The Ascendance of Indian Tech: A Surge in Patent Filings and Intellectual Property
Kansaltancy Ventures
Helping change-makers accelerate their dreams by means of Venture Capital, Debt, SME IPO and Strategic Services
The landscape of the Indian tech industry has undergone a transformative shift in recent years, marked by a remarkable surge in patent filings and intellectual property (IP) creation. This trend signifies a welcome and pivotal development that not only reflects the growing prowess of the Indian tech sector but also promises far-reaching implications for innovation, economic growth, and global competitiveness.
India has long been recognized as a hub for information technology services, software development, and outsourcing. However, for many years, the nation's tech ecosystem was characterized more by service-oriented enterprises rather than innovation-driven ones. The emphasis was largely on providing cost-effective solutions for global businesses rather than developing proprietary technologies.
In the last decade, a noticeable transformation has taken place within the landscape of Indian tech companies. There is a growing emphasis on research and development, resulting in a significant increase in patent filings. This departure from the conventional outsourcing model to a more innovation-centric approach is crucial in positioning India as a formidable contender in the global technology arena.
In 2022, global patenting activity reached unprecedented levels, propelled by the innovation efforts of Indian and Chinese inventors, fuelled by a surge in entrepreneurship and digitalization within these nations, as reported by the World Intellectual Property Organization (WIPO). Notably, Indian patent filings experienced a substantial growth of 31.6% during this period, marking the first instance where resident filings in India surpassed those by foreign filers. Asia, with India at the forefront, accounted for the majority of global patent filings, reflecting the heightened innovative activities in the region. Despite these positive trends, the ongoing pandemic introduced uncertainty into the global innovation ecosystem, resulting in decreased venture capital funding in various parts of the world.
Within India, the fiscal year 2022 witnessed a noteworthy upswing in patent filings, boasting a robust growth rate of 13.6% year-on-year. This represents the highest annual increase in the last decade, according to a report released by Nasscom on World Intellectual Property Day. The report further highlighted an increase in the proportion of domestic filings, reaching 44.4% of the total patents filed, compared to 41.6% in the preceding fiscal year. Out of the 584,000 patents filed in India between fiscal years 2010 and 2022, a substantial 266,000 belonged to the technology domain. Notably, 160,000 of these technology patents were attributed to emerging technologies such as AI, IoT, big data, cybersecurity, and Blockchain.
Prime Minister Narendra Modi expressed India's ambitious plans to take a significant stride in the realm of artificial intelligence, aiming to empower its citizens. Emphasizing India's status as one of the world's youngest nations, boasting a dynamic startup ecosystem and a highly skilled workforce, he underscored the nation's capacity to provide global solutions. The prime minister outlined objectives focused on enhancing accessibility in healthcare and fostering informed practices in agriculture, harnessing the potential of artificial intelligence for various productive purposes.
The country has witnessed an unprecedented rise in the number of tech startups across diverse domains, ranging from artificial intelligence and machine learning to biotechnology and clean energy. These startups, often founded by dynamic entrepreneurs, having secured venture capital funding, are at the forefront of technological innovation and are increasingly recognizing the value of securing their intellectual property through patents. Kansaltancy Ventures is a Global Investment Management & IB firm into Venture Capital, Debt, M&A, Consulting & Virtual CFO with a network of 450+ VC Funds, Family Offices, Banks & Financial Institutions. Check https://www.Kansaltancy.com?.
Affle India has recently submitted applications for an additional 15 patents related to artificial intelligence, bringing its total patent count to an impressive 36, a notable achievement within the AdTech industry.
Servotech Power Systems, a prominent manufacturer of electric vehicle (EV) chargers and solar solutions, has also entered the patent space with two filings in the EV charger domain, aiming to drive the adoption of green vehicles. These patents enable the fast charging of any GB/T Bharat DC 001 vehicle based on 72v/96VDC through a CCS2 connector, facilitated by a compact additional device. The introduction of these patents is expected to revolutionize the EV charging infrastructure, presenting two distinct methodologies that contribute to creating a robust, interoperable, and cost-effective ecosystem for EV charging.
In a significant milestone, Passenger Drone Research Pvt. Ltd. (PDRL) has secured five patents for its revolutionary agricultural drone software, AeroGCS GREEN. Developed over the past six months, these patents underscore PDRL's commitment to innovation in the agricultural drone technology domain. AeroGCS GREEN, entirely crafted in India, has emerged as the preferred choice for Indian drone manufacturers, with approximately 75% of type-certified agriculture drones in the country utilizing this software for drone operations management. The five patents can be categorized into two key areas: three patents pertain to agriculture drone flight planning, highlighting the precision and efficiency of drone operations in agricultural contexts. The remaining two patents focus on integrating artificial intelligence capabilities into agriculture farm analytics, showcasing advancements in data analysis for enhanced farming practices.
The rise in patent filings and intellectual property creation is not merely a symbolic gesture but has tangible implications for India's economic growth. Intellectual property serves as a catalyst for economic development by fostering innovation, attracting investments, and enhancing the competitiveness of industries.
