Cost of Patenting: Understanding Fees and Expenses

An inventor wants to get an invention patented; he has to go through certain costs to get it. There are government fees that one has to pay throughout the steps of patent filing in India. One can’t do all the steps involved in the filing on its own thus one seeks some professional help which in turn would charge fees against the services provided. This blog focuses on the various costs and expenses of patents in India.

What is a Patent?

The term patent is derived from the Latin term ‘patere’, the meaning of which is to lay open. It technically means making it available for public inspection. Patents are a form of intellectual property rights that promote innovation amongst the masses. In this, an inventor of anything is given a right of authority in sovereign form. It is a legal document that protects the inventor’s invention from misuse by any other person. The inventor gets the right to license it further or make it forward to use it sell it or make new products using the invention.

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Types of Patents

The various types of patents are:

1.  Utility Patent:

It deals with the patentability of a device, method of system operation, or manufacturing process. It generally focuses on the functional aspects of how a thing works. This patent is generally provided for a term of 20 years.

2.  Design patent:

It generally focuses on the object’s visual appearance rather than its functionality. It protects the physical design of the object. This patent is generally provided for a term of 20 years.

3.  Plant Patent:

It covers different types of plants that are not developed through seeds but through other methods like cuttings or asexual methods. This patent’s duration is 20 years.

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What can be Patented?

To get a product patent in India, one has to fulfill the following conditions:

1.  Novelty:

The first criterion is that the invention must be new. It should not be similar to any of the existing inventions in the society. The invention should be an original idea.

Since this search is done before to submitting a patent application to the Patent Office, a novelty search costs ₹15,000.

2.  Invention:

It should involve an inventive step and should not be known to a skilled person in a similar field. It should include some sort of technological advancement as well as economic viability.

3.  Utility:

It should be useful in some manner. The invention should have an application in the industry in some way. It should be useful in commercial ways, mere usefulness is not considered enough in the case of a patent.

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What cannot be patented?

Sections 3 and 4 of The Indian Patents Act 1970 provide the list that are not patentable. Some of these are:-

•  Inventions which have no sense or are fictional in a way,
• Violating morality and being a threat to humans in some form
• Discoveries
• Scientific theories
• About agriculture as well as horticulture
• Literary, dramatic, or artistic work
•  Any form of upgradation to an existing invention

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Types of Patent Application

The types of patent applications can be based on

1. Provisional Patenting Application:

The provisional application has to be filed for temporary protection as the product is still in the development stage and doesnot allow the exclusive right to anybody else. This is basically for 1 year. It is filed when the patent is under process and the experimentation has not been final.

2. Non-Provisional Patenting Application:

The complete application is filed for full-term protection which is directly filed or for the replacement of a provisional patent when it has lapsed. It includes a full description of the invention and is generally very long as it includes an introduction and the invention’s history. Invention’s technological field and objects, description, drawings, synopsis.

3. Convention Patent Application: 

This is filed in the patent office which claims a priority date on an application that has been filed before. It has to be filed within one year  of filing the first application in the patent office 

4. International Patent Application Under the PCT:

This is the application for worldwide application of the patent. It helps in getting a faster route for the patent application process in various countries simultaneously. The perceiving officer in this case is the Indian patent office.

5. Patent Application in the National Phase of PCT :

This application is entered in 31 months at the national phase. It is similar to a national filing in a particular country.

6. Patent of Addition Application: 

It is used to apply for an improvement or modification of an already existing and patented invention. This has to be filed within 31 months of the date of foreign patent filing.

7. Divisional Patent Application: 

It is used to divide an existing patent application into multiple separate applications to secure multiple inventions.

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Who is a Patentee?

A patentee is a person who gets himself registered with the authorities as the grantee or owner of a particular patent. The term patentee has been defined under section 2(p) of the Patents Act. The term patentee comes along with various privileges and rights. The patentee has the rights over the invention for a certain term which is generally 20 years. He is the person who is able to make use of the invention for any sort of commercial purpose and earn through it. With this, he has the right to take steps against the person who uses it in any form without authorization or infringing the patent rights. This helps in the protection of the inventor’s rights and also in the promotion of advancements in the technological sector as well, the right motivates to make more advancements in society.

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Process of Filing an Application

Step 1: Signing a Non-Disclosure Agreement (NDA):

The first step is to sign an NDA with the patent agent. It is done to ensure your safety. It is signed to protect one ‘s invention, the agent agrees to keep the invention secret and not try to misuse it in any manner.

Step 2: Filling Invention Disclosure form:

The next step is to fill out a form, in which all the details regarding the invention have to be given so that the agent gets to know the invention and can take further steps accordingly. This form includes around about 12-15 questions.

