A surge in patent applications from India's startup sector is masking a deeper crisis of intent, where intellectual property is increasingly used as a marketing tool rather than a marker of genuine invention. Fresh data reveals a stark gap between the number of patents filed and those actually granted, pointing to a system where optics are getting the better of innovation.
The Glaring Gap Between Filing and Grant
At first glance, the numbers tell a story of an intellectual property renaissance. Since 2021, startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) have filed a staggering 13,089 patent applications. In the same period, trademark filings crossed 44,500. However, Lok Sabha data exposes the hollow core of this boom. Out of those thousands of patent applications, only 2,174 were granted by 2025. This means barely one out of every six filings survived the journey to become a granted patent.
The situation is further clarified by the fate of nearly 500 startup patent applications that were withdrawn or abandoned early. Often, this happens because the filers fail to complete necessary specifications or do not respond to follow-up actions required by the patent office. A similar pattern is seen with trademarks, where over 1,300 applications were abandoned, indicating that many filings serve brand-building purposes rather than being part of a serious, long-term IP strategy.
Why Startups File But Don't Follow Through
This patent filing frenzy, which often ends in silent abandonment, is driven by four key forces within the Indian startup ecosystem.
First, there is a "capital first, commitment later" mindset. For many founders, filing a provisional patent is a low-cost, quick way to bolster their pitch to investors and strengthen valuation narratives. The phrase "patent filed" on a deck creates an aura of innovation. However, once funding is secured, the arduous and expensive process of converting a provisional filing into a full patent—involving detailed prior art searches, technical drafting, and legal responses—often falls by the wayside.
Second, there is a clear preference for branding over deep technology. The explosion in trademark filings shows that for many consumer-facing startups, building a market identity is prioritized over investing in foundational research and development.
Third, systemic challenges like patent office bottlenecks contribute to the problem. India continues to face a shortage of examiners, leading to long pendency periods and sometimes inconsistent technical assessments, which can discourage serious applicants.
Finally, a weak R&D culture underpins the issue. With India's overall R&D spend remaining below 1% of GDP, most startups lack dedicated research teams, technical drafting expertise, and the systems needed for a rigorous patenting process.
The Consequences and The Path Forward
When patents become decorative rather than functional, the entire national innovation system suffers. Low-quality filings dilute the pool of meaningful intellectual property, high abandonment rates signal weak technical follow-through, and investor-driven filing sprees create an illusion of progress that doesn't translate to global competitiveness.
To fix these awry incentives, experts argue India must shift the focus from filing to follow-through. Government benefits—such as subsidies, fast-track examinations, and startup credits—should be tied to patent grants, renewals, or commercialization, not merely to the act of filing. A single high-quality granted patent is more valuable than ten empty filings.
Additionally, expanding examiner capacity, especially in cutting-edge fields like artificial intelligence, biotech, and semiconductors, is crucial to improve grant quality and speed. Strengthening R&D within startups through co-funded grants and tax benefits for formal research teams can foster genuine invention. Promoting academia-industry co-patenting, particularly with institutions like the IITs, could significantly lift the technical standard of filings.
The need of the hour is a fundamental mindset shift. The innovation culture must evolve from seeking patents as pitch-deck slides to valuing them as real intellectual assets tied to substantive research, tangible products, and measurable progress. The patent boom must ultimately signal innovation that can be counted upon.
