Below is the quick reply from the founder of MyCounsel.in
Setting Up Betting Houses
We are at a very early stage in speculating on the justice Lodha Committee’s report on legalizing betting on sports like it happens in Horse racing. However the proposals of setting up of betting houses will be strictly regulated.
But our guess is that the licenses for setting up betting houses would be only possible through limited license. The process of selecting may be as similar to as setting up payment banks who would then further have the online portals. So in that perspective the legal can be handled with pre-emption.
The Patent Aspect
Firtsly, lets analyse the the Scenario that a betting engine (read betting software) would be largely be based on.
- A betting software would largely analyse possible outcomes against the the possible odds.
- It would factor in historic data to populate favourites and deciding odds and handicaps.
- It would also factor in user behaviour and indices to such corresponding action, and some of them will be triggered to monitor response for real events.
- On the assumption what technology can do, such software will be self adaptive based on the coding protocols.
I may not have covered all the aspects of what a betting engine can do, however one thing that is common in these aspects is the heavy inclination towards Sec 3(k) of the Indian Patent Act.
And according to the Sec 3(k) of the Indian Patent Act -" The following are not inventions within the meaning of this Act, – a mathematical or business method or a computer program per se or algorithms".
However if such booking engine is developed beyond the reliance on such algorithms, and with something that is not just a computer programme and has novelty, is inventive or tangible, and has proper technical effect or industrial application, it can be patented (Amendment Act 2002).
Although there was a short stint in August 2015 where, through a new guidelines one was allowed to show innovation in just software, instead of both software and hardware and this made it easier to register a patent for technical innovation in a business method — the basis of most patents filed in the business process outsourcing industry however it was struck down by the Apex court.
Founder & Legal Consultant
MyCounsel.in- Startup & Company Legal