Impact of obtaining patents on the financial documents of the technological companies

1. INTELLECTUAL
PROPERTY
RIGHTS
SIGNIFICANCE OF
PATENTS

2. INDEX
 Meaning and characteristics of Patents
 Objective of Patent Act
 Inventions not patentable
 India signed international treaties and their benefits
 Types of patent applications
 Procedure of filing patent application in India and at
International level
 Top 10 companies with maximum number of patents in
the field of technology and impact of obtaining patent in
their financial documents
 Profit in the financial documents of the companies after
obtaining patents.
 Challenges for obtaining patents
 Significance of obtaining the patents
 Thank You

3. MEANING OF PATENT AND ITS CHARACTERSTICS
Definition - “Patent" means a patent for any invention granted under the
Indian Patent Act 1970;
Meaning of Invention
“Invention” means a new product or process involving an inventive step and
capable of industrial application.
Basic ingredients of product to be Patented
A. Novelty – The patent should be an invention.
B. Useful – Capable of industrial application.
C. Non Obvious – The invention is not capable to be thought by the
prudent mind.
Laws dealing with Patents in India
Indian Patent Act 1970 as amended till date.
Patent Rules as amended till date.
Jurisdiction
Patent in granted by the Indian Patent Office which is administered by
Controller General of Patents, Designs & Trade Marks (CGPDTM).
Indian Patent Office functions from four locations only viz. Kolkata, Delhi,
Chennai and Mumbai.

4. OBJECTIVE AND SALIENT FEATURES OF INDIAN PATENT ACT
Invention must fall into any of the statuary classes :-
1. Processes
2. Machines
3. Manufactures
4. Composition of matters and
5. New uses of any of the above
 Both product and process patent provided.
 Term – 20 years.
 Examination on request.
 Both pre-grant and post grant opposition.
 Publication of application after 18 months with
facility of early publication provided.
 Substantially reduced time lines.

5. INVENTIONS NOT PATENTABLE
1. An invention which is frivolous or which claims anything obviously
contrary to whole established natural laws.
2. An invention the primary or intended use or commercial exploitation of
which could be contrary to public.
3. The mere discovery of a scientific principle or the formulation of an abstract
theory.
4. The mere discovery of any new property or new use for known substance or
of the mere use of known process, machine or apparatus unless such known
process result in a new product or employ one new reactant.
5. A substance obtained from mere admixture resulting into aggregation of
properties.

6. 6. Mere arrangement or re-arrangement or duplication of known devices
each functioning independently.
7. A method of agriculture or horticulture.
8. Any process for the medicinal, surgical, curative, prophylactic or
other treatment of human beings or animals.
9. Plants and animals in whole or any part in whole or any part thereof
other than micro organism but including seeds, varieties and species
and essentially biological processes for production or propagation of
plants and animals.
10. A computer programme per se other than its technical application
to industry or combination with hardware
11. A mathematical method or business method or algorithms

7. 12. A literary, dramatic, musical or artistic work or any other aesthetic
creation whatsoever including cinematographic works and television
productions.
13. A mere scheme or rule or method of performing mental act or method of
playing game.
14. A presentation of information.
15. Topography of integrated circuits.
16. An invention which, in effect is traditional knowledge or which is an
aggregation or duplication of known properties of traditionally known
component or components.
17. Invention relating to atomic energy.

8. INDIA ACCEDED/SIGNED FOLLOWING PATENT TREATIES :-
1. Patent Co-operation Treaty
2. Paris Convention
3. Budapest Treaty
4. TRIPS Convention (full form of trips to be added)
BENEFITS OF SIGNING TREATIES
1. Unification of laws around the world.
2. Benefit of obtaining patent in any of the contracting states.
irrespective of nationality.
3. Spreading awareness of IPR and its issues around the world.
4. Increase Foreign Direct Investment (FD) from developed countries.
5. Protection of rights around the world.
6. Contribution to national economy.
7. Promotes research and development.

