High Courts Should Not Intervene in SARFAESI Proceedings Unless Actions Are Clearly Illegal or Mala Fide: Allahabad High Court

In a recent judgment, the Allahabad High Court emphasized that judicial intervention in matters governed by the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, should be limited to instances where banks have acted either unlawfully or with mala fide intent.

The division bench, comprising Justice Shekhar B. Saraf and Justice Dr. Yogendra Kumar Srivastava, cited the Supreme Court’s ruling in United Bank of India vs. Satyawati Tondon & Others to support its stance. The bench noted, “Interference by this Court in SARFAESI-related issues is not warranted unless a clear case of illegality or bad faith is established on the part of the bank authorities.”

This section empowers financial institutions to recover dues by enforcing security interests if a borrower fails to repay within 60 days after receiving a demand notice under Section 13(2).

The petitioner argued that the bank did not respond to their objection filed under Section 13(3A) before initiating recovery action under Section 13(4). However, upon reviewing the documents submitted, the court found that the bank had issued an order addressing the objection and attempted to serve it via post. Though delivery to two of the petitioners was unsuccessful due to the premises being locked, the court acknowledged that proper service to one petitioner may not have occurred. Despite this, the petitioners had received the Section 13(4) notice and had subsequently challenged it before the Debts Recovery Tribunal (DRT).

The High Court pointed out that the petitioners initially failed to inform the court that they had already approached the DRT. This fact only came to light through a supplementary affidavit filed later. The court observed that since the petitioners had already sought remedy before the DRT, pursuing the same grievance through a writ petition constituted a case of attempting to “sail in two boats.”

“The existence of an order under Section 13(3A), the efforts made to deliver it, and the petitioners’ acknowledgment of the Section 13(4) notice suggest that they had the opportunity to raise their concerns before the appropriate forum. Having done so, they cannot now bypass that process by invoking the writ jurisdiction of this Court,” the bench observed.

The court further highlighted that the petitioners had already raised the same objections regarding Section 13(3A) in their application before the DRT, rendering their writ plea redundant.

Reaffirming the precedent set by the Supreme Court in Satyawati Tondon, the High Court stressed that although the Constitution allows for writ petitions even where alternate remedies exist, such discretion should be exercised sparingly when an effective statutory mechanism is available.

With no evidence of mala fide conduct by the bank and considering that the asset sale had already occurred, the court found no reason to intervene. Consequently, the writ petition was dismissed.

India Sees 310% Rise in Patent Filings by Startups and MSMEs in Last Five Years

India has witnessed an extraordinary increase in patent filings by startups and micro, small, and medium enterprises (MSMEs), with data revealing a 310% growth over the past five years. This surge underscores the country’s growing focus on innovation, research, and intellectual property protection among emerging businesses.

According to recent government and industry data, this dramatic rise in patent activity reflects the effectiveness of initiatives aimed at nurturing a robust innovation ecosystem. Supportive policies, such as reduced filing fees, fast-track examination processes, and government-backed awareness programs, have played a critical role in encouraging smaller enterprises and startups to safeguard their inventions.

Experts believe that the increasing participation of startups and MSMEs in patenting not only signals a maturing entrepreneurial landscape but also positions India as a rising innovation hub on the global stage.

Government officials have noted that this trend aligns with the vision of making India self-reliant and technology-driven. The growing number of intellectual property filings by smaller players is also contributing to job creation, export potential, and overall economic growth.

The momentum is expected to continue as more early-stage ventures recognize the strategic value of protecting their intellectual property, particularly in sectors such as artificial intelligence, healthcare, clean energy, and digital technologies.

India Strengthens Its Global Standing in AI and Patent Innovation: Nasscom’s Patent Pulse 2025 Report

As World Intellectual Property (IP) Day is observed globally, India has emerged as a prominent player in the international innovation ecosystem.
India maintained its rank as the fifth-largest patent filer worldwide in FY24, with over 90,000 patents submitted—a milestone marking seven consecutive years of growth. A notable portion of these patents, more than 25%, are linked to AI technologies, underlining India’s growing reputation as a center for advanced technological development.

