What is the difference between product

patent and process patent?

Importance of intellectual property
Knowledge is the most important factor that is driving development in the new era; says Joseph
Stiglitz and Bruce Greenwald in their book 'Creating a Learning Society'. An iPhone can be produced
with around six thousand rupees in terms of material cost. But its price is nearly Fifty five thousand
Rupess because there is big royalty payments to large number of inventors who have invented its
different components.
This means it is not the traditional factors of production like land, labour or capital that creates value
in a modern economy. It is knowledge which is embedded in the form of invention. Invention is an
intellectual property. To protect inventors, governments give intellectual property rights to them.
Patent is the intellectual property right for inventions. On the other hand, Copyright is the intellectual
property right for writing books etc.
Patent is the most powerful intellectual property right as inventions have tremendous industrial
applications and thus scope for getting big money. Every country will have an intellectual property
regime comprised of laws and institutions that facilitate inventions and other intellectual works. For
patent, there will be a patent system that includes the Patent Act. Basically, patents are of two types
product patent and process patent.
Product patent and process patent
A patent is defined as a statutory privilege granted by the government to inventors, and to other
persons deriving their rights from the inventor, for fixed years, to exclude other persons from
manufacturing, using or selling a patented product or process. Hence a patent can be for a process
or for a product.
There is strict divergence between product and process patent regimes. The developed countries
follow product patent system. On the other, process patent system is preferred by the developing
world. The two systems are known for their different levels of protection to inventors.
Under a process patent, the patent is granted for a particular manufacturing process, and not for the
product itself. Any other person can produce the same product through some other PROCESS,
modifying the various parameters. The implication is that there will be more than one producer for
the same product because of the possibility of different process for the manufacturing of the product.
Weakness of the process patent regime is that it gives less protection for the inventor. There is high
tendency for competitors to reengineer the original invention by discovering a new process with less
strain and investment. Benefit of process patent regime is that it reduces the element of monopoly.
In the case of product patent, it is an exclusive right given to the original inventor of a product. This
means that no other manufacturer can provide the same product through the same or any other

process. The implication is that there will not be a competitor for the producer as it is the product
which is patented. Product patent system gives higher level of protection to the inventor as there will
not be any other patent holder. TRIPs follow the product patent regime.
Indias 1970 Patent Act allowed only process patent before it was amended in 2005 to comply with
WTOs TRIPs provisions under which there is only product patents.
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What is Evergreening of patent means?

Patent is a monopoly right given for a limited period to an inventor in return of his
disclosure of an invention that is new, useful and non-obvious product or process.
In India patents are granted for a maximum term of 20 years (provided it is maintained
by paying yearly fees). After the expiry the patent, the invention is free for use, manufacture,
sell or import.
However, there are patentees (mostly pharmaceutical companies) who attempt to extend
this monopoly right beyond the period of 20 years. When the term of patent is about to end
these companies make trivial /insignificant variations to the existing patented invention and
files for new patent, thus extending their monopoly. This is called evergreening of
patent.
In many cases, generic products are available in the market once the patent expires. With
these generic products from different companies, a competition in the market sets in. This
results in lowering of price of the product.
Evergreening of patents do not allow the price of a product coming down due to extension of
monopoly of the patentee.

In India, section 3(d) of the Patent Act, 1970 do not allow

mere discovery of a new form of a known substance (without enhanced efficacy)

or
mere discovery of any new property for a known substance or
mere discovery of new use for a known substance or
discovery of mere use of a known process, machine or apparatus.
This is a section incorporated in The Patent Act to initiate resistance to evergreening of
patents. Thus, evergreening of patents are not be easy in India (in contrast to many other
countries).
This brings in a relief for poor patients who depend on life saving drugs. It also helps in
keepin

g the price of essential drugs within the reach of common people

what are contents of complete

specification of patent
Complete Specification of patent
Submission of complete specification is necessary to obtain a patent. A patent
specification discloses the details of the invention for which the patent protection
is sought. The legal rights in a patent are based on the disclosures made in the
specification.
The complete specification has following elements:

Title of Invention

Field of Invention

Background

Summary of Invention

Brief description of drawings

Description of invention

Examples if any

Specific embodiments if any

Abstract

Claims

Drawing / diagram / flow-chat

You can check some granted patents from website of Indian patent office by
clicking link herehttp://ipindiaonline.gov.in/patentsearch/Search/index.aspx

Types of Patent Application:

There are different types of patent application that can be files based on timing,
desired territory for protection and number of inventions.
Types of Patent Application are:

Ordinary Application

Application for Patent of Addition (granted for Improvement or Modification of the already
patented invention, for an unexpired term of the main patent)

Divisional Application (in case of plurality of inventions disclosed in the main application)

Convention application, claiming priority date on the basis of filing in Convention Countries

National Phase Application under PCT..

Is the Patent System Fit for Purpose?

The health, welfare and economic security of literally billions of people depend on a well-functioning patent system. In
the pharmaceutical sector, for example, intellectual property plays a crucial role, safeguarding the rights to use newly
developed drugs. The patent system encourages firms to invest in research and development to produce an end
product that is relatively easy to define and protect. In information technology and electronic products in general, the
patent system is now having to address an array of issues relating to the use of a myriad number of components with
respect to such products as smart phones, computers, televisions and a wide range of domestic and industrial goods
that tend to rely on digital systems. A modern smart phone, for example, contains dozens of components that were
originally developed by different individuals or firms who went through the necessary procedure to formally protect
these discoveries through patents.
Companies investing in research and development need to be satisfied that, should they discover a commercially
viable innovation, they can recoup their costs over a period of time through earning an appropriate economic rent.
Otherwise, the incentive to innovate is atrophied and original research and innovation will be significantly deterred.
This would be extremely damaging to economic prospect since innovation is a fundamental feature of a growing
economy. Therefore, a well-functioning patent system is necessary to underpin economic growth.

Threats to the US Patent System

Unfortunately, there is a growing concern that the US patent system is showing signs of not working as effectively as
it has done in the past. One of the most serious concerns about the US patent system is the widespread emergence

of damaging litigation tactics employed by patent assertion entities (PAEs) or so-called patent trolls. PAEs are
predatory rent-seekers who hold and actively acquire patents merely as non-operational assets, which in turn are
used to prosecute an infringement or, more commonly, employed to negotiate licensing fees that are way of line with
their contribution to the alleged infringers product or service. Failure to pay the inflated sums demanded can lead to
litigation claims that are often frivolous. The activities of PAEs already dominate the US legal system relating to
patents.
However, although the phenomenon is best documented in the United States, there is growing evidence that the
problem is reaching European courts. There are grounds to be concerned that this threat may intensify over the next
few years. There is even the danger of a global patents arms race driven by the recent trend to create Sovereign
Patent Funds (SPFs). This would undermine innovation and effective competition in Europe, the US and elsewhere.