PATENT ACT, 1970

Subject Matter : Date of Grant of Patent
Relevant Section : Section 25(1): Any person can file their objection to a patent at any time before the grant of the patent.
Section 43: Provides that the patent shall be granted as expeditiously as possible
Key Issue : When can we consider a patent to be granted under the Patents Act, 1970?
Citation Details : Snehlata C. Gupte vs. Union of India (UOI) and Ors. (15.07.2010 - DELHC) : MANU/DE/1637/2010
Summary Judgment :

Facts: Pre-grant oppositions to the patent were rejected on the ground of being time-barred. Counsel for the party argued that a patent is not considered to be granted until an entry to that effect is made in the Register.

Held: The sealing of the patent and the entering of the patent in the Register are intended to be ministerial acts evidencing the grant of patent, which is at a stage anterior to those ministerial acts. Therefore, for the purposes of Section 43(1) of the Act, the patent is "granted" on the date on which the Controller passes a final Order to that effect on the file.

Subject Matter : Onus of Proof
Relevant Section : Section 104A: lays down who has the burden of proof in cases of Patent Infringement
Key Issue : In cases of infringement of Patent, who has the burden of proof?
Citation Details : Vringo Infrastructure Inc. vs. Indiamart Intermesh Ltd. (05.08.2014 - DELHC) : MANU/DE/1828/2014
Summary Judgment :

Facts: Plaintiffs alleged that a technology that was assigned to them by Nokia in a Confidential Patent Purchase Agreement is being used by the Respondents in manufacturing their devices without proper license.

Held: There is no presumption regarding the validity of a patent. The onus of proving the validity and ownership of a patent is on the party which claims that their patent is being infringed.

Subject Matter : Simultaneous Suit
Relevant Section : Section 64(1): lists the grounds on which a patent can be revoked;
Section 25(2): lists the grounds on which a patent can be opposed by any person
Key Issue : Can a 'counter-claim' be filed on the same cause of action on which a 'revocation petition' is pending?
Citation Details : Aloys Wobben and Ors. vs. Yogesh Mehra and Ors. (02.06.2014 - SC) : MANU/SC/0519/2014
Summary Judgment :

Facts: The Defendants filed a 'Revocation Petition' against the 'Plaintiff' in front of the Appellate Board. Then, on the same cause of action, also filed 'counter-claim' in the High Court.

Held: Since a "counter-claim" is of the nature of an independent suit, a "counter-claim" cannot be allowed to proceed, where the Defendant has already instituted a suit against the Plaintiff, on the same cause of action. If the Respondents in their capacity as "any person interested", had filed a "revocation petition" before the institution of an "infringement suit", they cannot be permitted to file a "counter-claim" on the same cause of action. The natural conclusion in the instant situation would be, the validity of the grant of the patent would have to be determined in the "revocation petition". Therefore, in the above situation, while the "revocation petition" will have to be permitted to be pursued, the "counter-claim" cannot be permitted to be continued.

Subject Matter : Trade secret
Relevant Section : No Relevant Section
Key Issue : Whether the licencor has the right to disclose the said secret?
Citation Details : Newbery v. James, 2 Mer. 446 1817; 35 Eng. Rep. 1011, 1013 (Ct. Ch. 1817)
Cited in:
OTIS ELEVATOR CO. Vs. PACIFIC FINANCE CORP. (23.01.1934 - 9th Circuit): MANU/FENT/0140/1934
Summary Judgment :

Facts: There was a contract between the plaintiff's father (licencee) and the defendant's grandfather (licencor). Licencor invented a medicinal powder, some of which was patented and the rest was kept as a trade secret. Licencor entered into an agreement with the licencee for exclusive right to manufacture and sell. After both died, their legal heirs became their legal representatives. Now the licencor's representative threatened to disclose the secret if the conract is continued. Licencee would suffer a huge loss as he has absolute monopoly in the market.

Held: Although the licencor is the owner of the secret, yet the plaintiff has the right against the secret. Inevitable disclosure is a drawback. The court accepted the secret without knowing what it was and only the circumstances proving the existence of such a secret was enough. Temporary injunction and damages were granted.

