Patent

What is a Patent and Why Is It Important?

By Abhijit Bhand August 20, 2025

If you’ve ever built something from scratch… a gadget, a piece of code, a molecule; you know the strange mix of pride and paranoia that comes with it. Pride, because you’ve made something that didn’t exist before. Paranoia, because in a world where copying is cheaper than creating, someone else could take your work, slap their name on it, and profit before you’ve even caught your breath. That, in essence, is why patents exist. 

In India, a patent isn’t just a badge of innovation. It’s a legal right, defined under Section 2(1)(j) of the Patents Act, to stop others from making, using, selling, or importing your invention without permission, for a limited period. But it’s not a blanket “right to use” your invention; it’s the right to exclude others. That difference matters. Imagine you design a brilliant electric scooter that glides silently through traffic, but it runs on a type of battery regulated under environmental law. Even with a patent, you might need other approvals to actually sell it.

Patents only cover inventions that tick three boxes: they’re new, they involve an inventive step, and they’re capable of industrial application. Sounds simple enough, until you meet Sections 3 and Section 4 of the same Act, the gatekeepers that declare certain things unpatentable no matter how novel or clever they are. Think perpetual motion machines, methods of surgery, or plants and animals (other than microorganisms). Those stay out of the system, for reasons ranging from scientific credibility to public policy.

The Making of a Patentable Idea

Every patent starts with a spark: the “what if” moment. But turning that into something patentable in India means crossing a high bar. Novelty means it’s never been disclosed anywhere in the world, not in a journal, a trade fair, or even a conference presentation. Inventive step means it’s not obvious to a skilled person in the field; you’ve added something more than routine tweaking. Industrial applicability means it can be made or used in some kind of industry, which can range from pharmaceuticals to software-integrated hardware.

The “what doesn’t qualify” part is just as important. The Supreme Court’s decision in Novartis v. Union of India in 2013 put teeth into Section 3(d), refusing a patent for a new form of a known cancer drug because the company couldn’t prove “enhanced therapeutic efficacy”. That single case changed the way pharma patents are drafted in India, data on clinical benefit became non-negotiable.

For software-driven inventions, Ferid Allani v. Union of India in 2019 was a game changer. The Delhi High Court said you can’t reject something just because it involves a computer program; if it produces a “technical effect” or “technical advancement,” it can still qualify. That opened the door for AI-driven systems, image-processing tools, and fintech security protocols, as long as they’re claimed with the right technical framing.

Sometimes, the law tilts toward public interest. In Bayer v. Natco, India’s first compulsory licence was granted for a life-saving cancer drug, allowing a generic manufacturer to sell it at a fraction of the price while paying royalties. It’s a reminder that patents are private rights operating in a public ecosystem, your monopoly isn’t absolute if the public’s needs are at stake.

Why It Matters in the Real World

It’s easy to think of patents as dusty legal certificates, but they’re often the difference between an idea surviving or dying in the market. Take James Dyson. Before his first bagless vacuum cleaner took the world by storm, he built over 5,000 prototypes. Without a patent, years of trial and error could’ve been swiped by big appliance brands before he even had a chance to sell his first vacuum. Instead, those patents became his shield and his bargaining chip, giving him the breathing room to turn a scrappy idea into a company that still owns its corner of the market today.

Or think of the Wright brothers. Their 1906 patent on an aircraft control system wasn’t just a technical document; it became the heart of a bitter legal battle with rival aviators. The lawsuits may have slowed America’s early aviation progress, but they also sent a clear message: mastering flight wasn’t just about building machines, it was about owning the ideas that made them work. That push-and-pull between guarding an invention and letting an industry grow hasn’t gone away; it still fuels plenty of patent arguments today.

In pharma, Pfizer’s cholesterol drug Lipitor is a classic example. It ruled the global sales charts for years, and a big part of that success came from the fortress of patents the company built around it. The company even used follow-on patents strategically to extend market exclusivity. In India, however, such tactics face the scrutiny of Section 3(d), as Novartis discovered. The balance here is different: protection is possible, but not without proving genuine added value.

