The proprietary aspect is the key feature of biotechnology in modern times. While innovations previously came from publicly funded laboratories, they are now protected under the legal framework of Intellectual Property Rights (IPR). With the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement of the WTO, IPR attained the authority to enforce laws internationally.

The aspects of IPR involved in biotechnology include Patent, Plant Breeder’s rights, Farmer’s Variety Act, Trademark, Copyright, and Trade-secrets. Copyright specifically protects the rights of artists, authors, and computer programmes.

A major legal instrument is the Patents Act 1970, which replaced the Indian Patents and Designs Act 1911. For a patent to be granted, the invention must satisfy the criteria of novelty, non-obviousness (inventive step), and utility. In India, inventions must not be in the negative list of Section 3, and DNA-related inventions must not be contrary to public order and morality.

A significant concern is biopiracy, the commercial exploitation of naturally occurring biochemicals or genetic materials. This often infringes on the traditional understanding of indigenous people. Notable cases include the Neem tree, and the revoked patents for turmeric in wound healing and a rice variety similar to Basmati.