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

Two co-grantees, Kiran and Lata, are registered proprietors of a patent with no agreement between them. Kiran himself manufactures the patented article and keeps all the profit. Under the Patents Act, 1970, what is Lata's position?

Kiran may exercise the patent rights for his own benefit without accounting to Lata. Under section 50(2) of the Patents Act, 1970, absent a contrary agreement, each registered co-proprietor can work the patent himself and keep the gain, while licensing and assignment require the other's consent.

  1. AKiran must account to Lata for half the profit
  2. BKiran may exercise the patent rights for his own benefit without accounting to LataCorrect
  3. CKiran needs Lata's written consent before working the invention himself
  4. DKiran forfeits his share if he works the invention alone

Explanation

Section 50(2) lets each registered co-proprietor, unless an agreement says otherwise, exercise the rights conferred by the patent for his own benefit without accounting to the others. Section 50(3) restricts only licensing and assignment, so the accounting option is wrong.

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