Intellectual Property Rights is the legal right that has been given to inventors or creators to protect their invention or creation from being copied or stolen from others for a certain period. These legal rights are considered as exclusive rights provided to the inventors/creators or the person assigned by them legally to use the invention or creation for a given period of time. There are several types of Intellectual Property Rights such as, Copyright, Patent, Trademark, etc. 

In pharmacy industry it plays a great role as it plans, protects and safeguards the invention. Intellectual Property Rights provide Patents to the pharmacy industry to use and advertise their products and prevents others from making or selling the product without the permission of the real owner. Intellectual Property Rights helps the businesses of pharmacy industry by protecting the inventions from being used and for the use of research and development. The Pharmacy Industry holds the biggest place in Intellectual Property because of its necessity of its uninterrupted growth and ongoing progress of new and developed medicines.


Intellectual Property is concerned with the authentic fabrication of individual’s understanding such as artistic work, literary work, technical or scientific creation. 

Intellectual Property Rights encourages the conservation of inventions of the company or the organization. It also plays a great role in the economic development of the country by encouraging fair and unrestricted contention in the market. Along with this, it also takes part in the protection of time and money by providing a great support system to industrial and economic development.

India is the world’s largest supplier of non-specific pharmacy products. The Pharmacy Industry in India provides:

  • More than half of the world’s demand of drugs and vaccination.
  • 40% of the non-specific medicines in United States.
  • It25% of the overall pharmacy products in the United Kingdom.

Universally, India holds the third position in the manufacturing of pharmacy products in cubic measures and 14th position in usefulness. In India, the pharmacy industry consists of 3000 pharmacy business and 10,000 manufacturing units.

The pharmacy industry is completely different from other economic provinces as it emphasizes more significance in technical understanding of manufacturing techniques of the pharmacy products. Thus, the success and growth of the depends upon the ability of a company or organization to get indulge the department of research and development. In addition to this, the pharmacy industry is considered as the primary source of investment in addition to the consumer sales. So, the primary goal of the industry is to build trust and confidence among the consumers and the investors by protecting the Intellectual Property assets.

There are number of ways by which Intellectual Property provides protection to the pharmacy industry. Some of them are: –

  • It helps in providing equitable and functional stimulus for original work.
  • It helps in putting forward a well-built imposition channel for screening contravention in the case of drugs which are patented.
  • It helps in protecting any company or organization against infringement.

Patent Law in the Indian Pharmacy Industry:

The Patent Act, 1970 is the law that modulates the patents in India. As per the provisions of section 159 of the Patent Act, 1970 the patent rules said that the Central Government is authorized to assemble the rules for the implementation of the said act and managing the directorate of the patent. The Paris Convention of 1883 and the Patent Cooperation Treaty (PCT) of 1970 has been signed by India.

A patent is an unshared privilege that has been provided to the company or organization or inventor for an invention, which is a product or a process that provides, in general, an innovative method of performing anything, or propound an innovative scientific clarification to a problem. For getting a patent, practical knowledge about the creation must be publicized in general to the public in the application of a patent. 

In India, patent for pharmacy industry and products of pharmacy has been registered after going through a strict and harsh process of examination. Section 3 identifies origination that are not patentable, under clause (d) where the advanced use of substance which already exists, process, the machine results in a new product or at best one new outcome, can be patented. Also, the provisions of the patent law permit patenting of products in chemicals, biotechnology, food processing, drugs and pharmaceuticals, not just the process.

With regard to Pharmacy Industry in India, the stuff or the material which are pre-owned or capable of being pre-owned as food consolidations, drugs consolidations, or even medicines/drugs or products which are manufactured by way of chemical methods and such methods are allowed protection. Patents are given/granted for the processes or methods of fabrication of such products of chemical processes and not the entire consolidation product itself. Hence, pharmaceutical or pharmacy “products” are currently not granted patent protection under Indian patent law due to the reasons mentioned below:

  • Substantial subordination on the importing system.
  • Immense importing is expensive and gives a more beneficial arrangement to profit-making companies.
  • Local brands are not motivated to manufacture these products as branded drugs/medicine have a better estimation in the market.
  • If the products have been given protection, the cost of the product will bump up.
  • Cost blown up will decrease the inexpensiveness, and the consumer base will be disease-prone, and only greater economic estate consumers will be able to afford it.
  • Research and Development of the local brands will endure in the country.

