Skip to content

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

Kiran Pharma and Anand Labs are registered co-proprietors of a patent, with no agreement between them. Kiran Pharma manufactures and sells the patented drug itself and earns Rs 40 lakh profit. Anand Labs demands a share of the profit. What is the legal position?

Kiran Pharma may work the patent for its own benefit without accounting to Anand Labs. Section 50(2) allows each registered co-proprietor to exercise the section 48 rights without sharing profits, absent a contrary agreement.

  1. AKiran Pharma must account to Anand Labs for half the profit
  2. BKiran Pharma may exploit the patent for its own benefit without accounting to Anand LabsCorrect
  3. CKiran Pharma may exploit only after getting the Controller's permission
  4. DKiran Pharma may exploit only if Anand Labs consents in writing

Explanation

Section 50(2) lets each registered co-proprietor, unless an agreement says otherwise, exercise the rights under section 48 for his own benefit without accounting to the others. The claim for half the profit therefore fails. Consent is needed only for licensing or assigning a share, not for own working.

Did you get it right without looking?

One question tells you little. A timed set on Business Concerns in Commercializing Intellectual Property Rights shows your real accuracy, how long you take and where you lose marks.

Practise Business Concerns in Commercializing Intellectual Property RightsFree diagnostic mock

More Business Concerns in Commercializing Intellectual Property Rights questions