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CS Professional · Intellectual Property Rights - Law and Practice · Business Concerns in Commercializing Intellectual Property Rights

Anand and Bhavna are registered joint grantees of a patent for a water-purification process, with no agreement between them. Anand wants to grant an exclusive licence to Kaveri Aqua Ltd. without telling Bhavna, and also to work the invention himself. Under the Patents Act, 1970, which statement is correct?

Anand may exploit the patented invention himself without accounting to Bhavna, since absent agreement each co-owner may do so for his own benefit. However, he cannot grant a licence without Bhavna's consent, because Section 50(3) requires consent of all registered co-owners for licences and assignments.

  1. AAnand may grant the licence alone, but must account to Bhavna for the royalty
  2. BAnand may work the invention himself for his own benefit without accounting, but cannot grant the licence without Bhavna's consentCorrect
  3. CAnand may neither work the invention nor license it without Bhavna's consent
  4. DAnand may grant the licence alone because each co-owner holds a separate patent

Explanation

Under Section 50(2), absent contrary agreement, each co-owner may exercise the patent rights for own benefit without accounting to the others. Section 50(3) bars granting a licence or assigning a share without the other's consent. Hence Anand can work it but cannot license it alone.

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