Key Amendments in The Patents Act, 1970: Decriminalization, Penalties, Adjudication, and Appeals

If you are a patent attorney, an inventor, a startup company, or a patent agent, you should be aware of the latest amendments in The Patents Act 1970. The Indian Parliament passed The Jan Vishwas (Amendment of Provisions) Bill, 2023, which introduced amendments to 183 provisions of 42 Central Acts in India. Among them, there are some significant changes in the Intellectual Property Laws, especially in The Patents Act, 1970.

In this blog post, I will highlight the key amendments in The Patents Act, 1970 and their implications for the patent stakeholders.

Decriminalization of Certain Provisions

The first major amendment is the decriminalization of certain provisions of The Patents Act, 1970. This means that the offences under these provisions will no longer attract imprisonment or criminal prosecution. Instead, they will be dealt with by imposing penalties or civil remedies.

The provisions that have been decriminalized are:

• Section 121 – Wrongful use of words “patent office” – This provision prohibited any person from using the words “patent office” or any other words implying that his place of business is connected with the patent office. The penalty for violating this provision was imprisonment for up to six months or fine or both. Now, this provision has been omitted from The Patents Act, 1970.
• Section 122 – Refusal or failure to supply information – This provision required every patentee and every licensee to furnish information relating to the working of the patented invention in India to the Controller within two months from the end of each calendar year. The penalty for violating this provision was imprisonment for up to six months or fine or both. Now, the imprisonment part has been deleted.

Replacement of Fines with Penalties

The second major amendment is the replacement of fines with penalties in certain provisions of The Patents Act, 1970. This means that the amount of money that can be imposed for violating these provisions has been increased and the Indian Patent Office has been empowered to levy these penalties.

The provisions that have been replaced with penalties are:

• Section 120 – Unauthorised claim of patent rights – This provision prohibited any person from falsely representing that any article sold by him is patented in India or is the subject of an application for a patent in India. The fine for violating this provision was not exceeding one lakh rupees. Now, fine has been replaced with the increased penalty.
• Section 122 – Refusal or failure to supply information – As mentioned above, this provision required every patentee and every licensee to furnish information relating to the working of the patented invention in India to the Controller within two months from the end of each calendar year. The fine for violating this provision was not exceeding ten lakh rupees. Now, fine has been replaced with the increased penalty.

Appointment of Adjudicating Officer

The third major amendment is the introduction of a new section 124A in The Patents Act, 1970. This section provides for the appointment of an Adjudicating Officer by the Central Government who will be authorized to impose penalties under sections 120 and 122.

The procedure for referring the matter to the Adjudicating Officer and the manner of imposing penalties will be prescribed by rules. Therefore, patent practitioners should be ready to have one more amendment in The Patent Rules soon.

Appellate Authority within the Patent Office

The fourth major amendment is the introduction of a new section 124B in The Patents Act, 1970. This section provides for an appellate mechanism within the Patent Office to challenge the decision of the Adjudicating Officer. Any person aggrieved by an order of the Adjudicating Officer may prefer an appeal to an Appellate Authority within sixty days from the date of receipt of such order. This mechanism is similar to the appellate mechanism in GST laws at the department level.

Conclusion

These are some of the key amendments introduced in The Indian Patents Act. The comparison chart can be downloaded from below.

Disclaimer: In compliance with the Bar Council of India guidelines, this article is intended for informational purposes only and does not constitute legal advice or a solicitation for legal services.