number is negligible when compared to the total number of applications & grant of patents in USA.
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2006 2005 2004 2003 2002 2001 0 1000 2000 3000 4000 5000 6000 B a r 2 7000 B a r 3 8000 9000
N o . O f A p p l.(P e rc e n ta g e )
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The rate of growth of applications filed by USA in India is steady when compared to the total applications filed in India, but it is significantly higher i.e. 32.8% , when we compare it to the applications of Indian origin in USA i.e.0.3%.
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No. OF APPL. & GRANT OF PATENTS OF FOREIGN ORIGIN IN INDIA & USA
Year Patent appl. of foreign origin in India appl. 2000 2618 (55%) 55% 1324 (70%) 70% 131131 (44.3%) 44. 2001 6324 (74%) 74% 919 (69.7%) 69. 148997 (45.6%) 45. 2002 8221 (77%) 77% 937 (59%) 59% 150200 (44.9%) 44. 2003 8772 (76.6%) 76. 885 (64%) 64% 153500 (44.8%) 44. 2004 9395 (74.5%) 74. 1524 (61.7%) 61. 167407 (46.9%) 46. 2005 13836 (79%) 79% 1147 (60%) 60% 182866 (46.8%) 46. 2006 19984 (81%) 2924 (67.6%) 204183 (47.9%) Average 73. 73.9%
64. 64.6%
45. 45.9%
83948 (48.3%)
. 47. 47.7%
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In India No. of appls is increasing and on an average 73.9% applications in India are from foreign inventors; while 64.6% patents are granted to foreign applicants. In USA 45.9% applications and 47.7% grants are from foreign inventors; The rate of filing by foreign inventors in India has significantly risen from 55% in 2000 to 81% in 2006
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NO. OF APPLS. FOR PATENTS IN INDIA FROM RESIDENTS & NON RESIDENTS
Applicants. Applicants. Residents % of Increase/decrease NonNon-Residents % of Increase/decrease
25000 20000 15000 10000 5000 0 2000 2001 2002 RE SIDE NTS 2003 2004 NON RE SIDE NTS 2005 2006
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There is a continuous growth in patent applications by residents in India. In 2006, the growth was 24.5 % as compared to 2005. The filing rate for non-residents increased nonsubstantially in 2005 & 2006 at 42.3% & 44.4% respectively.
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PATENTS GRANTED IN INDIA TO RESIDENTS & NON-RESIDENTS NON2000 Residents % of Increase/decrease Non Residents % of Increase/decrease
3500 3000 2500 2000 1500 1000 500 0 2000 2001 2002 Re s id e n t s 2003 2004 2005 2006
No n Re s id e n t s
On comparing the rate of patents granted to residents & nonnon- residents in India, there seems to be a parallel growth till 2005; but in 2006, the rate of patents granted to nonnon- residents in India has doubled as compared to 8/10/2011 17 the residents.
85068 ---
87600 3%
86971 -0.7%
87893 1%
84271 -4%
72426 ---
78435 8.3%
80360 2.4%
U S A N o n L
r e s r e s 3
n e
2 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
When the rate of granting patents to residents & nonnon- residents was compared for USA we observe a gradual decline from 2000 to 2005, but a sudden spurt in both groups in 2006 8/10/2011 18 But Indias share in USA is only 0.3% in2006.
d e n ts d e n ts
CONCLUSION
The green picture of rising rate of filing of patents in India does not seem all that green, hale & hearty. hearty. Rather it may be a red signal for the Indian innovation policy, since a major chunk of the applications filed in India are of foreign origin, particularly from USA. The growing GDP rate in USA. India at present is independent of innovation & patenting. patenting. Rather India has become a rich & ready market for others to convert their ideas into millions & billions. billions.
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CONCLUSION Contd
Even though the Indian economy seems to be on an upswing, the real benefits may well bypass the Indians. Indians. In the eventuality of such a situation occurring, Vision India 2020 might only remain a 2020 dream. dream. It is clear that unless & until the Indian inventors, corporate & the government awaken from its slumber and overcome the temporary high of short bursts of patenting activity; there are rare activity; chances of the benefits of a growing economy coming to the Indian nation. nation.
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