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

Meera and Suresh are registered co-owners of a patent for a farm tool, with no agreement between them. Suresh manufactures and sells the patented tool himself and keeps all profits. Meera demands an accounting of the profits. Under the Patents Act, 1970, what is the position?

Suresh need not account to Meera. Under section 50(2) of the Patents Act, 1970, each registered co-owner may, absent a contrary agreement, exercise the patent rights for his own benefit without accounting to the other co-owners. Consent is required only for licensing or assigning a share.

  1. ASuresh must account to Meera because profits from a joint patent are always shared equally
  2. BSuresh may exploit the invention for his own benefit without accounting to Meera, unless an agreement says otherwiseCorrect
  3. CSuresh infringes the patent because he lacks Meera's consent to work it
  4. DSuresh may work the patent only after the Controller allots him a separate share

Explanation

Section 50(2) entitles each registered co-owner, unless an agreement to the contrary is in force, to exercise the rights conferred by section 48 for his own benefit without accounting to the others. Consent is needed only for licensing or assigning a share under section 50(3), not for working the patent. Thus the claim for profits fails.

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