Step 3: Novelty search (Optional):

It is an optional step, depending on whether the inventor wants to conduct a novelty search or hire a professional. He conducts a thorough search across all the available data for patents, articles, theses, and other prior art and creates a search report for patentability based on the closest previous art discovered for your innovation.

Step 4: Patent Drafting (Writing):

It is the most important stage in getting the invention patented. One inventor cannot draft a patent on his own as it has to consider technical as well as legal obligations. Thus a patent agent is hired who is well versed with the technical and legal requirements and can draft in 1-2 weeks.

Step 5: Filing patent application:

The next step is filing the patent application with the appropriate forms as well as fees. A patent agent knows how to file the application and he can make the process easy for the invention. The application is filed in FORM 1 and is accompanied by FORM 2 for the complete or provisional specification.

Step 6: Early Publication request (optional):

An application is published 18 months from the date of filing but in case one doesnot want to wait for such a long time an early publication request can be made with the payment for the same which is rs. 2500 for natural persons and small entities and for large entities it is Rs.12,500. The request for early publication is filed under FORM 9.

Step 7: Request for examination (RFE):

A request for examination has to be filed in order to get the patent application examined, this has to be filed within 48 months of the filing date. It is filed through FORM 18 and the prescribed fees.

	Individual inventors Natural person(s) or Startup(s) or Small entity(y)/(ies) or educational institution(s)	Others
Request for examination	₹ 4,000	₹ 20,000

Step 8: Response to objections:

Most of the applicants will get some objections on the examination report. The applicant has 18 months to respond to these objections. He has to provide a response to the objection or accept the objections and make amendments to the patent.

Step 9: Hearing with the patent office:

This step is done mainly to resolve the issues related to the examination of the application. It entails responding to the rejections and objections, presenting the arguments in support of the application, and considering all the issues pertaining to the application.

Step 10: Grant of patent:

The patent is granted to the applicant when the seal from the patent office is received and this grant is notified in the patent journal.

What to do when a person has an idea or invention and what to do to get it patented?

• One should seek professional help and of course, sign an NDA with the agent to prevent the invention be used in any manner.
• Next is to provide information about the invention how it has a competitive edge and how it will be placed in the market.
• Next is to assess the patentable subject matter of the patent using the application and specifications.
• The next is to have a discussion with the patent agent to decide what to do further and what steps to take in response to the patents.

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Patent costing

The cost which is incurred during the patent process is of two types:

Government Patent Fees in India

When filing for a patent in India, several government fees must be paid. These fees vary based on the type of applicant, and whether the process is conducted online or offline. Here’s a detailed breakdown of the government patent fees:

1. Filing the Patent Application:
   • Individuals and Startups: ₹1,600
   • Small Entities: ₹1,600
   • Large Entities: ₹8,000
2. Request for Early Publication (Optional):
   • Individuals and Small Entities: ₹2,500
   • Large Entities: ₹12,500
3. Request for Examination:
   • Individuals and Small Entities: ₹4,000
   • Large Entities: ₹20,000

Additional Fees for Offline Processing

If the process is carried out offline, at the patent office, there will be an additional 10% charge on all the fees mentioned above. This additional charge covers the administrative costs associated with paper filings.

Professional Fees for Patent Services

It is advisable to seek professional guidance from a patent agent for your patent application and the associated processes. Professional advice can significantly enhance your chances of securing a patent. Patent agents usually charge for each step of the process separately, but their fee structures may vary.

1. Patent Search: Before filing a patent application, a patent search is conducted. Patent agents typically charge between ₹10,000 and ₹20,000 for this service.
2. Drafting the Application: The next step is drafting the patent application. For this, patent agents can charge anywhere from ₹10,000 to ₹32,000.
3. Filing the Application: This step involves collecting all necessary documents and submitting the application. Patent agents generally charge between ₹8,000 and ₹12,000 for this service.
4. Request for Examination: To move the application forward, the inventor must request an examination. The fee for this service ranges from ₹5,000 to ₹12,000.
5. Responding to Examination Reports: If there are issues in the examination reports, responding to them can incur charges from ₹20,000 to ₹60,000, depending on the complexity of the issues.
6. Final Documentation and Ensuring Patent Grant: To ensure that the patent is granted and all documentation is complete, patent agents may charge between ₹1,000 and ₹5,000.

By engaging a patent agent, you can navigate the complex patent application process more effectively, ensuring that all steps are properly handled and increasing the likelihood of a successful patent grant.

