Intellectual property: patents and design registration

Forms of IP for engineers, Indian patent criteria, exclusions, procedure and 20-year term, registrable designs and the 10 + 5 year term, and the economics of licensing.

Drafted with Aria, reviewed by the AiCanCode.org team. Spotted an error? Use Give Feedback at the bottom of the page.

Why it matters

A new mechanism, process or product shape can be copied within months of launch. Patents and registered designs give the creator a time-limited monopoly in exchange for public disclosure, which is what makes investment in development worthwhile. Engineers must know what can be protected, how long protection lasts, and how to avoid infringing others' rights — especially when benchmarking or reverse engineering competitors' products.

Key ideas

Intellectual property (IP) covers creations of the mind. The main forms relevant to product design:

  • Patent — protects an invention: a new product or process that solves a technical problem.
  • Industrial design registration — protects the visual appearance of an article: shape, configuration, pattern, ornament or composition of lines or colours, judged by the eye.
  • Copyright — protects original literary, artistic and software works (drawings, manuals, code) automatically on creation.
  • Trademark — protects brand names, logos and other signs that distinguish goods or services.
  • Trade secret — confidential know-how protected by keeping it secret (contracts, NDAs), with no fixed term.
  • Geographical indication — products linked to a region (for example a regional handicraft or crop).

Patents in India (Patents Act, 1970, as amended).

  • Patentability criteria: the invention must be novel (not published or used anywhere before the filing/priority date), involve an inventive step (not obvious to a person skilled in the art, involving technical advance or economic significance), and be capable of industrial application.
  • Not patentable (Section 3 and 4 exclusions, examples): mere discoveries of scientific principles, frivolous inventions contrary to well-established natural laws, mere new uses of known substances or mere admixtures, methods of agriculture, plants and animals (other than micro-organisms), mathematical or business methods, computer programs per se, literary or artistic works, and inventions relating to atomic energy. New plant varieties are protected under a separate law (the Protection of Plant Varieties and Farmers' Rights Act, 2001), not by patents.
  • Procedure: prior-art search → filing (a provisional specification secures the date; the complete specification with claims must follow within 12 months) → publication (normally after 18 months from the priority date) → request for examination (within 48 months from the priority date) → examination report and reply → pre-grant opposition window → grant → post-grant opposition (within one year of grant publication). India follows first-to-file.
  • Claims define the legal scope of protection; the description must enable a skilled person to perform the invention.
  • Rights: the patentee can prevent others from making, using, offering for sale, selling or importing the patented product (or product made by the patented process) in India. Rights are territorial — a separate patent is needed in each country, often via the PCT route.
  • Term: 20 years from the date of filing the application, kept alive by annual renewal fees. After expiry the invention is free for anyone to use.
  • Compulsory licence: may be granted after three years from grant if reasonable public requirements are not met, the invention is not available at a reasonably affordable price, or it is not worked in India.

Industrial designs (Designs Act, 2000).

  • Registrable if the design is new or original, not previously published or used in any country, significantly distinguishable from known designs or combinations of them, and not contrary to public order or morality.
  • Not registrable: purely functional features or mechanical principles of construction, trademarks, and artistic works as such.
  • Term: 10 years from registration (the filing date), extendable once by 5 years — a maximum of 15 years.

Patent vs design. A new gear-tooth form that reduces noise is a technical solution → patent. A distinctive styling of a mixer-grinder jar → design. A product can have both.

Freedom to operate. Before launch, search patents and design registers (Indian Patent Office, international databases) to make sure the product does not infringe live rights. Infringement can lead to injunctions, damages or account of profits.

Formulas

  • Patent expiry date: expiry = filing date + 20 years (if renewals are paid)
  • Design expiry: expiry = registration date + 10 years (+ 5 years on extension)
  • Present worth of a royalty stream: PW = r·S·(P/A, i, n) with (P/A, i, n) = [(1 + i)ⁿ − 1] / [i(1 + i)ⁿ]

Symbols: r = royalty rate (fraction of sales); S = annual sales of the licensee (₹/year); n = remaining years of protection; i = discount rate per year (decimal).

Worked examples

Example 1 (standard) — key dates. An Indian firm files a provisional patent application on 1 July 2021 and claims no earlier priority.

  1. Complete specification due within 12 months: by 1 July 2022.
  2. Publication normally after 18 months from priority: about 1 January 2023 (earlier if early publication is requested).
  3. Request for examination due within 48 months: by 1 July 2025.
  4. If granted and renewed, the patent expires 20 years from filing: 1 July 2041.

Example 2 (GATE level) — licence economics. A patentee is offered either a lump sum of ₹40 lakh now, or a royalty of 5% on a licensee's sales of ₹2 crore per year for the remaining 6 years of the patent. Discount rate 12% per year. Which is better?