The report also reveals a steady rise in the country’s innovation output. India’s patent-to-GDP ratio more than doubled in a decade, increasing from 144 in 2013 to 381 in 2023. Additionally, India’s share in global patent grants grew from 1.7% in 2022 to 3.8% in 2023—a 149% year-on-year increase.

For the first time, the number of granted patents in India crossed 100,000 in FY24, indicating both enhanced operational efficiency at the Indian Patent Office and an improvement in the quality of applications. A growing share of these filings—over 55%—were submitted by Indian residents, compared to 52.3% the previous year. Contributions from startups, academic institutions, and small and medium enterprises (SMEs) are playing an increasingly vital role, showing a broadening base of innovation.

Artificial Intelligence remains a major driver of this progress. Since 2010, India has filed more than 86,000 AI-related patents, with filings between 2021 and 2025 rising seven times compared to the 2010–2015 period. Indian entities were responsible for 63% of these filings, signaling strong domestic innovation leadership in AI.

Machine Learning (ML) continues to dominate AI-related patents, accounting for over half of them. Within ML, Generative AI (GenAI) has become a significant focus area. In India, GenAI makes up 28% of AI patents, far exceeding the global average of just 6%, placing the country among the top five globally in this space.

Key sectors driving AI patent activity include transportation, which accounts for more than 70% of AI filings, as well as computer vision and natural language processing, which together represent over 90% of India’s AI-related patents.

India’s grant rate for AI patents stands at only 0.37%, significantly behind global leaders such as the United States and China. The gap is even wider in academia, where the approval rate is just 1%, compared to 40% for corporate applicants.

This gap reflects the need for improved research capabilities, stronger institutional support, and a greater emphasis on producing high-quality intellectual property.

Rajesh Nambiar, President of Nasscom, recognized India’s progress but emphasized that more work is needed. “While the increase in filings and patent office responsiveness are encouraging, delays in approvals and inconsistent patent quality remain barriers to matching global benchmarks,” he stated.

To support ongoing improvements, Nasscom has introduced the IP Enablement Initiative. This program aims to boost IP literacy and infrastructure across academia, startups, and industry. It also calls for policy reforms and a cultural shift to encourage innovation and higher-quality IP creation nationwide.

SK bioscience Claims Final Victory in mRNA Patent Dispute Against Moderna

South Korea’s SK bioscience, the biopharmaceutical subsidiary of SK Group, announced on Wednesday that it has secured a decisive win in a patent dispute against U.S.-based biotechnology company Moderna, known globally for its development of mRNA COVID-19 vaccines.

The legal challenge, initiated in 2023, contested Moderna’s South Korean patent concerning the use and modification of nucleosides, nucleotides, and nucleic acids in mRNA technology. According to SK bioscience, the patent posed a significant barrier to domestic research and innovation by granting what it called “unjust priority rights.” This patent, reportedly the only one of its kind registered in South Korea related to mRNA production, was viewed as crucial to SK bioscience’s ongoing projects, including its experimental mRNA vaccine for Japanese encephalitis, GBP560.

The vaccine project is being conducted in partnership with the Coalition for Epidemic Preparedness Innovations (CEPI), a global health organization supported by funding from philanthropist Bill Gates.

A spokesperson for the company highlighted that, if successful, its mRNA-based vaccines could be distributed in developing regions such as Africa, Southeast Asia, Latin America, and the Middle East—areas where Moderna has not yet secured intellectual property rights for its mRNA technology.

The ruling in SK bioscience’s favor came from the Intellectual Property Trial and Appeal Board last month, and with Moderna opting not to appeal within the designated timeframe, the decision stands as final. The company believes this outcome will accelerate its ambitions to become a key player in the mRNA vaccine space, which analysts project could surpass 84 trillion won (around $58.9 billion) in market value by 2033.

