INTRODUCTION

Utility Model

The Concept Of Utility Model In India,  Utility models, like patents, are an exclusive right granted to an invention. For a limited time, the grantee has the right to restrict others from economically exploiting the protected innovation without the grantee's permission. It is often referred to as "petty patents" or "innovation patents" because it is extremely similar to patents. Though patents and utility models appear to be identical at first glance, there are numerous variances between the two. The requirements for acquiring a utility model differ from those for obtaining a patent. Patents must meet both the novelty and non-obviousness standards of patentability, among other requirements, in order to be granted protection. Utility models are expected to meet the novelty requirement, while the non-obviousness requirement is either low or non-existent for utility models. Depending on the jurisdiction, the length of protection for utility models is usually between 7 and 10 years.

The applications are not evaluated prior to registration in most jurisdictions that give utility model protection. This cuts down on the amount of time it takes to register. Utility models are less expensive to obtain and maintain than patents. Utility model protection is available in some jurisdictions only for certain disciplines of technology and only for goods, not processes.

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GRANT REQUIREMENTS

In most nations, the criteria that the invention is "new" must be met in order to get a utility model. A utility model is rarely subjected to a thorough review, resulting in a rapid award.

The uniqueness criterion varies by country, with some countries having an 'absolute' need and others having a 'local' requirement. Absolute novelty refers to the novelty condition being confined to past publications and prior usage in the subject country, whereas local novelty refers to the novelty condition being limited to prior publications and prior use in the subject country (i.e. Azerbaijan).

WHEN CAN WE FILE FOR UTILITY MODEL

The types of inventions that can be protected by utility models are limited in most European countries. In Germany, for example, processes like as manufacturing methods and biotechnological inventions such as pharmaceutical/chemical compositions are not protected under a utility model. Varying countries have different restrictions on subject matter.

To be eligible for protection, an invention must be original and capable of industrial application in addition to relating to qualifying subject matter. Surprisingly, while Germany requires 100% innovation, prior use and/or an oral description of the invention occurring outside of Germany are not considered prior art. In some countries, such as France, an inventive step requirement applies, which requires the innovation to be non-obvious.

ADVANTAGES/ DISADVANTAGES OF A UTILITY MODEL

Advantages

• When compared to the patent application process, the registration process is simpler and speedier because there is no substantive examination.
• Obtaining and maintaining a utility model is less expensive than obtaining and maintaining a patent.
• A permitted monopoly IP right is gained much more quickly as a result of the quick grant. 
• In most situations, the relief and remedies available in patent infringement cases are also available in utility model infringement proceedings, which is critical in terms of having an enforceable right to seek remedy against infringing acts by third parties.

Disadvantages

• The lack of a substantive investigation reduces the legal security of the registered utility model's validity. As a result, the utility model may be challenged and cancelled, and third parties may be more wary about entering into licence agreements and/or giving money.
• A utility model is an enforceable IP right, even if there is no substantive review during the application phase. As a result, the utility model's validity is always assessed as part of an enforcement action. Only legally enforceable rights can be enforced.
• For inventions that are intended to have a lengthy commercial life, the short time period may be unsuitable.

INTERNATIONAL FRAMEWORK

The TRIPS agreement does not specifically address Utility Model Patents, but it does compel countries to create new laws and processes to improve Intellectual Property Rights. Utility Models are included in Article 1(2) of the Paris Convention alongside patents in the context of industrial property. As a result, Utility Model Patents must follow the Paris Convention's standard principles, such as priority rights and so on. Approximately 75 nations have adopted this utility model as a second-tier patent system at this time. They frequently employ it as a strategic weapon in addition to their patent system.