Subject Matter : Trade secret- Patent Interface
Relevant Section : No Relevant Section
Key Issue : Whether the process was discovered by reverse engineering?
Citation Details : Wyeth v. Natural Biologies Inc., MANU/FEVT/0336/2005
Summary Judgment :

Facts: "Premarin" is a naturally occuring substance found in pregnant mares. It can be extracted by Brandon Process. The drug was patented by the plaintiff and the process was kept as a trade secret for 60 years. The patent expired after 20 years but their monopoly continued because of their trade secret. The defendant was a growing company. Their CEO made a declaration that they have discovered the Brandon process. Now, that the drug was in public domain, anyone can manufacture and sell it.

Held: It was proved by the plaintiffs that the CEO had no Scientific degree; CEO had come into contact with one of the scientists, an ex-employee of the plaintiff. Accomplice could not be proven but communication between them was proven which raised a reasonable doubt. It was held that the there was a violation on the grounds of misappropriation of information(acquisition of information without authorisation). CEO was held guilty for misappropriation. Company was held guilty for using the misappropriated information. The Scientist was held guilty for taking advantage of his psition and giving away confidential information. As a result, the company was shut down, the CEO was blacklisted from the pharmaceutical sector and the plaintiffs were paid millions of dollars as damages.

Subject Matter : True and 1st inventor
Relevant Section : Section 2(1) y: It lays down that who is not a true and first inventor- first importer of the invention in India; person to whom the invention is first communicated; Section 6(1) a: talks about who can apply for patents- any natural person who claims to be the first and true inventor.
Key Issue : a. Whether the finance partner is elible to get patent rights?
b. Whether the patent should have been granted in the name of the partnership as it was applied while the partneership still existed?
Citation Details : V B Mohammed Ibrahim v. Alfred Schafraner, AIR 1960 Mys. 173; MANU/KA/0061/1960
Summary Judgment :

Facts: Plaintiff and the 2 defendants had a partnership to sell, manufacture and design wooden furniture. Plaintiff was the finance partner and the defendants were the creative partners. Defendants created a chair with floral design by burning the wood instead of using the chisel. This required expertise and tools. Now the three partners decided to wind up the partnership. During winding up, the defendants applied for the Patent on the chair. The plaintiff was unaware of it. It was granted 2 to 3 days after winding up without including the plaintiff.

Held: a. The dispute must have been taken to the appellate board. Firstly, the true and first inventor is the one who applies for the patent first and not invent it first. That being said, the finance partner does not get patent rights because by definition, patent is granted only to the "inventor". Money is immaterial. For the finance partner, to qualify as a partner in patent, needs to qualify as an assignee. Since, in a partnership there exists only agents of each other, plaintiff has no right to be added in the patent aplication.
b. Secondly, as per the provision, "any person" (natural persons only) can apply for the patent. Partnership is not a legal entity, hence cannot own anything in it's name.

Subject Matter : Compulsory Licencing
Relevant Section : Section 84 (1) b : This provision makes available the products which are otherwise not easily accessible to general public, due to unaffordable prices.
Key Issue : Whether the requirements for the grant of compulsory licencing are fulfilled?
Citation Details : Natco Pharma Limited vs. Bayer Corporation (09.03.2002 - Other): MANU/OT/0004/2002
Summary Judgment :

Facts: The respondent developed and patented a drug 'Sorafenib' and sold it under the brand name "NEXAVAR". They launched it in India in 2008. It was useful in treating kidney and liver cancer. It was not a life saving drug but only a life extending drug. The drug has to be taken by the patient throughout his lifetime and the cost of therapy is Rs. 2,80,428/- per month and Rs. 33,65,136/-per year. The Appellant is a generic drug manufacturer in India and has developed a process for manufacturing the said drug in bulk in the form of tablets. The appellant requested for a voluntary licence and proposed to sell the drug at Rs. 8800/- per month.

