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CS Executive · Economic, Commercial and Intellectual Property Laws · Intellectual Property Rights

A patent is granted jointly to Arun and Bhavna, and there is no agreement between them on the subject. Arun wants to grant a licence under the patent to Zenith Ltd without telling Bhavna. Under the Patents Act, 1970, what is the position?

Arun cannot grant the licence without Bhavna's consent. Section 50(3) of the Patents Act, 1970 says that, absent a contrary agreement, one co-owner of a patent cannot grant a licence or assign a share in the patent unless the other co-owners consent.

  1. AArun may grant the licence, as each co-owner holds full power to deal with the patent
  2. BArun may grant it if he accounts to Bhavna for her half of the royalty
  3. CArun may grant it, but only for use outside India
  4. DArun cannot grant the licence without Bhavna's consentCorrect

Explanation

Under section 50(3), unless an agreement says otherwise, a licence under the patent cannot be granted, nor a share assigned, by one co-owner except with the consent of the other co-owners. Offering to account for royalty (the second option) does not replace consent. Each co-owner can work the invention himself without accounting, but licensing is different.

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