The world is changing rapidly, and with it, technology, industries, and businesses are evolving to keep pace. As patent AI innovation evolves, traditional practices in different sectors are being changed, and the field of intellectual property is no exception. In India, the rise of AI-driven inventions — from machine learning algorithms to predictive analytics — has reshaped how innovation is created, evaluated, and protected. But the criteria for what qualifies as an “invention” are evolving, and so are the strategies for patent protection and monetization. As India moves toward a more innovation-driven economy, understanding this shift has become essential. Keep reading to explore how you can protect patent AI innovation in India.
How is Patent AI innovation protected and Monetized Under India’s Patent Law?
To understand how to protect your patent AI innovation in India, it’s important to first look at whether there are any specific laws or regulations for it — and the answer is, not yet. India doesn’t have a dedicated law for AI-based inventions, but there are clear differences in how such innovations are treated under the existing patent framework. The Indian Patents Act, 1970, particularly Section 3(k), excludes algorithms, mathematical methods, and computer programs per se from being patented. In simple terms, you can’t patent an algorithm or a piece of code just because it performs a task — it has to show something more.
However, AI inventions can still be protected if they demonstrate a technical effect or contribution, such as improving system performance, enhancing data processing, or introducing a new method of automation or control. In recent years, the Computer-Related Inventions (CRI) Guidelines have shaped how such applications are examined, and upcoming updates are expected to make the process more transparent and inclusive for AI-driven technologies.
How Does AI Innovation Get Patent Protection in India?
Before diving into the topic, it’s important to first understand what patent monetization actually means. In simple terms, patent monetization is the process through which a patent holder earns revenue from their patent — either by selling the patent rights or by allowing others to use the patented technology through licensing or collaborations. There are several common methods of patent monetization in India, such as:
- patent selling,
- patent licensing,
- patent pooling, and
- patent litigation, etc
But, unlike traditional technologies, AI-related patents are rarely sold outright; instead, they’re often monetized through Patent licensing, partnerships, and technology transfer agreements. If we look at the indian market, leading Indian companies like TCS, Infosys, and Wipro are already monetizing their AI patents to strengthen global collaborations and negotiate cross-licensing deals.
However, monetizing AI patents is not always simple. Their true value often lies not in the algorithm itself but in the data models, training techniques, and real-world applications that bring the technology to life. Recognizing this, the Indian government — through initiatives like the National IPR Policy, Startup India, and Technology and Innovation Support Centers (TISCs) — is actively encouraging innovators to view patents as commercial tools rather than just legal protections. As awareness and valuation methods improve, AI patent monetization in India is poised to become a major catalyst for innovation-driven growth and global competitiveness.
Read Also: What We Do After Patent Monetization for Long-Term Success?
Conclusion
Patent monetization in India is evolving from a legal concept into a strategic business practice, especially in the field of AI. As innovators learn to leverage patents through licensing, collaborations, and technology transfers, intellectual property is becoming a key driver of growth and competitiveness. With government support and increasing awareness, India is steadily moving toward a future where innovation doesn’t just get protected—it gets profitably powered.