India - Patent Rules Amendments

 

 

The Draft Patents (second amendment) Rules 2005 which incorporate the suggestions arising out of the discussions between industry, patent attorneys and the Ministry of Industry and Commerce, are likely to replace Patents Rules of 2003.  The Rules now appear to be more equitable as they put responsibility on both the applicant and the Patent Office to ensure compliance of the procedures within a well-defined period.  Some of the major changes proposed are with regard to filing of pre-grant opposition with the appropriate office and include a statement and evidence if available in support of the representation and a request for hearing, if so desired.

The following changes are proposed in the Draft Patents Rules 2005:

1. A provision has been inserted that no patent shall be granted before the expiry of six months from the publication of the application under Section 11(A)  against 3 months as had earlier been identified in Rule 55(1) for filing a pre-grant opposition.

2. It is also proposed to ensure that a request for prior permission for filing an application outside India under Section 39 of the Indian Patents Act shall ordinarily be given by the Controller within 21 days from the date of filing of the request as opposed to three months provided earlier, except in cases of inventions relating to defence and atomic energy.

3. The Draft Rules proposed changes to the fee structure and timelines provided in the Patents Rules of 2003.

Judicial Decisions:

.1. Glaxo Smith Kline (GSK) EMR application: 

 GSK had filed EMR applications on June 30,2000.  After conducting a hearing the Controller of Patents rejected these on the grounds of novelty and anticipation as well as the fact that the applicant for grant of EMR was not the same entity that had procured the marketing approval in India.  The applicant filed a writ in the Calcutta High Court holding that the order passed by the Controller was on account of a misapplication of the law and was not open to him to conduct prior novelty searches  and the petition be treated as a single economic entity in considering the matter.  The High Court reminded the Controller to pass a fresh order within a week, but the Controller once again rejected the petitioner's EMR applications citing the reason that these violated Sections 3(d) of the Act.  A fresh writ was filed with the Calcutta High Court which held that the Controller could not have rejected the applications under Section 3(d) when no objection had been raised to the petitioner's claims in the examiner's report which the Controller was bound to follow and directed to decide afresh within a fortnight taking into account the examiner's report.

2. Trade marks and colours:

 In the case of Colgate Palmolive vs. Mr. Patel & others, the Court restrained the defendants from passing off the red and white trade dress of Colgate and direct them to change their trade dress to red & gold on the ground that trade mark infringement.  The Court held that the limited of the right to one or more colour could not be considered to be diluted or limited within the said colour scheme.  The word "limitation" under Section 10(1) of the Trade and Merchandise Marks Act refers to the limitation to, and not of, that particular colour.

3. Copyright issues in disputes:

In Amar Nath Sehgal vs Union of India, Amar Nath Sehgal, a renowned sculptor, claimed violation of his moral rights in a mural that was created for a project of the Govt. of India.  The legal injury to the sculptor arose when the government tore down the mural and dumped it into a storeroom.  The court gave a verdict in favour of Sehgal and passed a mandatory injunction agains the Union of India, directing to return the mural to Sehgal and granting transferring all rights in the mural from the government to Sehgal to restore the mural and sell it.  The court also granted damages of Rs.500,000 in the matter.

The Copyright Act 1957 sets out certain uses that do not constitute infringement under the Act.  One case was where the defendant published a guide to a textbook published by the petitioner's company, lifting verbatim  of exercises and the key to exercises from the textbook and incorporated into the guide. When Petitioner company filed a copyright infringement suit, the defendant invoked the fair dealing exceptions under the act.  The Court rejected the argument of fair use and ruled, Verbatim lifting of the text to the extent of copying the complete set of exercises cannot be in any manner termed as review, criticism or a guide to the original work.

4. Development in damages:

In the case involving infringement of the trade mark and copyright of the trade mark and log, the Court held that a party who chooses not to participate in court proceedings and evades court proceedings must suffer the consequences of damages on the ground that there is a larger public purpose involved to discourage such parties from indulging in such acts of deception, even if the same has a punitive element, it must be granted.

A case involving infringement of copyright in a database the Court held that where the extent of the  business cannot be ascertained compensatory damages may be quantified by adopting the principle of what would be the similar cost of creating the thing had it  not copied.

5. Domain name policy formed:

The Uniform Dispute Resolution Policy (UDRP) and the Indian Dispute Resolution Policy (INDRP) differ on the domain name in many places.  The UDRP gives protection to a trade name or a personal name where the complainant has acquired rights while the INDRP gives protection to a name, trade mark or service mark in which the complainant has rights.  The arbitration proceedings in accordance with the INDRP Rules and Policy makes it mandatory for the registrant of the impugned domain name to participate in the administrative proceedings once a complaint is initiated against him.  This is in contrast with the UDRP policy which states that, neither party, the complainant nor the respondent, is barred from submitting the dispute to a court of competent jurisdiction for independent resolution before such mandatory administrative proceeding is commenced or concluded.  Under INDRP Policy, the remedies available to a registrant are the cancellation of the domain name or the transfer of the domain name.  The award of costs is a major enhancement on the UDRP, which categorically states that the panellist cannot award costs.

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