Key takeaways
- A patent trades twenty years of exclusivity for publication, while a trade secret has no term but gives no protection against independent discovery or reverse engineering.
- Public, on-chain and open-source parts of a blockchain system cannot realistically be kept secret, so a patent is the only route to exclusivity for them.
- Section 3(k) excludes business methods, algorithms and computer programmes per se in India, so draft claims around a technical solution and technical effect.
- An Indian resident must file in India first and wait six weeks, or obtain written permission, before filing a patent abroad under Section 39.
A team with developers in India and a company in Dubai builds something new: a consensus mechanism that confirms transactions faster, a method of proving computations without revealing the data, a wallet architecture that recovers keys more safely. Then comes the decision that decides how the innovation is protected for the next twenty years: patent it, keep it secret, or do both for different parts.
For blockchain, the usual patent-or-secret trade-off has extra twists, because much of the technology is public by design. A cross-border team adds more: Indian rules on foreign patent filings, employee and contractor ownership, and two countries with different tests for software-related inventions. This guide explains the choice, how Indian and UAE law treat blockchain inventions, the traps that catch Dubai and India teams, and a framework for deciding. UAE-law points should be confirmed with UAE counsel.
The choice: patent, trade secret or both
A patent gives you the right to stop others from using a claimed invention for up to twenty years from filing, in exchange for publishing it. In India, applications are published eighteen months from the priority date, and anyone can then read your method. A trade secret has no term and costs little to keep, but it protects you only against misuse of information that you have kept confidential, and it gives you no rights against someone who works it out independently or reverse engineers it.
Blockchain complicates both. Public blockchains are open by design: smart contract bytecode is visible on-chain and can often be decompiled, protocol rules are described in documentation, and much of the code is open-source. Secrecy is therefore weak for anything that is deployed on-chain or published, and a patent is the only way to get exclusivity over those parts. Secrecy is stronger for off-chain components such as matching engines, risk and pricing models, data pipelines, analytics, internal tools and key-management procedures, which competitors can’t see.
That suggests a split. Consider patents for the technical protocol-level innovations that will be visible once released, and keep operational know-how, parameters and tooling confidential. You can’t patent and keep secret the same details, because a published application discloses what it describes. Decide which route applies to which asset before anything is published, released as open source or presented at a conference.
| Asset | Patent? | Secret? |
|---|---|---|
| Consensus or validation method visible in the protocol | Yes, if it claims a technical solution | Weak: the logic is public once released |
| Smart contract bytecode and on-chain logic | Possibly, if technical | Weak: visible and often decompilable |
| Matching engine, risk and pricing models, analytics | Often not patentable | Strong: kept off-chain |
| Key-management procedures and internal tooling | Rarely | Strong, with access controls and contracts |
| Tokenomics and incentive rules | No: business method | Not applicable if public |
Indian patent law: Section 3(k) and the 2025 CRI Guidelines
Section 3(k) of the Patents Act, 1970 excludes a mathematical or business method, a computer programme per se and algorithms. That does not mean that software-related inventions can’t be patented in India: the courts have asked whether the invention makes a technical contribution or has a technical effect. The Delhi High Court’s 2019 decision in Ferid Allani v. Union of India is the best known statement of that approach, and the Indian Patent Office issued revised guidelines on the examination of computer-related inventions in 2025, with a later version reported to include guidance on AI, blockchain and quantum computing inventions (Mondaq; Khurana & Khurana; BananaIP).
For a blockchain invention, the practical lesson is to frame the claims around the technical problem and the technical solution. A new way of validating blocks that reduces latency or storage, a cryptographic method that improves privacy or verifiability, or a communication protocol that reduces bandwidth is more likely to be treated as technical. Claims that describe a financial arrangement, a tokenomics rule or an incentive scheme read as business methods, which remain excluded under Indian law. One commentator notes that business methods are excluded in India in a way that is stricter than in some other jurisdictions (Basis Point Insight).
The final text of the guidelines and their blockchain examples should be read directly from the Patent Office, because commentary on them is enthusiastic and varies. Draft with an Indian patent attorney who has seen how examiners apply the guidelines, expect an objection under Section 3(k) in many cases and prepare technical evidence and claim amendments for the response. An Indian filing that fails on Section 3(k) leaves you with nothing, so keep the secret option open for the same subject matter until the application is published.
UAE patent law and the trade secret option
The UAE’s industrial property law, Federal Law No. 11 of 2021, covers patents, utility models, industrial designs, layout designs of integrated circuits and undisclosed information, which is the legal term for trade secrets (Gowling WLG; AGIP; WIPO Lex). It applies across the UAE, including free zones. An invention must be new, involve an inventive step and be industrially applicable, and the law excludes certain categories such as discoveries, scientific theories, mathematical methods and business methods as such. Commentators note that the law expressly excludes software from patentability, without much guidance on exceptions for software-based inventions, so a blockchain invention should claim a technical solution and not the software as such (Gowling WLG; ATB Legal). Software can also be protected by copyright.
