SEM V Intellectual Property Rights-I – Unit I Class Notes

November 23, 2014

Intellectual Property Rights protect creations of the human intellect, providing inventors and authors with exclusive legal rights to exploit their innovations. Unit 1 covers the conceptual foundation of property, international conventions, the Indian Patents Act 1970, statutory patentability criteria, registration procedures, patentee rights, and statutory remedies for infringement.

Concept of Property and Classification of Intellectual Property

Property in legal jurisprudence denotes a bundle of rights exercised over a tangible or intangible asset. Traditional corporeal property encompasses immovable real estate and movable chattels, where possession and physical boundaries define ownership. In contrast, intellectual property represents incorporeal rights arising from human intellect, labor, skill, and ingenuity. A practicing property lawyer often deals with tangible conveyancing, whereas intellectual property lawyers safeguard abstract conceptual assets against unauthorized commercial exploitation.

Intellectual property is broadly divided into two major categories:

  • Industrial Property: Encompasses technological inventions (patents), commercial symbols and brand identifiers (trademarks), aesthetic product shapes (industrial designs), commercial source identifiers (geographical indications), and confidential business knowledge (trade secrets).
  • Non-Industrial Property (Copyright and Neighboring Rights): Covers literary, artistic, dramatic, musical, and cinematographic works, protecting original expressions of ideas rather than the underlying functional ideas themselves.

International Evolution and Historical Framework of IPR

The international legal architecture for intellectual property emerged during the late nineteenth century to resolve cross-border trade and technological imitation:

  • Paris Convention for the Protection of Industrial Property (1883): Established national treatment, right of priority, and common rules for patents, trademarks, and industrial designs across member states.
  • Berne Convention for the Protection of Literary and Artistic Works (1886): Introduced automatic copyright protection without mandatory registration and minimum terms of economic and moral rights protection.
  • TRIPS Agreement (1995): Established enforceable minimum standards of intellectual property protection under the World Trade Organization (WTO), linking intellectual property enforcement to multilateral trade dispute mechanisms.

Students preparing for professional legal examinations or reviewing CS Executive law notes must recognize that the Indian Patents Act 1970 underwent significant amendments in 1999, 2002, and 2005 to align Indian statutory norms with TRIPS mandates.

Indian Patent Law: Statutory Definition and Patentability Criteria

Under Section 2(1)(j) of the Indian Patents Act 1970, an invention means a new product or process involving an inventive step and capable of industrial application. To qualify for a patent grant, an invention must satisfy three cumulative statutory requirements:

  1. Novelty (Section 2(1)(l)): The invention must not have been anticipated by prior publication, public use, or prior knowledge in India or abroad prior to the filing date or priority date of the patent application.
  2. Inventive Step or Non-Obviousness (Section 2(1)(ja)): The technical advancement or economic significance of the invention must not be obvious to a person skilled in the art.
  3. Industrial Applicability (Section 2(1)(ac)): The invention must be capable of being made or used in an industry, having practical and commercial utility rather than being purely theoretical.

Product Patent vs Process Patent in Indian Law

Prior to the Patents (Amendment) Act 2005, India granted only process patents in sectors such as pharmaceuticals, food products, and agrochemicals under Section 5 of the 1970 Act. This historical policy enabled domestic pharmaceutical companies to manufacture generic formulations using alternative chemical synthesis processes. Following the 2005 amendment, India introduced product patents across all fields of technology, ensuring exclusive protection for the chemical substance itself in addition to its manufacturing method.

Patent Specifications: Provisional and Complete

A patent specification is the foundational techno-legal document defining the boundaries of legal monopoly:

  • Provisional Specification (Section 9): Filed to secure an early priority date when an invention is still in development. It describes the essential nature of the invention without requiring definitive patent claims. A complete specification must be filed within 12 months from the provisional filing date.
  • Complete Specification (Section 10): Fully discloses the best method of performing the invention and concludes with distinct statutory claims. The claims define the exact legal scope of the patent monopoly; anything outside the claims falls into the public domain.

Procedure for Obtaining a Patent and Patent Office Administration

The statutory lifecycle of a patent application follows a structured administrative process before the Controller General of Patents, Designs, and Trade Marks:

  1. Filing of Application: Submission of Form 1, specification (Form 2), and requisite fee at the territorial Patent Office branch (Kolkata, Mumbai, Delhi, or Chennai).
  2. Publication (Section 11A): The application is published after 18 months from the filing or priority date, making the specification publicly accessible.
  3. Request for Examination (Section 11B): The applicant must file Form 18 within 48 months from the priority date to initiate substantive examination by a patent examiner.
  4. First Examination Report (FER) and Opposition: The applicant must address official objections. Third parties may file pre-grant opposition under Section 25(1) or post-grant opposition under Section 25(2).
  5. Grant and Entry into Register: Upon overcoming all objections, the patent is sealed, recorded in the Register of Patents, and valid for 20 years from the filing date.

Rights, Obligations, and Transfer of Patent Rights

Under Section 48, a patent grant confers upon the patentee the exclusive right to prevent third parties from making, using, offering for sale, selling, or importing the patented product or process. In return, the patentee has statutory obligations, including paying renewal fees and working the patent commercially within India. Under Section 84, compulsory licenses may be granted if the reasonable requirements of the public are not satisfied, or if the invention is not available at a reasonably affordable price. Patent rights can be transferred via assignment, transmission, or voluntary licensing, which must be executed in writing and registered under Section 68.

Biotech Patents and Patentability of Life Forms

Section 3 of the Indian Patents Act sets out non-patentable subject matter. Specifically, Section 3(b) bars inventions contrary to public order or morality, Section 3(c) excludes the mere discovery of living things occurring in nature, Section 3(d) restricts new forms of known substances lacking enhanced therapeutic efficacy, and Section 3(j) excludes plants and animals in whole or part (other than micro-organisms). The landmark United States Supreme Court decision in Diamond v. Chakrabarty (1980) recognized genetically engineered living micro-organisms as patentable, influencing global standards while Indian law retains strict statutory exceptions under Section 3(j).

Infringement of Patents, Defences, and Legal Remedies

Patent infringement occurs when an unauthorized party makes, sells, uses, or imports a patented product or process during the term of the patent. Infringement actions are instituted in District Courts or High Courts having original jurisdiction under Section 104. Defences include lack of novelty, non-working, experimental research exemptions (Bolar exemption under Section 107A), and government use under Section 100. Statutory remedies include interim and permanent injunctions, damages or an account of profits, and destruction of infringing goods under Section 108.

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