Suits concerning infringement of Patents

Patent infringement lawsuits play a pivotal role in enforcing intellectual property rights and maintaining the balance between innovation and fair competition. Such suits not only protect the patent holder’s exclusive rights but also provide remedies for unauthorized use, reproduction, or commercialization of patented inventions. In India, the legal framework governing these suits is well-defined under the Indian Patents Act, 1970, ensuring both preventive and remedial measures against infringement.

Patents grant inventors exclusive rights to use, produce, and distribute their inventions for a limited period, offering protection against unauthorized exploitation. However, patent infringement is not uncommon, leading to disputes that require judicial intervention. In India, Sections 104 to 115 of the Indian Patents Act, 1970, outline the legal procedures, jurisdiction, and remedies associated with suits concerning infringement of patents.

This article delves into the intricacies of patent infringement suits in India, examining the legal framework, jurisdictional considerations, procedural aspects, and the remedies available to the aggrieved parties.

Understanding Patent Infringement

Patent infringement occurs when an individual or entity uses, manufactures, sells, or distributes a patented invention without the patent holder’s authorization. It may involve:

Direct reproduction of the patented product or process.
Use of the patented invention in manufacturing other products.
Importation of the patented product without consent.

Types of Patent Infringement

Direct Infringement: Unauthorized use or duplication of a patented invention.
Indirect Infringement: When a third party aids or induces infringement, such as providing components specifically designed for infringing use.
Literal Infringement: Violation of the exact claims outlined in the patent.
Doctrine of Equivalents: Use of a process or product that performs substantially the same function in the same way to achieve the same result, even if not explicitly covered by the patent claims.

Legal Framework Governing Patent Infringement in India

The legal framework governing patent infringement in India is encapsulated primarily in the Indian Patents Act, 1970, which provides detailed provisions to address the unauthorized use, manufacture, sale, or distribution of patented inventions. The Act, read alongside procedural laws and judicial interpretations, ensures a structured approach to the enforcement of patent rights. The following are the key legal provisions, principles, and procedural aspects related to patent infringement in India:

Definition and Scope of Patent Infringement

While the Indian Patents Act, 1970 does not explicitly define “infringement,” it is understood as any act that violates the exclusive rights granted to a patent holder. These rights include:

Making, using, offering for sale, selling, or distributing a patented product or process without the patent holder’s consent.
Importing a patented product or a product obtained directly through a patented process.

Relevant Provisions of the Indian Patents Act, 1970

Section 48: Rights of Patentees

Section 48 grants exclusive rights to the patent holder. For:

Product Patents: The right to prevent unauthorized making, using, offering for sale, or importing the patented product.
Process Patents: The right to prevent unauthorized use of the patented process and subsequent sale or distribution of products obtained from such a process.

Section 104: Jurisdiction of Courts

Only district courts or higher courts have jurisdiction to hear patent infringement cases.
Commercial disputes involving patents are referred to Commercial Courts established under the Commercial Courts Act, 2015.

Section 105: Declaration as to Non-Infringement

An entity that believes its actions do not constitute infringement can seek a declaration of non-infringement. This encourages clarity and prevents unnecessary litigation.

Section 106: Relief in Cases of Groundless Threats

If a patentee threatens infringement proceedings without reasonable grounds, the affected party may file a suit for relief, including an injunction against such threats and damages.

Section 107: Defenses to Infringement

The defendant can raise defenses, including:

The invalidity of the patent.
The patented invention lacks novelty or inventive step.
The patent was obtained fraudulently.

Section 108: Reliefs in Suits for Infringement

Courts may grant:

Injunctions (temporary or permanent).
Damages or accounts of profits.
Orders for the seizure, forfeiture, or destruction of infringing goods.

Section 114: Certificate of Validity

If a court has already declared a patent valid, the infringer cannot challenge its validity in subsequent proceedings.

Section 115: Scientific Advisors

Courts may appoint scientific advisors to assist in cases involving complex technical questions.

Defenses Against Patent Infringement

Under Section 107, the following defenses are available:

Invalidity of the Patent: Claiming the patent does not meet the requirements of novelty, inventive step, or industrial applicability.
Statutory Exceptions: Under Section 47, specific acts like experimentation or research on the patented invention are not considered infringement.
Non-Infringing Use: Asserting that the alleged acts are outside the scope of the patent claims.
Parallel Importation: Importing a patented product that has been legally marketed in another country by the patent holder.

Procedural Framework

Filing of a Suit

A suit must be filed in the district court or commercial court with jurisdiction over the matter.
The complaint must detail the patent, the nature of infringement, and the relief sought.

Interim Relief

Courts may grant temporary injunctions to restrain the infringer pending trial. The patent holder must prove:

Prima facie case of infringement.
Irreparable harm if the injunction is not granted.
Balance of convenience lies in their favor.

Trial and Final Relief

The court examines evidence, including expert testimony, and grants final relief based on findings. Reliefs may include injunctions, damages, or destruction of infringing goods.

Appeals

Appeals from district courts can be made to the High Court, and subsequently to the Supreme Court, if required.