Initially, the product patent was safeguarded under the Patents and Designs Act, 1911. However, in the year 1970, the government inaugurated the new Patents Act, which eliminated pharmacy products and agrochemical products from acquiring patent protection. They were eliminated only to burst away India’s subordination on importing system of drugs or medicine and making a self-reliant drug determination system that helps the economy from within and not generating an ownership market by a profit-making company only.

Term of Patent Granted to Pharmacy Industry:

In India, the process involved in the manufacturing of drugs or medicine (in terms of Pharmacy Industry) has been provided the protection of 7 years from the date of filing of patent or 5 years from the date of concluding the patent whichever is less. This completely varies from the other innovations which have been given a period of 14 years from the date of filing except the patent is proclaimed to be invalid. The technique and proceeding of fabrication of a product shall be used as food, drug, or medicine. 

Nevertheless, the Patent Act is under the operation of the amendment as it has been suggested by the International Conventions of IPR in which India is Party, the two criteria of terms are-

  • Period of 7 years from the filing of the patent
  • Period of 5 years from the date of settling the patent

Whichever is less.

Impact of Patent in Pharmacy Industry:
Bad Impact:

  • Litigation
  • Increase of Competition in MNCs
  • Rise in Price

Good Impact:

  • Growth of Pharmacy Industry
  • Introduction of more resources in terms of basic resources
  • Outsource
  • Global Research Industry

Role of Intellectual Property Rights in Pharmacy Industry:

Intellectual Property Rights plays a great role in protecting the rights in the Pharmacy Industry. It is essential for persisting invention of new and innovative drugs and medicines, and it holds the great value in the Pharmacy Industry. The role it plays in the pharmacy industry are as: –

  1. Provides Protection to the Medical Inventions:

If there has been an innovation or growth of a drug or medicine, a patent helps in providing the preservation of the drug/medicine. It can be driven back manipulated, and the drug can be safeguarded by innovative ways. But the new procedure by which that drug company does production of drug or medicine is sheltered. A patent grants recommended security than trade secrets law. India has not codified the trade secret law, so the only security drug has is patent protection.

  1. Helps in Economic Growth and Competitiveness:

Intellectual Property Rights accompanies the remarkable growth in the economy of a pharmacy industry by allocating the solitary intellectual property rights to the producer of a medicine/drug or any medical treatment. All the rights which deal with the marketing of the invention lie solitarily with the producer with more distant alternatives of even selling or licensing it.

  1. Provides Protection Against Infringers:

Intellectual property rights permit pharmacy industry to take uncompromising measures against counterfeit drugs/medicines. Without the said rights, countries in all parts of the world would have a tough time in establishing the safety of their medical inventions or creation.

  1. Provides Protection of Consumers and Families:

In the pharmacy industry, the main interest of the Intellectual Property is sited in safety of public as it gives assistance to the consumers/users in assembling the right choice while choosing a medical product. Intellectual property rights help in making sure a standard by indemnifying quality, which further setting up a dependable and functional public health configuration.


It is essential for the pharmacy industry to distant a financial plan for research and development, marketing, and legal costs. Intellectual Property Rights should be used to the advantage of patent rights and data individuality to participate with collective fabrication. Pharmacy business should have a constructive intellectual property approach that will increase returns on investment and perpetuate strong patent protection. Promoting invention is the key to drug/medicine recognition and IPR helps you attain the goal of having a ruthless boundary. The pharmacy product has not been given security, but it shall be improved and be given protection under the act. The term will also be revised unless the authority is convinced by the state of the country.

A developing country may not permit branded profit-making countries to demonstrate in India and sell drugs/medicine that are not edible by the whole country. Indian Market is still growig and the customers need cost-efficient products and not high-cost drugs/medicines, IPR will help to promote number of companies which might not be abundant for the citizens. So the local brands in India in the past few years have been gaining an advantage.


  1. How can Intellectual Property Rights be useful for Pharmacy Industry?
  2. What is the vital role of IPR in Pharmacy Industry?
  3. What is the requirement of IPR in Pharmacy Industry?


Author: Anjali Kumari, BBA.LL.B (Hons) Teerthanker Mahaveer University


Leave a Reply

Your email address will not be published. Required fields are marked *