SK bioscience now aims to develop a robust mRNA platform that can be used to combat not just pandemics, but a broader array of infectious diseases worldwide.

ToolGen Initiates UK Patent Lawsuit Against Vertex Over Groundbreaking Gene Therapy CASGEVY

ToolGen, Inc. (KOSDAQ: 199800), a biotechnology firm at the forefront of genome editing innovations, has filed a patent infringement lawsuit in the United Kingdom against Vertex Pharmaceuticals and its key manufacturing partners, Lonza and RoslinCT. The legal action centers on Vertex’s approved CRISPR-based gene therapy, CASGEVY, which ToolGen alleges utilizes its proprietary technology without proper authorization.

ToolGen claims the development and commercialization of CASGEVY infringe upon its intellectual property related to the use of CRISPR RNP (ribonucleoprotein complex) technology. The South Korea-based company holds global patents, including those granted in Europe, for its CRISPR RNP methodology. This advanced technique enables the direct delivery of the Cas9 protein into target cells in its active protein form—bypassing the use of DNA or mRNA vectors. Such an approach not only reduces the risk of genomic integration and cellular toxicity but also offers enhanced precision and safety, making it a preferred platform in human therapeutics, as well as agricultural and animal biotechnology.

CASGEVY made history as the first gene editing therapy to be approved for clinical use, beginning with authorization by the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) in November 2023, and subsequently by the European Commission in February 2024.
In December 2023, Vertex signed a licensing deal with Editas Medicine to access CRISPR-related technology. However, ToolGen asserts that this agreement does not cover critical components of the CRISPR RNP delivery system, which it pioneered and for which it holds enforceable patents.

“CASGEVY is a remarkable achievement, but it rests on a technological foundation developed by ToolGen. We believe Vertex’s therapy makes essential use of our CRISPR RNP and Cas9 technologies, and it is only fair that ToolGen be properly compensated through an appropriate licensing arrangement.”

Dr. Ryu clarified that the company’s legal move is not intended to hinder patient access to the life-changing treatment.

“This action is not about limiting access to CASGEVY in any way,” he said. “Our goal is to ensure that ToolGen’s contributions are justly recognized and rewarded.”

The lawsuit is expected to draw attention from across the biotech sector, as it highlights ongoing disputes in the fast-evolving field of genome editing, where overlapping patents and complex licensing agreements remain a point of contention.

As the legal process unfolds, industry observers will be watching closely, not only for the outcome of the case but also for its potential implications on future licensing practices and collaborations in CRISPR therapeutics worldwide.

USPTO Suspends Expedited Examination for Design Applications Amid Fraud Concerns and Case Backlog

In a decisive move aimed at improving efficiency and safeguarding the integrity of the U.S. intellectual property system, the United States Patent and Trademark Office (USPTO) has announced the suspension of expedited examination for design patent applications, effective April 17, 2025. The policy change was officially detailed in a notice published in the USPTO’s Official Gazette on April 14.

The decision comes in response to a 560% surge in requests for expedited design application reviews—a trend the USPTO attributes in large part to a rise in fraudulent filings. This suspension is part of a broader strategy to reduce the growing inventory of unexamined design applications, curb misuse of the system, and ensure accurate and fair processing for legitimate applicants.

Key Reasons Behind the Suspension
According to the USPTO, the unexpected spike in expedited examination requests has placed significant pressure on examiners and contributed to increased backlogs in the design application pipeline. Much of this rise, the agency notes, is linked to fraudulent filings, which not only distort processing timelines but also pose risks to the integrity of the U.S. intellectual property system.

The USPTO also cites a rise in erroneous micro entity certifications—false claims to fee discounts intended for small applicants—as a factor in its decision. These certifications have become a growing concern in recent years, complicating the patent review process and necessitating additional scrutiny.

What the Suspension Means for Applicants
Starting April 17, 2025, the USPTO will no longer grant requests for expedited examination of design applications, including any renewed or pending requests submitted on or after that date. In line with this change:

Associated fees will be refunded in full for requests made after the effective date.

