The concept of intellectual property right is becoming important at the global level. During the last few decades all over the world after the establishment of WTO & GATT protection of intellectual property has become one of the central issues. Issues of generation, valuation, protection and exploitation of intellectual property (IP) are going to become critically important all around the world. India faces several challenges as regards IPR and their role in innovation. Weak physical infrastructure, inadequate intellectual infrastructure, poor public awareness are a few hurdles. The local communities or individuals do not have the knowledge or themeans to safeguard their property in a system which has its origin in very different cultural values and attitudes. India has a rich heritage of traditional knowledge in the field of Ayurveda, Agriculture, Chemistry, Astrology and a number of other thingswhere intellectuals right have not been protected in the modern sense of the term.