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

Kavita and Imran are registered joint proprietors of a patent for an irrigation valve, with no agreement between them. Imran manufactures and sells valves himself using the invention and keeps all profits. Kavita demands half the profits. Under the Patents Act, 1970, what is the position?

Imran may work the patented invention for his own benefit without accounting to Kavita. The Act allows each registered co-proprietor, absent a contrary agreement, to exercise patent rights personally without sharing profits. Consent is needed only to license or assign a share, not for personal exploitation.

  1. AImran must account to Kavita for half the profits, since shares are equal
  2. BImran may work the invention for his own benefit without accounting to KavitaCorrect
  3. CImran may do so only after obtaining Kavita's written consent
  4. DImran may do so only if he first assigns his share to a third party

Explanation

Section 50(2) entitles each registered co-proprietor, unless an agreement to the contrary exists, to exercise the rights conferred by section 48 for his own benefit without accounting to the others. The consent requirement in s.50(3) applies to licences and assignments, not to personal working. Hence the accounting claim fails.

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