The USPTO will continue to examine design applications under its standard timeline, as it works to reduce overall pendency and inventory.

Impact on the Design Patent Community
The suspension will have a notable impact on companies and individuals relying on faster design patent protection for products with short market cycles, particularly in sectors like fashion, consumer electronics, and packaging design. However, the USPTO maintains that ensuring quality and transparency in the application process outweighs the short-term disruption caused by the policy shift.

Industry analysts suggest that while the suspension may create delays for some innovators, the move is likely to improve the reliability and credibility of granted design patents in the long run, which is critical for both domestic and international enforcement.

Broader Reform Efforts
This policy change is one component of the USPTO’s wider agenda to combat abuse and strengthen the integrity of the IP system. The office has been ramping up enforcement against fraudulent filings, improving data analytics to detect suspicious activity, and refining procedures for certifying applicant eligibility for reduced fees.

The USPTO also continues to explore new technologies and staffing solutions to address examination delays and ensure legitimate applications are processed efficiently.

New Guide Offers Strategic Insights to Strengthen Drug Patent Applications for Pharma Innovators

In a move designed to bridge the gap between pharmaceutical research and market success, a newly released guide is offering strategic advice to drug developers on how to craft more effective patent applications. Published on the widely respected platform DrugPatentWatch, the guide is titled “Drafting Effective Drug Patent Applications: Turning Science into Market Power” and is aimed at pharmaceutical companies, research institutions, and individual innovators seeking to protect and capitalize on their scientific breakthroughs.

Accessible via DrugPatentWatch’s blog, the guide draws from hands-on experience in supporting drug developers through the complexities of patent law and the commercial pharmaceutical landscape.

Why a Strong Patent Application Matters
In today’s competitive pharmaceutical sector, patents are among the most critical assets that determine a drug’s commercial viability. The guide emphasizes that a poorly drafted patent—regardless of the novelty of the underlying science—can leave a drug vulnerable to challenges or fail to provide adequate market exclusivity.

The document outlines that successful drug patents must not only be scientifically robust but also strategically written to withstand scrutiny from regulators and potential competitors. This involves anticipating legal hurdles, clearly defining claims, and demonstrating how the invention contributes to solving a real-world medical need.

Turning Research Into Revenue
A key theme of the guide is the recognition that cutting-edge research does not always equate to market success. Despite advances in biotechnology and pharmaceutical sciences, many innovations fail to reach their commercial potential due to weak or incomplete intellectual property protection.

To address this, the guide outlines methods for:

Aligning scientific advancements with patent requirements

Crafting claims that cover current and future formulations or uses

Navigating jurisdictional differences in patent standards

Ensuring that the application supports potential lifecycle management strategies

By offering this structured framework, the guide seeks to empower researchers and IP professionals to build comprehensive patent portfolios that enhance a drug’s appeal to investors and increase its resilience in the face of generic competition.

Target Audience and Industry Relevance
The guide is designed for a wide audience in the life sciences sector, including:

Pharmaceutical companies seeking to secure longer market exclusivity

Academic researchers and biotech startups transitioning from bench to business

Patent attorneys and legal teams involved in drug innovation strategy

Technology transfer offices managing intellectual property portfolios for universities and public research institutes

With regulatory and patent landscapes evolving rapidly, particularly in areas like biologics, personalized medicine, and drug-device combinations, the release of this guide is both timely and relevant.

Industry Commentary
Experts note that as drug development becomes more expensive and more globalized, robust IP protection is central to attracting investment and partnerships. “You can have the most innovative compound in the world, but without a strong patent, you risk losing the commercial advantage,” said one industry insider familiar with patent litigation.

The guide reinforces the idea that IP strategy should not be an afterthought but an integral part of the drug development process from the earliest stages.

