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

Anita and Karan are registered joint grantees of a patent for a water filter, with no agreement between them. Anita wants to grant an exclusive licence to Bharat Aqua Ltd for Rs 50 lakh without telling Karan. Under the Patents Act, 1970, what is the position?

Anita cannot grant the licence on her own. Under section 50(3) of the Patents Act, 1970, where there is no contrary agreement, one co-grantee may not grant a licence or assign a share in the patent without the consent of the other co-grantee, Karan.

  1. AAnita may grant the licence alone, as any registered grantee has full power to deal with the patent
  2. BAnita may grant the licence if she shares the Rs 50 lakh equally with Karan afterwards
  3. CThe licence cannot be granted by Anita without Karan's consent, absent an agreement to the contraryCorrect
  4. DOnly the Controller can grant a licence under a jointly held patent

Explanation

Section 50(3) provides that, subject to any agreement in force, where two or more persons are registered as grantees, a licence shall not be granted and a share shall not be assigned by one of them except with the consent of the others. Sharing money afterwards does not replace consent. This restricts the general power in section 70, which is subject to the co-ownership provisions.

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