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Chapter -02 INTELLECTUAL PROPERTY LEGISLATIONPATENTS ACT 1970 INTRODUCTION

The concept of patent in Great Britain originated from the exercise of the royal prerogative to grant monopolies. In India patent is granted for inventions under the legislation. The first patent was enacted in 1856 granting exclusive patents for a period of 14 years to inventors of new manufacture. The act was amended in 1859. After further enactments in 1872, 1883, 1888. Patents and designs act 1911 was passed and this act was amended several times between the period from 1911to 1970. Economic growth of any country does not depend merely on availability of natural resources. India is a signatory to the agreement for the establishment of the World Trade Organisation (WTO), including the agreement on trade related aspects of intellectual property rights (TRIPS).for the purpose of reduction of distortions and impediments to international trade and promotion of effective adequate protection of intellectual property rights, amendments to the patents act 1970. Government had signed GATTA (now WTO) agreement in April, 1994. This agreements contained clauses relating to trade related intellectual property rights. Under which India was required to introduce product patent for drugs, food products and chemicals. As per obligation under trips agreement, India was required to introduce product patent where presently only process patent is permitted. To give effect to amendments by 01.01.2005.patent ordinance was issued on 26.12.2004 to become effective from 1st Jan 2005. MEANING OF INVENTION Inventions means a new product involving a inventive step and capable of industrial application. (sec2 (j)) Inventive step means a feature of an invention that involves technical advance as compared to the existing knowledge or having economic significance or both and that makes the invention not obvious to a person skilled in art. (sec2 (ja)) Invention may be of any machine, apparatus, or other article or substance produced by manufacture. An article includes any substance or material, and any plant, machinery or apparatus.
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Manufacture means making of any article or a thing which is useful and vendible .new or useful method or manner of manufacture need not necessarily be any product ie. Need not necessarily be a new article Meaning of patent Patent means any legal grant for any invention granted under the act (sec 2( m)) it is the interest of the inventor to get his invention or any improvement patented .by grant of patent , protection by way of a monopoly is extended to the inventor for a limited period for. 1. Inventing a new product 2. Inventing a new process or product capable of industrial application A process to be patentable must be a process which leads to same result and the result arrived at must be useful, though it need not be an article at all. When a patent is granted and is in force in respect of either of the article or the process it is called patented article or patented process respectively. The following are the salient features of patent The patent must be of invention and not of discovery. In respect of one single invention there must be one single patent. Patent may be in respect of a substance or in respect of process. It is not possible to bifurcate the patent and state that one relates to the substance and the other to the process. In order to have a complete patent, the specifications and the claims must be clearly and distinctly mentioned. It is the claims and only claims which can constitute the patent. GENERAL PRINCIPLES APPLICABLE TO WORKING OF PATENTED INVENTIONS. SEC (83) In exercising the powers of granting the patents, regard shall be had to the following general considerations namely.

That patent is granted to encourage inventions and to secure that the inventions are worked in India on a commercial scale and to the fullest extent that is reasonably practicable without undue delay. That they are not granted merely to enable patentee to enjoy a monopoly for the importation of the patented article. 2 |Page CIRCULATION STRICTLY FOR PRIVATE

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That the protection and enforcement of the patents contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in the manner conducive to social and economic welfare, and to a balance of rights and obligations; The patents granted do not impede protection of public health and nutrition and should act as instrument to promote public interest especially in sectors of vital importance for socio and economic and technological development of India. That patents granted do not in any way prohibit central government in taking measures to protect public health; That the patent right is not abused by the patentee or person deriving title or interest on patent from the patentee ,and the patentee or a person deriving title or interest on patentee from the patentee does not resort to practices which unreasonably restrain trade or adversely affect the international transfer of the technology, and;

TRUE AND FIRST INVENTOR A patentee is a true and a first inventor. True and a first invention is a person who first made the invention and applied for the patent. If two persons have independently made the same invention and another has used or disclosed it to the world, the one who applies first for the patent will be considered in law the true and first inventor although the other might have made it earlier in point of time.