A Proactive Tool for the Innovation Economy
By offering a roadmap for turning laboratory breakthroughs into protected, marketable products, “Drafting Effective Drug Patent Applications” is expected to serve as a valuable resource for pharmaceutical innovators who want to strengthen their market position while ensuring that vital therapies make it to patients with the necessary legal safeguards in place.

As the pressure mounts for pharmaceutical companies to innovate faster and more effectively, this guide could be a game-changer for R&D-driven firms looking to extract maximum value from their scientific achievements.

Delhi High Court Denies Roche Injunction Against Natco, Puts Public Health Over Patent in Rare Disease Drug Case

The case, centered on Roche’s high-priced drug risdiplam used to treat Spinal Muscular Atrophy (SMA), brought public health and drug affordability to the forefront of the legal discourse.

Justice Mini Pushkarna, delivering the verdict on March 24, underscored the primacy of public health in patent litigation involving critical medications. “Public health is not something that should be dealt with lightly,” she wrote, adding that when a drug is the only available treatment for a rare disease in India, its affordable availability to the public becomes a “material factor” in deciding whether to grant an injunction. Notably, she emphasized that while pharmaceutical companies can be compensated monetarily, the public “has no such right to compensate itself.”

Roche vs Natco: The Core Dispute
Roche had filed a patent infringement suit seeking to block Natco from manufacturing a generic version of risdiplam, marketed by Roche as Evrysdi. The oral medication is the only approved treatment for SMA in India, a rare and progressive genetic disorder that impairs motor function and eventually leads to loss of movement and breathing capability.

Roche argued that Natco’s generic infringed on its Indian species patent, valid until 2035. Natco, however, challenged the legitimacy of the patent, citing an earlier genus patent filed internationally, claiming Roche was attempting to extend its monopoly illegitimately.

The Affordability Crisis
One of the case’s most compelling elements was the stark reality of Evrysdi’s cost. For an SMA patient weighing over 20 kg, that equates to ₹1.8 crore annually—a prohibitive amount for most Indian families.

Seba P. A., an SMA patient, and Purva Mittal, who is awaiting treatment at Lok Nayak Jai Prakash Hospital in Delhi, both intervened in the suit, highlighting the devastating impact of the drug’s unaffordability.

Roche’s Limited Patient Assistance Programme Rejected
Roche, like many multinational pharmaceutical firms, proposed offering risdiplam at a subsidized rate under a Patient Assistance Programme (PAP). But the court found this insufficient. The judge noted that the programme was too limited in scope, benefiting only a select group of patients, and would still exclude a significant number of SMA sufferers.

Furthermore, Roche’s plan to work with the National Rare Diseases Committee was seen as impractical, given limited funding under the National Policy for Rare Diseases (NPRD). The court referenced a 2024 government release stating that while up to ₹50 lakh is allocated per patient, only 1,118 patients had received support for any rare disease, despite 63 such diseases being recognized.

Court Favors Balance of Convenience
In assessing whether to grant the injunction, the court applied the principle of balance of convenience—weighing which party would suffer more harm from the interim decision. Justice Pushkarna concluded that Natco stood on stronger ground, especially since damages could compensate Roche if it ultimately prevailed, whereas denying access to a life-saving drug could not be reversed for patients.

The judge also drew parallels to a prior case in 2008, where Roche had sought to block Cipla’s generic version of the cancer drug erlotinib (marketed as Tarceva). That case also emphasized affordability, with the court refusing an injunction because Cipla’s generic cost ₹48,000 per month, while Roche’s version was priced at ₹1.4 lakh.

A Global Legal Battle
While Natco has prevailed in India for now, the battle over risdiplam continues elsewhere. In the United States, Roche is pursuing legal action against Natco and other generic makers who have filed Abbreviated New Drug Applications (ANDAs) with the FDA. Despite SMA being a rare condition, Evrysdi’s U.S. sales hit $1.8 billion in 2024, bolstered by its oral formulation, which provides a less invasive option compared to competitor drugs that require spinal injections.

