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

Meera and Rohan are registered as joint proprietors of a patent granted for a water-purification device. There is no agreement between them on the subject. Meera, wishing to earn royalty, proposes to grant a licence under the patent to Aqua Pure Pvt Ltd without informing Rohan. What is the legal position under the Patents Act, 1970?

Meera cannot grant the licence alone. Under the Patents Act, where two or more persons are registered proprietors, a licence or assignment of a share needs the consent of the other co-owners unless an agreement says otherwise. No agreement exists, so Rohan's consent is required.

  1. AMeera may grant the licence alone, because each co-owner holds an equal undivided share
  2. BMeera may grant the licence alone, provided she accounts to Rohan for half of the royalty
  3. CMeera cannot grant the licence except with Rohan's consent, as no agreement to the contrary existsCorrect
  4. DMeera may grant the licence if the Controller is informed within thirty days of the grant

Explanation

Under section 50(3), where two or more persons are registered as proprietors of a patent, a licence cannot be granted, nor a share assigned, by one of them except with the consent of the other, subject to any agreement in force. No agreement exists here, so Rohan's consent is needed. Equal undivided shares (s.50(1)) do not give a unilateral right to license.

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