UTILITY MODEL PATENT SYSMENT IN INDIA

The utility model is increasingly seen as a critical part of intellectual property law for developing nations, since it promotes the involvement of local small-scale entrepreneurs and individuals in the economic development process while simultaneously creating a competitive market environment. In recent years, India has enacted a number of new intellectual property laws to protect intellectual property rights. According to the Indian Patent Act of 1970, India presently has one of the strongest IP rules in the world as a result of many government initiatives. India is establishing itself as a centre for small and medium-sized businesses that rely on the creation of new technology or methods, as well as minor enhancements or revisions to existing items, to suit changing market demand. More than 28 million people are employed by small and medium-sized businesses. India's industrialization process has accelerated in recent years, and the country expects even more foreign direct investment in the future as the country prospers and grows as a market, bringing possibilities to a vast number of people in many ways. As a result, India need a strong intellectual property legislation to safeguard the non-disclosure of technology and processes brought in by businesses, as well as the growth of new investments.The Government of India has established a WTO cell for small, medium, and macro enterprises to increase their awareness of the IP protection system and to take advantage of it by protecting their intellectual creations. Because the sector is less capital intensive and creates more jobs, it is given a prominent place in India's socio-economic development process. Despite these efforts, India still needs to adopt regulations to safeguard the Utility model, which requires less innovation and offers a variety of benefits for both the consumer and the producer in the market.Apart from the patent and design protection systems, there is currently no other method for IP protection in India, such as the utility model protection system or any other regulation. Due to a lack of resources and investment, India's small and medium-sized businesses are unable to conduct research and development, and are instead focused on producing goods that meet the basic needs of consumers. Small and medium-sized businesses in India face a lot of competition, not only from each other but also from the standards of imported goods, so they're doing everything they can to beat the competition and stay afloat in the market by making improvements and improvisations to existing products to improve their quality and prove their existence in the market to ensure survival.However, all of this innovative work by small and medium-sized businesses is undermined because small innovations are short-lived due to intense competition from foreign and domestic competitors, and they are unable to meet the requirements for patentability and industrial design because patenting requires a higher level of non-obviousness and worldwide novelty criteria. Statistical data shows that, despite stronger economic growth, expansion of the industrial sector, and good scientific workforce, intellectual property protection activities are quite low in comparison to other nations such as China and South Korea.All of these considerations demonstrate that India's current intellectual property laws are insufficient to safeguard or advance intellectual property rights. India needs to harness local innovation to drive economic growth by accommodating industrial operations at many levels in order to bring development to the economy. Small and medium-sized businesses (MSME's) will be better protected by granting protection to sub-patentable ideas, which will also give a solution to foreign IP. This will also aid in the preservation of the country's indigenous economy, which is vulnerable to imitation and misuse both at home and abroad. By lowering the cost of registration, patentability standards, and economic exploitation rights, the government can encourage rural industry inventions that do not fulfil patentability criteria to be protected under the utility model category. The utility model system is one of the newer features of patent law, and its protection will be especially useful in developing countries like India.Utility model protection is particularly important for MSMEs, who play a significant role in India's economic growth, because they fail to protect their ideas and hence lag behind other countries in terms of company growth. As a result, the adoption of utility model rights in India would be crucial.

CONCLUSION

Small inventions or incremental inventions frequently fail to receive patent registration and protection because they do not always contain an innovative step and have a limited commercial life. However, because such inventions have practical utility, it is critical to protect them. As a result, many governments around the world have developed a second-tier system known as utility model patents to make patent protection more accessible to small and individual innovators. In comparison to the patent system, this system is simpler, faster, and less expensive. As a result, many countries have benefited from this system, as it has aided domestic innovators in obtaining patent protection for their innovations.This method has drawbacks, but when applied properly, it can greatly aid a country's technological and economic progress. India should now explore instituting a second-tier patent system, which will benefit indigenous businesses. India should not apply utility model patents right once, but rather carefully consider the benefits that this model would provide to its own innovators. This approach can be utilised as a supplement to the patent system, and it has the potential to help the technology industry develop further. It may also motivate Indian innovators to file more patents, allowing India to prosper in the sector of intellectual property.

Author: Anuja Saraswat - a student of NMIMS Kirit P. Mehta School of Law (Mumbai), in case of any queries please contact/write back us at support@globalpatentfiling.com or Global Patent Filing.