When companies protect their innovations through patents, it creates a conducive environment for attracting investment. Investors and venture capitalists are more likely to support ventures that have a robust intellectual property portfolio as it provides a competitive advantage and mitigates risks associated with imitation.
Moreover, a flourishing IP landscape can stimulate job creation, foster a culture of innovation, and contribute to the overall productivity of the tech industry. As startups and established companies alike focus on developing cutting-edge technologies, they create a ripple effect in the economy, driving advancements in various sectors and enhancing India's global standing.
The surge in patent filings is not only indicative of a maturing tech ecosystem but also positions India as a global player in terms of technological leadership. A robust IP portfolio enhances the competitiveness of Indian tech companies on the global stage, enabling them to assert their presence in markets traditionally dominated by established players.
As Indian tech companies continue to innovate and secure their intellectual property, they contribute to the global knowledge pool. This not only elevates India's reputation as a source of innovative solutions but also fosters collaborations and partnerships with international entities, further accelerating technological advancements.
While the rise in patent filings is a positive trend, it is not without challenges. The process of obtaining patents can be time-consuming and resource intensive. Additionally, there is a need for a more streamlined and efficient patent examination process to ensure that innovators can protect their creations without undue delays. Kansaltancy Ventures is a Global Investment Management & IB firm into Venture Capital, Debt, M&A, Consulting & Virtual CFO with a network of 450+ VC Funds, Family Offices, Banks & Financial Institutions. Check https://www.Kansaltancy.com?. Moreover, with the ambiguity in the intellectual property laws, patents give rise to a number of contentions. For example, Nike has initiated legal action against New Balance and Skechers, alleging patent infringement related to Nike's Flyknit technology. The lawsuits assert that New Balance's product lines, including Fresh Foam and Fuel Cell, as well as Skechers' Ultra Flex and Glide Step brands, are in violation of Nike's patent rights. Nike is pursuing damages of an unspecified amount and is seeking a permanent injunction to prevent the two companies from further infringing on the patents. Responding to the allegations, New Balance argued that Nike does not possess exclusive rights to conventional manufacturing methods in the footwear industry.
Furthermore, there is an opportunity for the Indian government and regulatory bodies to provide additional incentives and support for research and development activities. This could include financial incentives, grants, and infrastructure support to encourage companies to invest in innovation and IP creation.
领英推荐
To ensure that the trend of increased patent filings and intellectual property creation continues and becomes more pervasive, concerted efforts are required from various stakeholders – the government, industry players, educational institutions, and research organizations. The government of India provides a conducive environment for innovation in the startup ecosystem and patent filings. Prime Minister Narendra Modi commended the rising number of patent applications in India, affirming that it mirrors the expanding innovative zeal among the nation's youth. The Indian government can play a more pivotal role in fostering a culture of innovation by introducing policies and initiatives that incentivize research and development. This could include tax incentives for companies engaged in R&D activities, grants for startups, and the establishment of innovation hubs. Simplifying and expediting the patent filing and examination processes will encourage more innovators to protect their creations. This involves investing in the infrastructure and resources needed to handle an increased number of patent applications efficiently.
Experienced researchers and faculty members play a crucial role in fostering awareness about patents or intellectual property rights (IPR) from the outset of their engagements with students and fellow researchers. To propel India's technological progress, it is imperative for higher education institutions (HEIs) to mandate a minimum of one patent for Master's degrees and two patents for Ph.D. scholars. Moreover, the quantity of patents could serve as a pivotal criterion for start-ups seeking government grants. Within academic settings, the establishment of active IP cells staffed with qualified professionals, including patent attorneys, is recommended. Alternatively, HEIs can collaborate with reputable external agencies to not only facilitate patent filing but also assist in marketing innovations and securing royalties for the institution.
The rise in patent filings and intellectual property creation in the Indian tech sector is a promising trend that heralds a new era of innovation and competitiveness. As India continues to evolve from a service-oriented economy to an innovation-driven one, the implications for economic growth, job creation, and global leadership in technology are significant.
To ensure that this trend not only persists but becomes more widespread, a collaborative and concerted effort is required from all stakeholders. By fostering a supportive ecosystem that encourages and rewards innovation, India can position itself as a global technology powerhouse, with a thriving culture of intellectual property creation at its core. The time is ripe for India's tech renaissance, where the spirit of innovation and the protection of intellectual property go hand in hand.
About Tushar Kansal, Kansaltancy Ventures:
Founder/ CEO of Kansaltancy Ventures - Tushar is an accomplished professional, a "Thought Leader" & "Thought Influencer".? Over the years, Tushar has supported Startups & Growth-stage companies in diverse sectors.?Tushar is a Venture Advisor with a Canadian VC Fund & has invested in over 350 investments in more than 60 countries.?His expert opinion is often sought by leading Business news channels and publications like CNN-News18, VCTV (Venture Capital Tv), Business World, Inc42, TechThirsty and Digital Market Asia. He has done 300+ talks - Just check on YouTube and Google.?He is connected with 450+ investors globally, picking up global deals while being sector agnostic. His ticket size is USD 1-50 million
He can be reached at?[email protected]?or on below social media
Personal website:?https://tusharkansal.com/?
Company profiles –?