Patent Annuity Payments in India: A Complete Guide to Maintaining Patent Rights

In India, once your patent is granted, maintaining its validity is crucial for protecting your invention. To keep your patent active, you are required to pay an annual fee (under Section 53, Rule 80 of the Indian Patents Act), known as an annuity.

If these fees are not paid on time, your patent could be ceased, and others could use your invention without consequence. Paying the annuity ensures that your invention remains in force for up to 20 years from date of filing. In this article I explore several rules and regulations around patent annuities in India.

Annuity Payment Schedule

1. No Annuity Due During Pendency
   • No annuities are due during the pendency of a patent application. This period lasts from the filing of the application until the patent is granted.
2. Post-Grant Annuities
   • After the patent is granted, annuities are due annually, beginning from the 3rd year onwards.
   • If the patent is granted more than two years after the filing date, the annuity fees from the 3rd year onwards must be paid within three months from the date of grant.
3. Payment of Annuities
   • Annuities are due in advance for each year, and this payment must be made before the anniversary of the patent's filing date.

Forms and Procedures for Annuity Payments

1. Form for Payment
2. The relevant form for paying annuities in India is Form 30.
   • Fee Structure:
   • The annuity fee is based on the year of payment and the type of applicant (individual, startup, or others). The fee can increase annually as the patent ages.
3. Technical Input
   • Calculating the Due Date:
   • The due date for paying an annuity is the anniversary of the patent's filing date after the patent has been granted. Ensure that you pay the fee before the due date to avoid penalties.
   • Online Payment:
   • It is recommended to use the IPO’s online portal for making annuity payments. This provides the convenience of tracking payments and receiving instant receipts.

What happens if you missed an Annuity?

1. Late Payment
   • A 6-month grace period under Form - 4 is allowed for late payment without the application being deemed ceased. However, an additional penalty is levied.
   • The penalty amount depends on how late the payment is made. After the grace period of 6-months, the patent will be marked as ceased.
2. Restoration of Patent
   • If the annuity payment is missed, and the grace period of 6 months has passed, the patent owner can request restoration by paying the overdue annuity fees, including penalties.
   • Form 15 (for Restoring Lapsed Patent) must be filed, and the restoration application should be made within 18 months from the lapse date (12 months from the expiry of grace period of 6-months).

Penalty Structure for Delayed Annuity Payments

Discount for Early Payment of Annuities

As per the 2024 amendments to the Indian Patents Act: In case of payment for multiple years in advance, the Indian Patent Office provides additional 10% discount on the total fee for paying at least 4 years of annuities at once. This discount provides a money-saving option for patent owners who wish to make upfront payments for several years.

Table: Annuity Fees for Patents in India:

Authored By:

Ankur Veerbhan, Associate Vice President - Paralegal Operations

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.