Patent Renewal Fees for Granted Patents in India
Table of Contents
In India, a granted patent is valid for 20 years from the date of filing the application. However, to maintain this validity, the patentee must pay renewal fees every year. This article provides an in-depth look into the renewal fees structure, the steps involved, and the formalities required to ensure the continuous protection of your intellectual property.
This article delves into the significance of patent renewal fees, the necessity of maintaining a patent in force, and the various ways patents can be leveraged for business strategies.
What Are Patent Renewal Fees?
Patent renewal fees are periodic payments made by the patentee to keep their patent in force. These fees are payable annually, starting from the third year after the patent is granted. The amount varies based on the type of applicant (e.g., individual, startup, small entity, large entity) and increases as the patent ages.
Discounts on Renewal Fees: Patent holders can now avail a 10% discount on renewal fees if they pay for at least four years in advance through electronic means. This concession is only available for advance payments and not for back renewals due at the time of the patent grant
Importance of Renewing Your Patent
Renewing your patent ensures that you retain the exclusive rights granted by the patent. Failure to pay these fees results in the lapse of the patent, meaning you lose the legal protection and the associated benefits.
Why Keep Your Patent in Force?
- Establishing a Monopoly on Your Product or Service
- Exclusive Rights: A valid patent prevents others from making, using, selling, or distributing your invention without your permission.
- Market Control: This exclusivity allows you to dominate the market, potentially leading to higher profits and a competitive edge.
- Licensing Opportunities
- Revenue Stream: Licensing your patent to other companies can provide a steady stream of income.
- Market Expansion: It allows you to expand into markets where you may not have the resources to operate directly.
- Selling Your Patent
- Monetizing IP: If you decide not to commercialize your invention, selling your patent can bring significant financial returns.
- Exit Strategy: Selling a patent can be part of an exit strategy for startups and small businesses.
- Cross-Licensing
- Mutual Benefits: Cross-licensing agreements with other patent holders can allow you to access additional technologies without incurring high costs.
- Strengthening Portfolio: It can enhance your technological base and product offerings.
- Commercializing the Patent
- Market Introduction: Patents can protect products as they are introduced to the market, helping recoup R&D investments.
- Brand Building: Owning patents can enhance your brand’s reputation as an innovator and leader in the industry.
- Enforcing Patents through Infringement Suits
- Legal Protection: A valid patent enables you to take legal action against infringers, protecting your market share.
- Deterrent Effect: The threat of legal action can deter potential infringers from copying your invention.
for more details on patent commercialization, check how to make money with your patent
The Cost-Benefit Analysis of Patent Renewal Fees
While the renewal fees might seem like an additional cost, they are relatively small compared to the potential benefits of keeping a patent in force. Here’s why the cost is worth it:
- Affordable Fees: The renewal fees in India, especially for individuals, startups, and small entities, are quite reasonable. For example, the fee for the 3rd year is approximately ₹ 800 or $9.6 USD, increasing to about ₹ 8,000 or $96.0 USD by the 19th year.
- High ROI: The protection and competitive advantage provided by a patent can lead to substantial financial returns, far outweighing the annual fees.
- Business Strategy: A valid patent supports various business strategies such as licensing, commercialization, and enforcement, each of which can generate significant income.
Renewing your patent is essential to maintain the exclusive rights that protect your invention and provide a competitive edge in the market. The cost of renewal fees is a small investment compared to the substantial benefits of leveraging your patent for business strategies such as establishing a market monopoly, licensing, selling, cross-licensing, commercializing, and enforcing your patent rights. By keeping your patent in force, you not only safeguard your innovation but also open up multiple avenues for generating revenue and strengthening your market position.
