Exploring the Potential of Utility Models in India for Grassroots Innovation

In the rapidly evolving innovation landscape, boosted by several initiatives and programs by both central and state governments to promote innovation and entrepreneurship, small and medium-sized enterprises (SMEs) and grassroots innovators in India often struggle to protect their incremental innovations. Traditional patent protection requires a high level of inventiveness, making it difficult for many local innovations to qualify. One potential solution is the introduction of a Utility Model System in India, a concept that has been successfully adopted in several other countries.

Understanding Grassroots Innovation and Utility Models The term "grassroots" refers to innovations emerging from ordinary people, particularly from rural or underserved communities, who develop practical solutions to everyday challenges. These innovators often work with limited resources but create valuable technological advancements tailored to local needs. In India, grassroots innovation plays a crucial role in fields like agriculture, healthcare, and small-scale manufacturing. However, many of these innovations remain unprotected due to a lack of awareness and barriers in accessing the formal patenting process. Utility models, sometimes referred to as "petty patents," offer a simplified and cost-effective intellectual property (IP) protection mechanism for minor but valuable innovations. Unlike traditional patents, utility models require a lower threshold for inventive step and are granted more quickly, making them an attractive option for SMEs and individual inventors.

Historical Development and Global Best Practices: 

Europe vs. India In Europe, utility models have been part of the intellectual property landscape for decades, with countries such as Germany introducing the system in the 19th century to support small innovators. The German model, for example, was designed to provide rapid protection for technical advances with a lower inventive threshold than patents. Over time, this system has proven effective in encouraging local innovation while maintaining strong regulatory standards to prevent abuse.

India, on the other hand, has been discussing the introduction of utility models for several years but has yet to implement a formal system. The country has focused primarily on strengthening its existing patent regime, with various expert committees evaluating the feasibility of a utility model framework. Notably, the concept was included in the draft version of the National IPR Policy in 2015, which explicitly referred to utility models as a possible instrument for protecting incremental innovations and invited public comments on the issue. However, the proposal was excluded from the final version of the policy, possibly due to concerns regarding administrative feasibility, potential misuse, and the impact on patent quality. While discussions have gained renewed momentum in recent years, these same concerns—particularly regarding frivolous filings and the risk of overburdening the Indian Patent Office—have continued to slow legislative progress.

Seen from a global perspective, many countries have successfully implemented utility model systems as part of their intellectual property frameworks. These established systems provide valuable insights into best practices and lessons for India. For example, China, Spain, and Japan have established such systems, fostering innovation among SMEs and independent inventors by offering a quicker and more cost-effective alternative to patents. Unlike the European Patent System, which has stringent patentability criteria, utility models in these jurisdictions allow for quicker and more cost-effective protection, fostering incremental innovation. The advantages observed in these countries include increased patent filings, a rise in local technological advancements, and enhanced competitiveness of domestic enterprises in the global market. Unlike these well-established frameworks, India is still in a deliberative phase, carefully assessing both the advantages and potential risks of misuse before deciding on the adoption of a utility model system.

Why India Needs a Utility Model India’s innovation ecosystem is vibrant, with a strong presence of startups, micro, small, and medium-sized enterprises (MSMEs), and grassroots innovators. However, many of these actors face difficulties in accessing effective intellectual property protection due to the high inventive threshold and procedural complexities of the existing patent system. Introducing a utility model framework could help bridge this gap by providing a more accessible and affordable route to protect incremental innovations that do not meet the strict criteria for patents.

The implementation of a utility model system in India could contribute in several key ways:

• Encouraging grassroots innovation through simplified and expedited IP protection processes, particularly for locally developed, need-based solutions.
• Providing cost-effective protection mechanisms for startups and SMEs, enabling them to safeguard their inventions without extensive legal or financial burdens.
• Enhancing competitiveness by facilitating the commercialization of protected technologies in both domestic and international markets.

Moreover, India is making substantial efforts to foster an innovation culture beyond urban centers. Through its flagship initiative, the Atal Innovation Mission (AIM), the government is promoting creativity and entrepreneurship in rural and remote regions. AIM supports grassroots innovation through Atal Tinkering Labs in schools and Atal Incubation Centres, thereby nurturing a new generation of problem-solvers. As this initiative is expected to generate a substantial volume of incremental innovations, a utility model system could serve as a valuable tool for ensuring that such innovations are appropriately protected and translated into marketable outcomes.