The UAE law introduced a twelve-month grace period for filing in some circumstances, according to commentators, which gives some room if the invention was disclosed shortly before filing, but you should not rely on it for a plan, particularly because India does not offer the same flexibility for most public disclosures (Gowling WLG). Check the current text with UAE counsel.
Trade secret protection in the UAE sits in the same statute as patents, and it protects undisclosed information that has commercial value and that its holder has taken reasonable steps to keep secret. That gives UAE-based companies a statutory basis that India does not have. For a Dubai company with an Indian team, the contracts should still be drafted to work under both systems: Indian courts will apply breach of confidence and contract, and your confidentiality terms should be enforceable there.
Cross-border traps: foreign filing permission, ownership and disclosure
The first trap is Section 39 of the Patents Act. A person resident in India may not file a patent application outside India for an invention unless they first file in India and wait at least six weeks, or obtain written permission from the Controller. This applies to inventions made by people resident in India, including developers working for a Dubai company. Filing a UAE or PCT application first, without following Section 39, can expose the applicant to penalties and can undermine the validity of the patent. If your inventors sit in India, file in India first or get permission, and plan the sequence before anyone prepares a PCT filing in Dubai.
The second trap is ownership. An invention belongs initially to its inventors, and the company becomes the owner through employment terms and a written assignment. Indian developers working as contractors will not assign to the Dubai company unless the contract says so, and an assignment of a patent right under Indian law has to be in writing and registered with the Patent Office to be effective against third parties. Review your agreements, add present assignment language for inventions and ensure that every inventor has signed.
The third trap is premature disclosure. Crypto teams often publish whitepapers, push code to public repositories and present at conferences long before filing. Indian law gives only limited exceptions to the rule that a prior publication destroys novelty, and a whitepaper or public code release will not usually qualify. File first, then publish. If you’ve already published, assess what remains patentable and whether the remaining value is better protected as a secret. Keep the Section 8 duty in mind too: once you have filed abroad, you must tell the Indian Patent Office about corresponding applications.
A practical decision framework, remedies and quick answers
Ask five questions about each asset. Is it visible to anyone using the product, on-chain or in the client, so that secrecy is impossible? Could a competitor discover or reverse engineer it independently? Does it solve a technical problem in a way that can be claimed without falling into Section 3(k) or the UAE exclusions? Will it matter commercially for more than the twenty-year patent term, or is it a fast-moving advantage that will be obsolete in three years? And is the cost of filing, prosecuting and enforcing in more than one country justified? Patent the protocol-level technical invention that fits the tests, keep the parameters, tooling and operational practices secret, and consider a defensive publication for ideas you don’t want anyone else to patent. If you release code as open source, choose a licence with an express patent grant if you want to give users certainty. If a secret leaks, act fast: Indian courts can grant interim injunctions for breach of confidence, and UAE law protects undisclosed information. Use access controls, logging and signed confidentiality terms so that you can show that the information was secret.
Related reading: trade secrets in India: protecting source code and algorithms, can you patent software in India? Section 3(k), patent deadlines under India’s 2024 patent rules, Web3 trade marks in India and the UAE, paying Indian developers from a Dubai Web3 company, Dubai vs GIFT City for crypto and Web3 businesses and who owns an NFT.
Quick answers
Can a blockchain protocol be patented in India?
Possibly, if the claims describe a technical solution to a technical problem with a technical effect. Business methods, computer programmes per se and algorithms as such are excluded under Section 3(k).
Do I need permission to file a foreign patent for an invention made in India?
Yes, if the inventor is resident in India. You must either file in India first and wait six weeks or obtain written permission from the Controller under Section 39.
Does the UAE allow software patents?
Software as such is excluded, but an invention with a technical character that uses software may be patentable. Software can also be protected by copyright.
What counts as a technical effect for a blockchain claim?
Indian courts and the Patent Office look for a technical contribution, such as reduced latency or storage, improved privacy or verifiability, or lower bandwidth, rather than a financial or incentive rule. Claims drafted around a business method are excluded under Section 3(k).
Can I publish a whitepaper before filing?
It is risky. Indian law gives only limited exceptions to the rule that a prior publication destroys novelty, and a whitepaper or public code release will not usually qualify. File first, then publish.
Final word
Halverton & Co. is an Indian law firm advising NRIs, founders, investors and businesses in Dubai and across the UAE on Indian law, including patent and trade secret strategy, Section 39 foreign filing permission, IP assignment and enforcement for cross-border blockchain teams. We practise in Jharkhand, Maharashtra and before the Supreme Court of India, and work alongside UAE-licensed counsel, who advise on UAE law. Halverton & Co.: Where tech needs law! If you have a question about Indian law, write to us at office@halvertonandco.com, or get in touch.
This article reflects developments reported up to late October 2026. It is for general information only, is not legal advice, and does not create an advocate-client relationship. Halverton & Co. is an Indian law firm and does not advise on UAE law; UAE-law points should be confirmed with UAE-licensed counsel.
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