Patent law has acted as a driving force that fosters innovation, granting patent rights to the inventors, which provides an opportunity for research and stimulates its growth, thus boosting economic and scientific development. Evolutionary changes in Indian patent laws reflect the nation's process of transformation from a traditional colonial rule to a full-fledged global scientific-technological and innovative state.

The history of patent law in India traces its roots back to the British colonial period, when the first patent legislation was introduced under the Patents and Designs Act of 1856. In this article , the transformation of India's patent system, influenced by both domestic needs and international developments such as the country's commitments under the World Trade Organization (WTO) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), is discussed.

Some key milestones that characterize the development of Indian patent law are the Patents Act of 1970, signaling a change from a colonial framework towards an accessible and balanced one; major reforms as responses to the TRIPS Agreement in 1995 and onwards; and a matured legal infrastructure in support of a balance between protection of intellectual property rights and the public interest in issues of public health. This legal history marks not just the transformative journey of patent law but also points to a critical role that it would play in positioning India's place in the global innovation landscape.

Historical Background of Patent Law in India

Phase 1: Early Developments Pre-Independence

Introduction of Patents During British Colonial Rule:

Patent law in India was introduced during the British colonial period for the protection of British industrialists' interests and to facilitate technological developments in the Empire. The framework for granting patents in India initially followed British patent laws.

Early patent systems were to control the monopoly issued to the inventors and their employing of the new inventions, so that such monopolies would lead to technological advances in the colonies.

The First Patent Act of 1856 (The Patents and Designs Act, 1856):

• The Patents and Designs Act, 1856, was the first formal patent legislation in India. It was to control inventions for patenting by allowing inventors exclusive rights for such inventions against public disclosure of the inventions.

• The act is based on British patent law, but it is not as comprehensive or modern in approach because it was more of protecting the rights of foreign inventors and companies.

• The act conferred patents on both inventions and designs, but its provisions were narrow, and the criteria for granting patents were not very stringent.

Indian Patents and Designs Act of 1911:

Comprehensive Framework: The Indian Patents and Designs Act of 1911 was a significant step towards modernizing patent law in India, replacing the 1856 Act. It incorporated more detailed provisions and was influenced by the British Patents Act of 1907.

Key Provisions:

• The Act provided for patents for inventions and designs that were novel, useful, and not obvious.

• Product patents were permitted, but there were exceptions, such as certain pharmaceutical products.

• Opposition to patents and patent revocation procedure were also part of the Act.

Impact on India: The law continued to stand in India for nearly half a century and paved the base of the Indian patent structure. However, it is very much crafted in respect to the British interest rather than catering to the Indian developed sectors.

Impact of the British Patent Act on Indian Act

It reflected on more British laws that dominated it through time; thereby, Indian patent law always favored foreign corporations, even corporations from Britain, and showed no sign of developing innovative technology by indigenous people during this period.

• Limitations: The 1911 Act neither fostered domestic technological innovations nor satisfied the developmental requirements of the Indian economy, being basically agrarian and short of industrial infrastructure. At the same time, it restrained patenting of pharmaceutical drugs and thereby reduced the production of low-cost medicines available in the Indian market.

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Phase 2: Post-Independence Era

Need for Patent System Revival in Independent India:

• Following independence in 1947, India recognized the need to overhaul the colonial-era patent system. There was a growing desire to tailor patent laws to suit India’s unique economic and technological needs, particularly in fostering domestic industries, encouraging innovation, and ensuring public welfare.

• Economic Development Goals: India focused on self-sufficiency, industrialization, and public health protection. The focus shifted from granting patents to foreign corporations to enabling Indian industries to grow and become globally competitive while balancing the needs of society.

• The problems of access to medicines and technologies, particularly in the pharmaceutical industry, became a pressing concern, as the old system often awarded monopolies to foreign drug companies that led to high prices for essential medicines.

Important Legal Reforms and the Role of International Treaties:

The Patents Act of 1970 was a landmark reform in India's patent law, marking a significant shift from the colonial framework. This Act aimed to promote indigenous innovation and technological development while protecting public interests, particularly in the pharmaceutical and healthcare sectors.

Key Features of Patent Law in India:

• Introduce instead process patents in pharmaceutical, by and large on Indian firms reverse-engineering overseas drugs to produce generic low-priced analogs; this would strongly build a very huge generic pharmaceutical industry based here in India, which ultimately leads India to become one of the biggest players in offering medicines all over the globe.

• The Act also provided for compulsory licensing (Section 84) whereby the government could allow third-party production of patented products in the public interest, especially in cases of non-working of patents or if the patented product was not available at a reasonable price.

• The patent term was reduced to 14 years, and strict requirements were set for patentability, including patent novelty and industrial applicability.

The Influence of International Treaties: WTO and TRIPS

• WTO and TRIPS Agreement (1995): The World Trade Organization (WTO) and the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, which came into existence in 1995, saw another major change in India's patent laws. The TRIPS Agreement made it mandatory for the member countries to make their patent laws comply with the international standards, which ensures that patents on products and processes are protected, especially in the pharmaceutical and biotechnology industries.

