How’s the Patent Application Process in India Affected by 2019’s Amendments?

The Indian government, along with administrators and several Intellectual Property Law Firms in India, has recently taken a considerable step to motivate inventors to get involved in more and useful inventions. With this welcome move by the concerned authorities, the Patent Application Process in India has become not just cheaper but easier as well.

The Patent Amendment Rules 2019, which came into force on 17th September, reflect the below-given four major changes: 

  1. Submission of Original Documents Only Upon Request

Although the Indian Patent Office in 2016 had dismissed the requirement to provide hard copies of the patent forms and specification while applying for Patent Registration in India, certain documents were still needed to be submitted at the IPO in their original form. Some such documents include the Power of Authority, verified English translations of Priority and PCT documents, etc.

Under the unamended rules, the applicants need to submit the original documents at the IPO within 15 days from the day of their online submission. Nonetheless, as per the rules amended in 2019, the applicants no longer have to do so. They can file their duly authenticated documents only by electronic transmission. The exception where original documents are required to be submitted within fifteen (15) days of a request is if the IPO asks the applicant for the same.

  1. Women and Many Others Can Enjoy Expedited Examination

In 2016, the government added the Patent Application Process in India with the provision of expedited examination. Under the unamended rules, this provision had limited the number of applications to be examined within twelve months, i.e., the expedited period. Moreover, it was open for only two categories of applicants, including:

  • Start-ups,
  • Applicants who mention India as an International Searching Authority (ISA) or an International Preliminary Examining Authority (IPEA) in their applications

The amended rules concerning the provision of expedited examination have come up as a beneficial change for many other applicants, like:

  • Small entities
  • Female applicants
  • Government entities, such as:
  • Different government departments
  • Institutions wholly or largely financed by the government
  • Institutions established by the Central, Provincial, or State Act
  • Government companies as specified in Section 2(45) of the Companies Act, 2013
  • Applicants who are suitable to process patent applications compatible with agreements amid IPO and a foreign Patent Office.
  1. Form 28 Needs to be filed

As the amended rules say, the start-ups now have to submit documents supporting their start-up status along with Form 28, each time whether they file a request, form, or document at IPO. The filing of such documentary evidence claiming start-up status will prove helpful in ensuring that the applicant is eligible for claiming the suitable deduction in the fee.

  1. Zero (0) Transmittal Fee

As discussed above, the amended rules have made the Patent Application Process in India easier as well as cheaper. Under these rules, the previously applicable transmittal fee for PCT applications at the IPO through the e-filing module has been abandoned. Additionally, the applicants don’t have to pay fees for the certified copies of priority documents and their e-transmission by the WIPO Digital Access System (DAS). Even the costs for filing PCT and convention applications have been reduced.

Before 2019’s amendments, i.e., under unamended rules, the applicants were required to pay a transmittal fee of INR 3200 for start-ups, INR 8000 for small entities, and INR 16,000 for corporates. Furthermore, fees of INR 1000 for start-up, INR 2500 for small entities, and INR 5000 for corporates for receiving a certified copy of a priority document with around 30 pages were applicable under unamended rules.

Wrapping Up:

These recently amended rules will undoubtedly be going to increase the number of patent filings in India as they are providing opportunities to women, small entities, etc., in addition to those who are eligible to file patent applications and get Patent Registration in India before amendments. Moreover, these ensure easier and cheaper patent application process that ultimately buzz off the applicants’ hesitation, thus making them confident to file their applications without any worry. Hence, we can say that this welcome move by the government of India will benefit not only the people but also the nation. For more visit: https://www.trademarkmaldives.com

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CII Reports Intellectual Property Can Be Valuable Collateral for Financing

The 5th edition of CII’s (Confederation of Indian Industry) flagship annual Intellectual Property (IP) conference focused on creating IP-led technology for a $5 trillion economy has recently released a report showing global examples to represent the virtues of using IP as collateral for financing.

Visualized by CII and co-created by Duff & Phelps, the report said that being the third-largest economy for start-ups in the IP industry, including technology and pharmaceuticals, India is standing at the verge of IP revolution. Although the government initiatives like the release of the National IPR Policy in 2016 to spur interest in Intellectual Property Rights (IPRs) commercialization have been institutionalized, India’s IP financing process is still quite slow.

What are the reasons for the slow pace of IP financing In India? As the report said, unwillingness to treat IP as a business asset, challenges in IP licensing, lack of uniformity in the valuation of IPs, insufficient market, and legal infrastructure to monetize IP assets are some of the main reasons for the slow pace of IP financing in the country.