Patent Complexity: Genus vs. Species
At the heart of the legal challenge is the distinction between genus and species patents. Roche holds a species patent for risdiplam in India, valid until 2035, while the earlier genus patent—covering a broader class of compounds—expires in 2033. Natco argues that risdiplam was already disclosed in the genus patent and that Roche is attempting to unfairly extend patent protection through strategic filings. Similar allegations of patent misuse have emerged against Roche in other international jurisdictions.

A Turning Point for Access and IP Law?
Justice Pushkarna’s ruling is being hailed as a significant judicial stance on the issue of drug affordability, especially in the context of rare diseases. While Indian courts have occasionally refused to grant injunctions against generic firms in the past, few have spoken as plainly about the right to health and the public’s interest in affordable medicine.

The case is far from over—trial proceedings will continue to decide the validity of Roche’s patent. However, the court has made it clear: innovation must not come at the cost of accessibility.

As the world grapples with balancing intellectual property rights and public health imperatives, this decision may serve as a legal and moral benchmark—especially for lower-income countries navigating similar dilemmas.

Biodegradable Plastics Enter the Mainstream as Global Patent Race Heats Up, Says Questel Report

With plastic pollution reaching critical levels, a growing number of innovators and companies are racing to develop sustainable alternatives. A new patent landscape analysis from Questel, led by chemistry specialist and business intelligence consultant Donia Ben Zakour, offers a comprehensive look into the evolving world of biodegradable plastics—and the findings suggest a wave of green innovation is gaining serious momentum.

A Growing Crisis Demands a Sustainable Response
Conventional plastics have become synonymous with environmental harm. Every year, an estimated 12.7 million tonnes of plastic waste enter the oceans. Meanwhile, only 9% of all plastic ever produced has been recycled. As global concern deepens, the spotlight is turning to biodegradable plastics as a promising solution.

What Are Biodegradable Plastics—and Why Do They Matter?
Biodegradable plastics are engineered to degrade through microbial activity, breaking down into natural substances such as carbon dioxide, water, and biomass within a defined timeframe. These materials, which include polylactic acid (PLA), polyhydroxyalkanoates (PHA), and starch-based compounds, are particularly suited for single-use applications like packaging.

Their chemical structures and environmental degradability make them a vital alternative in sectors looking to cut their plastic footprint.

The Patent Landscape: Questel’s Key Findings
Questel’s in-depth analysis examines more than 9,000 patent families related to biodegradable plastics filed over the past two decades (excluding Chinese non-extended patents). It provides valuable insights into trends in innovation, market leaders, and regional activity.

📈 Patent Filing Trends (2005–2023)
2005–2018: Patent activity was relatively steady, with 200–300 new filings annually. However, many early patents are now considered “dead” due to abandonment or expiration.

2015–2023: A dramatic surge in activity, particularly from 2018 onward, saw annual filings exceed 1,000 by 2021. The growing number of “pending” applications reflects a vibrant pipeline of new technologies.

Filings from 2024 and 2025 appear lower but are likely underreported due to the standard 18-month delay between filing and publication.

🌍 Geographical Hotspots
Patent data shows that innovation is concentrated in Japan, South Korea, and the United States. These regions account for the majority of first-priority filings:

Japan was an early leader but saw a lull before a recent rebound.

South Korea took the lead after 2018, driven by aggressive R&D from major firms.

India is emerging as a noteworthy player, while Europe maintains consistent, though fragmented, contributions.

🏢 Leading Innovators in the Space
Top contributors include:

LG Chem – developing bio-based polymers for industrial and packaging use.

Hyundai Motor – incorporating biodegradable materials into vehicle interiors.

CJ CheilJedang – advancing PHA-based biodegradable plastic technologies for a wide range of applications.

⚙️ Key Technologies and Manufacturing Processes
Dominant areas of innovation include:

Core materials: PLA, PHA, starch-based bioplastics, biodegradable polyesters.