• Challenges of Compliance: India's traditional approach to process patents, particularly in pharmaceuticals, was at odds with the new TRIPS regime that required the protection of product patents. This required a series of amendments to the Patents Act of 1970 to bring it in line with TRIPS, especially with regard to pharmaceutical patents.

Know the Key Differences between Process & Product Patents

Important Reforms under TRIPS Compliance:

• 1999 Amendment: The mailbox system was introduced (Section 5), whereby companies could file applications for pharmaceutical product patents, though the patents would not be granted until 2005.

• 2005 Amendment: The Patents (Amendment) Act, 2005 made India fully compliant with the TRIPS agreement, extending the patent protection to pharmaceutical products and granting a 20-year term for patents. This marked a turning point for India by opening the doors to international investment and aligning it with global patent standards.

• Impact on Public Health: As the TRIPS-compatible changes provided stronger patent protection, controversy and debate arose over the availability of essential lifesaving drugs. In reply to this, India made a few exceptions, such as Section 3(d), whereby minor variations of already-known medicines should demonstrate enhanced efficacy for purposes of patentability and prevented the evergreening of patents.

Also, Check out What is Patent Cost In India

Phase 3: Development of Indian Patent Law (Post-Independence Reforms)

1. Patents Act, 1970

Key Features and Purposes:

The Patents Act, 1970, was a pivotal piece of legislation that transformed India's patent regime, shifting away from the colonial-era patent laws that were seen as restrictive and overly favorable to foreign interests.

Objectives:

• To encourage indigenous innovation and technological development by making patents accessible to Indian inventors.

• To promote public interest by ensuring that patents were not used to create monopolies that hindered access to affordable goods, particularly in critical sectors like pharmaceuticals and agriculture.

• To prevent the exploitation of patent rights by foreign entities at the expense of domestic industry and public welfare.

• Focus on Process Patents: One of the most significant reforms of the 1970 Act was the introduction of process patents (and not product patents), especially for pharmaceuticals. This enabled Indian companies to reverse-engineer patented products and manufacture generic versions, which became an important growth driver for India's generic drug industry.

Also, Get to Know What is Evergreening of Patents

Transition from Colonial Model to a More Accessible Patent System

• Under the Patents Act, 1970, it was reformed to promote industrial growth in the country rather than foreign-based interests. This change promoted innovations that were more localized to this country, especially in sectors such as pharmaceuticals, chemicals, and engineering.

• Contribution to Pharmaceutical Industry: The companies that benefited from the system included Cipla and Ranbaxy, which would go on to make highly relevant contributions to global healthcare systems, especially in the developing world, by manufacturing cost-effective generic medicines.

Introduction of Product and Process Patents:

• The 1970 Act specifically allowed process patents in pharmaceuticals, enabling Indian companies to produce generic versions of patented foreign drugs through different manufacturing processes without violating intellectual property rights.

• Limited Product Patents: Although the Act granted the right to patent a product in some areas, such as chemicals and machinery, pharmaceutical product patents were not covered, which remained one of the contentious areas until India's compliance with the TRIPS Agreement during the late 1990s and early 2000s.

Also, Check out Grounds & Procedure for Patent Revocation in Section 64 of Patents Act, 1970

In short, the historical development of Indian patent law reflects a tension between accommodation to global standards and responsiveness to local developmental imperatives. While the earliest patent laws were shaped for the advantage of colonial powers and their industries, reforms following independence have been focused more on domestic innovation, public health, and equal access to technology. India's patent system has continued to evolve in an ongoing manner, thereby further influencing the nation's economic course of development, particularly within knowledge-intensive sectors like pharmaceuticals, biotechnology, and information technology.

History of Patent Law in India FAQs

Q1. Which was the first patent law in India?

The first patent law in India came into effect with the Patents and Designs Act of 1856, enacted during the British colonial rule. The said Act primarily dealt with granting patents mainly on industrial process inventions and designs.

Q2. What were the amendments made in the patent law by the Patents Act of 1970?

The Patents Act of 1970 represented a significant departure from India's patent system, leaving the colonial model behind. It provided for provisions in support of domestic innovation and the granting of patents only where the inventions were not mere trivial modifications of existing ones. It was more process-oriented  than product-oriented, especially in areas such as pharmaceuticals.

Q3. What impact did the TRIPS Agreement have on patent law in India?

The TRIPS Agreement of 1995 obliged India to alter its patent law according to international standards, incorporating product patents for pharmaceuticals which had earlier been left out. This led to some major reforms, mainly in 1999 and 2005, as Indian patent law was now at par with global intellectual property standards.

Q4. What is the development of patent laws of India in the light of public health issues?

India has incorporated important provisions such as compulsory licensing in its patent laws, especially in the pharmaceutical sector, in order to balance patent protection with public health needs. Such landmark cases as the Novartis v. Union of India (2013) ruling and the Bayer v. Union of India (2014) case have reinforced India's commitment to ensuring affordable access to essential medicines while maintaining patent protections.

Q5. What are some of the major amendments to Indian patent law in recent times?

Recent amendments have focused on TRIPS compliance and strengthening the protection of biotechnology and pharmaceutical patents. Of note, the 2005 amendments extended the patent term to 20 years, introduced stricter patentability criteria, and set provisions to address digital patents and biotechnology patents.