What is IP-backed financing? IP-backed financing refers to the approach of using IP assets to achieve access to credit. Nowadays, more and more MNCs (Multinational Corporations) and SMEs (Small and Medium Sized Enterprises) are selling their IP assets in exchange for finance. Besides, lending institutions worldwide are considering IP as collateral while extending loans. In general, IP assets are used to secure asset-based loans. However, if collateralized, then they can be used to increase the available credit. Note that in the cases where borrowers guarantee their IP, no matter patents, trademarks, or copyright, as collateral, the collateral pool upsurges in value and potential for a successful loan. In simple words, with ideas and innovations emerging as the key driver of the businesses, financing base that supports the IP’s commercialization is remarkably crucial.

Mr.Arvind Thakur, Chairman, CII National Committee on Intellectual Property & Senior Advisor to the Board, NIIT Technologies, while commenting on the report, said that using IP as collateral will help the industries and banks to develop a good understanding of the subject matter and gain profits.

He continued by saying that according to CII’s belief, IPRs should be at the central stage for competing in the world of Artificial Intelligence (AI) in a meaningful way. Moreover, it is expected that this would open new scopes of financing in India.

Following Mr.Arvind, Aviral Jain, Managing Director Valuation Advisory Services and Co-Head, Restructuring, Duff & Phelps, said that the nation needs to have a mechanism for obtaining financial support and a robust marketplace. India can take lessons from IP friendly nations such as Korea and Singapore that have taken steps to create an IP financing ecosystem. The schemes introduced to flourish the IP sector in these countries benefit SMEs, Start-ups, and even lending institutions.

Other Key Findings of this Recently Launched Report Are As Follows:

  • When the regulatory environment is emerging globally, and initiatives to give impetus to IP-based financing are underway, economies like Singapore display a sophisticated regulatory environment and a robust infrastructure for IP financing.
  • Over the past five years, IP financing transactions in areas where IP is used as collateral have declined globally.
  • There’s an increase in global PE (private equity) funds that are not just investing in IP-based companies but also helping to protect IP in certain situations. For more visit: https://www.trademarkmaldives.com

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TCS Reports Current Patent Laws Are Inadequate for AI-related IP

Tata Consultancy Services (TCS), India’s largest software exporter in association with the Confederation of Indian Industry (CII), has recently reported that despite the evolution of Patent Laws in India and abroad, the increasing proliferation of artificial intelligence (AI) across the world requires new policies for Intellectual Property Rights (IPRs) enforcement.

The report found that the current patent laws treat AI software-based inventions as logical algorithms implemented in the computer systems. Although patent eligibility of algorithms is valid, there is not enough about how to handle inventions with heuristic nature.

What is Heuristic?

In AI, heuristic refers to a technique to solve problems faster than the classical methods. The report cited that AI software is no longer bound to traditional rule-based systems, and in fact, has increasingly turned heuristic, thus showing higher intelligence over classical systems.

The report explained that as per the current patent laws – someone, typically a natural person (in legal terms – an individual instead of one associated with a public or private body) who only applies the logic to make anything workable cannot be an inventor.

It also clarified that machines are frequently deriving solutions to problems autonomously or in conjunction with a natural person, thus bringing the definition of a ‘natural person’ in question. Besides, it emphasized that this issue needs to be addressed by state laws and enterprises. Moreover, data-privacy and data-ownership issues, which would have severe legal implications, are other aspects that require fresh debates.

The report further noted that in the global ecosystem involving multiple players, data is not just accessed but also moved across jurisdictions many times. The data ownership holder or the data owner or the AI scientist who owns the IP rights on an invention is at the forefront of the debate.

It then revealed that AI is helping to develop new mechanisms and doctrines for future IP ecosystems. As the study recommended – the present administrators of Intellectual Property Right in India and outside have to address the IP management at three levels.

  • At the data level: In the form of access to accurate and high-quality data
  • At the IP system level: For enabling the IP systems with AI-based solutions
  • At the people level: To empower people to realize the merits of AI in the IP domain.

At last, the report informed that IBM, Microsoft, Toshiba, Samsung, and NEC were the top five patent applicants. Nonetheless, the Chinese Academy of Science (CAS), dealing in deep learning (DL) with 235 patent families, held the largest patent portfolio worldwide – the report found. For more visit: https://www.trademarkmaldives.com

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