Patents Act overrides the Competition Act

Context: 

The Delhi High Court ruled that the Patents Act, will take precedence over the Competition Act concerning the exercise of rights by a patent holder.

About the Case:

• The case involved appeals by agrochemical company Monsanto and telecom company Ericsson, along with the Competition Commission of India (CCI).
• CCI initiated “antitrust investigations” against Monsanto and Ericsson for alleged anti-competitive practices related to patent licensing.
• The key issue was whether CCI had jurisdiction to investigate actions of a patentee or if it was solely under the Patents Act.

Verdict: 

• The Court ruled that the Patents Act must prevail over the Competition Act on the issue of the exercise of rights by a patentee under the Patents Act.
• Complete Code in Patents Act: The court stated that Chapter XVI of the Patents Act comprehensively deals with unreasonable conditions in patent licensing, abuse of patentee status, inquiries, and relief.

About Patents Act:

• Definition: A patent is an exclusive right granted for an invention under the Patents Act 1970.
  • The patent provides the holder with the sole authority to use, sell, or license the invention, preventing others from doing so without permission.
• Patentee under the Patents Act: According to the Act, a patentee is the person whose name appears on the register of patents as the “grantee or proprietor of the patent.”
• Register of Patents: The register of patents is maintained by a government patent office, which is present in four cities across the country.

News Source: The Livemint