Processing methods: Injection molding, extrusion, and polymer blending.

Real-World Adoption and the Push for Sustainability
Biodegradable plastics are increasingly making the leap from labs to commercial shelves. Global brands are actively seeking replacements for conventional plastics in packaging, while automotive and electronics industries are integrating biodegradable materials into their design and production processes.

Zakour emphasizes that this movement reflects more than just a trend—it’s a systemic shift in how innovation meets sustainability. “We’re witnessing a convergence of environmental responsibility, regulatory pressure, and consumer demand,” she explains. “Biodegradable plastics are now seen not just as an alternative, but as a necessity for sustainable growth.”

Looking Ahead
Despite economic uncertainties and regulatory complexity, Questel’s report points to a dynamic and competitive innovation landscape. With global filings surging and real-world applications expanding, biodegradable plastics are rapidly becoming a key pillar of environmental strategy for forward-thinking companies.

The global patent race is far from over—but one thing is clear: the future of plastic is biodegradable.

China Sees Sharp Decline in Invention Patent Grants in Q1 2025, Reflecting Shift Toward Patent Quality Over Quantity

China’s National Intellectual Property Administration (CNIPA) released new statistics on April 15, 2025, revealing a significant decline in invention patent grants during the first quarter of the year. According to the official data, the number of invention patents granted between January and March 2025 dropped by 20.99% year-on-year, amounting to a reduction of 52,870 patents, with a total of 199,012 invention patents granted during the period.

The downward trend was not isolated to invention patents alone. Utility model grants, another category of intellectual property protection frequently used in China, also saw a marginal decline of 2.33%, decreasing by 11,032 grants compared to the first quarter of 2024, bringing the total to 408,419 utility model grants.

However, in contrast to the broader decline, design patent grants recorded a notable increase. The CNIPA reported a 10.11% year-on-year growth, with 161,058 design patents granted in Q1 2025—an increase of 14,788 grants compared to the same period last year.

Trademark Registrations Also Down
The downturn extended into trademark registrations. From January to March 2025, the number of new trademarks registered in China fell by 193,996, reflecting a 14.97% decline compared to the first quarter of 2024. This slump may reflect broader economic uncertainties or shifts in business activity.

Factors Behind the Decline
While CNIPA has not issued an official explanation for the steep decline in invention patent grants, several contributing factors appear to be at play—chief among them, China’s evolving strategy around intellectual property quality and enforcement.

End of Patent Subsidies: Government subsidies for patent grants, once a major driver behind China’s patent filing boom, have officially ended in 2025. This move was aimed at reducing low-quality and opportunistic filings.

Crackdown on “Abnormal” Applications: Chinese authorities have continued to intensify scrutiny on fraudulent or low-value patent applications. This regulatory push has likely discouraged mass filing practices that previously inflated patent figures.

Shift Toward High-Value Patents: China has reoriented its IP strategy from emphasizing sheer volume to focusing on the number of high-value patents per 10,000 people, moving away from raw patent filing counts as the primary performance metric.

In addition, the broader slowdown in China’s economy may be influencing innovation output and intellectual property activity. However, due to the nature of patent processing timelines, such effects may manifest with a delay, making patent grants a lagging indicator of underlying economic trends.

Long-Term Outlook Remains Ambitious
Despite the recent decline, CNIPA’s 2025 budget signals continued confidence in long-term innovation momentum. The agency expects to receive over 5 million patent applications this year and plans to examine more than 2 million invention patent applications. These targets reflect China’s sustained investment in intellectual property infrastructure and commitment to fostering innovation at scale.

The full dataset, published in Chinese under the title “2025年3月国家知识产权局审查注册登记统计月报(外部版)”, offers a detailed monthly breakdown of IP activity and can be accessed through CNIPA’s official platform.

As China continues to prioritize patent quality and reform its intellectual property system, the first quarter data may represent more than just a temporary dip—it could signal a lasting transformation in how innovation is measured and rewarded in the world’s second-largest economy.