Patentability of Business Methods in India
India, being a fastest-growing major economy, is maintaining its strong position in the global economic arena. The growth in the business sector involving start-ups and unicorns brings innovation in business methods, especially in technology, fintech, and e-commerce. The business methods are defined as a way of operating any component of an economic enterprise. However, under Indian Law, the patentability of business methods is limited as stipulated in the Patents Act, 1970. Section 3(k) of the Patents Act, 1970 does not allow patenting inventions that involve business methods, mathematical methods, computer programs, or algorithms.
Judicial Perspectives
Recent judicial decisions in India have sparked debates about the patentability of business methods as there is an increase in emerging technologies taking new dimensions.
In the case OpenTV vs. Controller of Patents & Design[1], the Hon’ble Delhi HC held that mere implementation of a business method on a computer does not make it patentable. Further, the court stated that since a large number of inventions emerging from SME, start-ups, and educational institutions could be in the field of business methods or application of computing & digital technologies, therefore, there was a need to have a re-look at the exclusions in Section 3(k) of the Act, in view of the growing innovations
.
In another case Priya Randolph Vs Deputy Controller of Patent and Design[2], the Hon’ble Madras HC, with reference to the CRI Guideline (2017), clarified that mere involvement of a business method in the invention doesn’t make it non-patentable under Section 3(k), as the invention involves deploying hardware, software, and firmware for the purpose of data privacy & protection.
Thus, both the judicial decisions conclude that a business method cannot be patented under the Patents Act, 1970.
References
- 2023:DHC:3305
- 2023:MHC:5450
