salient-features-of-patent-law
salient-features-of-patent-law

Salient Features of Patent Law: Important Provisions and Amendments

The Patents Act, 1970 is designed to foster innovation while balancing public interest. Enacted on September 19, 1970 and coming into force on April 20, 1972, this legislation replaced the Indian Patents and Designs Act of 1911. The Act was crafted to encourage indigenous technological development, protect the rights of the inventors, and prevent the monopolistic practices of multinational corporations. Over the years, it has been amended to align with international standards, particularly the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, while retaining its focus on national interests. This article provides a detailed overview of the salient features of the Patent law, highlighting its key provisions and subsequent amendments.

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Salient Features of Patents Law

The Patents Act, 1970 consists of 24 chapters and contains 163 Sections with each addressing different aspects of patent law. Below are the key salient features of patent law, as amended over time:

Definition of Invention

Under Section 2(1)(j) of the Act, an invention is defined as a new product or process involving an inventive step and capable of industrial application. This definition sets the foundation for patentability along with ensuring that only novel and useful inventions are granted patent protection.

Patentability Criteria

For an invention to be patentable, it must meet the following criteria:

  • Novelty (Section 2(1)(l)): The invention must not have been disclosed to the public anywhere in the world before the filing date of the patent application. Exceptions include disclosures made without the inventor's consent, public exhibitions, or government communications.

  • Inventive Step (Section 2(1)(ja)): The invention must not be obvious to a person skilled in the relevant field of technology. It must represent a technical advance or economic significance.

  • Industrial Application: The invention must be capable of being made or used in an industry.

Non-Patentable Inventions (Section 3)

The Patents Act, 1970 explicitly excludes certain categories of inventions from patentability in order to safeguard public interest and prevent the patenting of trivial or unethical innovations. These include:

  • Frivolous inventions or those contrary to public order or morality.

  • Discoveries of scientific principles or natural laws.

  • Substances obtained by mere admixture or aggregation of known properties.

  • Methods of agriculture or horticulture.

  • Medical, surgical, or therapeutic treatments for humans or animals.

  • Plants and animals (except microorganisms).

  • Mathematical or business methods, computer programs per se, and traditional knowledge.

  • Atomic energy-related inventions (Section 4).

These exclusions ensure that patents are granted only for genuinely innovative and industrially applicable inventions.

Term of Patent (Section 53)

The term of a patent is 20 years from the date of filing the application, as amended in 2002 to comply with TRIPS. For applications filed under the Patent Cooperation Treaty (PCT), the term is 20 years from the international filing date. Patents must be renewed annually, and failure to do so can lead to lapse, though restoration is possible within 18 months of lapse.

Rights of Patentees (Section 48)

A patentee has the exclusive right to prevent third parties from making, using, selling, importing, or offering for sale the patented invention without consent. These rights are important for commercializing inventions and incentivizing innovation.

Compulsory Licenses (Section 84)

Compulsory licenses can be granted after three years from the date of patent grant, in cases where:

  • The patented invention does not work in India.

  • It is not available to the public at a reasonable price.

  • It is not manufactured in India on a commercial scale.

  • Grounds for compulsory licensing also include national emergencies or extreme urgency (e.g., public health crises).

  • The Controller of Patents considers factors like the nature of the invention, efforts to obtain voluntary licenses, and the patentee's capacity to work the invention.

This provision ensures that patents do not hinder public access to essential goods or stifle local industry.

Working of Patents in India (Section 146)

Patentees are required to work their patents in India, meaning they must manufacture the patented product or use the patented process domestically, and failure to work the patent can lead to compulsory licensing or revocation.

Opposition Proceedings (Sections 25 (2))

The provisions explained below allow for public scrutiny of patent grants and ensures that only deserving inventions are protected: 

  • Pre-grant Opposition: Any person can oppose a patent application within six months of its publication or before the grant, without paying a fee.