9. NATIONAL AND INTERNATIONAL APPLICATIONS FOR GRANT OF
PATENT IN INDIA
1. Ordinary Application, i.e., an Application which has been filed
directly in the Indian Patent Office.
2. Convention Application
3. PCT Application
4. Divisional Application, which can result from division of a Patent
Application.
5. Patent of Addition, which may be filed subsequent to the Filing of an
Application for Patent, for an improvement or modification.
FILING OF A PATENT APPLICATION – POINTS TO REMEMBER
A patent application shall be filed on Form-1 along with Provisional /
Complete Specification, with the prescribed fee as given in First
Schedule at an appropriate office.
Patent Application can be filed directly any of the Contracting States.
However, a provisional specification cannot be filed in case of a
Convention Application.
Normal fee shall be applicable for applications containing upto thirty
pages in specification and upto 10 claims. If the specification exceeds
thirty pages or claims are more than ten in number, additional fee as
given in First Schedule is payable.

10. STAGES TO BE FOLLOWED IN OBTAINING PATENT IN INDIA
Filing of application
provisional and complete
Publication of application
Request for examination
Examination - Issue of
final examination report
If P.S. is filed C.S. to be filed
within 12 months
Within 48 months from
F.D.
Promptly after 18 months from P.D.
3rd Party Representation
all objections to be complied within 12
months
GRANT OF PATENT

11. STAGES OF FILING INTERNATIONAL APPLICATIONS THROUGH
PCT ROUTE
File local application
File PCT application
International Search
Report and opinion
International publication
International preliminary
report on patentability
(Optional)
Enter national phase
File demand on
international preliminary
examination (Optional)
mad on intern

12. Ranking of the top 10 technology companies with the most
international patent applications in 2015 and highest
market share in the industry after obtaining Patents
S.NO. NAME OF THE COMPANIES NUMBER OF
PATENTS
1. IBM 7355
2. SAMSUNG 5072
3. CANON 4134
4. QUALCOMM 2900
5. GOOGLE 2835
6. TOSHIBA 2627
7. SONY 2455
8. LG ELECTRONICS 2242
9. INTEL 2048
10. MICROSOFT 1956

13. VALUE OF PATENT/TRADEMARK IMPACTING IN MILLIONS IN THE
FINANCIAL DOCUMENTS OF THE COMPANIES
S.NO NAME OF THE COMPANY 2015 2014
1. IBM ($) 335 374
2. CANON (¥) 39,685 22,371
3. QUALCOMM (Intangible Assets
Value in $) 4068
4. GOOGLE ($) 6510 6547
5. TOSHIBA (Intangible Assets Value
in ¥) 98891 95054
6. LG ELECTRONICS
7. INTEL (I.A. Value in ($)) 3993
8. MICROSOFT (Intangible Assets
Value in ($) ) 6187 6440

14. PROFIT AFTER TAX OF THE COMPANIES (INCOME IN
MILLION )
S.NO NAME OF THE
COMPANY
2015 2014 2013
1. IBM ($) 13190 12022 16483
2. CANON (¥) 231,333 265,239 239,516
3. QUALCOMM ($)
5268
7964 6845

15. CURRENT CHALLENGES IN OBTAINING PATENT IN INDIA
 Obtaining Patent at national or international level is expensive.
 Always needs a specialist or Patent Attorney.
 Long list of pending litigation.
 Lack of check on infringement.
 Minor improvements in product is not entitled for patent.
 Lack of infrastructure and personal for handling the patent applications
at patent office.
 Huge pendency of patent applications.
 Lack of awareness and knowledge for obtaining patent in society.
 No government initiative to motivate people for innovation.
 Compulsory licensing.

16. SIGNIFICANCE OF OBTAINING PATENTS
 Promote Research, development and innovation.
 Society and environmental development.
 Increase foreign direct investments.
 Built reputation in market and increase the confidence of
investors.
 Unification of laws all over the world.
 Gives rights to prevent others from copying, selling, distribution
and importing of goods.
 you can license your patent for others to use it, or sell it, as with
any asset. This can provide an important source of revenue for
your business. Indeed, some businesses exist solely to collect the
royalties from a patent they have licensed.
 Solutions to the biggest challenges.
 Patent is a business asset.
 Right to sue on infringement.

17. THANK YOU