The appellant Dr. Robotic Robben is a scientist-engineer. The appellant has to his credit several inventions in the field of wind turbine generators, and wind energy converters. The appellant claims to be the owner and h
CS Professional · Intellectual Property Rights - Law and Practice · PYQS · June 2019
The appellant Dr. Robotic Robben is a scientist-engineer. The appellant has to his credit several inventions in the field of wind turbine generators, and wind energy converters. The appellant claims to be the owner and holder of various intellectual property rights, including approximately 2,700 patents (in more than 60 countries). Out of the aforesaid patents, the appellant has about 100 patents in India. The appellant is also engaged in the manufacture of wind-turbines. In the field of wind turbines, he claims a position amongst the three largest manufacturers in the world. The aforesaid manufacturing process is carried out by the appellant under the name of Environ Robben Group, Appellant No. 2, through an assignment agreement on 5th January 2012, having acquired the right, title and interest in all the Indian registered designs and patents (including the pending registrations), belonging to Dr. Robotic Robben. The appellant's manufacturing process, is allegedly, carried out in about 27 countries. The Environ Robben Group claims to employ more than 8,000 people, worldwide. As far as India is concerned, Dr. Robotic Robben has been carrying on the aforesaid manufacturing process, through a joint venture partnership with Ajit Mitra and Abhai Mitra, (respondent nos. 1 and 2 herein). The Indian enterprise is carried on in the trade name of Environ India Limited (respondent no. 3 herein). Ajit Mitra and Abhai Mitra are the directors of Environ India Limited. Environ India Limited was formed in 1994 as a joint venture, between Environ Robben Group and Respondent Nos. 1 and 2. Environ India Limited was originally carrying on its manufacturing process, in furtherance of licences granted by the appellant Dr. Robotic Robben. According to the appellant, the licences to use technical know-how, were vested by the appellant with Environ India Limited, through written agreements. These intellectual property license agreements were executed between the parties from time to time, and the last agreement was executed on 29.9.2006. The last agreement entered on 29.9.2006, superseded all the previous agreements (including the technical know-how agreement of 1994, and the technical know-how agreement of 2000). Due to non-fulfilment of the obligations contained in the intellectual property licence agreement dated 29.9.2006, the appellant terminated the last intellectual property licence agreement with Environ India Limited on 8.12.2008. Despite the termination the respondent nos. 1 to 3, continued the use of the appellant's patents without due authority. This action by respondent nos. 1 to 3 has been of extreme detriment to the appellant, as his technical knowhow was being exploited by the respondents, without consideration or authorisation. Dissatisfied with the action of the appellant, the respondent approached the Intellectual Property Appellate Board (hereinafter referred to as IPAB) for revocation of patents held by the appellant. In the meantime the appellant Dr. Robotic Robben filed 10 patent infringement suits before the High Court. All 10 patent infringement suits, were filed after Environ India Limited had already instituted 19 revocation petitions, before the Appellate Board under Section 64 (1) of the Patent Act, 1970 (hereinafter referred to as the Patents Act), in January 2009. The contesting respondents raised a counter-claim, a prayer for the revocation of the patent, which constituted the basis of the patent infringement suit. The same issues are reagitated by the respondents, before the High Court, through the counter-claims. Decision of the High Court : As per the provisions (Section 64 (1) and 104) of the Patents Act, the locus standi for revocation of a patent, is available to three different entities, namely, any person interested, the Central Government, and to a defendant in an infringement suit by way of a counter-claim. Depending on the specific part of the provision relied on, such challenge is permissible before two different fora, i.e., the Appellate Board, or the jurisdictional High Court. Further a perusal of Section 25(2) reveals that only a person interested and not any person (as in the case of 25(1) of the Patents Act) may challenge the grant of a patent, within one year of the publication of such grant, by issuing a notice of opposition to the Controller. Such notice of opposition to the Controller can be made on the grounds depicted in sub-sections (1)(a), (b), (c), (d), (e), (f), (h), (m), and (o) of Section 64 of the Patents Act. The remaining grounds for raising a challenge under Section 25(2) coincide with those contained in 25(1) of the Patents Act. Where an issue is already pending adjudication between the same parties, in a Court having jurisdiction to adjudicate upon the same, a subsequently instituted suit on the same issue between the same parties, cannot be allowed to proceed. A similar question arises for consideration before this Court, in the present controversy. If the respondents in their capacity as any person interested had filed a revocation petition before the institution of an infringement suit, they cannot be permitted to file a counter-claim on the same cause of action. The natural conclusion in the above situation would be, that the validity of the grant of the patent would have to be determined in the