ASSIGNEE AND EXCLUSIVE LICENSEE OF A PATENT: A patent when granted is assignable. Assignee includes an assignee of the assignee and the legal representative of a deceased assignee or assignee of legal representatives. The patentee may assign the patent by licence. The patent can sell a part or whole of his patent rights or grant licences to others to use it. A licence from the patentee which confers on the licensee, or on the licensee and persons authorised by him ,to the exclusion of all the other persons (including the patentee) any right in respect of the patented invention shall be an exclusive licensee and such an licensee is an exclusive licensee . a patent being a form of industrial property is called an intellectual property. APPLICATIONS FOR PATENTS Sec 6 who can apply for patent? 3 |Page CIRCULATION STRICTLY FOR PRIVATE

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a) By any person claiming to be true and first inventor of the invention .true and first inventor does not include either the first importer of an invention into India or a person to whom an invention is first communication from outside India.(sec 2(y)) b) By the person being the assignee of the person claiming to be the true and first inventor; c) By the legal representative of any deceased person who immediately before his death was entitled to make such an application.

REQUIREMENTS FOR INVENTIONS TO BE PATENTABLE: TEST OF NOVELITYTEST OF UTILITYTEST OF VENDIBILITY-

KINDS OF PATENT ORDINARY PATENT -it usually obtained by filing application under sec 6 of the patents act. 1970 e.g. .any genuine invention without hassle. PATENT OF ADDITION -it is usually done for improvement in or modification of an invention for which a parent application has already been made or guaranteed. Further this holds good if the patents for original inventions remains in force. PATENT IN RESPECT OF CONVENTION-such patent are granted to persons outside India who are based in a country which has convention. Application for such patent has to be made in the convention country firstly; application can be made to patent office in India subsequently

PROCEDURE FOR GRANT OF PATENT

filing an application for patent

examination of application

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Acceptance of application and advertisement of such acceptance in the official gazette. opposition to the grant of patent grant and ceiling of patents

WHO IS ENTITLED TO APPLY

Defense employees not eligible ( railway and research

establishment employees ) prohibited Application for patent for addition- if the original patent being pending or already granted. WHO IS ENTITLED TO APPLY
Any person who claims to be the true and the first inventor

by the person who is called the assignee by legal representative of deceased

alone or jointly sec 6 sub sec-1 corporation ( only as assignee)

company or firm as an applicant- a joint stock company, firm or

govt servants are at the liberty to apply directly at the patents office.

FILING OF APPLICATION SEC- 7 FOLLOWING DOCUMENTS ARE SUPPOSED TO BE SUBMITTED

provisional or complete specification- to furnish the description of

the of the invention( in triplicate )

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specification can be of two types provisional specification complete specification

PROVISIONAL SPECIFICATIONUnder this the applicant has to furnish description of the invention

It describes the nature of inventions generally with or without drawings In this the statement of claims will not be given..

COMPLETE SPECIFICATION It has to be filed within a period of 12 months. Can be extended for a month. In case of failure the within the stipulated time allotted it may lead to abandonment of the application.

EXAMINATION AND ACCEPTANCE OF APPLICATIONS SEC-12-24 Whether the application and specification are in acc to the act. Looks into any lawful objection to the grant of the patent.
The result of investigations furnished under sec 12 The report likely to be made within 18 months.

POWER OF THE CONTROLLER IF SATISFIED . THIS POWER DOES NOT COMPLY In case of refusal . The controller sees the application proceedings will be refused.
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can amend the specification before he proceeds with the application

TIME FOR PUTTING APPLICATION AFTER OBJECTION. After meeting necessary amendments the applicant can reach the patent office 15 months from the date can be extended up to 3 months.

SEC -25 OPPOSITION TO GRANT PATENT If the invention has been published before the priority of the date claim. ANTICIPATION
Anything If published before the date of filing complete specification

WHAT ALL COMES UNDER ANTICIPATION? Inventions published after filing provisional certification.
Matter was used or published in India or elsewhere after application

was filed in a convention country. However, applications will not be refused due to prior anticipation in following circumstances. The matter relating to invention claimed was published without the consent of the inventor in application. The applicant made application as soon as possible on becoming aware of such publication. Communication to government or to any person authorised by government to investigate the matter on merits. Invention exhibited or used in industrial or other exhibition such exhibition should be specifically notified by the central government. However, the application must be submitted within 6 months of opening of exhibition. If trails for inventions in public were necessary, application should be made within 12 months from the date of trails.
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Invention used or published after filing of provisional specification. Matter was used or published in India or elsewhere after

RIGHTS OF PATENTEES
Right to exploit the patent-

sec 48 confers the right to exploit the patent on the patentee or his licensee or his assignee or his agent when such right is exercised within the conditions imposed by the sec 47 of the act.