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Total Patent Costs In India

The total cost of your patent can vary from one invention to another but a rough estimate for the same can be calculated:

• Patent Search

• Government Fees: NA
• Professional Fees:  ₹ 10,000 to ₹ 20,000
• Patent application drafting & filing

• Government Fees:  ₹ 1600-  ₹ 8000
• Professional Fees:  ₹  25000 –  ₹ 75000
• Filing request for examination

• Government Fees:  ₹ 4000 –  ₹ 20000
• Professional Fees:  ₹ 4000 –  ₹ 10,000
• Responding to the examination report

• Government Fees: NA
• Professional Fees:  ₹ 12,000-  ₹ 35,000
• Hearing and post-hearing submissions

• Government Fees: NA
• Professional Fees:  ₹ 12,000 –  ₹ 20,000
• Grants 

• Government Fees: NA
• Professional Fees: varies

Patent Renewal Fees in India

The patent once granted has to be renewed and fees have to be paid for renewal. The government fees for the renewal are:

• 3rd – 6th year:

• For individuals, startups, MSMEs, and institutes: ₹800
• For Large Entity: ₹4000
• 7th – 10th year:

• For individuals, startups, MSMEs, and institutes: ₹2400
• For Large Entity: ₹12000
• 11th – 15th year:

• For individuals, startups, MSMEs, and institutes: ₹4800
• For Large Entity:₹24000
• 16th – 20th year:

• For individuals, startups, MSMEs, and institutes:₹8000
• For Large Entity:₹40000

A professional can charge around ₹3000 – ₹10000 per year for patent renewal.

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Discounted patent costs in India for Students & academicians

The patent process is expensive if a patent agent is hired for professional help in getting a patent. Some of the professionals give a discount to students. The fees charged are:

• Patentability search / Novelty search (optional): ₹ 6,000 – ₹ 11,000
• Provisional patent drafting & filing (optional): ₹ 6,000 – ₹ 12,000
• Complete patent application drafting & filing (directly without provisional): ₹10,000 – ₹ 27,000
• Request for Early publication (optional): ₹ 0 – ₹ 4,000
• Request for Examination: ₹ 2,000 – ₹ 4,000
• Preparing and filing a response to the examination report (per examination report): ₹ 10,000 – ₹ 17,000
• Attending hearings & submitting post-hearing submissions (per hearing): ₹ 10,000 – ₹ 17,000

The total patent costs in India generally vary from 32,000 to 61,000  which includes the mandatory steps like drafting, filing, examination requests, responding to examination reports & hearings, and then the government fees of 5,600  which is the filing and examination for students and professors.

Conclusion

Getting a patent is not an easy task in India, it has a very complex process attached to it and various fees to be paid at various steps in order to ensure that an invention is patented. To make this process smooth one should hire a professional to do so, it is an added cost only but they make the process a smooth one and easily done ensuring one gets the patent.

Frequently Asked Questions

Q1. What is a Patent?

Ans1. It is a legal document that protects the inventor’s invention from misuse by any other person. The inventor gets the right to license it further or make it forward to use it sell it or make new products using the invention.

Q2. What can be patented?

Ans2. To get a product patent in India, one has to fulfill the following conditions: novelty, invention, and utility.

Q3. Who is a patentee?

Ans3. A patentee is a person who gets himself registered with the authorities as the grantee or owner of a particular patent.

Q4. What is the fee to be paid to the government for filing a patent application for an individual?

Ans4. The government patent fee for filing the Patent Application for Individuals and Startups is ₹1,600

Q5.  What is the fee to be paid to the government for filing a patent application for the large entity?

Ans5.  The government patent fee for filing the Patent Application for Individuals and Startups is ₹8,000.

Q6. What are the additional Fees for Offline Processing?

Ans6. If the process is carried out offline, at the patent office, there will be an additional 10% charge on all the fees 

Q7. What are patent renewal fees in India?

Ans7. The renewal fees have to be paid to the government which can be ₹800 For individuals, startups, MSMEs, and institutes, and for Large Entity is ₹4000 for 3-6 years and increases further.

Q8. Do students and academicians get discount on patent costs?

Ans8. Yes, the students get discounts on patent costs from the professionals, but the government fees remain the same.

Q9. Does the patent need money?

Ans9. Yes, obtaining a patent involves various costs, including government fees and, if you choose, professional fees for assistance. While it requires a financial investment, a patent can provide legal protection and potential commercial benefits for your invention.

Q10. Why is a patent so expensive?

Ans10. The costs associated with obtaining a patent stem from government fees, which vary based on the type of patent and the stage of the application process. Additionally, if you hire professional services, their fees contribute to the overall expense. The complexity of the patent system and the expertise required for a successful application contribute to the perceived expense.