| Domestic pharma companies
can breathe easy. The Group of Ministers (GoM) on Patent
Law may restore the facility of pre-grant opposition to
patents, which the previous NDA government allegedly proposed
to withdraw.
The scrapping of the pre-grant objection provision
in the Patent Amendment Bill 2003 caused a lot of heartburn
amongst the domestic pharma companies which saw that
it would lead to grant of frivolous patents.
The commerce and industry ministry is piloting a proposal
to the GoM. It will propose making it obligatory on
the patents controller to issue a "speaking order"
before disposing of a pre-grant representation.
This means a person will have the right to challenge
the controller's order in the court and withhold grant
of the patent. The proposal for mandatory speaking order
is expected to address the concerns over the changes
in provisions for contesting a patent, mooted in the
bill drafted by the NDA government, officials said.
The bill will be modified accordingly. "The bill
will have no provision to fetter the authority of the
courts," clarified a senior official
On September 21, chairman of the GoM, defence minister
Pranab Mukherjee had detailed discussions with commerce
and industry minister Kamal Nath on the issues relating
to the proposed amendment to the Patents Act.
Government sources clarified that the proposed amendments
would not dilute the scope for contesting possible grant
of a "bad patent". "After the mandatory
publication of the patent application, there will be
a minimum period of seven months to make a representation,
disputing the patentability of the relevant invention.
In the proposed system, the application would be published
even prior to the notification of acceptance,"
sources said.
Following the proposed changes in the bill moved by
the previous NDA government, domestic pharma majors
had pointed out that facility for pre-grant opposition
is crucial in a patent system. Patent examiners are
not infallible. If a bad patent is granted, a post-grant
legal resolution may take years, and by the time, the
holder of the patent will have enjoyed the exclusivity.
The government, on the other hand, thinks that the
time taken for processing and grant of patents has been
a matter of concern. The delays, the government argued,
were also substantially due to statutory provisions,
which prescribe lengthy time lines for each stage/level
of processing.
In respect of existing provisions relating to opposition,
it has been noted that a notice of opposition, when
filed, becomes a quasi-judicial proceeding and hold
up the processing of patent application till the proceedings
are finalised.
The government had pointed out that bill provided opportunities
for representation against patent applications by third
party and opposition and revocation of patents under
section 25 (1) (a) and (b) and Section 25 (3). However,
of these sections, pre-grant opposition pertains to
only Section 25 (1) (a) and (b).
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