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

Mehta and Iyer are registered co-proprietors of a patent, with no agreement between them. Mehta wishes to grant a licence under the patent to Zenith Ltd. without telling Iyer. What is the legal position?

Mehta cannot grant the licence without Iyer's consent. Section 50(3) bars one co-proprietor from granting a licence or assigning a share except with the consent of the others, unless an agreement says otherwise. Sharing royalty afterwards does not cure the lack of consent.

  1. AMehta may do so, as each co-owner has full power to license
  2. BMehta may do so if he accounts to Iyer for half the royalty
  3. CMehta cannot grant the licence except with Iyer's consentCorrect
  4. DMehta may do so with the Controller's permission alone

Explanation

Section 50(3) provides that, subject to any agreement, a licence under the patent shall not be granted by one co-proprietor except with the consent of the other. Accounting for royalty does not substitute for consent. The Controller's permission is not the stated requirement.

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