Patent: Meaning, Examples, Importance, Types, How It Works, and Step to Apply for it

Learn what a patent is, its types, importance, cost, application process, and how it differs from trademarks and copyrights.
What is a Patent
3 min
10 June 2025

Patents stand as formidable shields safeguarding the fruits of inventive minds. A patent, a legal document, bestows exclusive rights upon inventors, prohibiting unauthorized replication or utilization of their creations. This essential facet of patent law fuels a culture of innovation by offering inventors a time-bound monopoly on their ingenious breakthroughs. Check your business loan eligibility if you’re an inventor or startup seeking financial support to transform your patented idea into a market-ready product.

What is a patent?

A patent is an exclusive right granted for an invention, whether a product or a process, that introduces a novel way of doing something or provides a new technical solution to a problem. To obtain a patent, the inventor must disclose the technical details of the invention to the public in a patent application.

Many first-time inventors exploring patent rights also look for financial support to bring their ideas to market. In such cases, a startup business loan can help cover costs related to product development, legal fees, and prototype creation.

Key Takeaways

  • Patent law in India began with the Indian Patents and Designs Act, 1911.
  • Governed by the Patents Act, 1970, effective from 1972.
  • Administered by the Controller General of Patents, Designs, and Trade Marks (CGPDTM).
  • Main office in Kolkata, with branches in New Delhi, Chennai, and Mumbai.
  • CGPDTM office in Mumbai; Patent Information System and National Institute for Intellectual Property Management located in Nagpur.
  • The Controller General manages the Act and provides advice to the government.
  • The Patents Act was amended in 1999, 2002, 2005, and 2006 to meet TRIPS (Trade-Related Aspects of Intellectual Property Rights) standards.
  • The 2005 amendment expanded product patents to all technological fields, including food, drugs, chemicals, and microorganisms, with further updates in 2012, 2013, and 2014.

Patent Law Amendment Act 2005

The Patent Law Amendment Act of 2005 introduced significant changes to align Indian patent laws with global standards, especially under the TRIPS agreement. Key features include:

  • Introduction of product patents: Extended patent protection to sectors like food, pharmaceuticals, and chemicals, which were earlier excluded.
  • Patent term extension: Patent protection was extended to 20 years from the date of filing.
  • Compulsory licensing: Enhanced provisions for issuing compulsory licenses, ensuring accessibility to essential medicines.
  • Examination process: Introduced a comprehensive process for patent application examination, including opposition before grant.
  • EMR removal: Exclusive Marketing Rights (EMR) provisions were abolished, making way for direct product patents.
  • Pharmaceuticals protection: Allowed for the patenting of incremental innovations (known as "evergreening") while balancing public health interests.

The 2005 amendment marked a major shift towards a more TRIPS-compliant framework, promoting innovation while ensuring access to critical resources for the public.

What does a patent protect?

A patent protects the following:

  • Inventions: Grants exclusive rights to new, useful, and non-obvious inventions or discoveries.
  • Processes: Secures rights for innovative methods or processes of doing something.
  • Machines: Protects novel mechanical devices or machinery.
  • Manufactures: Covers new articles of manufacture.
  • Compositions of matter: Includes chemical compositions, such as new pharmaceutical drugs.
  • Designs: Safeguards the unique ornamental design of an article.
  • Plant patents: Protects new and distinct plant varieties reproduced asexually.
  • Exclusive rights: Provides the patent holder the right to exclude others from making, using, selling, or importing the patented invention.
  • Limited Duration: Typically lasts 20 years from the filing date.
  • Enforcement: Allows the holder to take legal action against infringers.

Importance of Patent

Patents play an important role in encouraging innovation and protecting your original ideas. They give inventors the exclusive right to use or sell their invention, stopping others from doing so without permission.

Here are some key benefits of having a patent:

1. Support for Research

Patents protect your inventions during research and development. You can safely share your ideas without worrying that someone else will copy them.

2. Sharing Knowledge

When you file a patent, you must explain your invention clearly. This adds to public knowledge and can help others improve the technology, creating a culture of ongoing progress.

