Summary: The article examines the recent amendment to Section 4 of the Patents Act, 1970, which now permits limited patenting of nuclear energy inventions for peaceful uses, subject to stringent safeguards under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025. While this liberalises innovation in nuclear technology, there are certain carve outs for sensitive areas. Ultimately, the objective will be to understand the positives as well as the continuing hurdles post this change.
Background
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 (“the Act”), came into force on December 21, 2025, repealing the previous Atomic Energy Act, 1962 (“the Atomic Energy Act”). The Act most significantly liberalises the patent regime for inventions relating to nuclear energy, which were previously excluded under Section 4 of the Patents Act, 1970 (“the Patents Act”).
Key Change to Patentability of Nuclear Inventions
Earlier, Section 4 of the Patents Act was read with Section 20(1) of the Atomic Energy Act, and inventions relating to atomic/ nuclear energy, falling within sub section (1) of Section 20 of the Atomic Energy Act, were considered not patentable. The same being reflected in the unamended Section 4 of the Patents Act: “4. Inventions relating to atomic energy not patentable. — No patent shall be granted in respect of an invention relating to atomic energy falling within sub section (1) of Section 20 of the Atomic Energy Act[1], 1962 (33 of 1962)”.
The Third Schedule of the Act introduces an amendment to Section 4 of the Patents Act, which now states – “4. Inventions relating to nuclear energy. –– The patents may be granted for inventions relating to nuclear energy subject to the provisions of this Act and Section 38[2] of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025.”
It is to be noted that patents may be granted for nuclear energy if they comply with Section 38 of the Act, which governs the patentability criteria for nuclear inventions. Although patents may now be granted for inventions intended for peaceful use of nuclear energy and radiation, inventions relating to activities exclusively reserved for the Central Government, such as enrichment, reprocessing, or those considered sensitive or having national security implications, are still not patentable and shall be deemed to have been made by the Central Government. If there is any doubt regarding the nature of an invention, the Controller is required to refer the application to the Central Government for appropriate directions.
Moreover, despite liberalisation of the patents regime, allowing patentability of certain nuclear energy inventions, specific obligations under the Patents Act remain intact. Specifically, Section 35 continues to empower the government to issue secrecy directions for inventions relevant for defence purposes, while Section 39 imposes restrictions on filing patent applications abroad, without prior permission. Furthermore, the Patent Office will maintain its practice of referring applications to the Atomic Energy Authorities, whenever an invention prima facie appears to be related to any of the activities specified in sub-section (5) of Section 3 of the Act[3], or is sensitive in nature or has national security implications, ensuring compliance with national security and regulatory requirements.
Positive Impact Through the Amendment
The amendment to Section 4 of the Patents Act marks a transformative shift in India’s intellectual property regime for nuclear technology. By allowing patents for inventions related to the peaceful use of nuclear energy and radiation, the law opens the door for innovation across critical sectors, such as healthcare, agriculture, industrial applications, and clean energy. This change is expected to catalyse research and development and enable private sector participation in such areas. This aligns with India’s strategic vision of leveraging nuclear energy for sustainable development and positions the country to attract global collaborations and investments. Furthermore, the liberalisation for peaceful nuclear-related technologies enhances India’s competitiveness in international markets as well, ultimately fostering innovation and strengthening its role in the global nuclear technology ecosystem.
Persisting Challenges Despite the Amendment
Despite the progressive reforms being introduced through this amendment, several significant regulatory and compliance challenges remain. Sensitive technologies, including enrichment, reprocessing, and other activities reserved for the Central Government, are still excluded from patentability and are subject to strict oversight under Section 38 of the Act. Applicants must also navigate a dual compliance framework, involving both the Act and the Patents Act. Additionally, obligations under Sections 35 and 39 of the Patents Act, such as secrecy directions for defence-related inventions and restrictions on foreign filings, continue to apply.
Section 38(3) of the Act still provides for reference of an application to the Atomic Energy Authorities to decide whether an invention is related to any of the activities specified in sub-section (5) of Section 3 or is sensitive in nature or has national security implications. This referral process can lead to extended timelines for examination and grant, creating uncertainty for applicants and investors.
Conclusion
The amendment to Section 4 of the Patents Act represents a significant policy shift aimed at promoting innovations related to peaceful uses of nuclear energy and radiation. However, this liberalisation is ringfenced by safeguards under Section 38 of the Act and continuing obligations under Sections 35 and 39 of the Patents Act, ensuring that national security remains paramount. Ultimately, the success of this reform will hinge on balancing regulatory oversight with ease of doing business, with the objective of positioning India as a leader in sustainable nuclear technology while upholding stringent security controls.
[1]Section 20(1) of the Atomic Energy Act: As from the commencement of this Act, no patents shall be granted for inventions which in the opinion of the Central Government are useful for or relate to the production, control, use or disposal of atomic energy or the prospecting, mining, extraction, production, physical and chemical treatment, fabrication, enrichment, canning or use of any prescribed substance or radioactive substance or the ensuring of safety in atomic energy operations.
[2] Section 38 (1) of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025: The Central Government may grant patents for inventions which in its opinion are for the peaceful uses of nuclear energy and radiation: Provided that the inventions relating to activities specified in sub-section (5) of section 3, or which in the opinion of the Central Government, are sensitive in nature or having national security implications, shall not be patentable and such invention shall be deemed to have been made or conceived by the Central Government
[3] Section 3(5) of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025: The following facilities and activities shall be set up or undertaken exclusively by the Central Government or any institution or factory wholly owned by it, namely:— (a) the enrichment or isotopic separation of prescribed substance or radioactive substance, unless otherwise notified by the Central Government in this behalf; (b) the management of spent fuel, including reprocessing, recycling, separation of radionuclides contained therein and management of high-level radioactive waste arising thereof; (c) the production of heavy water and its upgradation by isotopic separation; (d) any other facilities or activities as may be notified by the Central Government.