India’s Patents Act Undergoes a Major Overhaul: The Draft Patent (Amendment) Rules, 2025

India has taken a significant stride towards modernising its intellectual property framework with the publication of the Draft Patent (Amendment) Rules, 2025. This pivotal move is a direct result of the Jan Vishwas (Amendment of Provisions) Act, 2023, a landmark legislation aimed at fostering a more business-friendly and trust-based governance environment. The core philosophy driving this change is a fundamental shift in how patent offenses are handled moving away from the threat of criminal prosecution and imprisonment towards a system of civil, administrative penalties.

India’s Patent Enforcement: A Paradigm Shift from Prison to Fines

The Jan Vishwas Act marked a monumental change by decriminalising minor offenses across various central laws. For patent law, this means a significant restructuring of penalties. For instance:

• Unauthorised Claim of Patent Rights (Section 120): The penalty has been drastically increased to up to INR 10 lakh, with an additional INR 1,000 per day for ongoing violations. This replaces the previous system, which included a fine and the possibility of imprisonment.
• Wrongful Use of ‘Patent Office’ (Section 121): This offense has been completely decriminalized and the provision has been omitted.
• Failure to Furnish Required Information (Section 122): The penalty for refusal or failure to provide information is now up to INR 1 lakh. For supplying false information, the penalty is a steep fine of at least INR 25 lakh, replacing the former punishment of imprisonment.
• Unauthorised Practice by Non-Registered Patent Agents (Section 123): The penalty for this offense is now up to INR 5 lakh, with a continuing penalty of INR 1,000 per day.

These amendments establish a new framework, introducing Sections 124A and 124B, which create a civil adjudication and appeal mechanism. This is where the new draft rules come into play, providing the procedural scaffolding for these changes.

The Digital Backbone of the New Framework

The Draft Patent (Amendment) Rules, 2025, propose a detailed procedural framework designed to bring the new system to life, with a strong emphasis on digitisation. A key feature is the introduction of new electronic forms:

• Form 32 will be used to file a complaint with the newly designated Adjudicating Officer.
• Form 33 will be used to file an appeal against an order issued by the Adjudicating Officer to the Appellate Authority.

These electronic forms are part of a broader push toward Electronic Proceedings (Rule 107F), which mandates that all procedural activities, from inquiries to appeals, be conducted electronically. This move is intended to streamline the process, reduce paperwork, and enhance transparency and accessibility.

The rules also clearly define the roles of the two main administrative bodies:

• Adjudicating Officer (Rule 107B): Appointed by the Central Government, this officer will conduct inquiries, evaluate evidence, and impose penalties.
• Appellate Authority (Rule 107J): This body will hear appeals against the Adjudicating Officer’s orders, with the power to confirm, modify, or annul them, acting as a crucial check and balance.

The Road Ahead: Addressing the New Framework’s Challenges

While the draft rules are a forward-looking step, they are not without potential pitfalls. Stakeholders have raised several key concerns that need to be addressed to ensure the new system is effective and just. A significant issue is the lack of clarity on the appointment and qualifications of the Adjudicating Officers. The rules are silent on the legal expertise or experience required for this role, which could lead to inconsistent and poorly reasoned decisions. Similarly, while a 30-day timeline for filing an appeal is prescribed, the timeline for the final disposal of appeals is left ambiguous, which could create procedural uncertainty and delays.

The draft rules also fail to provide any evidentiary thresholds or safeguards against frivolous or vexatious filings in the complaint process. This could potentially burden the new system and be used as a tool for harassment. Furthermore, the lack of clear criteria for the quantum of penalties gives Adjudicating Officers broad discretion without any guiding principles, raising the risk of inconsistent and arbitrary fines.

In essence, the Draft Patent (Amendment) Rules, 2025, represent a timely and necessary move toward a more modern, efficient, and trust-based patent enforcement system. They reflect a commitment to a progressive governance model. However, to truly succeed, the framework needs to be strengthened with greater clarity on procedural safeguards, judicial independence, and structured guidelines for penalty assessment. The DPIIT has invited comments from all stakeholders by August 17, 2025, providing a crucial window for the IP community to help shape these rules into a robust and fair system. This is an opportunity for businesses, legal professionals, and public interest groups to contribute to the creation of a patent framework that is not only administratively efficient but also legally sound and equitable.

Conclusion

The Draft Patent (Amendment) Rules, 2025, represent a significant step in modernising India’s intellectual property framework by shifting the focus of enforcement from criminal prosecution to a civil, administrative system. Stemming from the Jan Vishwas (Amendment of Provisions) Act, 2023, these rules introduce a digital adjudication process and steeper monetary penalties for violations. While this move promotes ease of doing business and reduces judicial backlog, it also presents challenges regarding the clarity of procedural safeguards and the qualifications of new adjudicating officers. The ongoing public consultation is a crucial opportunity for stakeholders to help shape a final framework that is both efficient and equitable.

Expositor(s): Adv. Archana Shukla