Right to license- sec 70 of the act confers interalia the right on a grantee or proprietor of the patent to grant licence(s). for instance, patentee of invention of new camera has a right to license his right to another party to make and sell the piece in a particular territory.
Right to assign sec 70 also confers on the patentee the right to

fully or partially assign his patent to another or others. Such assignment and licensing should always be in writing in express agreements and should be registered.
The right to surrender the patent- sec 63 provides that a patentee

may at any time by giving notice to the controller,offer to surrender his patents. The controller before accepting the offer of surrender ,publishers the offer in india to give opportunity to the parties having any interest,for instance licensees to oppose the offer of surrender.
Right to sue for patent infringement- patentee,his assignee,licensee

has right ti institute a civil suit in court not lower than the district court in case of any infringement.

PATENT AGENTS SEC- 125- 132

A person shall be qualified to have his name entered in the register

of patent agents if he fulfills the following conditions. Should be citizen of India Completed the age of 21 years
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Has passed the prescribed examination

Should pay the fee as may be prescribed.

Should practice before the controller

To prepare all documents, transact all business and discharge such

other function as may be prescribed.

SUBSCRIPTION OF CERTAIN DOCUMENTS AND VERIFICATION BY PATENT AGENTS.

Looks into application of the patent. Application of the lapsed patents.

Applications for sealing of patent

Restoration of patent. Application for leave to amend.

Applications for compulsory licenses or for revocation Notice for surrender. GENERAL POWER IN GRANTING COMPULSORY LICENCES The patents are worked on commercial scale in India without undue delay.

Not unfairly prejudiced.

INFRINGMENT OF PATENT SEC (104-117) This act grants statutory rights to patentee, his agents and licences to work or exploit the invention. If some person violates these and encroaches upon the rights, it amounts to infringement. The relief in the suit for infringement are... The injuction- ( as the court may think fit)

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Power by the court for destruction of goods implements used for production of such goods.

PENALITIES The patent act of 1970 provides penalties in respect of following violation of the act. I. II. III.
IV.

Contravention of secrecy relating to inventions relevant for defence purposes- imprisonment upto 2 years or 5 years or both. Falsification of entries in registrar etc. Imprisonment upto 2 or 5 five or both. Unauthorised claims of patent rights-fine upto Rs.500 Wrongful use of words patent office- imprisonment upto 6months or fine or both. Refusal or failure to supply information to central government or the controller imprisonment upto rs. 6months or fine. Practising by non-registered patent agent fine upto rs.500 for the first offence and rs.2000 subsequent offices.

V.

VI.

Article.

Microsoft to pay Alcatel $70M in patent ruling

A federal jury in San Diego today ruled that Microsoft must pay $70 million in damages to telecommunications infrastructure maker Alcatel-Lucent, stemming from a patent infringement claim that dates back to 2003. The patent, which was originally applied for by engineers at AT&T, covers a method of entering information into fields on a computer screen without using a keyboard. Lucent
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initially sued computer makers Gateway and Dell for infringing on the patent back in 2002, with Microsoft intervening. An earlier trial involving the same parties found Microsoft guilty of infringing on that patent in the company's Outlook e-mail software, Windows Mobile, and Microsoft Money--a ruling that would have cost Microsoft more than $500 million in damages. Microsoft appealed the decision, and the damages were recalculated. "Today's verdict reflects a positive trend in the law of patent damages stemming from the Federal Circuit's earlier opinion in this and other cases," said David Howard, Microsoft's corporate vice president and deputy general counsel of litigation in a statement. "However, we continue to maintain that current law requires a genuine apportionment of damages when the infringement is directed to a small feature of a feature-rich product, and we are reviewing the verdict in that light and considering next steps." Alatel-Lucent's lawyer Luke Dauchot told Bloomberg, which first reported the story today, the company was "pleased" with the ruling. This particular patent infringement case is just the latest in a long series between the two companies. A 2003 case had Alcatel targeting PC makers Gateway and Dell for using of MP3 audio technologies. Like in this case, Microsoft intervened, though came out the victor. Microsoft was also the target of a U.S. International Trade Commission patent infringement complaint by Alcatel over technology to identify and affiliate a user in a telephone network. The ITC ended up siding with Alcatel-Lucent on that. A third patent case, involving digital speech compression technology as well as computer communications patent was met with a mixed ruling back in 2008. Additional information
Wipo-world intellectual Property organization - The World Intellectual Property Organization (WIPO) is a specialized agency of the United Nations. It is dedicated to developing a balanced and accessible international intellectual property (IP) system, which rewards creativity, stimulates innovation and contributes to economic development while safeguarding the public interest. WIPO was established by the WIPO Convention in 1967 with a mandate from

its Member States to promote the protection of IP throughout the world through cooperation among states and in collaboration with other international organizations. Its headquarters are in Geneva, Switzerland.