Renewal Fees Structure in India in Indian Rupees ₹
| Number | For renewal of a patent under section 53— | Natural person or startup or small entity or educational institution | Other(s), alone or with natural person or startup or small entity or educational institution |
| (i) | before the expiration of the 2nd year from the date of patent in respect of 3rd year; | ₹ 800 | ₹ 4,000 |
| (ii) | before the expiration of the 3rd year in respect of the 4th year; | ₹ 800 | ₹ 4,000 |
| (iii) | before the expiration of the 4th year in respect of the 5th year; | ₹ 800 | ₹ 4,000 |
| (iv) | before the expiration of the 5th year in respect of the 6th year; | ₹ 800 | ₹ 4,000 |
| (v) | before the expiration of the 6th year in respect of the 7th year; | ₹ 2,400 | ₹ 12,000 |
| (vi) | before the expiration of the 7th year in respect of the 8th year; | ₹ 2,400 | ₹ 12,000 |
| (vii) | before the expiration of the 8th year in respect of the 9th year; | ₹ 2,400 | ₹ 12,000 |
| (viii) | before the expiration of the 9th year in respect of the 10th year; | ₹ 2,400 | ₹ 12,000 |
| (ix) | before the expiration of the 10th year in respect of the 11th year; | ₹ 4,800 | ₹ 24,000 |
| (x) | before the expiration of the 11th year in respect of the 12th year; | ₹ 4,800 | ₹ 24,000 |
| (xi) | before the expiration of the 12th year in respect of the 13th year; | ₹ 4,800 | ₹ 24,000 |
| (xii) | before the expiration of the 13th year in respect of the 14th year; | ₹ 4,800 | ₹ 24,000 |
| (xiii) | before the expiration of the 14th year in respect of the 15th year; | ₹ 4,800 | ₹ 24,000 |
| (xiv) | before the expiration of the 15th year in respect of the 16th year; | ₹ 8,000 | ₹ 40,000 |
| (xv) | before the expiration of the 16th year in respect of the 17th year; | ₹ 8,000 | ₹ 40,000 |
| (xvi) | before the expiration of the 17th year in respect of the 18th year; | ₹ 8,000 | ₹ 40,000 |
| (xvii) | before the expiration of the 18th year in respect of the 19th year; | ₹ 8,000 | ₹ 40,000 |
| (xviii) | before the expiration of the 19th year in respect of the 20th year. | ₹ 8,000 | ₹ 40,000 |
Patent Renewal fees in India in US Dollars (USD)
The renewal fees for patents in India vary based on the type of applicant, which includes natural persons, startups, small entities, educational institutions, and others. The table below provides a detailed breakdown of the renewal fees equivalent in US Dollars (USD).
| Number | For renewal of a patent under section 53— | Natural person or startup or small entity or educational institution (USD) | Other(s), alone or with natural person or startup or small entity or educational institution (USD) |
|---|---|---|---|
| (i) | before the expiration of the 2nd year from the date of patent in respect of 3rd year; | $9.6 | $48.0 |
| (ii) | before the expiration of the 3rd year in respect of the 4th year; | $9.6 | $48.0 |
| (iii) | before the expiration of the 4th year in respect of the 5th year; | $9.6 | $48.0 |
| (iv) | before the expiration of the 5th year in respect of the 6th year; | $9.6 | $48.0 |
| (v) | before the expiration of the 6th year in respect of the 7th year; | $28.8 | $144.0 |
| (vi) | before the expiration of the 7th year in respect of the 8th year; | $28.8 | $144.0 |
| (vii) | before the expiration of the 8th year in respect of the 9th year; | $28.8 | $144.0 |
| (viii) | before the expiration of the 9th year in respect of the 10th year; | $28.8 | $144.0 |
| (ix) | before the expiration of the 10th year in respect of the 11th year; | $57.6 | $288.0 |
| (x) | before the expiration of the 11th year in respect of the 12th year; | $57.6 | $288.0 |
| (xi) | before the expiration of the 12th year in respect of the 13th year; | $57.6 | $288.0 |
| (xii) | before the expiration of the 13th year in respect of the 14th year; | $57.6 | $288.0 |
| (xiii) | before the expiration of the 14th year in respect of the 15th year; | $57.6 | $288.0 |
| (xiv) | before the expiration of the 15th year in respect of the 16th year; | $96.0 | $480.0 |
| (xv) | before the expiration of the 16th year in respect of the 17th year; | $96.0 | $480.0 |
| (xvi) | before the expiration of the 17th year in respect of the 18th year; | $96.0 | $480.0 |
| (xvii) | before the expiration of the 18th year in respect of the 19th year; | $96.0 | $480.0 |
| (xviii) | before the expiration of the 19th year in respect of the 20th year. | $96.0 | $480.0 |
Formalities and Best Practices
1. Timely Payment
It’s essential to pay the renewal fees before the due date to avoid any late fees or potential lapses in patent protection. The Indian Patent Office allows a grace period of six months with an additional fee.
2. Maintain Accurate Records
Keep a record of all payments and submissions. This includes copies of Form 15, payment receipts, and any correspondence with the IPO.
3. Use of Patent Agents
Engaging a patent agent can streamline the process. They are experienced in handling the formalities and can ensure that all requirements are met promptly.
4. Monitor Notifications
The Indian Patent Office may send reminders regarding upcoming renewal deadlines. Ensure that your contact information is up-to-date to receive these notifications.
Conclusion
Renewing your patent in India is a critical step to maintain the legal protection of your invention. By understanding the fee structure, following the necessary steps, and adhering to the formalities, you can ensure that your patent remains in force, providing you with continued exclusive rights.
- Indian Patent Office, Govt. of India
- Patent Facilitator for Start-ups, Startup India Govt. of India
- Bachelor’s degree in Electronics and Telecommunication engineering.
- Author of multiple books on Patents and IPR including a best-selling book on “How to patent an idea in India” which has been selected as the “Memorable Business Book of 2018” by Amazon
- Books are included in the syllabus of Educational Institutions as textbook and reference book on subject of IPR and Patents
- For over 15 years, Prasad has helped protect the intellectual property rights (IPR) of more than 1800 clients, including individuals, entrepreneurs, and educational institutes. This includes patents, trademarks, designs, and copyrights.