Patent Infringement under the Patents Act, 1970: Meaning, Remedies, Legal Action & Landmark Cases
Introduction
Patent law exists for one clear reason — to protect innovation. When a person invents something new, useful, and capable of industrial application, the law grants him exclusive rights over that invention. These rights are protected under the Patents Act, 1970.
But what happens when someone copies, uses, manufactures, or sells that invention without permission? That is called patent infringement.
___________________________________________________________________
What is Patent Infringement?
Patent infringement occurs when a person, without authorization of the patentee:
• Makes the patented invention
• Uses the patented invention
• Sells or offers it for sale
• Imports it into India
The patentee has exclusive rights to exploit the invention in India. These rights include:
• Manufacturing
• Licensing
• Assigning
• Commercial exploitation
If anyone violates these rights, it amounts to infringement.
___________________________________________________________________
Acts That Amount to Patent Infringement
The following acts are generally treated as infringement:
1. Copying the invention and preparing a similar device
2. Manufacturing a machine with substantially similar features
3. Using substitutes that achieve the same result
4. Developing a modified or mini version retaining core features
5. Grasping essential or fundamental features of the patented invention
* Courts focus on substance over form. Even if minor changes are made, if the essential features are copied, infringement exists.
___________________________________________________________________
Doctrine of Equivalents
Even if the product is not identical, infringement may occur if:
• It performs substantially the same function
• In substantially the same way
• To achieve the same result
* This prevents infringers from escaping liability by making cosmetic modifications.
__________________________________________________________________
Financial Implications of Patent Infringement
Infringement always has financial consequences.
It is a question of fact and must be decided case-by-case. Courts examine:
• Patent claims
• Nature of defendant’s product
• Market impact
• Commercial profits earned
In Richardson v. Kestre, the court rejected infringement because:
• The procedure used was not the claimed invention
• Patent was limited to a specific purpose
• Defendant used it differently
(This case highlights that claims define the scope of protection)
___________________________________________________________________
What is NOT Patent Infringement?
(Section 107A – Bolar Provision)
Under Section 107A of the Patents Act:
The following acts are NOT infringement:-
• Use of patented invention for research or development
• Use for obtaining regulatory approval (especially pharmaceutical drugs)
• Import from a person duly authorized under law
This ensures competition and public interest protection.
___________________________________________________________________
Remedies for Patent Infringement (Section 108)
Under Section 108, courts may grant the following reliefs:
1. Injunction
2. Damages
3. Account of profits
4. Seizure and destruction of infringing goods
Types of Remedies – Comparison Table
____________________________________________
Injunction in Patent Infringement
Injunction is the most powerful remedy.
Types of Injunction
1. Interlocutory (Temporary) Injunction
Granted during pendency of trial to maintain status quo.
Conditions:
• Prima facie case
• Balance of convenience
• Irreparable injury
Important cases:
• Bilcare Limited v. Supreme Industries Limited
• National Research Development Corporation v. Delhi Cloth and General Mills
Injunction may be refused when:
• Patent validity is seriously challenged
• Patent is new and uncertain
• Long delay in enforcement
Cases:-
• Ram Narayan Kher v. Ambassador Industries
• Franz Xavier Huemer v. New Yash Engineers
• Garware Wall Ropes Ltd v. Techfab India
2. Final Injunction
- Granted after final decision when infringement is proved.
__________________________________________________________________
Damages in Patent Infringement
Damages aim to compensate, not punish.
Principles:--
• Plaintiff must prove loss
• Direct nexus between infringement and damage
• Liberal but reasonable calculation
* Burden of proof lies on the plaintiff.
___________________________________________________________________
Account of Profits
Instead of damages, plaintiff may claim profits earned by defendant.
Important:-
• Plaintiff must choose either damages or account of profits
• Both cannot be claimed simultaneously
* Court directs infringer to disclose financial accounts and repay illegal profits.
___________________________________________________________________
Seizure, Confiscation & Destruction
Court may order:
• Confiscation of infringing goods
• Destruction of materials
• Seizure of manufacturing equipment
* This prevents future infringement.
___________________________________________________________________
Legal Procedure to File Patent Infringement Suit
Under Section 104:
Suit may be filed in District Court (or High Court having jurisdiction).
Types of suits:-
1. Suit for Infringement
2. Suit for Declaration (Section 105)
3. Suit for Groundless Threats (Section 106)
* Defendant may challenge validity of patent as defence.
___________________________________________________________________
Defences Available in Patent Infringement
Defendant may argue:
• Patent is invalid
• No essential feature copied
• Use falls under Section 107A
• Patent expired
• Lack of novelty or inventive step
* If validity is successfully challenged, infringement claim fails.
__________________________________________________________________
Direct vs Indirect Infringement
*Indian law primarily focuses on direct infringement but courts recognize contributory conduct.
___________________________________________________________________
Practical Example
If a pharmaceutical company manufactures a generic drug before patent expiry without falling under Section 107A regulatory exception, it amounts to infringement.
