Impact of COVID-19 on IP filings

Impact of COVID-19 on IP filings

The COVID-19 induced pandemic had put a halt to several activities in the country and had slowed down the economic growth to a considerable extent. Coming towards the end of 2021, we see the world is slowly recovering and some sort of normalcy is being restored. If we have a look back at the IP sector during the beginning of COVID period, we can see debacle of big giant companies going in huge losses, while in the later stage of COVID period, we can find unprecedented growth in terms of research and development in certain sectors and on the contrary, we can also find the IP registration process becoming stagnant as several IP offices across the country were shut down. Many countries have relaxed their provisions and extended the duration for filing the IPs to ease the burden on several affected stakeholders.

At the international level, there has been a surge in the filing of trademark applications in pharmaceutical, hygiene, and health products as several manufacturers and pharmacists were busy battling to find innovative solutions to mitigate the deadly virus. Though the number of filings went down during December 2019, around 15,000 trademark applications were filed between January to June 2020 in the NICE Class 5 of USPTO.  Despite a drop of global GDP by 3. 5 percent, the patent applications filed via the WIPO’s Patent Cooperation Treaty increased by 4 percent in 2020. 

While uncertainties surrounded the first half of 2020 in India, the Department for Promotion of Industry and Internal Trade revealed that the patent applications filed between April 1 and December 2020 shows a rise by 2.9 percent from 2019. Another interesting point to be noted is that the number of patent filings from local industries has increased considerably. And more than 26,000 patents were granted in the year 2020 till November. At the same time, trademark filings showed a rise by 15.4% in 2020 from 2019. Overall, the IP filings during the COVID period has shown a positive response in India.

Total IP application filings and grants in India (2019-2020)

Source – WIPO statistics database, November 2021

Note: Granted applications need not necessarily to be the applications filed in the same year, they may be the applications filed before.

Even though the world was battling a deadly virus, offices being shut down and people either quarantined at their houses or stuck at an unknown place, such rise in the number of IP filings and registration is amusing. And this has been possible only due to collective efforts from all stakeholders, government and judiciary. In India, the Supreme Court last year issued an order extending the period of limitation under all general and special laws with effect from 15^th March 2020 until further orders. This became a much-needed relief for both prospective stakeholders in India as well as for the IP offices. When the Government of India ordered a complete lockdown we witnessed a paradigm shift from physical to the virtual model of conducting business. As per reports, the online filing of IP applications remained by and large unaffected. Gradually, the Indian IP offices and appellate board resorted to video conferencing to hear the pending cases as only that was a viable option.

At the same time, the Patent office also recommended the usage of Rule 6(6) of the Patent Rules, 2003 for availing adjournment, to condone the delay in submitting necessary documents and other requirements.

Another initiative that attributed towards the growth in patent and design filings is narrowing down of three sets of fees to two under the Designs and Patents (Amendment) Rules, whereby the government fee has been lowered for small entities and is made equivalent to the fee charged for natural persons and start-ups.

At the same time, when colleges, schools and offices were shut down it gave the businesses and individuals time for introspection about their priorities. Several companies started to realize where they need to invest more, and which area will be more profitable to them in the long run. This could have been one of the major reasons for the boost in the number of IP applications during the pandemic.

Way Ahead :-

Special provisions to the Central Government are given in respect of compulsory licenses. As per section 92 of the Patents Act, 1970, the Central Government can issue a notification in circumstances of national emergency or any urgent crisis for compulsory licensing. This is an important provision as it enables to grant compulsory licensing without any waiting period for the benefit of the citizens at large. And Supreme Court also suggested the implementation of the same. Though the situation has improved as India has already crossed 1 billion vaccinations, but there are still uncertainties and the need of compulsory licensing may arise if there comes another wave.

Thus, the extension given by the Supreme Court, Patent offices, online filing of applications, video conferencing for conducting the proceedings, high courts setting up separate division for dealing with IP matters coupled with work from home flexibility aided both the patent offices and the prospective applicants to survive the COVID pandemic without many hurdles. The pandemic had in fact helped small and mid-sized companies to realize the importance of IP.

Shashank Raj

Nathalia M. Fenwick