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

Meera Textiles Pvt Ltd and Arjun Dyeworks jointly hold a registered patent for a dyeing process, and there is no agreement between them on licensing. Arjun Dyeworks wants to grant a licence under the patent to Kaveri Mills without telling Meera Textiles. Under the Patents Act, 1970, what is the legal position?

Where there is no agreement to the contrary, one registered co-owner of a patent cannot grant a licence under it without the consent of the other co-owner. Equal undivided shares do not give a co-owner the power to license alone, so Arjun Dyeworks needs Meera Textiles' consent.

  1. AThe licence can be granted by Arjun Dyeworks alone, because each co-owner holds an equal share
  2. BThe licence cannot be granted by one co-owner except with the consent of the other co-ownerCorrect
  3. CThe licence can be granted only after Arjun Dyeworks pays Meera Textiles half the licence fee
  4. DThe licence is valid only if registered with the Controller within one month

Explanation

Section 50(3) provides that, subject to any agreement in force, a licence under the patent shall not be granted by one of the registered co-owners except with the consent of the other co-owner or co-owners. Option A is wrong because equal shares do not allow one co-owner to license alone. Without any agreement, consent is needed.

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