The Trend Of Patent Registration in Booming Health-Tech Industry: Post-Covid 19 Era
In the wake of Covid-19, the importance of Intellectual Property Rights (IPR)
in the health tech industry has become increasingly apparent. With the race to
develop a vaccine and other medical solutions, protecting intellectual property
has become a top priority for companies in the industry.
To better understand the competitive landscape, we thoroughly analysed the
current players in the health tech industry and their respective IPR strategies.
Increasing Patent Filing in India since COVID-19
According to information from the 2021–22 IP India Annual Report, 66,440
applications were filed in India, which is 7,937 more than were submitted the
previous year (58,503). The Minister of Commerce last year praised the DPIIT for
"strengthening" the IP regime and "fostering innovation" and noted the trend of
rising patent applications and eventual grants. He claimed these efforts had
decreased application pending times while increasing the filings. Additionally,
it was said that this would help India achieve its goal of ranking among the top
25 countries in the Global Innovation Index.
IP India's Annual Reports showed 36,932 international patent application filings
during 2021 and 2022, compared to 29,508 local applications. Notably, domestic
registrations outnumbered foreign ones from January to March 2022, from 10,706
Indian filings to 9,090 foreign applicants' filings. Before 2017–18,
international patent applications filed in India were much more numerous than
those from that country.
This number is more than twice the number of patents in force in 2017 (48,765),
where the number of Indian patentees was 7,660 (6.36%) (as of 31st March 2017).
Referring to Section 83, it is clear that one of the factors considered in India
when awarding a patent is to promote invention and ensure that the ideas are
used on a commercial basis in India. But does the law require any protections to
guarantee these factors are appropriately considered? While there are ways to
end or limit this monopoly for poor or ineffective patents (compulsory licencing,
revocation of the patent, etc.), the mandatory mechanism to monitor the
effectiveness of patents is through the provision of Section 146.
How has the patent scenario changed with time?
India's total funding in the health tech companies plunged 55 per cent from $3.2
billion in 2021 to $1.4 billion in 2022. Before 2019, India's healthcare sector
reported total funding of US$ 586.93 million. Therefore, it can be concluded
that, despite the Covid-19 crisis's role as a roadblock, the Indian healthcare
industry is expanding at a healthy rate.
By 2025, India's Medical Device Industry alone is projected to be worth US$50
billion.12 India has a rare opportunity to change parts of the regulations
governing medicinal supplies and drug testing thanks to the COVID-19 issue.
The Indian government launched the 'Start-up India' programme in 2016 to aid
small businesses. Practo, 1mg, Cure.fit, PharmEasy and other start-ups are
emerging as leaders in India's telemedicine and online pharmacy industries.
These start-ups became an immediate help to India in times of disaster like
COVID-19 when visiting the hospital for common illnesses is already risky. The
need for unnecessary travel and the risk of infection has decreased thanks to
online pharmacies.
Many of these firms have developed a strong user base and drawn significant
funding during the past few years, and according to research from Inc42, the
entrepreneurs in this industry got $2.2 billion in funding over the year through
131 agreements. With a CAGR of 27%, this amount is predicted to increase to
$21.3 billion by 2025.
With a focus on patent applications to obtain early market advantages, AI in
HealthTech is expanding quickly. The interest in creating AI-driven solutions
has increased due to the potential socioeconomic effects of AI in healthcare.
Many businesses rely on intellectual property (IP) enforcement, particularly the
application of patents and maintaining IP portfolios to carb fake medicine
businesses, to safeguard their discoveries and gain a competitive edge.
Over time, many more patent applications have been for HealthTech AI inventions.
According to the US National Centre for Biotechnology Information, there were
more than 28 new registrations for HealthTech AI advances every day in 2019.
Benefits of a Strong Patent Portfolio
Innovations in the field of health technology are frequently vulnerable to
infringement. Hence rigorous monitoring and enforcement of IP rights are
essential. Imagine a rival creating a product similar to your patented remote
patient monitoring device. Regularly monitoring the market and taking
enforcement measures when required, such as sending cease-and-desist letters or
filing a lawsuit, will help you safeguard your IP and keep your market share.
An efficient IP strategy in the health tech industry requires matching your IP
aims to your overarching corporate goals. For instance, building a robust patent
portfolio and safeguarding your algorithms' underlying technology becomes
crucial if you focus on creating ground-breaking AI algorithms for personalised
medicine. You can manage resources wisely and increase the value of your IP
assets by having a thorough IP strategy.
International IP protection is required since health tech enterprises frequently
have international objectives. For instance, obtaining international patents and
trademarks can assist in defending your technology in foreign markets and
protect your brand in a foreign market if you have created an inventive wearable
gadget for monitoring chronic illnesses.
Consultation with IP specialists knowledgeable in international IP legislation
will ensure you can negotiate the complexity of many jurisdictions and create a
plan to safeguard your IP assets abroad.
Innovation and licencing can open doors for expansion and cooperation in the
health technology sector. For instance, a partnership with pharmaceutical firms
to license your AI-driven drug discovery platform might hasten the creation of
life-saving drugs. By carefully arranging licencing arrangements, you can keep
ownership of your intellectual property while gaining access to the knowledge
and resources of more prominent organisations.
You can successfully protect your ideas, encourage growth, and promote
healthcare technologies by including these factors and examples in your IP
strategy for health technology.
Our analysis revealed that companies with strong patent portfolios tend to have
a competitive advantage over their peers. This is particularly true for
companies that have developed innovative solutions in response to the pandemic.
Additionally, we found that companies that have invested in patent litigation
have been able to protect their intellectual property and prevent competitors
from infringing on their patents. This has allowed them to maintain their market
position and continue to innovate without the fear of copycats stealing their
ideas.
However, we also found that companies that have relied solely on patents may be
at risk of losing their competitive edge. As the industry evolves, companies
must focus on developing a robust IPR strategy that includes a mix of patents,
trade secrets, and trademarks.
Overall, our analysis suggests that companies prioritising IPR and developing a
comprehensive strategy that aligns with their business goals will be better
positioned to succeed in the health tech industry in the post-Covid world.
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