A patent is an exclusive right granted to an inventor or assignee for a new and useful invention. The invention can be a product, process, or design that offers a new solution to a technical problem. In India, the patent system is governed by the Patents Act, 1970, which provides for the protection of inventions in various sectors like pharmaceuticals, technology, and engineering.

A patent provides the inventor with the right to exclude others from making, using, selling, or distributing the patented invention without their permission, usually for a period of 20 years from the date of filing the patent application.

Eligibility for Patent Protection

To qualify for patent protection under Indian law, the invention must meet certain criteria:

1. Novelty: The invention must be new and not have been disclosed in any prior public domain, whether in India or abroad.

2. Inventive Step: The invention should involve an inventive step, meaning it must not be obvious to someone skilled in the relevant field of technology.

3. Industrial Applicability: The invention must be capable of being used or applied in some form of industry.

4. Patentable Subject Matter: Certain inventions like abstract ideas, scientific theories, mathematical methods, methods of agriculture, and discoveries of natural substances are not patentable.

Types of Inventions Eligible for Patents in India

1. Product Patents: Protection for the product or item itself (e.g., a new drug, a machine).

2. Process Patents: Protection for the process or method used to create a product (e.g., a manufacturing method).

3. Software Patents: In India, software per se is not patentable, but a software-based invention with a technical effect or implementation may be eligible.

4. Design Patents: Protection for the ornamental design of a functional object.

Patent Application Process in India

1. Filing the Application: The first step is to file a patent application with the Indian Patent Office. The application must include a detailed description of the invention, its claims, and diagrams or drawings if applicable.

2. Examination: The patent office examines the application to determine if the invention meets the criteria of novelty, inventive step, and industrial applicability. The applicant is required to request an examination of the patent application within 48 months from the filing date.

3. Grant of Patent: If the invention satisfies the requirements, the patent is granted, and the inventor is provided exclusive rights over the invention for 20 years from the date of filing.

Patent Infringement in India

1. Patent infringement occurs when someone, without the permission of the patent holder, makes, uses, sells, or distributes the patented invention. Infringement is a violation of the rights granted to the patent holder, and it can lead to legal consequences. There are different types of patent Infringement mentioned hereunder:-

2. Direct Infringement: This occurs when an individual or entity uses the patented product or process without the permission of the patent holder. For example, if a company manufactures a patented drug without a license from the patent holder.

3. Indirect Infringement: This refers to the infringement of a patent by a third party who helps, induces, or encourages someone else to infringe the patent. This could include selling parts that would contribute to the infringement of a patented product.

4. Infringement by Import: Importing patented products without authorization from the patent holder is also a form of infringement.

5. Infringement by Use: Using a patented process or product without permission in commercial activities.

Legal Consequences of Patent Infringement in India

The legal consequences for patent infringement in India can range from civil remedies to criminal penalties, depending on the nature and seriousness of the infringement.

Civil Remedies

1. Injunction

Permanent Injunction: A permanent injunction is an order from the court that prohibits the infringer from continuing to infringe the patent. This remedy aims to protect the rights of the patent holder by preventing further infringement.

Interim Injunction: An interim injunction is granted during the pendency of a lawsuit to stop ongoing infringement temporarily. The patent holder must prove that they are likely to succeed in the case and that there is an urgent need for the injunction to prevent harm.

Section 108 of the Patents Act, 1970 provides for injunctions to prevent further infringement and protect the interests of the patent holder.

2. Damages

Actual Damages: The patent holder can claim compensation for the actual loss suffered due to the infringement. This includes direct financial loss, lost sales, and other damages resulting from the infringement.

Statutory Damages: In some cases, the court may award statutory damages, which are predetermined amounts set by law, instead of the actual loss suffered. Statutory damages provide a remedy for cases where it is difficult to quantify the exact financial loss caused by the infringement.

Section 108 also allows the court to award damages, which can be substantial, depending on the scale of the infringement.

3. Account of Profits

The court may order the infringer to account for the profits made from the infringement. The infringer is required to pay the amount equivalent to the profits earned from the unauthorized use of the patented invention. This remedy is based on the principle that the infringer should not be allowed to profit from the violation of the patent holder’s rights.

4. Recovery of Legal Costs

The successful party in a patent infringement case may be entitled to recover legal costs incurred in pursuing the lawsuit. This can include the costs of legal representation, filing fees, expert witness fees, and other expenses related to the litigation.

Section 108 also addresses the issue of recovery of legal costs and directs the infringer to bear the expenses incurred by the patent holder in enforcing their patent rights.