revocation petition. Therefore, in the above situation, while the revocation petition will have to be permitted to be pursued, the counter-claim cannot be permitted to be continued. Therefore, in the above eventuality, it is apparent that the situation would be resolved, in the same manner, as it would have been resolved in cross-suits filed by the rival parties, before different jurisdictional courts. In our considered view, the above conclusion is imperative for a harmonious interpretation of the relevant provisions of the Patents Act. The appellants did not desire two proceedings, on the subject of revocation of the same patent, to be continued simultaneously before different fora. In our discussion recorded while dealing with the appellants, the court has accepted the contention advanced for the appellants, that only one out of two remedies available under Sec. 64 of the Patents Act, can be availed, so as to assail the grant of a patent. Accordingly the said remedy may be availed of in the capacity of either any person interested, or in the capacity of a defendant in a counter-claim. In response to infringement suit, Defendant had already sought revocation of patent through counter-claim, and they cannot thereafter assail concerned patent, by way of revocation petition. Having availed one of the above remedies, it is not open to the same person to assail the grant of a patent by choosing the second alternative. The High Court disposed the appeal basing on the above terms and provisions of patent legislation. 'Controller of patent plays an important role in granting compulsory licenses'. In the light of this statement explain when he can grant compulsory licenses, its terms and conditions with appropriate provisions of patent legislation.
Answer & Explanation:
The provisions for Compulsory Licenses (CL) are made to prevent the abuse of patent as a monopoly and to make the way for commercial exploitation of the invention by an interested person. According to Section 84 of Patents Act, 1970, any person interested can make an application for grant of compulsory license for a patent after three years from the date of grant of that patent on any of the following grounds – That the reasonable requirements of the public with respect to the patented invention have not been satisfied, or That the patented invention is not available to the public at a reasonably affordable price, or That the patented invention is not worked in the territory of India. An application for compulsory license may be made to the Controller by any person including the licensee. Application for Compulsory License (CL) has to contain a statement setting out the applicant's interest, and the grounds on which the application is made. The controller on being satisfied that the grounds made have been established, may grant Compulsory License (CL) upon such terms as he may deem fit. Power of Controller Section 88 of the Patents Act, 1970 provides that if the controller is satisfied that the grounds mentioned under Section 84 of the Patents Act, 1970 are established, he may grant Compulsory License (CL). If the application is made by the licensee of the patent holder as per Section 84, the Controller can make order for the grant of Compulsory License (CL) to the applicant and may issue an order to cancel the existing license or direct an amendment to the existing license. When two or more patents are held by the same patentee and the applicant established the grounds for Compulsory License (CL), if the controller is satisfied, he may direct the grant of license or the patent in regard to which a license is granted. Terms and Conditions are settled by the controller. The applicant after the expiry of 12 months can make an application for revision of terms and conditions. Terms and Conditions of Compulsory Licensing Section 90 of the Patent Act, 1970 provides that in settling the terms and conditions of a compulsory licence, the Controller shall attempt to secure that — The royalty and other remuneration, if any, reserved to the patentee or other person beneficially entitled to the patent, is reasonable, having regard to the nature of the invention, the expenditure incurred by the patentee in making the invention or in developing it and obtaining a patent and keeping it in force and other relevant factors; The patented invention is worked to the fullest extent by the person to whom the licence is granted and with reasonable profit to him; The patented articles are made available to the public at reasonably affordable prices; The licence granted is a non-exclusive licence; The right of the licencee is non-assignable; The licence is for the balance term of the patent unless a shorter term is consistent with public interest; The licence is granted with a predominant purpose of supply in the Indian market and the licencee may also export the patented product if need be in accordance with section 84(7)(a)(iii); In the case of semi-conductor technology, the licence granted is to work the invention for public non-commercial use; In case the licence is granted to remedy a practice determined after judicial or administrative process to be anti-competitive, the licencee shall be permitted, if need be, to export the patented product. As per Section 90 (2) and (3) of Patents Act, 1970, the import of patented article is not allowed. Central Government may direct the controller for such import if it is necessary in public interest. This shows that controller plays an important role in granting Compulsory Licensing for public benefit.
Topics: Patent Law
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