Patents are defined as the exclusive rights which are given for some of the intangible creations. The patent works in a different manner as per the specific industry. In pharmaceutical industry, patents are normally equal to the product and it does the protection related to the extensive investment which is in research and clinical testing of the drugs. The newly developed pharmaceutical products are issued patents. This is done as an extensive cost is required to produce the pharmaceutical product. In case the patent is not issued to the company, other popular companies will use the same medicine composition for their own benefits. It is observed that each and every day, more and more new and improved drugs are introduced in the market as a result of the rapid change in the technology. In the recent decade, there have been a number of advancements in the pharmacy sector. This has led to the introduction of a large number of drugs. One of the most important reasons for permitting the patents is the rising cost which is related to the Research and Development. In the pharmacy industry, innovation is one of the most important requirements. Innovation is the synonym with the development of the new medicines and obtaining patents for the same. In order to ensure that the companies overcome the expenditures done on the research and development, patents are considered to be an effective solution.