If it manufactures only for testing and regulatory approval, it is protected under Bolar provision.
__________________________________________________________________
Conclusion
Patent infringement under the Patents Act, 1970 is a serious legal violation. The law protects innovation by granting exclusive rights and strong remedies. Courts balance innovation protection with public interest by recognizing exceptions like Section 107A.
For innovators, enforcement is critical. For businesses, compliance is essential. Minor modifications cannot shield deliberate copying. Courts examine substance, not superficial changes.
__________________________________________________________________
MCQ - Patent Infringement (Patents Act, 1970)
1. Patent infringement in India is governed primarily under:
A. Section 51
B. Section 104
C. Section 107A
D. Section 108
Answer: D
2. The Bolar provision in India is contained in:
A. Section 105
B. Section 107A
C. Section 108
D. Section 64
Answer: B
3. In a patent infringement suit, the burden of proving damages lies on:
A. Defendant
B. Court
C. Plaintiff
D. Registrar
Answer: C
4. Which remedy prevents continuation of infringement during trial?
A. Final decree
B. Account of profits
C. Interlocutory injunction
D. Seizure order
Answer: C
5. A plaintiff can claim:
A. Damages and account of profits together
B. Only criminal penalty
C. Either damages or account of profits
D. Neither
Answer: C
6. Suit for patent infringement is filed before:
A. Civil Judge Junior Division
B. District Court/Competent High Court
C. Registrar of Patents
D. Consumer Court
Answer: B
7. Essential feature test is used to determine:
A. Patent validity
B. Patent registration
C. Patent infringement
D. Patent renewal
Answer: C
8. Which of the following is NOT infringement under Section 107A?
A. Commercial sale before expiry
B. Research use
C. Regulatory approval use
D. Authorized import
Answer: B
9. Confiscation and destruction of infringing goods is provided under:
A. Section 64
B. Section 107
C. Section 108(2)
D. Section 105
Answer: C
10. Validity of patent can be challenged by:
A. Only patentee
B. Only Registrar
C. Defendant in infringement suit
D. Police
Answer: C
__________________________________________________________________
FAQs - Patent Infringement (Patents Act, 1970)
1. What is patent infringement under the Patents Act, 1970?
- It is unauthorized making, using, selling, or importing a patented invention in India.
2. What remedies are available for patent infringement?
- Injunction, damages, account of profits, confiscation and destruction of goods.
3. What is Section 108 of the Patents Act?
- It provides civil remedies in case of infringement.
4. What is the Bolar exception in India?
- Section 107A allows use of patented invention for research and regulatory approval.
5. Can both damages and profits be claimed together?
- No. Plaintiff must choose one.
6. What are the conditions for temporary injunction?
- Prima facie case, balance of convenience, irreparable harm.
7. Where can a patent infringement suit be filed?
- Before District Court or High Court with jurisdiction.
8. Can patent validity be challenged in infringement suit?
- Yes, as a defence.
9. Is patent infringement a criminal offence?
- Primarily civil in nature under Indian law.
10. How long does a patent last in India?
- 20 years from date of filing.
11. What is patent infringement?
- Patent infringement occurs when a person makes, uses, sells, or imports a patented invention in India without the permission of the patent holder. It violates the exclusive rights granted to the patentee under the Patents Act, 1970.
12. Which law governs patent infringement in India?
- Patent infringement in India is governed by the Patents Act, 1970, particularly Sections 104 to 114, which deal with jurisdiction, defenses, and remedies.
13. What are the common acts that constitute patent infringement?
- The following acts generally amount to patent infringement:
• Manufacturing a patented product without authorization
• Using a patented process or product
• Selling or offering the patented invention for sale
• Importing the patented product into India without consent
14. What remedies are available for patent infringement?
- Under Section 108 of the Patents Act, the court may grant:
• Injunction (temporary or permanent)
• Damages
• Account of profits
• Seizure or destruction of infringing goods
15. What is the Bolar exception in patent law?
- The Bolar provision under Section 107A allows manufacturers to use a patented invention for research or regulatory approval purposes without it being treated as infringement.
16. Where can a patent infringement suit be filed?
- A patent infringement suit can be filed in a District Court or High Court having jurisdiction, as provided under Section 104 of the Patents Act, 1970.
17. What defenses are available against a patent infringement claim?
A defendant may argue:
• The patent is invalid
• The product does not fall within the scope of patent claims
• The act falls under statutory exceptions such as research use
18. Can the validity of a patent be challenged during infringement proceedings?
- Yes. The defendant in a patent infringement case can challenge the validity of the patent as a defense under the provisions of the Patents Act.
19. What is the difference between damages and account of profits?
- • Damages compensate the patent owner for the loss suffered.
• Account of profits requires the infringer to hand over the profits earned from the infringement.
The plaintiff can claim either damages or account of profits, not both.
20. Why is patent protection important for innovation?
- Patent protection encourages innovation by granting inventors exclusive rights over their inventions, ensuring they can commercially benefit from their research and technological development.
No comments:
Post a Comment