For innovators and entrepreneurs, patents can be your ticket to investment. Venture capitalists love the defensibility that comes with a granted patent; it can make the difference between funding a prototype and scaling a product. For universities and research institutions, patents turn academic output into industry collaborations, licences, and sometimes spin-off companies. And for corporations, they’re both shields and swords, a defensive barrier against copycats and a bargaining chip in cross-licensing negotiations.

The Life and Limits of a Patent

In India, the road to a patent begins at the drafting table, a stage where your idea needs both technical clarity and legal smarts. You can start with a provisional application to lock in your priority date while you polish the details, but within a year you’ll need to file the complete specification. After that, the Patent Office takes over: they check if your invention meets the law’s requirements, dig through prior art to see if it’s truly new, and send you a First Examination Report (FER). That’s your cue to reply… maybe tweak your claims, answer objections, or even show up for a hearing. If everything lines up, you walk out with a granted patent.

That grant gives you 20 years of exclusivity from the filing date, but only if you pay annual renewal fees and comply with working requirements. Neglect those, and the patent lapses. And remember, a patent doesn’t guarantee commercial success. It can give you room to breathe, to scale, to negotiate, but the market decides the rest.

Indian law also keeps a close watch on how patents interact with public welfare. Compulsory licensing provisions mean that if a patented product isn’t available at a reasonable price or being worked in India, the government can step in. That’s not common, but the Bayer-Natco case showed it’s not theoretical either.

Thinking Beyond the Certificate

Patents are a strong tool, but they’re not the only way to guard an idea. Sometimes, keeping it under wraps works even better, like Coca-Cola’s secret recipe, which has stayed locked away for over a century because no one can reverse-engineer it exactly. Sometimes, an industrial design registration is better for protecting the look and feel of a product. And sometimes, copyright covers the creative aspects of code or documentation more effectively than a patent could.

What patents do uniquely well is force you to think through your invention: to define it, prove it, and share it publicly in exchange for exclusivity. They’re a contract between you and society: you disclose, you teach, and for 20 years, you control. After that, it’s everyone’s to use.

Sections 3 and 4 of the Indian Patents Act often get a bad reputation as roadblocks, but they’re more like signposts on the way to a grant. They’re not just there to say “no”; they’re quietly showing you how to refine your idea so it stands a real chance of getting through. When you understand why those exclusions exist, you can steer your R&D, shape your claims, and gather your proof with the examiner’s point of view already in mind.

The real question, then, isn’t just “What is a patent?” or even “Why is it important?” It’s whether you’re ready to see intellectual property as part of your creative process from the very beginning, not a form you fill out at the end. When you do, the law stops feeling like a hurdle and starts feeling like a partner in bringing your best ideas to life.

Author: Abhijit Bhand 

Abhijit is an Intellectual Property Consultant and Co-founder of the Kanadlab Institute of Intellectual Property & Research. As a Registered Indian Patent Agent (IN/PA-5945), he works closely with innovators, startups, universities, and businesses to protect and commercialize their inventions. A double international master’s degree holder in IP & Technology Law (JU, Poland), and IP & Development Policy (KDI School, S. Korea), and a Scholar of World Intellectual Property Organisation (Switzerland), Abhijit has engaged with stakeholders in 15+ countries and delivered over 300 invited talks, including at FICCI, ICAR, IITs, and TEDx. He is passionate about making patents a powerful tool for innovation and impact.

Abhijit Bhand

Abhijit Bhand

Abhijit is an Intellectual Property Consultant and Co-founder of the Kanadlab Institute of Intellectual Property & Research. As a Registered Indian Patent Agent (IN/PA-5945), he works closely with innovators, startups, universities, and businesses to protect and commercialise their inventions. He had also worked with the Indian Institute of Technology Jodhpur as a Principal Research Scientist, where he handled intellectual property matters for the institute.

A double international master's degree holder in IP & Technology Law (JU, Poland), and IP & Development Policy (KDI School, S. Korea), and a Scholar of World Intellectual Property Organisation (Switzerland), Abhijit has engaged with stakeholders in 15+ countries and delivered over 300 invited talks, including at FICCI, ICAR, IITs, and TEDx. He is passionate about making patents a powerful tool for innovation and impact.

← Back to All Articles