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

Asha and Bharat are registered as joint grantees of a patent. There is no agreement between them on the subject. Asha wants to exploit the patented invention herself in her own factory and keep all the profits. Under the Patents Act, 1970, what is the position?

Asha may exploit the invention herself and keep the profits without accounting to Bharat. Absent a contrary agreement, each registered co-owner can exercise the patent rights for his or her own benefit. Consent is needed only to license or assign a share.

  1. AShe may do so for her own benefit without accounting to BharatCorrect
  2. BShe may do so only if she shares the profits equally with Bharat
  3. CShe may do so only with Bharat's written consent
  4. DShe may do so only after obtaining a licence from the Controller

Explanation

Section 50(2) says that, unless an agreement to the contrary is in force, each registered co-owner can use the section 48 rights himself or through agents for his own benefit without accounting to the others. Sharing profits is therefore not required. Consent is required only for granting a licence or assigning a share, not for personal exploitation.

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