Technical innovations have always been among the most valuable assets of businesses, manufacturers, and inventors. Many major industrial achievements are, in fact, the result of incremental improvements and technical modifications to existing products and technologies. For this reason, many legal systems around the world, in addition to the patent system, have established a separate mechanism for protecting smaller-scale technical innovations known as Utility Models. With the enactment of the Iranian Industrial Property Protection Act of 2024, this legal institution has been formally introduced into the Iranian legal system for the first time. This article examines the concept of utility models, their differences from patents, and the legal framework governing their protection under Iranian law.

What Is a Utility Model?

According to Article 74 of the Iranian Industrial Property Protection Act of 2024:

“A utility model is a new technical solution relating to the shape or structure of a product, or a combination thereof, that improves its performance.”

Under the same provision, a utility model is registrable if it is novel and possesses industrial applicability.

A utility model is a form of intellectual property right designed to protect technical innovations that may not meet the higher threshold required for patent protection. It typically covers practical improvements, minor technical modifications, and simple technical solutions.

For example, if a person develops a new mechanism for opening and closing a bottle cap or modifies the structure of a hand tool to make it easier to use, such innovation may qualify for registration as a utility model, even if it does not satisfy the requirements for patent protection.

The primary purpose of the utility model system is to encourage small-scale and practical innovations, support inventors, and facilitate the commercialization of technical developments.

Differences Between Utility Models and Patents

Although both patents and utility models are intended to protect technical innovations, there are several important differences between them.

1. Registration Requirements

The most significant difference lies in the registration criteria. To obtain patent protection in Iran, an invention must satisfy three fundamental requirements: novelty, inventive step, and industrial applicability.

In contrast, under Article 74 of the Industrial Property Protection Act, a utility model only needs to meet the requirements of novelty and industrial applicability. Demonstrating an inventive step is not required.

2. Registration Procedure and Costs

The registration process for utility models is generally simpler and less costly than that of patents. The examination process is also less demanding, making utility models a practical option for protecting smaller-scale technical innovations.

3. Duration of Protection

Patent protection in Iran lasts for twenty years from the filing date of the application.

By contrast, the protection granted to a utility model is valid for three years. However, the holder may renew the registration for an additional three-year period upon payment of the prescribed fees. Accordingly, the maximum term of protection for a utility model in Iran is six years.

4. Subject Matter of Protection

Patents may protect both products and processes.

Utility models, however, are limited to products and cannot be granted for processes or methods.

Due to these characteristics, utility models are often referred to as “petty patents” or “small patents” in many jurisdictions.

Utility Models Around the World

Many countries have established utility model systems alongside their patent regimes. Countries such as Germany, China, Japan, and South Korea are among the best-known examples.

In these jurisdictions, small and medium-sized enterprises (SMEs), as well as individual inventors, frequently rely on utility models as a fast and cost-effective means of protecting technical innovations. The widespread use of utility model systems demonstrates the economic importance of protecting incremental innovations and practical technical improvements.

Protection of Utility Models in Iran

Prior to the enactment of the Industrial Property Protection Act of 2024, Iranian law did not provide a separate legal framework for utility models. The new legislation introduced utility models as a distinct category of industrial property rights alongside patents, industrial designs, and trademarks.

As a result, innovators who develop relatively simple technical improvements and may not be able to satisfy the stricter patentability requirements now have access to a dedicated legal mechanism for protecting their innovations.

Requirements for Utility Model Registration in Iran

Utility model applications are filed with the Iranian Industrial Property Office. Under Iranian law, the principal requirements for registration are:

  • Novelty;
  • Industrial applicability; and
  • A technical solution relating to the shape or structure of a product.

Unlike patents, utility models are not required to demonstrate an inventive step.

Rights Conferred by Utility Model Registration

Upon registration, the holder of a utility model certificate enjoys exclusive rights to exploit the protected utility model. These rights include:

  • Manufacturing the product;
  • Importing the product;
  • Offering the product for sale;
  • Selling or using the product; and
  • Storing the product for purposes of sale, offering for sale, or use.

Any unauthorized exploitation of a registered utility model may constitute an infringement of the holder’s exclusive rights.

Protection of Foreign Utility Models in Iran

Intellectual property rights are territorial in nature. Consequently, registration of a utility model in another country does not automatically provide protection in Iran.

Foreign companies and individuals seeking to enter the Iranian market should therefore ensure that appropriate protection is obtained under Iranian law. Failure to do so may result in the absence of enforceable rights within Iran.

Conclusion

The introduction of utility models represents one of the most significant innovations of Iran’s Industrial Property Protection Act of 2024. By providing protection for small-scale and practical technical innovations, the utility model system can contribute to technological development, encourage inventors, and enhance industrial competitiveness.

Inventors and businesses should evaluate, before any public disclosure, whether their technical innovations qualify for protection as a patent or a utility model in order to maximize the legal protection available under Iranian law.