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

Ravi and Sunita are registered co-owners of a patent for a water filter, with no agreement between them. Ravi himself manufactures and sells the patented filter for his own benefit and does not share the profits with Sunita. Sunita alleges that Ravi must account to her. Under the Patents Act, 1970, which is correct?

Absent an agreement to the contrary, each registered co-owner of a patent may exercise the patent rights personally or through agents for his own benefit without accounting to the other co-owners. So Ravi need not account to Sunita for his own sales, though licensing would need her consent.

  1. ARavi must account to Sunita for half of the profits
  2. BRavi may exercise the patent rights for his own benefit without accounting to SunitaCorrect
  3. CRavi may do so only if Sunita gives written consent
  4. DRavi may do so only for sales outside India

Explanation

Section 50(2) says that, unless an agreement to the contrary is in force, each registered co-owner may, by himself or his agents, exercise the rights under section 48 for his own benefit without accounting to the other. Accounting to Sunita is therefore not required. Consent is needed only for licensing or assigning a share.

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