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Significance of Statement of Working For Patenting System in India

Statement of Working
Karan Singh
| Updated: May 06, 2021 | Category: Patent

To begin with the significance of the Statement of working, first, we have to collect knowledge of the basic terms concerning the Patenting System in India. A Patent is an exclusive right over the creation or invention with an individual who creates or invents such invention. That individual is called a Patentee, who has to make a revelation in the form of a Statement of working to the IPO (Indian Patent Office) concerning the commercial utilization of a Patent in India.

An Overview of Statement of Working

The Patentee or licensee submitted the Statement of working with the IPO mentioning that the commercial utilization of a Patent in India. It also confirms whether the Patent meets the logical requirements of the public besides stating the commercial utilization of a Patent Registration.

It makes sure that if the Patent does not come into implementation for three years from the date of grant or sensible requirement of the public is not met, then a third party be given a chance.

What is the Legal Provision of a “Statement of Working” in India?

According to Rule 131 and Section 146 (2) of the Patent Act, a Statement of Working is required to be submitted with the IPO. In India, such a Statement requires to be filed with the authority yearly. Such a Statement gives disclosure concerning the extent to which the Patent worked on the commercial scale. The due date of filing Statement of working is 31st of March of every year. For this, Form-27 is needed to file each year within three months from the end of the year, which can be applied online through the attorney, licensee, Patentee, or patent agent. If the Patentee is not in India, then the application can be filed by contacting an Indian Patent Attorney or Agent.

Following are the details that should be provided along with Form-27:

  1. If case the invention is not worked  then the reason behind of not working and steps taken;
  2. Details of the sub-license and license granted;
  3. In case the invention is worked properly, then the value of the Patent manufactured in India or imported from other nation;
  4. Whether the public necessity has been met.

Obligatory License

During the decision making of granting an obligatory license, details delivered under the Statement of working is used. Intellectual Property Appellate Board (IPAB) considers the information provided in such Statement while granting an obligatory license in India. The IPAB had taken such a decision in the case of “Natco Pharma Ltd vs Bayer Corporation”.

Penalty Provisions (Non-Compliances)

The official status of the Patent is not distressed by the non-filing of Statement of working or filing of not worked Statement; hence it is not considered as cancelled or rejected.

But, it may attract criminal penalties in the case of non-filing of such Statement or intentionally providing incorrect Statement. There are some penalty provisions definite under Section 122(1) (b); if the licensee/patentee didn’t submit the information under section 146, the penalty might be extended up to Rs. 10 lakhs.

In case of incorrect information, imprisonment may be imposed up to 6 months/fine or both under Section 122(2). According to Section 85 of the Indian Patent Act, a Patent can also be cancelled on the level that the patented invention is not underworking.

Publication of “Statement of Working”

This Statement is essential as it gives us a perception of the helpfulness of the patenting system in India. There are various entities, industries and other business companies that use the invention in their business course.

Such Statement is publically available on the official website of the IPO, which the Patentee has submitted in the prior year. Controller power is mentioned under Section 146(3) concerning the publication of such information received by the IPO (Indian Patent Office[1]) as per Section 146 (1 and 2).

Publication of the information mentioned in the Statement of working shows the helpfulness of patenting system in India. The lawmakers, academicians, can utilize such information and potential patentees to improve the Patent Law in India.

Publication of such Statement also helps in Patent assessment, and apart from this, it promotes the technology and science domain advancement. It also offers business and trade benefits.

Such a statement in relation to a Patent helps in the estimation of a Patent value; therefore, a potential patentee can discuss the fee for obtaining a Patent License on the basis of Patent value.

From the point of view of a business merger or a takeover of a business, a statement of working is also vital. On the ground of the information received from such Statement, resources occupied in R&D may be modified by the industries. We can procure the following information from the statements:

  • Obligatory License;
  • The usefulness of Inventions;
  • The commercial feasibility of Inventions;
  • Evaluation of Patent Portfolios.

Conclusion

As per the Indian Patent Laws, it has become essential to deliver information about the Patent working. The primary purpose of Patent Registration is to encourage the invention, or you can say innovation and R&D. It also ensured that the patentee invention is being materialistic for the advantage of the general public at large.

 By submitting a working statement with the IPO, periodic information is disclosed concerning patented invention commercialization in Indian Jurisdiction. This has been done to protect from misuse or non-use of patent inventions. The information delivered under the specific Form helps estimate obligatory licensing and make business decisions.

As per Form, 27 such a Statement is an obligatory requirement which the Patentee should follow. In our outlook, severe action should be taken by the IPO in case of infringement of the Indian Patent Law.

Read our article:An Overview of Patent Term Extension

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Karan Singh

A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.

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