3. Stay Ahead of Competitors

With a patent, you get exclusive rights to your invention. This gives you an edge over competitors and may help you earn better profits by offering something unique in the market.

4. Earn Through Licensing

You can allow other businesses to use your patented invention by signing licensing agreements. In return, you earn money—creating an extra source of income.

5. Attracting Investors

Patents can help when talking to investors. They show that your idea is original and protected, making your business more attractive to those who might want to invest. For funding your innovative ventures, check your pre-approved business loan to access instant capital and scale your invention’s market reach.

6. Legal Protection

If someone uses your invention without permission, you can take legal action. You can stop them and even ask for compensation.

7. Showcasing Expertise

A patent is a sign that you’re innovative and skilled. It can improve your image in the eyes of customers, partners, and the wider industry.

8. Government Benefits

Having a patent may also make it easier to get government support. Some schemes, contracts, or grants give preference to businesses with innovative, patented products.

Types of patents

Patents, as guardians of innovation, come in various forms tailored to the diverse nature of inventions. Understanding these types is crucial for inventors seeking the most appropriate protection for their creations. Each type of patent serves a specific purpose, catering to the distinct characteristics of inventions, and collectively, they form a comprehensive framework for intellectual property protection.

  • Utility Patents
    Cover functional aspects of inventions.
  • Design Patents
    Protect the ornamental design of functional items.
  • Plant Patents
    Grant rights for new and distinct plant varieties.

What can’t be patented?

The following cannot be patented:

  • Abstract ideas: Concepts, mathematical algorithms, and theories.
  • Natural phenomena: Laws of nature, physical phenomena, and naturally occurring substances.
  • Literary works: Copyrights protect these, not patents.
  • Inventions contrary to public morality: Inventions deemed unethical or harmful.
  • Purely aesthetic designs: Design patents cover ornamental aspects.

How do patents work?

1. Protection from Copying

A patent gives you the legal right to stop others from making, using, or selling your invention without your permission.

2. Exclusive Use for a Fixed Time

Most patents last for 20 years. Some, like those in the pharmaceutical industry, can be valid for up to 25 years.

3. Keep Your Patent Active

To keep your patent valid, you must pay a yearly renewal fee during its lifetime.

4. Sharing Knowledge to Inspire Innovation

When you file a patent, you must describe your invention clearly. This helps others learn from your idea and build new technologies.

5. Take Legal Action If Needed

If someone uses your invention without your permission, you can take them to court to stop the misuse and claim compensation.

6. You Own It – Or Can Transfer It

The patent usually belongs to the inventor. However, it can also be transferred to a company, institute, or organisation that supported or funded the research.

7. Different Types of Patents

There are different patents for different kinds of inventions:

  • Utility patents – for new products or processes.

  • Design patents – for how something looks.

  • Plant patents – for new plant types developed through breeding.

How to apply for a patent

Step 1: Invention Disclosure

The first step is to share full details of your invention with a professional. This is done by signing a non-disclosure agreement (NDA).

Step 2: Patentability Search

A patent professional usually charges Rs. 10,000 to Rs. 20,000 for this step. They conduct detailed research to find out if a similar invention already exists. Based on this, they prepare a patentability search report.

Step 3: Filing a Patent Application

Once you're sure your invention is unique and qualifies for a patent, you can decide to go ahead with the application.

Step 4: Patent Drafting

Now comes the drafting of the patent application. You can write it yourself or hire a professional, who may charge around Rs. 20,000 to Rs. 30,000.

Step 5: Filing the Patent Application

After reviewing the draft, if everything looks good, you're ready to file it with the patent office. You'll need to submit the appropriate forms and pay a government fee—Rs. 1,600, Rs. 4,000, or Rs. 8,000 depending on the applicant type.

Step 6: Request for Examination

Within 48 hours of filing, you must request the patent office to examine your application. The fee for this ranges from Rs. 4,000 to Rs. 20,000, based on your applicant category.

Step 7: Responding to Objections (if any)

The patent office will examine your application and may raise objections. You’ll have the opportunity to explain how your invention is different or better than others. If all queries are answered properly, the process moves forward.

