Law Optional 2020 Paper II

The grant of patent implies that patentee has a right to exclude others from using the invention." Examine the implication of the above statement with relevant provisions of the Patent Act, 1970 and leading judgements.

Verified Answer
  1. Core Legal Answer & Context: The statement accurately captures the essence of a patent right. A patent is a statutory monopoly granted by the government for a limited period to an inventor in exchange for the public disclosure of their invention. Crucially, it is not a right to use the invention, but rather a negative right – the right to exclude others from making, using, selling, offering for sale, or importing the patented invention without the patentee's permission. This exclusionary right incentivizes innovation by allowing inventors to recoup their investment and profit from their creativity, while also promoting public welfare by adding to the body of public knowledge once the patent term expires.

  2. Relevant Statutes and Sections:

  • The Patents Act, 1970 (as amended):
    • Section 48 (Rights of patentees): This is the core provision. It states that, subject to other provisions of the Act, a patentee has the exclusive right to prevent third parties, who do not have his consent, from the act of making, using, offering for sale, selling or importing for those purposes the product or process covered by the patent.
    • Section 2(1)(j) (Definition of 'invention'): Defines invention as a new product or process involving an inventive step and capable of industrial application.
    • Section 2(1)(l) (Definition of 'patentee'): Means the person for the time being entered in the register as the grantee or proprietor of the patent.
    • Section 53 (Term of patent): Specifies that the term of every patent granted under this Act shall be twenty years from the date of filing of the application for the patent.
    • Section 107 (Defences, etc., in suits for infringement): Lays down the grounds on which a patent infringement suit can be defended, implicitly defining the scope of the patentee's exclusionary right.
  1. Important Landmark Cases:
  • Novartis AG v. Union of India (2013): While primarily dealing with Section 3(d) (patentability of new forms of known substances), this Supreme Court judgment implicitly reinforced the principle that a patent grants an exclusionary right, and the conditions for obtaining such a right are strictly construed to balance private monopoly with public interest, especially in essential sectors like pharmaceuticals.
  • Bayer Corporation v. Cipla Ltd. (2009): This case, concerning a patent infringement suit, highlighted the patentee's right to prevent others from manufacturing and selling the patented drug. The Delhi High Court's decision, though later modified on other grounds, affirmed the exclusionary nature of patent rights and the remedies available for infringement.
  1. Clear Conclusion: The statement that a patent grants an exclusionary right is fundamental to patent law. The Patents Act, 1970, particularly Section 48, explicitly confers upon the patentee the exclusive right to prevent others from exploiting the invention without permission. This negative right is the cornerstone of the patent system, providing a powerful incentive for innovation and technological advancement, while its limited term ensures that the invention eventually enters the public domain for broader societal benefit.