Criminal Remedies

1. Imprisonment

Under Section 104 of the Patents Act, 1970, a patent infringer may be subject to criminal penalties if the infringement is willful and intentional. In such cases, the infringer may be punished with imprisonment for a term of up to 2 years, which may be extended to 3 years in certain circumstances. Criminal liability is generally pursued when the infringement is seen as deliberate or part of an organized effort to undermine the patent holder’s rights.

2. Fine

In addition to or instead of imprisonment, a person found guilty of patent infringement may be fined under Section 104. The fine can range from a minimum of ₹50,000 to a maximum of ₹10 lakh. The amount of the fine depends on the severity of the infringement and whether the infringement was committed by an individual or a corporate entity. The fine is meant to act as a deterrent to prevent future violations.

3. Criminal Prosecution

The Department of Industrial Policy and Promotion (DIPP) or the Indian Patent Office may initiate criminal proceedings in cases of willful patent infringement. The prosecution is usually initiated in cases where the infringer has knowingly violated the patent rights, and the infringement is deemed to be serious. Criminal cases involving patent infringement are tried in a Magistrate’s Court. The court will consider evidence, the scale of the infringement, and any mitigating circumstances before deciding on penalties.

Defenses Against Patent Infringement

While the legal consequences of patent infringement can be severe, there are several defenses available to the alleged infringer:

1. Patent Invalidity- One of the most common defenses is that the patent is invalid. The infringer may argue that the patent should not have been granted in the first place, either because the invention does not meet the criteria of novelty, inventive step, or industrial applicability. This defense can be raised as a counterclaim in an infringement lawsuit.

2. Non-Infringement- The alleged infringer may claim that the accused product or process does not actually infringe on the patent. They may argue that their product or process is sufficiently different from the patented invention, and therefore, no infringement has occurred.

3. Prior Use- In certain cases, the alleged infringer may assert a prior use defense, claiming that they were using the patented invention before the patent holder’s application was filed. However, this defense is rarely successful unless substantial evidence of prior use exists.

4. Exhaustion of Patent Rights-Under the doctrine of patent exhaustion, once a patented product is sold by the patent holder or with their permission, the patent holder’s rights are considered exhausted. This means that the patent holder cannot restrict the further sale or use of the product. The alleged infringer may argue that the product was sold by the patent holder or with their authorization, so the patent rights have been exhausted.

What Steps should be taken when one comes to know about patent Infringement?

1. Verification of Infringement: The first step is to carefully examine whether the suspected product or process actually infringes your patent. This involves comparing the patent claims with the features of the alleged infringing item. Legal and technical advice is highly recommended at this stage to ensure accuracy.

2. Evidence Collection: Documenting the infringement is crucial. Collect tangible evidence such as product brochures, user manuals, websites, promotional materials, or invoices that clearly show the unauthorized use of your patented invention.

3. Legal Consultation: Seek the assistance of a patent attorney to evaluate the strength of your case. The attorney will also help you understand your legal rights, the validity of your patent, and the available remedies.

4. Cease and Desist Notice: Often, the next step is to send a formal cease and desist letter to the infringer. This notice demands that the infringing activity be stopped immediately and may open the door for settlement discussions.

5. Negotiation and Licensing: In some cases, the dispute can be resolved amicably through negotiations. Licensing the patent to the infringer may be a commercially beneficial solution, avoiding costly litigation.

6. Legal Action: If the infringer does not comply, you may file a suit for patent infringement under Section 108 of the Indian Patents Act, 1970. Legal remedies include injunctions, monetary damages, and the destruction of infringing goods.

7. Alternative Dispute Resolution: Where appropriate, parties may also explore alternative methods such as mediation or arbitration to settle the dispute efficiently and privately.

Judicial Scrutiny

In Garware Wall Ropes Ltd. v. A.I. Chopra & Anr. (2009), the Supreme Court of India dealt with a patent infringement dispute involving a technical textile product. The appellant, Garware Wall Ropes, had accused the respondent of infringing its patented invention related to geo-textile materials used in civil engineering. The Supreme Court upheld the findings of the Bombay High Court, which had granted an injunction against the infringer. The Court emphasized that when a patent is valid and the infringement is established, injunctive relief is a legitimate and necessary remedy to protect the interests of the patent holder. The ruling reinforced the principle that patent holders are entitled to both injunctive relief and damages, provided the patent’s validity is not in serious doubt and infringement is clear. This case serves as a key precedent for enforcing patent rights in India and affirms the judiciary's role in balancing innovation protection with fair judicial scrutiny.

Patent infringement undermines the rights of inventors and hampers innovation. The law treats such violations seriously, offering remedies like injunctions, damages, and seizure of infringing goods under the Indian Patents Act, 1970. Swift legal action ensures protection of patent rights and discourages unauthorized use, reinforcing the importance of respecting intellectual property in a knowledge-driven economy.