Step 8: Grant of Patent

If everything is found in order, your application will be approved. The patent grant is published in an official journal, and you will receive your patent rights.

Step 9: Renewal of Patent

Patents in India are valid for 20 years. After this, you’ll need to renew the patent by paying a small renewal fee to keep your rights active.

Advantages of Patent for Your Business

  1. Exclusive Rights
    Getting a patent in India gives you full rights to make, use, and sell your invention for 20 years from the filing date. It protects your idea from being copied or used by others without your permission.
  2. Standing Out in the Market
    A patented product or process makes your business unique. It shows your creativity and gives customers a reason to choose your product over others.
  3. Control Over Your Invention
    With a patent, you control how your invention is used in the market. You can set prices and negotiate better licensing deals.
  4. Earning from Your Patent
    A patent is like an asset. You can earn money by licensing your invention to other companies, forming business partnerships, or even selling the patent.
  5. Gaining Investor Trust
    Having patents makes investors more confident in your business. It proves you are serious about innovation and have protected your ideas legally.
  6. Legal Protection
    If someone uses your patented invention without permission, you can take legal action to stop them and ask for compensation.
  7. Encourages Innovation
    Knowing that their ideas are protected encourages inventors and businesses to spend more time and money on new ideas, helping them grow and stay ahead in the market.
  8. Competitive Advantage
    Patents help you stay ahead of your competition. They act as a barrier, making it harder for others to copy your product or process.
  9. International Safety for Your Idea
    In today's global market, patents can also protect your invention in other countries. You can apply for international patents and enter into agreements with businesses abroad.
  10. Increases Business Value
    Having one or more patents adds value to your business. It shows that you have strong ideas with future earning potential, which is useful if you want to sell or expand your business.
  11. Sharing Technology
    Patents also allow you to share your technology legally with others through licensing. This opens doors to new business opportunities and partnerships.

Challenges of Getting a Patent for Your Business

1. Stringent Eligibility Criteria

Securing a patent in India demands meeting strict eligibility criteria. The invention must be unique, involve inventive steps, and demonstrate applicability. Fulfilling these standards can pose challenges for some types of inventions.

2. Lengthy Approval Process

The patent approval process in India can be time-consuming. Delays may occur during the examination and grant stages, impacting the overall time it takes to secure a patent.

3. Documentation and Technicalities

It is essential to have thorough documentation that meets all standards when filing for a patent. Insufficient documentation or not meeting criteria may result in rejection.

4. Competing Claims and Oppositions

External parties might oppose the grant of a patent while it is being processed. Resolving these challenges can be legally complex and can lead to delays or denial of the patent.

5. High Costs

The costs associated with filing and maintaining a patent in India can be significant, posing obstacles for businesses or startups navigating through the application process.

6. Lack of Awareness

A lack of awareness among businesses regarding the importance of patent protection and the nuances of the application procedure could result in missed opportunities to safeguard property.

7. Enforcement Challenges

Enforcing a granted patent can be challenging in India due to case backlogs within the system and lengthy legal proceedings

8. Limited International Recognition

While inventions are protected within India’s patent system, achieving recognition may necessitate applications in other jurisdictions. This requirement could create hurdles for companies seeking protection for their innovations.

9. Complex Patent Drafting

Crafting a written patent application that effectively describes an invention while meeting requirements can be pretty challenging.

10. Rapid Technological Changes

In evolving industries, technological advancements may outpace the patent approval process. This can lead to patents becoming outdated even before they are officially granted or enforced.

Examples of patents

In the world of patented innovations, certain examples stand out as pivotal contributors to technological progress. Thomas Edison's revolutionary light bulb, patented in 1879, marked a significant leap in illumination technology, shaping the way we live and work. Apple's iPhone, introduced in 2007, not only transformed the smartphone landscape but also secured its distinct design through a design patent, emphasizing the importance of protecting aesthetic elements. Monsanto's Roundup Ready Soybeans, patented in 1994, exemplifies the role of plant patents in ensuring exclusive rights to genetically modified soybean varieties, reflecting the diverse applications and impacts of patent protection across industries.

How much is the cost of a patent?

