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

Zenith Labs Pvt Ltd, the sole registered proprietor of an Indian patent, wants to sell the patent outright to Vertex Ltd, while a third party, Nila, holds an equitable claim to part of the invention's benefits. Nila's notice of her right has not been entered in the register. Which statement best reflects the Patents Act, 1970?

Zenith can assign the patent because a registered proprietor has power to assign, license or otherwise deal with it, subject to co-ownership rules and rights noted in the register. Nila's equities remain enforceable as with other movable property, so the assignment does not extinguish them.

  1. AZenith has no power to assign without Nila's consent, as equities override registration
  2. BZenith has power to assign, subject to rights of which notice is entered in the register, and Nila's equities may be enforced as in other movable propertyCorrect
  3. CZenith may assign only after the Controller approves the commercial terms
  4. DZenith's power to assign extinguishes all equities of third parties

Explanation

Section 70 gives the registered proprietor power to assign, license or deal with the patent, subject to co-ownership provisions and rights of which notice is entered in the register. The proviso allows equities in respect of the patent to be enforced like those in other movable property. So Zenith can assign, but Nila's equities are not wiped out; option 3 invents Controller approval and option 4 ignores the proviso.

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