Jurisdiction in Patent Infringement Suits

Under Section 104, suits concerning patent infringement are to be instituted in:

The District Court: Having jurisdiction where the cause of action arises or where the defendant resides or conducts business.
Commercial Courts: Established under the Commercial Courts Act, 2015, to address intellectual property disputes, including patents, more efficiently.

In cases involving significant stakes, appeals from the district court can be taken to the High Court or the Supreme Court.

Procedural Aspects of Infringement Suits

Filing a Suit

To initiate an infringement suit, the patent holder must:

Prove ownership of the patent.
Demonstrate that the infringement falls within the scope of the patent claims.
Establish the unauthorized nature of the defendant’s activities.

Defenses Against Patent Infringement

The defendant in an infringement suit may present the following defenses:

Invalidity of the patent.
The alleged infringement does not fall within the scope of the patent claims.
The patent was not novel or lacked inventive step at the time of grant.
The use of the patented invention falls under the exceptions specified in Section 47 of the Indian Patents Act, 1970.

Interim Relief

Courts may grant interim relief to the patent holder, such as:

Temporary injunctions to restrain the infringer.
Orders for the preservation of evidence.

Final Relief

After the trial, the court may award:

Permanent injunctions.
Damages or accounts of profits.
Delivery of infringing goods for destruction.

Remedies for Patent Infringement

The Indian Patents Act, 1970, provides robust remedies to ensure justice for the aggrieved patent holder. These include:

Injunctions
- Temporary Injunction: Stops the infringer from continuing activities during the trial.
- Permanent Injunction: A final order prohibiting further infringement.
Damages and Accounts of Profits
- Damages compensate for the losses suffered by the patent holder.
- Accounts of profits require the infringer to disclose and surrender profits made through infringement.
Seizure and Destruction
- Courts may order the seizure and destruction of infringing goods, tools, and machinery.

Significance of Patent Infringement Suits

Protection of Innovators’ Rights

Patent infringement suits safeguard the rights of inventors, ensuring that their intellectual property is not exploited without due authorization or compensation.

Encouragement of Innovation

Enforcing patents encourages innovation by assuring inventors that their efforts will be rewarded and protected.

Economic Growth

By protecting patents, these suits foster a competitive market where legitimate businesses thrive, contributing to economic development.

Public Interest

Patent enforcement ensures that inventions serve their intended purpose, benefiting society while maintaining a fair balance between public and private interests.

Challenges in Patent Infringement Suits

High Litigation Costs

Patent litigation is often expensive, making it inaccessible for individual inventors and small businesses.

Delays in Judicial Proceedings

The complexity of patent infringement cases often leads to prolonged litigation, delaying justice.

Technical Expertise

Judges and lawyers may lack the technical expertise required to understand the intricacies of patented inventions, impacting the quality of decisions.

Cross-Border Issues

With globalization, patent infringement disputes often involve parties across jurisdictions, complicating enforcement and resolution.

Patent infringement suits are an essential mechanism for enforcing intellectual property rights and fostering innovation. The legal framework under the Indian Patents Act, 1970, provides robust mechanisms for addressing infringement while balancing the interests of innovators, businesses, and the public.

However, challenges such as high costs, judicial delays, and the need for technical expertise must be addressed to ensure efficient and equitable resolution of disputes. With evolving technology and increasing innovation, the significance of these suits in protecting intellectual property and promoting economic growth in India cannot be overstated.

Frequently Asked Questions (FAQs)

1. What constitutes patent infringement under the Indian Patents Act, 1970?
Patent infringement involves unauthorized use, making, selling, or distributing a patented invention without the patent holder’s consent, violating the exclusive rights granted under Section 48 of the Act.

2. What are the remedies available for patent infringement in India?
Remedies include:

Injunctions (temporary or permanent)
Damages or accounts of profits
Orders for seizure or destruction of infringing goods under Section 108 of the Indian Patents Act, 1970

3. Which courts have jurisdiction over patent infringement suits in India?
Patent infringement suits can be filed in district courts or commercial courts with jurisdiction, as per Section 104 of the Indian Patents Act, 1970, and the Commercial Courts Act, 2015.

4. Can a defendant challenge the validity of a patent during infringement proceedings?
Yes. Under Section 107 of the Indian Patents Act, 1970, defendants can challenge the validity of a patent by raising defenses such as:

Lack of novelty
Lack of inventive step
Lack of industrial applicability

5. What is the significance of interim injunctions in patent infringement cases?
Interim injunctions temporarily restrain the alleged infringer from continuing infringing activities until the court decides the matter. This prevents irreparable harm to the patent holder.

6. How does the Indian patent system address frivolous infringement threats?
Section 106 of the Indian Patents Act, 1970 allows aggrieved parties to file suits for relief against groundless threats of infringement proceedings, including claims for injunctions and damages.

7. What role do scientific advisors play in patent infringement cases?
Under Section 115 of the Indian Patents Act, 1970, courts may appoint scientific advisors to assist in understanding the technical aspects of patents and infringement allegations.

8. Are patent infringement cases in India governed by international standards?
Yes. India’s patent laws comply with the TRIPS Agreement, ensuring that patent enforcement aligns with global intellectual property standards while addressing national priorities.