Patents are considered to be an important incentive for innovators to produce inventions and disseminate knowledge in society. However, the current patent system does not help the informal sector industries and the Micro, Small, and Medium Enterprises (MSMEs) in commercializing their innovations. Their innovations are incremental in nature, developed under limited resources that are largely influenced by local issues. These minor innovations cannot meet the high patentability standardsof an examination and even if they do, the lengthy procedure and high cost of acquiring patents discourage such innovators from commercializing their innovations. This paper discusses the benefits of a Utility Models system in the context of the informal sector and how it can help in overcoming the problems faced by the grassroots innovators with respect to the present patent system. The paper also delves into different Utility Models regimes around the world and how India, where MSMEs and informal sectors have a major role in the economy could benefit from such a system and can protect the minor and incremental innovations emanating from these sectors.