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THE PATENTS ACT, 1970

Title : THE PATENTS ACT, 1970

Year : 1970



(1) On an application made by the patentee or any other person deriving title or interest in the patent, a compulsory licence granted under section 84 may be terminated by the Controller, if and when the circumstances that gave rise to the grant thereof no longer exits and such circumstances are unlikely to recur:

Provided that the holder of the compulsory licence shall have the right to object to such termination.

(2) While considering an application under sub-section (1), the Controller shall take into account that the interest of the person who had previously been granted the licence is not unduly prejudiced.



(1) For the purposes of this Chapter, an invention is said to be used for the purposes of Government if it is made, used, exercised or vended for the purposes of the Central Government, a State Government or a Government undertaking.

1[***]

(3) Nothing contained in this Chapter shall apply in respect of any such importation, making or using of any machine, apparatus or other article or of any such using of any process or of any such importation, using or distribution of any medicine or drug, as may be made by virtue of one or more of the conditions specified in section 47.

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1. Sub-Section (2) omitted by Patents (Amdt) Act, 2002. dated 25.06.2002 w.e.f 20.05.2003. Prior to omission it read as under:
"(2) Without prejudice to the generality of the provisions of sub-section (1),-

(a) The importation, by or on behalf of the government, of any invention being a machine, apparatus or oilier article covered by a patent granted before the commencement of this Act, for the purpose merely of its own use; and

(b) The importation, by or on behalf of the Government, of any invention being a medicine or drug covered by a patent granted before the commencement of this Act-

(i) For the purpose merely of its own use; or

(ii) For the purpose of distribution in any dispensary, hospital or other medical institution maintained by or on behalf of the Government or in any other dispensary, hospital or other medical institution which the Central Government may, having regard to the public service which such other dispensary, hospital or medical institution renders, specify in this behalf by notification in the Official Gazette,shall also be deemed, for the purposes of this Chapter, to be use of such invention for the purposes of Government."

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(1) Notwithstanding anything contained in this Act, at any time after an application for a patent has been filed at the patent office or a patent has been granted, the Central Government and any person authorised in writing by it, may use the invention for the purposes of Government in accordance with the provisions of this Chapter.

(2) Where an invention has, before the priority date of the relevant claim of the complete specification, been duly recorded in a document, or tested or tried, by or on behalf of the Government or a Government undertaking, otherwise than in consequence of the communication of the invention directly or indirectly by the patentee or by a person from whom he derives title, any use of the invention by the Central Government or any person authorised in writing by it for the purposes of Government may be made free of any royalty or other remuneration to the patentee.

(3) If and so far as the invention has not been so recorded or tried or tested as aforesaid, any use of the invention made by the Central Government or any person authorised by it under sub-section (1), at any time after1*[grant of the patent] or in consequence of any such communication as aforesaid, shall be made upon terms as may be agreed upon either before or after the use, between the Central Government or any person authorised under sub-section (1) and the patentee, or, as may in default of agreement be determined by the High Court on a reference under section 103:

2*[Provided that in case of any such use of any patent, the patentee shall be paid not more than adequate remuneration in the circumstances of each case, taking into account the economic value of the use of the patent.]

(4) The authorisation by the Central Government in respect of an invention may be given under ibis section, either before or after the patent is granted and either before or after the acts in respect of which such authorisation is given or done, and may be given to any person whether or not he is authorised directly or indirectly by the applicant or the patentee to make, use, exercise or vend the invention or import the machine, apparatus or other article or medicine or drug covered by such patent.

(5) Where an invention has been used by or with the authority of the Central Government for the purposes of Government under this section, then,3*[except in case of national emergency or other circumstances of extreme urgency or for non-commercial use], the Government shall notify the patentee as soon as practicable of the fact and furnish him with such information as to the extent of the use of the invention as he may, from lime to time, reasonably require and where the invention has been used for the purposes of a Government undertaking, the Central Government may call for such information as may be necessary for this purpose from such undertaking.

(6) The right to make, use, exercise and vend an invention for the purposes of Government under sub-section (1) shall include the4*[right to sell on non-commercial basis, the goods] which have been made in exercise of that right, and a purchaser of goods so sold, and a person claiming through him, shall have the power to deal with the goods as if the Central Government or the person authorised under sub-section (1) were the patentee of the invention.

