Friday, March 29, 2024
Friday, March 29, 2024

Rights and Obligations of Patentees in India

by Aishwarya Agrawal
Patentees

The Patent Act of 1970 provides that individuals who have developed an invention in India can seek patent protection for their creation. Acquiring a patent registration provides the patent holder with distinct rights, which are accompanied by corresponding responsibilities. These rights are not without limits or duties that the patent holder must adhere to. Consequently, the Patent Act of 1970 outlines specific rights and responsibilities that patent holders are obligated to observe. In this blog, we shall cover the Rights and Obligations of patentees in India with its various dimensions.

Understanding a Patent Holder and Their Rights in India

A patent holder, also known as a patentee, is an individual or entity that has created a novel procedure or product, entitling them to exclusive rights and obligations as designated by the patent. However, these exclusive rights and obligations of patentees in India are not without limitations and exceptions. 

Limitations and Exceptions to Rights and Obligations of Patentees in India

Several limitations and exceptions are also present in the rights and obligations of patentees in India:

1. Research and Experimental Utilisation: Patents do not impede the exploration and experimentation of the patented invention for research purposes.

2. Usage on Outdoor Vessels: The utilisation of a patented invention on vehicles moving across open waters is not restricted by patent rights.

3. Administrative Authorisation: Authorisation from appropriate regulatory bodies may be necessary for utilising a patented invention in specific scenarios.

4. Patent Rights Reduction and Similar Imports: Instances exist where patent rights can be limited, and similar imported products might be exempt from patent enforcement.

5. Governmental Compulsory Measures: Governments hold the authority to acquire or employ patented inventions under certain circumstances for the public good.

Benefits Granted to a Patentee Under Patent Law

The patent law delineates a set of exclusive rights and obligations of patentees in India, serving to provide specific commercial advantages stemming from their inventive creation. These designated rights and obligations aim to encourage inventors to invest in innovative ventures, assuring them that their developments will be safeguarded by legal provisions. Consequently, no entity other than the patentee possesses the authority to replicate or duplicate their innovations.

This safeguarding is applicable for a predetermined duration, typically spanning 20 years, during which the patentee enjoys distinct rights and obligations as prescribed by the Patent Act of 1970. Upon the issuance of a patent, the patentee is endowed with certain exploitative rights and obligations, intended to incentivise the public disclosure of their invention or creation.

These controlling rights and obligations, typically spanning the same 20-year period, are also transferable. This transferability empowers the patentee to licence their invention, thereby optimising the associated financial gains.

Patentee’s Rights According to the Patent Act, 1970

The Patent Act of 1970 in India grants rights and obligations of patentees in India, allowing them to use their patented inventions or processes. The rights bestowed upon a patentee include the following:

1. Right to Exploit the Patent:

Under the rights and obligations of patentees in India, the first right ensues when the invention is a product. In this case, the patentee has the exclusive rights to use, make, import, or sell the invention within India. In the case of a process, the right to exploit refers to the exclusive authority to use or exercise the process within India.

2. Right to Grant licence:

The patentee holds the authority to grant licences, transfer rights, or establish agreements for consideration. For validity, any licence or assignment must be documented in writing and registered with the Controller of Patents. Unregistered assignments are not recognised as evidence of patent title.

3. Right to Surrender:

A patentee can choose to surrender their patent at any time by providing notice in the prescribed manner. This is usually done through publication in the Journal, allowing opposition if necessary. Surrender is exercised when the patentee anticipates non-performance of the patent in the future.

4. Right to Sue for Infringement:

Patentees have the right to initiate legal action against patent infringement in District Courts, which hold jurisdiction to adjudicate such cases.

5. Right to Use and Enjoy Patent:

The patentee exclusively enjoys the right to exercise, utilise, convey, offer, or practice the patented product or process within India. 

Obligations of a Patentee Under the Patent Act, 1970

Upon being granted a patent, rights and obligations of patentees in India come into operation as per the Patent Act of 1970. These obligations ensure that the patent system operates effectively, encourages transparency, and maintains the balance between innovation and public interest. The patentee’s obligations include the following aspects:

1. Duty to Disclose (Section 8):

Section 8 of the Patent Act, 1970, imposes the obligation of disclosure upon the patentee. This requires the patentee to furnish information regarding any corresponding or similar patent applications filed by them or on their behalf. Specifically, within 6 months from the filing date, the patentee is obligated to disclose these particulars. Additionally, ongoing updates about any subsequent applications must also be provided.

2. Duty to Request Examination (Section 11B):

Unlike some other intellectual property rights, the patent application process doesn’t inherently include an automatic examination step. Under Section 11B of the Patent Act, 1970, the patentee has the responsibility to actively request the Controller of Patents to examine the application for patentability.

3. Duty to Respond to Objections:

After the examination request is submitted, the application undergoes scrutiny by a patent examiner. If objections arise during this evaluation, they are presented in the form of a First Examination Report. The patentee has the obligation to respond to these objections within a year from the issuance of the FER. Failure to comply could result in the application being deemed abandoned by the Controller of Patents.

4. Duty to Clear All Objections:

It’s the patentee’s responsibility not only to respond to raised objections but also to address and resolve them adequately. If necessary, the patentee may need to attend meetings with the Controller of Patents to discuss and resolve outstanding issues.

5. Duty to Pay Statutory Fees (Section 142):

The patentee is obligated to pay the stipulated statutory fees during the patent application process. Non-payment of these fees could lead to the non-processing or rejection of the application. Section 142 of the Patent Act, 1970, outlines the fee payment requirements and the potential consequences of non-compliance.

Final Thoughts

The Patent Act of 1970 in India establishes a symbiotic relationship between rights and obligations of patentees in India. Patentees enjoy exclusive privileges to exploit, licence, and protect their inventions. 

Alongside these rights, they bear the duty to disclose relevant information, request examination, address objections, pay fees, and maintain transparency. This equilibrium between rights and obligations ensures innovation flourishes while upholding the patent system’s integrity. Through this framework, India nurtures inventors as stewards of progress, fostering a balanced and progressive intellectual property landscape.

For more information on rights and obligations of patentees in India, connect with our experts at StartupFino.

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