Paris Convention for the Protection of Industrial Property

of March 20, 1883, as revised at Brussels on December 14, 1900, at Washington on June 2, 1911, at The Hague on November 6, 1925,

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at London on June 2, 1934, at Lisbon on October 31, 1958, and at Stockholm on July 14, 1967, and as amended on September 28, 1979 TABLE OF CONTENTS2

Article 1: Article 2: Article 3: Article 4: Article 4bis: Article 4ter: Article 4quater: Article 5:

Establishment of the Union; Scope of Industrial Property National Treatment for Nationals of Countries of the Union Same Treatment for Certain Categories of Persons as for Nationals of Countries of the Union A. to I. Patents, Utility Models, Industrial Designs, Marks, Inventors Certificates: Right of Priority. G. Patents: Division of the Application Patents: Independence of Patents Obtained for the Same Invention in Different Countries Patents: Mention of the Inventor in the Patent Patents: Patentability in Case of Restrictions of Sale by Law A. Patents: Importation of Articles; Failure to Work or Insufficient Working; Compulsory Licenses. B. Industrial Designs: Failure to Work; Importation of Articles. - C. Marks: Failure to Use; Different Forms; Use by Co-proprietors. - D. Patents, Utility Models, Marks, Industrial Designs: Marking All Industrial Property Rights: Period of Grace for the Payment of Fees for the Maintenance of Rights; Patents: Restoration Patents: Patented Devices Forming Part of Vessels, Aircraft, or Land Vehicles Patents: Importation of Products Manufactured by a Process Patented in the Importing Country Industrial Designs Marks: Conditions of Registration; Independence of Protection of Same Mark in Different Countries Marks: Well-Known Marks Marks: Prohibitions concerning State Emblems, Official Hallmarks, and Emblems of Intergovernmental Organizations Marks: Assignment of Marks Marks: Protection of Marks Registered in One Country of the Union in the Other Countries of the Union Marks: Service Marks Marks: Registration in the Name of the Agent or Representative of the Proprietor Without the Latters Authorization Marks: Nature of the Goods to which the Mark is Applied Marks: Collective Marks Trade Names Marks, Trade Names: Seizure, on Importation, etc., of Goods Unlawfully Bearing a Mark or Trade Name False Indications: Seizure, on Importation, etc., of Goods Bearing False Indications as to their Source or the Identity of the Producer

Article 5bis: Article 5ter: Article 5quater: Article 5quinquies: Article 6: Article 6bis: Article 6ter: Article 6quater: Article 6quinquies: Article 6sexies: Article 6septies: Article 7: Article 7bis: Article 8: Article 9: Article 10:

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Article 10bis: Article 10ter: Article 11: Article 12: Article 13: Article 14: Article 15: Article 16: Article 17: Article 18: Article 19: Article 20: Article 21: Article 22: Article 23: Article 24: Article 25: Article 26: Article 27: Article 28: Article 29: Article 30: Unfair Competition

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Marks, Trade Names, False Indications, Unfair Competition: Remedies, Right to Sue Inventions, Utility Models, Industrial Designs, Marks: Temporary Protection at Certain International Exhibitions Special National Industrial Property Services Assembly of the Union Executive Committee International Bureau Finances Amendment of Articles 13 to 17 Revision of Articles 1 to 12 and 18 to 30 Special Agreements Ratification or Accession by Countries of the Union; Entry Into Force Accession by Countries Outside the Union; Entry Into Force Consequences of Ratification or Accession Accession to Earlier Acts Territories Implementation of the Convention on the Domestic Level Denunciation Application of Earlier Acts Disputes Signature, Languages, Depositary Functions Transitional Provisions

Organisational structure of IP office in india

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Note- kindly refer to your class notes and suggested text books .

Source. Business law kc.garg Business law for management- kr. Bulchandani Business standard The mint

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