Recent Developments There have been notable discussions and recommendations regarding the introduction of a utility model system in India: Economic Advisory Council's Recommendation (2023): The Economic Advisory Council to the Prime Minister (EAC-PM) examined the feasibility of introducing utility models in India as a complementary mechanism to traditional patents. Recognizing the need for a more accessible protection system for small-scale innovations, the council emphasized that utility models could streamline protection for incremental innovations while ensuring the system is carefully structured to prevent misuse. Additionally, the EAC-PM emphasized that such a system could lower procedural complexities and costs, making it particularly beneficial for MSMEs and individual innovators. Moreover, the council examined global best practices, particularly drawing from the experiences of Germany and China, to identify applicable lessons for India. It noted that while utility models have played a significant role in accelerating innovation—especially among SMEs and in sectors like mechanical engineering and manufacturing—they also carry inherent risks, such as frivolous filings and enforcement difficulties. The EAC-PM emphasised that any future implementation in India should be carefully tailored to specific industries where incremental innovation is common, and that appropriate regulatory safeguards would be essential to prevent misuse. A key recommendation was the development of clear eligibility criteria, a defined duration of protection, and robust enforcement mechanisms to strike a balance between accessibility and the integrity of the intellectual property system. The overall objective is to provide grassroots innovators and small enterprises with a more accessible route to protecting their innovations. 

However, one of the most pressing concerns regarding the introduction of a utility model framework is the risk of overburdening an already stretched patent examination infrastructure. According to a recent analysis by the Observer Research Foundation, as of 2022–2023, India employed only 858 patent examiners and controllers combined across all its offices nationwide. In contrast, the United States employed over 8,000 patent examiners in the same period. This stark disparity contributes to the already low rate of patent application processing in India and raises valid concerns about the system’s ability to absorb the additional workload that a utility model regime could generate. Without adequate capacity-building measures, there is a tangible risk that such a system might further delay IP processing and negatively impact the overall quality and efficiency of the Indian patent office.

Ongoing Debates: Scholars and policymakers continue to deliberate how a utility model system in India should be structured. While many agree that it could provide crucial protection for grassroots innovations, concerns persist over how to prevent misuse. Some experts argue that utility models should undergo a more rigorous examination process than in other countries to ensure that only meaningful innovations receive protection. Additionally, discussions include setting a shorter protection period (e.g., 6–10 years) to prevent unnecessary barriers to competition while still rewarding innovation. Policymakers are also considering how to integrate the system into India's broader IP landscape without overwhelming the existing patent examination infrastructure. Additionally, there are discussions on how to define the inventive step threshold for utility models, ensuring that they protect truly novel incremental innovations rather than minor modifications of existing technology. Some argue that adopting a utility model system could create more opportunities for local innovators and SMEs, while others caution against the risk of patent thickets and litigation challenges that could arise from an improperly regulated system. Discussions focus on balancing the need for protecting minor innovations with ensuring the robustness of the patent system. 

Despite these discussions, as of March 2025, India has not yet implemented a utility model system.

Challenges and Considerations While utility models present numerous benefits, their implementation in India would require careful structuring to avoid potential pitfalls, such as:

• Quality control and examination standards to ensure only genuine innovations receive protection.
• Avoiding misuse by setting clear guidelines and preventing frivolous filings.
• Alignment with India’s existing IP framework to maintain harmony with the patent system and avoid unnecessary complexities.

Conclusion The potential introduction of a utility model system in India could play a crucial role in fostering grassroots innovation and supporting SMEs. By offering a simplified and cost-effective IP protection mechanism, utility models could encourage more local innovators to safeguard their inventions. However, successful implementation requires well-defined regulations, quality control measures, and alignment with India’s existing patent framework to prevent misuse. As discussions around this initiative continue, stakeholders must ensure a balanced approach that promotes genuine innovation while maintaining the credibility of the IP system.

References

1. National Institute of Science Communication and Policy Research (NIScPR). (2018). Exploring the Possibilities of Utility Models Patent Regime for India to Foster Grassroots Innovations. Retrieved from https://www.researchgate.net/publication/329060453_Exploring_the_Possibilities_of_Utility_Models_Patent_Regime_for_Grassroots_Innovations_in_India
2. Economic Advisory Council to the Prime Minister (EAC-PM). (2023). Utility Models in India: Policy Considerations and Recommendations. SSRN. Retrieved from Exploring the Possibility of Utility Model Protection in India by Sajid Sheikh :: SSRN
3. DePenning & DePenning. (2023). Utility Patents in India. Retrieved from Unlocking Innovation: Utility Patent Protection in India
4. Department for Promotion of Industry and Internal Trade (DPIIT). (2015). National IPR Policy (2015 Draft Version). Government of India. Retrieved from national-ipr-policy.docx
5. Mukherjee, S. (2023). Boosting India’s Patent Ecosystem: Building on the Innovation Momentum. Observer Research Foundation. Retrieved from https://www.orfonline.org/expert-speak/boosting-india-s-patent-ecosystem