India Inc leans on legal-tech firms to protect IPR as it expands to mature geographies

As India Inc is expanding its base in mature geographies such as the US and Europe, companies are reaching out to legal tech firms to protect their patent and other intellectual properties and also to keep costs in control.

Companies in the sectors including pharmaceutical, information technology, automobile and even conventional manufacturing companies are approaching legal tech firms to protect their patents.

“Building strategic patent portfolios helps high-tech innovative companies generate a competitive edge,” said Harish Daiya, Co-Founder of the US-based startup Lumenci. “Increasingly, companies are exploring how to turn their patent portfolios from a cost center to a revenue center,” said Daiya.


Legal expenses of India Inc declined in the last fiscal despite robust deal activities and major fundraising, going by the annual reports of 4,170 companies listed on Indian bourses.

These companies spend a total of Rs 43,667 crore in legal expenses for the year ended March 2022, down 5.20% from Rs 46,059.98 crore in the previous year, data compiled by ETIG show.

Legal expenses include spending on litigation and arbitration, professional fees, regulatory filings, penalties, and general stamp duty. “A sophisticated patent portfolio reflects the quality of a technology company's R&D, resulting in receiving better investment terms,” said Daiya.

Among listed Indian companies, about 174 pharmaceutical firms have collectively spent over Rs 7823 crore during FY2022 on legal. While about 233 infotech companies and 639 financial services firms have collectively spent Rs 6131 crore and Rs 3000 respectively towards their legal expenses.