LEGAL ASPECTS OF BUSINESS Presented By Prapti Kumar-01 Risha Singh-03 Jayant Sharma-32 Devansh Sabharwal-35 Ankit Kumar Varun-43 Saksham Kalra-55 Shivang Gupta-63 Avinash Yadagani-440621A01 INTELLECTUAL PROPERTY RIGHTS (IPR) Creations of the mind : Inventions Literary and artistic works Designs and symbols Names and images used in commerce. LAWS & RULES THAT GOVERN IPR PATENT ACT 1970 Enacted in 1970, came into force in 1972 Remained in force for about 24 years till 1994 Patent Act was amended in 1999, 2002 and in 2005 Amendments in this act are proposed in 2018 Act includes 24 Chapters SECTIONS Section 1-Title and extension of the act • The act extends to the whole of India Section 2 - Patents • A patent is an exclusive right granted for an invention, which is a new product or process that meets conditions of • Novelty • Non-obviousness • Industrial use. INVENTIONS NOT PATENTABLE What are not inventions ? • an invention which claims anything obviously contrary to well established natural laws • animal or plant life or health or to the environment Section 3(a) Section 3(b) Section 3(d) Section 4 • Inventions relating to atomic energy not patentable APPLICATIONS FOR PATENTS Who can apply ? Persons entitled to apply for patents • True and first inventor of the invention • Assignee of the person claiming to be the true and first inventor in respect of the right to make such an application • Legal representative of any deceased person • Clause (2) • Clause (3) OPPOSITION PROCEEDINGS TO GRANT OF PATENTS Section 25- Opposition to the patent • Related to pre-grant and post-grant opposition • Opportunity to the public to challenge the patent applications • Pre-grant opposition and post-grant opposition can be made on the grounds listed under section 25(1) and section 25 (2) (a) to (k) SECTION 39 OF IPA 1970 “Residents not to apply for patents outside India without prior permission” The place of residence of the inventor is more important than the place of creation of invention Infringing the clauses of Section 39 results in : •Criminal liability under Section 118 of IPA term •Imprisonment may extend to 2 years or revocation of the patent even if it is already granted SECTION 47 OF IPA 1970 “Grant of patents to be subject to certain conditions” The government may import or make or have made on its behalf any patented product or product made by a profess for purposes ‘merely of its use’ The government may impart educational institutions and distribution of patented medicines in government dispensaries or hospitals on account of public service. Both process and product patents can be imported by the government for the purpose merely of its own use. SECTION 48 OF IPA 1970 “Rights of patentees” •Exclusive rights are given to the patentee for his invention •Any person cannot use the patented invention without the permission of the patentee •Patent law confers certain definite advantages, however, the rights of patentee under section 48 curtails some of the rights of the patentee SECTION 53 OF IPA 1970 “Term of Patent” •The term of the patent is 20 years from filing date •For Patent Cooperation Treaty, expiry of patent is 20 years from the international filing date/PCT date •If the patent is granted before May 20, 2003 then different set of rules are applicable to the term f the patent •Also states renewal of patents SECTION 64 OF IPA •IPA 1970 provides opposition /revocation mechanisms to make sure that undeserving patents are not granted and if they are granted, they can be opposed/revoked •Grant of patent can be opposed under Section 25 and Section 64 •More than 15 grounds are mentioned in Section 64 on which petition can be filed •Revocation is not limited to the ground provided by Section 64. For post-grant opposition, grounds for opposition are limited to those provided under Section 25 (2) •Section 64 allows all grounds to be used in the revocation SECTIONS 84-92 OF IPA 1970 Section 84 ‘Compulsory licenses’ brief about licensing the patent. •The patented invention is not available to the public at a reasonably affordable price. Sections 85 to 92 are related to the laws of compulsory licenses •The patented invention has not worked in the territory of India. As per Section 84, any person who is interested or already the holder of the license under the patent can make a request to the Controller for grant of compulsory license on expiry of 3 years from the date of patent grant when any of the following conditions is fulfilled. •The reasonable requirements of the public with respect to the patented invention have not been satisfied. Further, compulsory license can also be issued by the Controller under Section 92 if Central Government issues either ‘national emergency’ or ‘extreme urgency’ or in case of ‘public non-commercial use’. The concept of compulsory licensing is very important and beneficial to developing countries, as they can provide for example medicines at affordable cost to the common public. SECTION 100 OF IPA 1970 • Section 100 of IPA 1970 entitled ‘Power of Central Government to use inventions for purposes of Government’. • Section 47 and Section 99 to 101 of IPA 1970 empowers the Government to make use, sell or even import any medicine or drug, any medical equipment or other equipment for use or distribution in public health centers owned by the Government or notified by the Government for that purpose. CASE STUDY - CASE LAW The case of Bajaj vs. TVS Motors PATENT INFRINGEMENT • A patent is an exclusive right granted to an inventor or an applicant. • In India section 104 to section 114 of the Indian patent act 1970 provides the guidelines to Patent infringement Two types of Infringement Patent infringement cases are referred to a court not lower than a district court. •Direct Infringement •Accusation of infringement on third party IP right •Indirect Infringement •The patentee notices a third party for infringing on his product or service IPA 1970 Section 104- 114 •Burden of proof •Defense in suits for infringement •Reliefs in suit for infringement •Penalty for falsification of entries in the register •Unauthorized claim of patent rights. •Grant damages or account of profits for infringement. •Metes and bounds of the subject matter to be protected by the patent grant. The patent must be sure that IP right granted to him is enforceable •Know the relevant prior art by conducting extensive search. •Know the accused infringers product in detail •Evidence of infringement in case of process claims •Concerned parties, plaintiff and defendant, are notified in advance of the judicial rights and the judicial obligations they shall comply with during Lawsuits. •The parties are required to exchange the evidence before the start of the lawsuit. •The plaintiff should bring the suit in the court within three years from the date of infringement according to section 40 of Indian limitation Act Compensation for losses during the litigation of infringement cases is calculated as A reasonable amount not less than the royalty of patient licensing is regarded as the amount of compensation against such a loss • Before Taking Any Action Against Infringer • Judicial Proceeding Concerning Patent Infringement • Compensation CONCLUSION