(7) Where in respect of a patent which has been the subject of an authorisation under this sectoin, there is an exclusive licensee as is referred to in sub-section (3) of section 101, or where such patent has been assigned to the patentee in consideration of royalties or other benefits determined by reference to the use of the invention (including payments by way of minimum royalty), the notice directed to be given under sub-section (5) shall also be given to such exclusive licensee or assignor, as the case may be, and the reference to the patentee in sub-section (3) shall be deemed to include a reference to such assignor or exclusive licensee.

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1. Substituted by Patents Amendment Act, 2005 ( 15 of 2005) for the words: the acceptance of the complete specification in respect of the patent

 2. Substituted by Patents (Amdt) Act, 2002. dated 25.06.2002 w.e.f 20.05.2003. Prior to substitution it read as under
"Provided that in the case of any such use of any patent in respect to any medicine or drug or article of food the royalty and other remuneration shall in no case exceed four per ccni of the net ex-factory sale price in bulk of the patented article (exclusive of taxes levied under any law for the time being in force and any commissions payable) determined in such manner as may be prescribed."

3. Substituted for "unless it appears to the Government that it would be contrary to the public interest so to do" by Patents (Amdt) Act, 2002. dated 25.06.2002 w.e.f 20.05.2003.

4. Substituted for "right to sell the goods" by Patents (Amdt) Act, 2002. dated 25.06.2002 w.e.f 20.05.2003.

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(1) In relation to any use of a patented invention, or an invention in respect of which an application for a patent is pending, made for the purposes of Government-

(a) By the Central Government or any person authorised by the Central Government under section 100; or

(b) By the patentee or applicant for the patent io the order made by the Central Government,the provisions of any licence, assignment or agreement granted or made,1[***], between the patentee or applicant for the patent (or any person who derives title for him or from whom he derives title) and any person other then the Central Government shall be of no effect so far as those provisions-

(i) Restrict or regulate the use for the purposes of Government of the invention, or of any model document or information relating thereto, or

(ii) Provide for the making of payments in respect of any use of the invention or of the model,document or information relating thereto for the purposes of Government2[***],and the reproduction or publication of any model or document in connection with the said use for the purposes of Government shall not be deemed to be an infringement of any copyright subsisting in the model or document.

(2) Where the patent, or the right to apply for or obtain the patent, has been assigned to the patentee in consideration of royalties or other benefits determined by reference to the use of the invention2[***], then, in relation to any use of the invention made for the purposes of Government by the patentee to the order of the Central Government, sub-section (3) of section 100 shall have effect as if that use were made by virtue of an authority given under that section; and use of the invention for the purposes of Government by virtue of sub-section (3) of that section shall have effect as if the reference to the patentee included a reference to the assignor of the patent, and any sum payable by virtue of that sub-section shall be divided between the patentee and the assignor in such proportion as may be agreed upon between them or as may in default of agreement be determined by the High Court on a reference under section 103.

(3) Where by virtue of sub-section (3) of section 100, payments are required to be made by the Central Government or persons authorised under sub-section (1) of that section in respect of the use of an invention for the purposes of Government and where in respect of such patent there is an exclusive licensee authorised under his licence to use the invention for the purposes of Government, such sum shall be shared by the patentee and such licensee in such proportions, if any, as may be agreed upon between them or as may in default of agreement be determined by the High Court on a reference under section 103 to be just, having regard to any expenditure incurred by the licensee-

(a) In developing the said invention; or

(b) In making payments to the patentees other than royalties or other benefits determined by reference to the use of the invention3[***] in consideration of the licence.

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1. Words "whether before or after the commencement of this act" omitted by Patents (Amdt) Act, 2002. dated 25.06.2002 w.e.f 20.05.2003.

2. Words and brackets "(including payments by way of minimum royalty)" omitted by Patents (Amdt) Act, 2002 w.e.f 20.05.2003.

3. Words "including payments by way of minimum royalty" omitted by Patents (Amdt) Act, 2002 w.e.f 20.05.2003.

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Last updated on July, 2016

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