A patent is a legal right granted to an inventor for a new and useful technical invention. It gives you control over how that invention may be used, produced, or sold by others. For businesses in India, patents help secure ownership over commercially valuable ideas and prevent unauthorised replication. With increasing competition across industries, you need a clear understanding of what a patent means, how it functions, and how it protects your long-term interests.
A patent safeguards the technical substance of an invention and gives you exclusive control over its commercial use. Since patents focus on the practical and technical value of an idea, the protection targets specific elements that define the invention.
Below are the core areas covered:
Inventions and technical solutions: Patents apply when an invention provides a tangible and functional solution. It may relate to a device, method, chemical composition, or a technical improvement to an existing mechanism.
Exclusive rights to make, use, or sell the invention: Once granted, the patent allows only you to manufacture, market, or license the invention. Others must obtain your permission before using it.
Focus on novelty, usefulness, and non-obviousness: A patent in India is granted only if the invention is completely new, practical, and not an obvious modification that a technically skilled person would view as obvious.
Types of Patents
Understanding the types of patents helps you choose the correct form of protection for your invention. Each type secures a different characteristic of an idea, and your choice should depend on where the invention creates value. The following categories are the most common.
Utility patents: These protect inventions that function in a specific way. Examples include machinery, manufacturing processes, formulations, and improvements to known technologies.
Design patents: These protect the unique visual appearance of a product. The focus is on shape, pattern, or configuration, not on how the invention works.
Plant patents: These apply to new plant varieties reproduced asexually. While commonly recognised in some jurisdictions, plant protection in India is addressed under a separate statute rather than within the patent framework.
India largely focuses on utility patents and design patents under the Patents Act, 1970, making them the most relevant categories for businesses seeking formal protection.
Key Features of a Patent
A patent contains several structural elements that define how the protection works. Knowing these helps you make informed decisions about filing, maintaining, and commercialising your invention. The features below outline the core structure of patent protection:
Exclusivity period: A standard utility patent lasts for 20 years from the filing date, subject to renewal fees. This duration lets you extract commercial value before competitors enter the market.
Territorial protection: A patent works only in the country where it is registered. A patent in India covers you within India alone. If protection is required in other countries, separate filings are needed.
Requirement of disclosure: To receive a patent, you must fully describe the invention in your application. In return, you receive exclusive rights, while the disclosure contributes to scientific knowledge.
Rights given to the patent holder: You gain the right to make, sell, license, distribute, or take legal action against unauthorised users. These rights strengthen your commercial position.
Patentability Criteria
Before applying for patent registration, you must check whether the invention meets the criteria for protection. Indian patent law follows specific requirements to ensure that only genuine innovations receive exclusive rights.Â
The criteria below determine whether an invention can be patented:
Novelty: The invention must be entirely new. It cannot have been published, commercially used, or publicly known anywhere in the world before the filing date.
Inventive step / non-obviousness: The invention should not be an expected or simple extension of existing knowledge. It must demonstrate technical advancement or economic significance.
Industrial applicability: The invention must have practical value and be capable of being made or used in an industry.
What cannot be patented: Patent law excludes certain subjects. These include mathematical methods, algorithms without technical application, scientific theories, methods of treatment, plants and animals, artistic creations, and any invention contrary to public order.
The Patent Registration Process
Patent registration in India follows a structured sequence designed to check novelty, technical merit, and legal compliance. To secure a smooth application process, you must follow each step thoroughly.Â
The steps outlined below outline the progression of a patent application:
Concept documentation: Record the technical details of your invention, including drawings, processes, and variations. This forms the foundation of your application.
Prior art search: Examine existing patents and publications to confirm whether your invention is new. This reduces the chance of rejection or conflict.
Drafting the patent specification: Prepare a detailed specification covering the background, description, claims, and illustrations. Strong drafting is essential because your claims define the scope of legal protection.
Filing the application: Apply to the Indian Patent Office. You may file a provisional application if the invention is not fully developed.
Publication: The application is published after 18 months from the filing date, unless you request early publication.
Request for examination: A formal request must be filed for the application to be examined. The examiner evaluates novelty, inventive step, and clarity of claims.
Response to objections: If objections arise, you must respond with technical reasoning or amendments.
Grant of patent: Once all requirements are satisfied, the patent is granted and recorded in the official register.
Benefits of Having a Patent
A patent gives your business strategic and commercial advantages that support long-term growth. By legally securing your invention, you strengthen your position in competitive markets. The benefits below highlight why businesses prioritise patent protection:
Exclusive commercial rightsOnly you can manufacture or market the invention during the validity period.
Stronger market positionCompetitors cannot legally copy your invention, helping you maintain a commercial advantage.
Potential for licensing revenueYou may license the invention to third parties and generate royalty income.
Higher business valuationInvestors often view patented inventions as assets that improve business stability.
Protection of research and development investmentPatents safeguard the financial and technical resources spent on innovation.
Risks Related to Patents
While patents offer protection, they also come with risks that may arise during innovation, filing, or commercial use. Businesses must understand these risks to avoid liabilities and disputes. The points below outline the most common patent-related risks.
Accidental infringement of someone else’s patent: During product development, your team may unintentionally use patented technology, leading to legal challenges.
Incorrect claims in patent applications: If your claims are too broad, unclear, or technically weak, the Patent Office may reject the application or grant limited protection.
Misuse of patented technology in service delivery: Using patented processes without the proper licence may expose your business to compensation claims.
Cross-border enforcement challenges: A patent in India does not protect you in other countries. Without international filings, you may face unauthorised use outside India.
How Errors & Omissions Insurance Helps?
With increasing innovation and complex regulatory rules, patent-related liabilities are becoming more common. Errors & Omissions Insurance helps you manage such risks by covering legal and financial exposure linked to professional services. The areas below show how this insurance supports patent-related protection:
Rising patent-related liabilities: Businesses face scrutiny over product design, technology use, and development processes. Even minor technical oversights may trigger legal action from third parties.
How E&O Insurance helps: This cover helps manage legal costs arising from unintentional patent infringement, negligence in technical documentation, or incorrect professional advice. It supports your business during disputes and helps maintain financial stability.
How to Strengthen Patent Protection?
Owning a patent is the first step. To safeguard your rights, you must monitor how the invention is used and maintain clear documentation. Strong internal practices help prevent conflicts and secure the invention throughout its lifecycle. The measures below help reinforce patent protection.
Conduct prior art searches: Continuous searches help you stay aware of existing patents and reduce the risk of infringement.
Maintain documentation: Detailed records of development stages create strong evidence in case of disputes.
Use NDAs and internal controls: Confidentiality agreements help protect technical information shared during collaborations.
Monitor for infringement: Regular market checks help identify unauthorised use early.
Seek expert legal support when required: Legal specialists can help refine claims, respond to objections, and manage disputes effectively.
Conclusion
A patent gives you ownership over a technical innovation and prevents others from using it without permission. By understanding the types of patents, the registration process, and the protection they provide, you can strengthen your business strategy and secure long-term value. Strong internal controls, thorough documentation, and proper insurance support help reduce risks associated with patent use and patent registration. Pairing patent protection with structured risk management ensures the invention remains secure throughout its commercial life cycle.
Need help choosing the right Errors & Omissions policy for your practice? Connect with our experts at Policybazaar for Business to find a plan tailored to your speciality, coverage needs, and risk exposure.
Disclaimer: Above mentioned insurers are arranged in alphabetical order. Policybazaar.com does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
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