The cost of obtaining a patent in India varies depending on several factors, including the complexity of the invention, the type of patent (e.g., utility, design), and whether you use a patent agent. Generally, the total cost can range from Rs. 50,000 to Rs. 2,00,000 or more, covering fees for filing the application, examination, and grant, along with any additional costs for documentation, translations, and attorney fees. Maintenance fees for keeping the patent in force must also be considered. Overall, seeking a patent in India involves significant expenses, necessitating careful budgeting and planning.

Patents vs. trademarks vs. copyrights

Patents, trademarks, and copyrights are distinct forms of intellectual property protection, each serving different purposes:

Category

Trademark

Copyright

Patent

What it Protects

Protects brand names, logos, symbols, and slogans used in business.

Protects original creative works such as books, music, films, and art.

Protects new inventions or technological solutions.

Duration

Can be renewed for unlimited periods as long as it’s in use.

Valid during the lifetime of the creator plus a number of years after death.

Usually valid for 20 years from the date of filing.

Application Authority

Applied through the Trademark Registry in India.

Applied through the Copyright Office in India.

Applied through the Indian Patent Office.

Requirements

Must be unique, distinguishable, and used in trade or business.

Must be original and in a physical or recorded form (like a document, video).

Must be new (novel), useful, and non-obvious to someone skilled in the field.

Enforcement

Can take legal action against those using the mark without permission.

Can take legal action if someone copies or distributes the work illegally.

Can take legal action against anyone using the invention without approval.

Simple Example

A logo or brand name on a product.

A song, book, or painting created by an individual.

A machine or process that solves a technical problem in a new way.

 

Conclusion

In conclusion, patents play a crucial role in protecting innovation and fostering technological advancements. Understanding the patent process, types, and examples is essential for inventors and businesses seeking to safeguard their intellectual property.

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Frequently asked questions

What does patent mean?

A patent is a legal document granting inventors exclusive rights to their inventions, preventing unauthorized use or reproduction, fostering innovation by providing a temporary monopoly on their creations.

What are the 3 types of patents?

The three main types of patents are utility patents, covering functionality; design patents, safeguarding aesthetics; and plant patents, securing rights for distinct plant varieties.

How long does a patent last?

The duration of a patent varies. Utility and plant patents typically last 20 years, while design patents provide protection for up to 15 years from the date of grant.

How much is a patent?

The cost of obtaining a patent varies based on factors like complexity and legal fees. On average, the process can range from a few thousand to tens of thousands of dollars.

Who has rights on a patent?

The individual or entity listed as the inventor or assignee typically holds rights to a patent. In some cases, employers may claim rights if the invention was created during employment, as outlined in employment contracts or patent agreements.

What is the patent law in India?

The patent law in India is governed by the Patents Act, 1970, and its subsequent amendments. It provides for the granting and regulation of patents, outlining the criteria for patentability, procedures for filing and examination, and enforcement mechanisms for protecting patent rights.

What is a patent agent?

A patent agent is a professional authorized to represent applicants before the patent office. They assist in preparing and filing patent applications, communicating with patent examiners, and navigating the patent prosecution process. Patent agents possess technical expertise and knowledge of patent laws and regulations.

What cannot be patented under the Patent Act?

Under the Patent Act, inventions like abstract theories, laws of nature, artistic creations, business methods, or anything against public morality cannot be patented. Additionally, traditional knowledge, naturally occurring substances, and certain medical methods are excluded from patentability.

What is the main purpose of a patent?

The main purpose of a patent is to grant inventors exclusive rights to their invention, allowing them to control its use and commercialization for a specific period. This promotes innovation by providing incentives while also encouraging public disclosure of technical knowledge.

What are the criteria for patent rights?

For an invention to qualify for patent rights, it must be novel, involve an inventive step, and be industrially applicable. The invention should not fall under any of the excluded categories as specified by the Patent Act.

What happens if an invention is not patented?

If an invention is not patented, it becomes vulnerable to being copied or commercially exploited by others without any legal protection. The inventor may lose the exclusive right to benefit from their innovation, affecting potential profits and market control.

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