By Johny Solomon Raj and Peeyush Pandey
This article relates to a brief analysis on the recently published World Intellectual Property Indicators (WIPI) 2024 issued by World Intellectual Property Organisation (WIPO) which reflects on various filing trends and outcomes in the innovation fraternity of Patents, Trademarks and Industrial designs.
Introduction
“Demand for IP rights is growing even in the face of an uncertain economic environment. In addition, this demand is increasingly indigenous. For example, the growth in patent filings has been driven by residents inside the countries themselves rather than from foreign innovators. With volume growing, the challenge still remains quality and the ability to translate IP filings into actual products and services”.
WIPO Director General Daren Tang
The above statement from Director General of WIPO not only represents the true spirit of an ecosystem created, nurtured and protected for development and growth of the global intellectual property rights but also signifies as a firm step towards fulfilling the obligations towards prioritizing and ensuring effective and better functioning of IP regime.
Highlighting worldwide trends in intellectual property (IP) filings, the World Intellectual Property Organization (WIPO) has released the World Intellectual Property Indicators (WIPI) 2024 on November 07, 2024. According to the report, applications for patents, trademarks, and industrial designs have significantly increased in leading economies in the preceding year.
The year 2023 has marked a significant milestone in the realm of global intellectual property with a record-breaking surge in patent filings. As reported in the latest World Intellectual Property Indicators, 2024 (WIPI) issued by the World Intellectual Property Organization (WIPO), the year witnessed unprecedented growth, marking a robust period of innovation and technological advancement.
New milestones and trendsetters
In 2023, over 3.55 million patent applications were filed by innovators worldwide recording a 2.7% increase over 2022. After facing a decline by 3% in 2019 during the peak of the COVID-19 epidemic, patent applications have increased globally for four years in a row. The main forces of growth in 2023 were caused by a substantial rise in patent applications filed by applicants from China (at least 57,830 more applications in 2023 compared to 2022), the Republic of Korea (+15,628), the United States of America (US) (+12,682), Japan (+9,040), and India (+8,734).
China tops the charts with more than 1.64 million applications, with US (518,364) on second and Japan (414,413) on the third. Republic of Korea came at fourth place with 287,954 applications while Germany has been ranked fifth with 133,053 applications according to WIPO’s annual World Intellectual Property Indicators (WIPI) report[1].
An unprecedented rise in resident filing: the way forward
Further, in 2023, there were 3.55 million patent applications filed globally, of which 1.02 million were non-resident applications (28.8%) and 2.53 million were resident files (71.2%). While non-resident filings dropped by 2.2% in 2023, resident filings increased by 4.9%. With the exception of 2019, 2021, and 2022, resident filings have gone up more than non-resident filings every year since 2010. This is primarily due to China’s robust resident filing growth.
In 2023, Chinese innovators submitted over 1.64 million patent applications worldwide (resident plus foreign applications).US (518,364), Japan (414,413), the Republic of Korea (287,954), and Germany (133,053) were next after China. Finland (+11.2%) and India (+15.7%) were the only countries to achieve double-digit growth among the top 20 origins in 2023. This was India’s fifth year in a row of double-digit growth, primarily due to a substantial growth in resident filings. In addition, over the last ten years, India is the only country in the top 20 to show an annual increase in patent filings. Switzerland (+4.3%), the Russian Federation (+6.1%), and the Republic of Korea (+5.7%) also filed considerably more applications in 2023 than in 2022[2].
India as an emerging player and growth trends going forward
It was a historic achievement for India as it managed to find a place for the first time in the top 10 players in intellectual property (IP) rights regime according to WIPI. Notably, India has emerged as a significant player in the global patent landscape as it experienced a remarkable 15.7% increase in patent applications, climbing to 64,480. This rapid growth establishes and affirms India’s expanding emphasis on inventions and IPRs.
Among the top 20 origins, India (15.7%) recorded the fastest growth in patent operations in 2023, marking the fifth consecutive time of double number growth. India is also the only origin among the top 20 to report growth in patent filings every time over the last decade. Further, the report indicates a steady rise (36.4%) in India’s industrial design applications, which aligns with adding emphasis on product design, manufacturing, and creative diligence within India. The top three sectors fabrics and Accessories, Tools and Machines, and Health and Cosmetics made up nearly half of all design registrations, India’s patent- to- GDP rate also saw significant growth, rising from 144 to 381 in the last decade, indicating that IP exertion is spanning alongside profitable expansion.
Also, India ranked fourth globally in trademark applications, with a 6.1% increase in 2023. Nearly 90% of these applications were by residents, with crucial sectors including Health (21.9%), Agriculture (15.3%), and Clothing (12.8%) leading the way. India’s Trademarks Office holds the largest number of active registrations worldwide, with over 3.2 million trademarks in force, reflecting the country’s strong position in global brand protection.
The report highlights continued growth in global intellectual property (IP) forms, reflecting invention adaptability despite procedural challenges. This increase was largely driven by residents in China, the United States, Japan, South Korea, and India. This growth trend, especially in resident applications emphasises a shift towards original invention, with numerous countries aiming to strengthen their domestic IP geographies. The findings from WIPO’s World Intellectual Property indicators 2024 show India’s advancements in inventions and IP’s. The steady increase in resident IP registrations demonstrates the impact of government enterprise, which aim to make India a global invention leader[3].
Industrial Designs and Trademark applications
In addition to patents, the WIPI report indicates growth in industrial design filings, which saw a 2.8% increase, reaching 1.52 million designs worldwide. However, trademark filings endured a slight decline, totaling 15.23 million classes, down by 2% from the last time. Despite this dip, the overall exertion in intellectual property remains robust, reflecting ongoing enterprises and efforts. Also, India has seen substantial growth in trademarks and industrial registrations as indicated by the report.[4]
Conclusion: what the future holds
The sustained increase in patent filings is a testament to the grim pursuit of inventions across the globe. This surge not only highlights the significance of intellectual property rights in protecting and rewarding innovation but also underscores the adaptability of the global invention ecosystem in the face of upcoming challenges.
As nations continue to invest in exploration and development, and as new technologies crop, the geography of global patent forms is anticipated to evolve further. The future holds grit and determination for uninterrupted growth and diversification in inventions, driven by the collaborative efforts of governments, institutional organisations and individual stakeholders.
[1] https://www.wipo.int/en/ipfactsandfigures/patents
[2] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2072706
[3] https://www.wipo.int/pressroom/en/articles/2024/article_0015.html