  1. Annual royalty = 0.05 × 2,00,00,000 = ₹10,00,000 = ₹10 lakh.
  2. (P/A, 12%, 6) = [(1.12)⁶ − 1] / [0.12 × (1.12)⁶] = 4.1114.
  3. PW of royalties = 10 × 4.1114 = ₹41.11 lakh.
  4. The royalty is worth about ₹1.1 lakh more than the lump sum — but it carries the risk that sales fall short, so a firm may still prefer the lump sum. A 5-year remaining life would give only 10 × 3.7908 = ₹37.91 lakh.

Common mistakes

  • Believing a patent protects an idea in general; it protects only what the claims define, and only in countries where it is granted.
  • Publishing or exhibiting an invention before filing, destroying novelty.
  • Using design registration to protect a purely functional shape.
  • Confusing the patent term (20 years from filing) with the design term (10 + 5 years).
  • Assuming that a product bought abroad can be freely reverse-engineered and sold in India without checking Indian patents and designs.

For GATE PI

Expect MCQs on criteria of patentability, what is excluded from patents, the difference between a patent and a design registration, the terms of protection, and the role of claims and provisional specifications. Learn the numbers (20 years; 10 + 5 years; 12 months for a complete specification) and the three patentability criteria by heart.

Quick check

  1. State the three criteria of patentability.
  2. What is the maximum term of a registered design in India?
  3. Can a new plant variety be patented in India?
  4. Which protects the external styling of a pressure cooker — a patent or a design?

Answers: 1. novelty, inventive step and industrial applicability; 2. 15 years (10 + 5); 3. no, it is protected under the Plant Varieties Act instead; 4. design registration.

Interview questions

All Engineering Economics and Product Design interview questions

Try answering each one aloud before you open it.

  1. 1.What is a patent, and why is it important in product design?Concept

    A patent is a territorial right granted by the state that lets the patentee prevent others from making, using, selling or importing the claimed invention, in return for publicly disclosing it. In India it lasts 20 years from the filing date, subject to annual renewal fees, and the invention must be novel, inventive and industrially applicable. For product design it protects investment in R&D, supports licensing income, and — through patent searches — tells designers which solutions they must design around.

  2. 2.Explain the process of obtaining a patent.Concept

    The process of obtaining a patent typically involves several steps: conducting a patent search to ensure the invention is novel, preparing a detailed patent application including claims and drawings, filing the application with the relevant patent office, and undergoing an examination process where the patent office reviews the application. If the application meets all legal requirements, the patent is granted.

  3. 3.What is design registration, and how does it differ from a patent?Concept

    Design registration is a form of intellectual property protection that covers the visual design of objects, such as the shape, configuration, pattern, or ornamentation. Unlike patents, which protect functional aspects of an invention, design registration protects the aesthetic aspects. This allows designers to protect the unique appearance of their products.

  4. 4.Why is intellectual property protection crucial for companies in the manufacturing sector?Application

    Intellectual property protection is crucial for companies in the manufacturing sector because it safeguards their innovations and designs from being copied by competitors. This protection helps maintain a competitive edge, encourages investment in research and development, and can create additional revenue streams through licensing or selling IP rights.

  5. 5.What happens if a company uses a patented technology without permission?Application

    If a company uses a patented technology without permission, it may face legal action from the patent holder. This can result in injunctions to stop the use, financial damages, and potentially costly settlements. Unauthorized use of patented technology is considered patent infringement, which can harm a company's reputation and financial standing.

  6. 6.How can a company ensure its product design does not infringe on existing design registrations?Application

    A company can ensure its product design does not infringe on existing design registrations by conducting thorough design searches and analyses before finalizing the design. This involves checking design databases and consulting with intellectual property experts to identify any potential conflicts. Additionally, obtaining legal advice can help navigate complex IP landscapes.

  7. 7.Why might a company choose to register a design instead of applying for a patent?Application

    A company might choose to register a design instead of applying for a patent if the primary value of the product lies in its appearance rather than its functionality. Design registration is typically quicker and less expensive than obtaining a patent. It is suitable for industries where aesthetic appeal is a significant factor, such as fashion or consumer electronics.

  8. 8.A design was registered in India in 2015. Until when is it protected, and can that be extended?Numerical

    Design registration lasts 10 years from the date of registration, so a 2015 registration runs to 2025. On payment of the extension fee before expiry it can be extended once by 5 years, to 2030 — a maximum of 15 years in total, after which anyone may use the design.

  9. 9.What are the potential consequences for a company if it fails to protect its intellectual property?Application

    If a company fails to protect its intellectual property, it risks losing competitive advantage as competitors may copy or use its innovations without repercussions. This can lead to reduced market share, loss of revenue, and diminished brand value. Additionally, it may discourage investment in further research and development due to the lack of protection for new ideas.

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