  • Post-grant Opposition: Opposition can be filed within one year of the patent's grant, involving an Opposition Board and appeals to the Appellate Board.

  • Grounds for opposition include lack of novelty, obviousness, wrongful obtaining or non-disclosure of information.

Appellate Board (Section 116)

Established in 2007, the Appellate Board is a specialized tribunal for hearing appeals related to patent matters, except infringement and revocation suits.

  • It comprises three members, including a technical expert, and is headquartered in Chennai.

  • The Board ensures efficient resolution of patent disputes by experts in the field.

Bolar Provision (Section 107A(a))

Allows the use of a patented invention for developing information required under laws regulating the manufacture, use, or sale of a product. This provision is vital for generic drug manufacturers, enabling them to conduct trials and tests during the patent term to prepare for market entry post-expiry.

Parallel Importation (Section 107A(b))

Section 107A(b) permits the importation of a patented product from a person who is authorized under the law of the exporting country in order to produce and sell the product. This helps control prices by fostering competition and prevents patent holders from abusing their monopoly.

International Commitments

India is a signatory to key international treaties. These commitments have influenced amendments to the Act, particularly the introduction of product patents and extended patent terms.:

  • TRIPS Agreement: Effective from January 1, 1995.

  • Paris Convention: Joined on December 7, 1998.

  • Patent Cooperation Treaty (PCT): Joined on December 7, 1998.

  • Budapest Treaty: Joined on December 17, 2001.

Also, Get to Know About Infringement of Geographical Indication.

Amendments to the Act

The Patents Act, 1970 has been amended several times to adapt to global standards and domestic needs. These amendments reflect the efforts to balance international obligations with national priorities, particularly in public health and technology development:

  • 1999 Amendment: Introduced the "mailbox" system for patent applications filed between 1995 and 2005, pending the introduction of product patents. It also introduced Exclusive Marketing Rights (EMR) for such applications.

  • 2002 Amendment: Extended the patent term to 20 years, introduced the concept of inventive step, and deferred examination of applications.

  • 2005 Amendment: Aligned the Act with TRIPS by introducing product patents in all fields, including pharmaceuticals, and abolishing EMR. It also introduced provisions for compulsory licensing for export of medicines to countries with insufficient manufacturing capacity (Doha Declaration).

Summary

The Patents Act, 1970, is a dynamic and evolving piece of legislation that has played a pivotal role in shaping India's innovation landscape. Its salient features, including the definition of invention, patentability criteria, non-patentable subject matter and provisions for compulsory licensing, reflect a careful balance between protecting the rights of inventors and ensuring public access to essential goods and services. Amendments over the years have strengthened the Act along with aligning it with global standards while preserving its focus on national development. As India continues to grow as a hub of innovation, the Patents Act, 1970, remains a critical tool for fostering technological advancement and economic growth.

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Salient Features of Patent Law: FAQs

Q1. What are the salient features of Patent Law?

The Patents Act, 1970, defines patentable inventions, sets criteria (novelty, inventive step, industrial application), excludes certain inventions, mandates a 20-year term, allows compulsory licensing, requires working in India, and includes pre/post-grant opposition and appellate mechanisms.

Q2. What is a patent and its features?

A patent is a legal right granting exclusive use of an invention for 20 years. Features include novelty, inventive step, industrial applicability, exclusive rights to make/use/sell, and territorial scope.

Q3. What are the features of a patent claim?

Patent claims define the invention’s scope, specify protected elements, outline technical features, must be clear, concise, novel, non-obvious, and supported by the description.

Q4. What are the objectives of patent law?

Patent law aims to encourage innovation, protect the rights of inventors and promote technological advancement, which ensure public access to inventions, and balance private and public interests.

Q5. What is the function of patent law?

Patent law grants exclusive rights to inventors, fosters innovation, encourages disclosure of inventions, prevents unauthorized use, and supports economic growth through technological development.

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