Understanding Patentability of Algorithms Under Indian Patent Law

Understanding Patentability of Algorithms Under Indian Patent Law

In our digital-first world, algorithms power everything—from the apps on your phone to the AI behind smart devices. But if you’re an innovator in India, you might wonder: Can you patent an algorithm? The answer isn’t straightforward. Indian patent law takes a careful approach, especially when it comes to Computer-Related Inventions (CRIs). Let’s break down what you need to know about protecting algorithm-based innovations in India.

What Exactly Is an Algorithm?

While Indian law doesn’t spell out a definition, the Madras High Court recently clarified it in the Microsoft Technology Licensing LLC vs Assistant Controller of Patents and Designs (July 2024) case. In simple terms, an algorithm is:

“A set of rules or instructions for solving a problem, typically through a sequence of steps or operations.”

Think of it as a recipe for your computer—step-by-step instructions to get a specific result.

Section 3(k): The Big Exclusion

Here’s the key legal hurdle: Section 3(k) of the Indian Patents Act, 1970, says:

Mathematical or business methods or a computer program per se or algorithms are not patentable.

In plain English, this means that algorithms—whether they’re rule-based, step-by-step, or logical processes—are generally not eligible for patents in India.

Abstract vs. Patentable: Drawing the Line

So, what’s the difference between an unpatentable algorithm and a patentable invention that uses an algorithm?

• Not Patentable: Abstract algorithms that are just a set of instructions, with no real-world technical application.
• Potentially Patentable: Algorithms that are part of a larger system and actually solve a technical problem.

For example:

• ❌ A basic sorting method described only in steps—not patentable.
• ✅ A sorting algorithm that speeds up real-time search results in a cloud platform—potentially patentable.

The Delhi High Court has made it clear: if your algorithm is implemented in a technical system and creates a technical effect, it might be eligible for patent protection.

How Patent Examiners Look at Algorithm-Based Inventions

Patent examiners in India use a three-step process:

1. Understand the Invention: What does it do? What’s the core idea?
2. Check for Technical Implementation: Is it just an abstract idea, or is there a real, technical application?
3. Final Decision: Based on the above, is it patentable or excluded under Section 3(k)?

Real-World Examples: What Gets Patented (and What Doesn’t)

Not Patentable:

• Generic cryptographic key generation with no system-level details
• Basic text tokenization with no clear technical application

Potentially Patentable:

• Secure data encryption using pseudo-random number generation in hardware
• Biometric authentication using a neural network within a secure processor
• Real-time video compression on FPGA hardware
• Adaptive noise cancellation for hearing aids using DSP
• Low-latency 5G routing with dynamic algorithms and real-time network data

The key? Your invention must have technical specifics, real-world utility, and a clear hardware or software implementation.

Conclusion: More Than Just Logic

Algorithms are the backbone of modern tech, but in India, you can’t patent an algorithm by itself. To clear the Section 3(k) hurdle, your invention must:

• Be part of a technical framework
• Solve a real, technical problem
• Show a tangible technical effect

At Arctic Invent, we help innovators like you navigate these tricky waters. Whether you’re working on AI, cybersecurity, or hardware solutions, we’ll make sure your IP strategy fits both your technology and Indian patent law.

Got an algorithm-based innovation?
📩 Connect with Arctic Invent today to find out if it’s patentable—and how to protect your breakthrough in India.

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