Table of Contents

Rights and Limitations of Patents: A Detailed Analysis

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Table of Contents

Introduction

A patent is one of the crucial mechanisms that aid in protecting innovations and inventions of the owners, providing them with certain rights for their work or inventions. The rights of the patent owner are integral to promoting innovation among people, encouraging research and development, and providing inventors with temporary but exclusive control over their creations.

Meaning of Patent

The word patent originally comes from the Latin term ‘Patere’, which means ‘to lay open’. As noted earlier, a patent is a form of intellectual property that grants exclusive rights for an invention to its inventor. Patent rights in India are governed by the Indian Patents Act of 1970. Section 2(1)(m) of the Indian Patents Act, 1970 defines the word patent as “patent”, which means a “patent for any invention granted under this Act”. ‘It is a statutory legal right granted to an invention for a limited period to the patentee by the government, in exchange for exclusive disclosure of his invention for excluding any third party from making, using, selling, importing, and modifying the patented invention or work.’

In a nutshell, patent rights are certain legal rights that are provided to patent holders. These rights are provided to the patent holders exclusively for their inventions for a specific period, that is, twenty years from the date of filing the patent. At the same time, patents come with limitations to ensure that this exclusivity does not curb public access, competition, or further innovation.

This article deals with a comprehensive analysis of the rights conferred by patents and the limitations imposed on them in detail. Thereby exploring the dual aspects of patent law and striving for a significant balance between these two to foster innovation.

Essentials for Grant of a Patent

Some certain essentials or necessities are required to grant a patent along with its rights to the invention owners.

  1. Novelty: An invention must be new and unique; that is, it should not be known to the public, and the masses should not have any idea about the invention.
  2. Non-Obviousness: Any invention made by a person should be non-obvious to that person.
  3. Capable of Industrial Application: An innovation must be capable of being made or used in an industry to be patented.
  4. Usefulness or Utility: For an invention to be patented, it should be helpful to society. Therefore, innovations that are not useful to society at large cannot be patented.
  5. Should Not Fall within the Scope of Non-Patentable Inventions: Last but not least,  for an invention to be patented, it should not attract the provisions of Sections 3 and 4 of the Indian Patents Act, 1970, which lists down various non-patentable inventions.

Rights Conferred by Patents

Section 48 of the Indian Patents Act, 1970, mentions the rights of the patentee. The government grants these exclusive rights as an incentive to inventors to create new and valuable inventions.

The rights that are available to the patent holders are discussed below:

Exclusive Right to Use, Sell, and Manufacture

A patent holder has exclusive rights to use, sell, and manufacture their patented invention. This sole possession over their invention prevents others from exploiting the invention without the owner’s consent. Anyone who uses or sells the inventions without the knowledge or permission of the patent owners is held liable and is imposed with fines.

Right to License or Assign

Patent holders can license or assign their patents, that is, their exclusive work or invention, to others, allowing them to utilize the invention in exchange for some benefits. Section 70 of the Indian Patents Act, 1970 confers the right on a grantee or proprietor of a patent to grant licenses and to assign his patent to others fully or partially. They may also grant or assign the patent to the third party completely consequently, transferring their ownership entirely to the other person. The patent holders can even sell it as per their will. The license, as well as the assignment, should be in writing and must be documented or registered with the Controller of Patents.

Right to Seek Remedies for Infringement

Patent holders have the right to seek protection or remedies against unlawful infringement of their invention and the right to take necessary legal action against such practices. It is the right of every patent holder to initiate legal proceedings against such unauthorized use, manufacture, or sale of their invention before the court of law. The law provides specific remedies to these owners, including injunctions, criminal penalties, and damages.

Right to Commercial Exploitation

Patent holders can use their work to gain an advantage in the market. They may choose to leverage or commercialize their inventions themselves or allow others to do so on specified conditions.

Rights to surrender

Another right that the patent holder has is the right to give up his patent after requesting approval from the controller. After that, in compliance with the Indian Patents Act, the controller advertises this surrender. Section 63 of the Indian Patents Act, 1970 allows a patentee to surrender a patent. Thus, there is no sort of obligation to maintain the exclusive right on the patent for the entire term of 20 years. Also, people who are eager to own a patent can contact the controller. The controller looks into the claims of these parties and, if necessary, gives up his ownership to the other party.

Right to Import

Patent holders also have the right to import their invention into other countries where the patent is registered.