Held: The reasonable requirements of the public with respect to the patented invention have not been satisfied and this makes out a fit case for the grant of Compulsory License. It stands to common logic that a patented article like the drug in this case was not bought by the public due to only one reason, i.e. its price was not reasonably affordable to them. Hence, I conclude beyond doubt that the patented invention was not available to the public at a reasonably affordably price and that Section 84(1)(b) of the Patents Act, 1970 is invoked in this case. Consequently, a compulsory license be issued to the Applicant under Section 84 of the Act.

Subject Matter : Ever greening of patent/ mailbox applications
Relevant Section : Section 2(1)(ja): defines 'inventive step' as a technical advancement which is not obvious for a man skilled in the same field and which is economically significant also; Section 3(d): talks about the difference between a mere discovery and a true invention. It says that a new use of or a derivative of an already existing substance cannot be considered as an invention.
Key Issue : Whether the form of drug was new and inventive as per the provisions of the Act?
Citation Details : Novartis AG vs. Union of India (UOI) and Ors. (01.04.2013 - SC): MANU/SC/0281/2013
Summary Judgment :

Facts: The Appellant requested for the patent on the beta crystalline form of Imatinib Mesylate known as Gleevec. The form was claimed to have better thermodynamic stability(can be maintained irrespective of temperature), lower hydroscopicity(absorption of water was more)- it could be made into tablets now and increased bioavailability- could be absorbed by the body more hence the dosage can be lowered. All these factors contribute to improved efficacy of the drug. In 1997, when the appellant filed its application for patent, the law in India with regard to product patent was in a transitional stage and the appellant's application lay dormant under an arrangement called "the mailbox procedure". Before the application for patent was taken up for consideration, the appellant made an application on March 27, 2002, for grant of exclusive marketing rights (E.M.R.) for the subject product under Section 24A of the Act, which was at that time on the statute book and which now stands deleted. The Patent Office granted E.M.R. to the appellant on November 10, 2003.The appellant's application for patent was taken out of the "mailbox" for consideration only after amendments were made in the Patents Act, with effect from January 1, 2005. But before it was taken up for consideration, the patent application had attracted five (5) pre-grant oppositions in terms of Section 25(1) of the Act. And it was in response to the pre-grant oppositions that the appellant had filed the affidavits on the issue of bioavailability of Imatinib Mesylate in beta crystalline form.

Held: The new form is only a derivative of an existing polymorph and falls u/s.3(d). Gleevec was already discovered in 1993 and hence could be anticipated. The anticipation need not to be exact, the possibilities are also covered. The improved efficacy could not be proved due to lack of documents. The prior effects of the drug has to be shown as magnified. Simple removal of side effects will not be considered as improvements. Obiter: If the different forms of existing polymorphs will be given patents, it will lead to evergreening of patents. It cannot be allowed.

Subject Matter : Novelty
Relevant Section : Section 2(1) l: defines 'new invention' as something which is not anticipated by postulating of theories or already being used elsewhere in the world.
Key Issue : a. Whether it is a new manufacture or only an improvement?
b. Whether it involves an inventive step?
Citation Details : Bishwanath Prasad Radhey Shyam v. Hindustan Metal Industries (1979) 2 SCC 511; MANU/SC/0255/1978
Summary Judgment :

Facts: The respondent found out that the petitioner was using the same machine in his unit as him, for manufacturing utensils. The petitioner's machine had clips on the side of the conveyer belt so that the utensils didn't fall down. The respondent challenged the validity of the patent of petitioner's machine.

Held: a. Patent was granted incorrectly, hence cannot sue others for patent infringement. "Just because a patent is granted by the Controller, does not mean it is valid absolutely and cannot be challenged." The case was decided u/1911 Act. The patent was held invalid on the grounds of no novelty and obviousness.
b. The clips were just a workshop improvement and lacked inventive step. Doctrine of equivalence was applied and was held that there was no substantial difference between the two devices.

Subject Matter : Doctrine of equivalence; Doctrine of Pith & Marrow
Relevant Section :
Key Issue : Whether the two products similar or had substantial difference?
Citation Details : Ravi Kamal Bali vs. Kala Tech and Ors. (03.06.2008 - BOMHC) MANU/MH/0549/2008
Summary Judgment :

Facts: The plaintiff invented a lock which was tamper- proof and was in vertical shape and position. The respondent manufactured the same locks only in horizontal shape and position.

