In today's world, technology and its monetisation are central to the growth and development of any nation. Multinational companies such as Apple, Microsoft, Alphabet, Meta, Nvidia and Tesla, whose market values exceed the GDP of many countries, are testament to this reality. Any discussion around the monetisation of technology is incomplete without referring to patents.
A patent is a statutory right granted for a limited period - usually 20 years - for a new and inventive product or process. Once a person or company is granted a patent for an invention, they can prevent others from using that patented technology during the life of the patent. In simple terms, a patent grants exclusive rights to commercially exploit an invention within a country. Common examples of patented inventions include pharmaceutical drugs, cellular technologies such as 4G and 5G, Wi-Fi, ABS systems, and electric-vehicle battery management systems. Patents can also be licensed to third parties interested in using the technology under agreed terms. Therefore, in today's knowledge- and technology-driven economy, patents have become one of the most sought-after forms of currency.
Patents are also considered one of the best indicators of a company's research and development activity. Companies with substantial patent portfolios across multiple sectors have demonstrated how significant revenue can be generated by monetising such assets. For example, a decade ago, Microsoft generated nearly $2 billion in revenue from patents related to Android alone.
As India moves towards becoming a leading digital economy and advances towards broader national development goals, the importance of patents has never been greater. India reflects this trend, with domestic innovation and patent filings witnessing a substantial rise. Patent applications crossed 75,000, with Indian residents accounting for more than 61.9% of filings, according to the latest annual report of the Office of the Controller General of Patents, Designs and Trade Marks.
According to the World Intellectual Property Organization's Global Innovation Index 2025, India rose to 38th place among 139 economies. That marks an improvement of nearly 10 places from its rank of 48 in 2020, achieved within five years.
These filings are no longer restricted to a handful of technology sectors, as the government continues to support domestic innovation. For example, through its Viksit Bharat vision, the Government of India aims to accelerate the country's transition towards next-generation connectivity through strategic initiatives focused on 6G technologies.
India has also started moving into less explored areas. The government is actively encouraging patent filings in mining and minerals. As part of its strategy to achieve self-reliance in critical minerals, the government is promoting patent filings under the National Critical Mineral Mission. The Union Cabinet approved the mission on Jan. 29, 2025, with the objective of strengthening India's critical mineral value chain across exploration, mining, beneficiation, processing and recycling.
While India is witnessing a sharp rise in patent filings, the next question is how many of these applications actually translate into granted patents. A recent study published in February 2026 showed higher conversion rates among government educational institutions. However, the picture appears less comfortable for private institutions. In short, while patent filings are increasing aggressively, the conversion of those filings into granted patents continues to raise concerns.
Therefore, while the rise in patent filings is encouraging, equal emphasis must also be placed on the quality of granted patents relative to the number of applications filed. In the larger context, the real test will be the eventual commercialisation and the returns generated from these investments.
As attention on patent monetisation and innovation continues to grow, another important question emerges: what is the most effective tool for monetisation? Licensing remains the preferred approach and is recognised under India's National IPR Policy, 2016. Licensing can take multiple forms, including bilateral licences and multi-party arrangements known as patent pools. Patent pools are agreements in which multiple patent owners voluntarily combine their patents and license them as a package under common terms. Courts across the world have recognised such arrangements.
Another concept that has gained attention in recent years is the Sovereign Patent Fund. Sovereign Patent Funds are public funds created to acquire and manage patent portfolios. These differ significantly from voluntary patent pools, where intellectual property owners voluntarily combine patents to create a single licensing platform for users. The Government of India acknowledged the concept of Sovereign Patent Funds in its National Policy on Electronics, 2019, particularly in the Electronics System Design and Manufacturing sector.
Therefore, as discussions around access to patented technologies and their monetisation continue to evolve, the next important question is this: what is the most effective path to securing such access? We will explore that issue in the next article.
This article is authored by Rajeev Ranjan, a retired IAS officer of the Tamil Nadu cadre who served as the Chief Secretary of Tamil Nadu
Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the opinion of NDTV Profit or its affiliates. Readers are advised to conduct their own research or consult a qualified professional before making any investment or business decisions. NDTV Profit does not guarantee the accuracy, completeness, or reliability of the information presented in this article.
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