How Many Patents Are Filed by Indian Startups?

India is home to numerous innovative startups, such as Cleartrip, Redbus, Flipkart, Infilbmn, and Makemytrip, yet these companies often face challenges in filing patents, especially for business-related inventions. This article explores the reasons behind the relatively low number of patents filed by these tech giants, highlights legal frameworks, and provides insights into strategies for patent protection.

India's Intellectual Property Ecosystem

India boasts robust policies and regulations governing intellectual property (IP), but the criteria for obtaining business patents are stringent. As a result, filing patents on basic business-related inventions proves challenging, as illustrated by recent disputes in the pharma industry. Moreover, the enforcement of IP laws is less stringent compared to developed nations. Thus, companies often give lower priority to these regulations, leading to fewer patent filings.

Strategies and Real-World Examples

Unlike larger companies that prioritize patents for defensive purposes, my startup opted for a proactive approach. We partnered with Arjun Balas to file patents in India and the US, adopting a defensive strategy. This decision aligns with the notion that innovation is not exclusive to product companies. Even in the IT services sector, we leverage our intellectual property (IP) to deliver superior services and higher quality products.

For example, when entering into master service agreements (MSAs) with clients, we ensure no exclusivity to avoid license discussions. Our approach to IP protection includes making significant parts of our IP open source, such as a search product we developed, which is now open source and used in our software services projects.

Our perspective on software manufacturing, whether in services or products, emphasizes the importance of patenting. Unlike content-focused websites that can protect their IP through copyright laws, software patents offer additional legal protection for startups and large companies alike. By leveraging these patents, we fortify our competitive position in the market.

Challenges and Legal Frameworks

The patent landscape in India remains relatively immature when compared to the United States or the European Union. This is particularly evident in the cases of software patents and business method patents, which are not well protected in India. On the other hand, rapid infringements occur with little legal consequence, further hindering innovation and patent filings.

Startups often emulate larger, more established companies, but the focus on IP creation varies. Emulation for smaller, innovative companies does not necessarily involve creating new IP, as they may adapt existing business models to the Indian context without creating new patents.

Conclusion

While India's intellectual property framework is evolving, the challenges in patenting remain. However, startups like my own, Cleartrip, Redbus, Flipkart, Infilbmn, and Makemytrip have adopted strategies to overcome these hurdles. By prioritizing patent filings, especially in the software and IT services sectors, these companies can safeguard their innovations and compete more effectively in the global market.