India remains one of the world’s most challenging major economies for protection and enforcement of IP, says USTR

The United States Trade Representative (USTR), in its latest report, put India on its ‘Priority Watch List’ for 2025, calling India one of the most-challenging major economies when it comes to protection and enforcement of intellectual property (IP). The USTR that released its 2025 Special 301 Report on the adequacy and effectiveness of US trading partners’ protection and enforcement of IP rights, said despite India’s efforts and increased engagement with the US, “many long-standing IP concerns remain unresolved”.

“India remains one of the world’s most challenging major economies with respect to protection and enforcement of IP. Patent issues continue to be of particular concern in India. Among other concerns, the potential threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act impact companies across different sectors,” the report stated.

Patent applicants face long waiting periods for grants and excessive reporting requirements. Stakeholders have expressed concerns over the vagueness in interpreting the Indian Patents Act, it added.

The USTR says India justifies limiting IP protections to promote access to technologies but maintains high customs duties on IP-intensive products like ICT products, solar energy equipment, medical devices, and pharmaceuticals. Concerns persist about the effectiveness of India's system for protecting against unfair commercial use and unauthorised disclosure of data for pharmaceutical and agricultural chemical products.

The US is monitoring restrictions on patent-eligible subject matter in Section 3(d) of the Indian Patents Act and its impacts, stated USTR.

The report added that while India has taken steps to improve IP Office operations, overall IP enforcement remains inadequate. Actions against websites with pirated content have been taken, but weak enforcement by law enforcement, lack of familiarity with IP-specific investigation techniques, and absence of coordination among agencies hamper efforts.

Encouraging establishment of more state-run dedicated crime enforcement units and a national-level enforcement task force for IP crimes, the USTR stated that trademark counterfeiting remains problematic, with US brand owners reporting delays in trademark opposition proceedings and concerns over examination quality.

The Department for Promotion of Industry and Internal Trade (DPIIT) has reduced trademark application examination times, but concerns remain, said the USTR, urging India to join the Singapore Treaty on the Law of Trademarks.

The USTR also acknowledged India’s progress in promoting IP protection and enforcement, addressing issues with patent pre-grant opposition proceedings and reporting requirements through the Patents (Amendment) Rules, 2024. The US will monitor the implementation of the amendments, it said, encouraging further reforms to reduce patent pendency times, and improve the patent system overall.