Held: Applying the two doctrines, it could be seen that the two products have no substantial difference. They are both based on the same technology and work in the same manner. Hence, there is a violation.

Subject Matter : Inventive Step & Traditional Knowledge
Relevant Section : Section 2(1) ja: defines 'inventive step' as a technical advancement which is not obvious for a man skilled in the same field and which is economically significant also.
Key Issue : Whether there is any infringement?
Citation Details : Dhanpat Seth v. Nilkamal Crates Ltd., AIR 2008 HP 23; MANU/HP/0206/2007
Summary Judgment :

Facts: Plaintiff had a patent of a device that carried horticulture products in it. The basket was made of nylon and ropes that of plastic. Respondent was selling almost exactly the same device to the horticulture department.

Held: Alleged patent was held invalid on the grounds of prior use. It was said that the locals were already using such a device known as 'KILTA' as part of their traditional knowledge. Hence it lacks inventive step. Therefore, there is an infringement.

Subject Matter : Non- obviousness
Relevant Section : Section 2(1) ja: defines 'inventive step' as a technical advancement which is not obvious for a man skilled in the same field and which is economically significant also;
Section 3(d): talks about the difference between a mere discovery and a true invention. It says that a new use of or a derivative of an already existing substance cannot be considered as an invention.
Key Issue : a. Whether Hoffman can sue for infringement of Patent since it is only a Licencee and not the patent owner?
b. Whether the patent was granted incorrectly to CIPLA?
Citation Details : F. Hoffmann- La Roche Ltd., Switzerland and OSI Pharmaceuticals, Inc., New York Vs. Cipla Ltd., Mumbai Central, Mumbai (2012) 195 DLT 641; MANU/SCOR/29966/2017
Summary Judgment :

Facts: "ERLOTINIB" is a drug developed by Pfizer which is used for the treatment of Cancer. It is a derivative of "QUINAZOLIN". Hoffman is the sole licencee of the drug. It was found by Hoffman that Cipla was manufacturing the exact same drug and selling it under a different name.

Held: Both issues are independent of each other.
a. Since, Pfizer is only the owner and not a party to the suit, the patent cannot be revoked. Hoffman can sue for patent infringement.
b. Secondly, the drug lacks inventive step and non obviousness as it is based on 3 European Union patents. Also, it is a derivative of a known substance which is not new and not patentable. Hence, the patent has been granted incorrectly. Therefore, there is no infringement in this case.

Subject Matter : Industrial Application/ Vendability Test
Relevant Section : Section 2(1) ac: defines vendability or industrial application as a product which could be manufactured at a large scale and could be sold in the market; Section 3(b): talks about the non patentability of an invention on the ground of harm to animal and plant life and health; Section 3(j): says that only micro organisms are patentable, plants, seeds, animals and the biological processes for their production are not patentable.
Key Issue : Whether the patent granted is against morality?
Citation Details : Diminaco AG v. Controller of Patent & Design, 2002 IPLR 235 (Cal HC)
Summary Judgment :

Facts: The process of Anti Bacteria Vaccine "Vursitis" was patented. Above patent was refused by the Controller on the grounds of morality, natural living organisms cannot be granted patents.

Held: The court does not have the power to GRANT the patent. Hence, it was sent back to the Controller for re-evaluation. It was also said that refusal on this ground was not applicable. Secondly, the product merely used in industry cannot be paented. Vendibility needs to be checked. It should be capable of being sold.

Subject Matter : Biotechnology Inventions
Relevant Section : Section 3(j): says that only micro organisms are patentable, plants, seeds, animals and the biological processes for their production are not patentable.
Key Issue : Whether the naturally occuring substances per se are patentable?
Citation Details : Diamond v. Chakraborty, 447 US 303 1980; MANU/USSC/0129/1980
Summary Judgment :

Facts: Chakraborty is a scientist who developed a strand of bacteria which broke crude oil into proteins.

Held: "Anything under the sun, made by man can be patented." Sufficient human intervention in a naturally occuring substance is patentable. Hence, naturally occuring substances per se are not patentable.