Limitations of Patents

While patents confer extensive rights, these are subject to limitations to ensure that they serve the greater good. The limitations are designed to prevent abuse, promote access, and encourage further innovation. The Standing Committee on the Law of Patents (SCP) has identified that the legislation of many countries provides some or all of the following limitations to patent rights:

Public Disclosure

In order to secure a patent, inventors must disclose their invention to the masses in detail. It is one of the fundamental principles of patent law, and the owners are required to give a detailed description of their work or invention in the patent application. This is done to ensure that the knowledge becomes part of the public domain once the patent expires. Section 100 of the Indian Patents Act, 1970 says that the government can use the filled patent anytime for national interest and the overall growth of the country. 

Territorial Nature

Patent rights are territorial. It means that they are only enforceable in countries where the patent is granted or registered. Since these patents are legitimate or lawful within a defined set of boundaries or areas, inventors must apply for patents in multiple jurisdictions for the protection of their work at a global level.

Compulsory Licensing

Section 84 of the Indian Patents Act pertains to the grant of Compulsory Licensing. Compulsory licensing is granted to the third party by the government in situations where the patent holder fails to make the invention available at reasonable rates or when the public health and national interest are at risk. ‘Compulsory license will be granted only after it fulfils the following conditions:

(a) that the reasonable requirements of the public with respect to the patented invention have not been satisfied,

(b) that the patented invention is not available to the public at a reasonably affordable price and

(c) that the patented invention has not worked in the territory of India.

Exhaustion of Rights

Exhaustion of Rights means that once a patented product is sold by the patent holder or by their free consent, their patent rights are exhausted. The buyer or the purchaser can use, sell, or modify the product without infringing or violating the patent laws. Therefore, the buyer has the full authority to use, sell, and change the invention.

Exception for Research and Experimental Use

Several jurisdictions or authorities allow the use of patented inventions for research or experimental purposes without the consent of the patent holder. This fosters innovations and ensures ongoing creation and scientific progress within the country.

Patent Term and Expiry

One of the key drawbacks of these patents is that they are granted for a limited period. The patent holder is granted such rights and has full authority over their inventions for around 20 years. After this twenty-year term, the invention entered the public domain and was no longer exclusive to patent holders. Consequently, it allows unimpeded use by third parties or other people without the owner’s restrictions.

    Exclusions from Patentability

    Another limitation of patents is that particular inventions are excluded from patent protection. Inventions that are contrary to public morality, theoretical and scientific theories or hypotheses are all exceptions to these rights.

      Challenges and Revocations

      Patents can be revoked if they fail to satisfy legal requirements such as novelty, inventiveness, and utility.

      Conclusion

      Patents play a crucial role in promoting innovation by providing inventors with absolute rights. However, these rights are not entirely exclusive and are complimented with several limitations to prevent unauthorized utilization of an invention and to promote public welfare. By profoundly understanding these rights and restrictions, stakeholders can navigate the patent system effectively, ensuring that it serves both individual and national interests. Therefore, striking an equilibrium or a balance between the two patent domains is essential for sustained economic growth and technological advancement. Being a patentee comes with both rights and responsibilities, and the patentee must understand and fulfil his obligations of protecting intellectual property.

      The rights and limitations of patents reflect the dual perspective of intellectual property law. Technology is continuously evolving, and modern problems need modern solutions. Similarly, patent challenges and obstacles at the global level demand innovative and modernized solutions. Thus, the patent system must adapt to maintain this balance.

      Lastly, patent rights are an essential tool for fostering creativity and innovation, and protecting these rights is necessary in this modern era. As there is an enhanced use and a growing fad of artificial intelligence and technology globally, innovations resulting from the application of the mind need to be protected efficiently at a global level.

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        A dedicated and ambitious law student currently pursuing a BA LLB degree from the University of Lucknow, complemented by a dual degree in Public Administration from Indira Gandhi National Open University. My academic endeavors, coupled with diverse practical experiences, have honed my proficiency in legal research, analytical writing, and critical evaluation, establishing a robust foundation in drafting intricate research articles and thought-provoking case commentaries. I have completed internships across various domains, including legal research and writing, entrepreneurship, and skill development, where I acquired a profound understanding of nuanced legal issues and developed a keen acumen for strategic problem-solving. Driven by a fervent interest in Intellectual Property Rights, Human rights and their protection, I am continuously enriching my expertise through scholarly research and hands-on projects. With an unwavering commitment to excellence and an insatiable curiosity for learning, I am eager to leverage my skills in a dynamic professional setting while contributing meaningfully to the legal fraternity through impactful contributions.

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