Replacing the British patent rule of 1856, a formal Patent Act was enacted in India in 1911. However, the Act primarily reflected colonial concerns. After Independence several committees were constituted in India to review the British system of patent. Primarily on the basis of the recommendations of Justice N. Rajagopala Ayyangar and modifications suggested by the Joint Parliamentary Committee the Patent Act (Act No.39 of 1970) was enacted in 1979 which came into force from April 1972. The Act remained basically unaltered till 1994.

Things, however, started changing with the process of `globalisation' initiated at the behest of the developed countries, particularly the USA. Under the banner of the General Agreement of Tariff and Trade (GATT) the major trading powers attempted to enlarge the scope of the GATT by covering service, intellectual property (patents, trademarks, designs, copyright etc.) and investment in addition to goods. The Uruguay Round of Multilateral Trade Negotiations of the GATT started at the Punta del Este in Uruguay in September 1986. The US with the use of various trade laws of 1988 (Section 301, Special 301) began to retaliate against countries for their `unfair trade practices' including `inadequate' protection of intellectual property rights particularly patents. India, Brazil, Mexico and other developing countries were often placed under a `priority watchlist'. Arthur Dunkel, the Director-General of GATT issued in December 1991 a draft on the basis of the results of the Uruguay Round. This draft brought almost everything within the realm of trade in an all-encompassing manner. A strong international trading organisation, the World Trade Organisation (The WTO) came into being from January 1, 1995 to regulate international trade in accordance with new norms. The then Indian Government signed in April 1994 the Uruguay Round Treaty amid protest from various quarters. As a follow-up procedure to be the member of the WTO, government also promulgated an Ordinance in December 1994 to meet obligations under the Trade Related aspects of Intellectual Property rights (TRIPs) and the WTO. Subsequently the Patent (Amendment) Bill 1995 was introduced in the Lok Sabha in 1995. But Bill could not be passed since the Lok Sabha had to be dissolved. The President thereafter promulgated the Patents (Amendment) Ordinance again.

A new Patent (Amendment) Bill was introduced before the Indian parliament in December 1998 that was subsequently passed in February 1998. On the strength of an official Gazette notification the Amendment came into force in March 1999, but with a retrospective effect from January 1995. Some states like West Bengal protested against the changes introduced in the Patent Act and demanded a through debate on the new Patent Laws. But the protest went unheeded. New Delhi did not take the people into confidence either before signing the Uruguay Round in 1994 or enacting the new law in 1999.

There are several reasons for which a detailed discussion on the proposed changes is necessary. The Indian Patent Act 1970 defines the areas where patents are not allowed (Chapter II, section 3 and 4 of the Act). Inventions related to anti naturals, immorality, mere discovery and admixture rearrangements, testing methods agriculture and horticultural methods, treatment of human beings, animals, plants and atomic energiser are not patentable. Moreover, in case of medicine, drug and food only methods or processes of manufacture can be patented but the products are not patentable. Again a patent is generally granted for a period of 14 years from the date of applications for patents, but in case of methods related to food, medicine and drug, patents are allowed for 7 years from the date of application or 5 years from the date of grant of patent, which ever is minimum. Patents are granted to encourage inventions and to use it on a commercial scale to a fullest extent, not `to enjoy monopoly for the importation of the patented article(s). There is a provision of a compulsory licence (sections 83 to 98,chapter 16) when an invention is not available to the people at a reasonable price after a reasonable time period. The Controller of Patents is empowered to deal patent cases. In case of indecision or further disputes, the district court/High courts could intervene.

The TRIPs rules of the WTO are, however, going to change the Patent Laws in a major way. The TRIPs cover all categories of intellectual property rights i.e., patents, copy rights, trade secrets, geographical indicators and integrated circuits of computer. According to the new TRIPs rules patent protection should be available for both products and processes in almost all fields of technology including pharmaceutical, and agro-chemicals. Moreover microorganism and plant varieties can be protected through patent or a sui generis system. Again, the duration period of patent is now proposed to be 20 years from the filing of the patent applications. If a dispute arises an independent Dispute Settlement Body of the WTO will settle the cases. In consonance with TRIPs India, as a member of the WTO, is obliged to change her Patent Laws. However, being a member of the developing world India was allowed to defer the implementation of the TRIPs rules till the beginning of the year 2005. But the WTO had fixed 19 April 1999 as the dead line within India was required to incorporate certain transitional arrangements (Art. 70 of the TRIPs). It was in this context the necessary changes were made in the 1970 Patent Act.