Annual working statements – Form 27 Fully Decoded (IPA-2007)

According to Section 146 read with Rule 131 of the Indian Patent Act, a patentee or a licensee, exclusive or otherwise, of a granted patent, is required to submit a statement regarding the working of the patented invention on a commercial scale in India in the prescribed manner in form -27. Let us see the nitty-gritty around this much-hyped Form -27.

What is Form -27 under Indian Patent Law -2007?  

Form -27 is required to be filed mandatorily under the Indian Patents Act, 1970 by every patentee and every licensee separately. It is a statement as to the extent of commercial working of a granted patent in the Indian Territory. This working statement is embodied in Form 27 of the Patents Rules, 2003.

Why is information asked in form-27 required?

Section 83 of IPA -2007 clearly states “…that patents are granted to encourage inventions and to secure that the inventions are worked in India on a commercial scale and to the fullest extent that is reasonably practicable without undue delay” , hence the commercial working of a granted patent disclosed via Form -27 is to indicate to the authorities that the patentee is abiding by section 83.

What is the need for the commercial working of a granted patent?

As per Section 83, it is to ensure that the patentee secured a patent

·      Not merely to enjoy a monopoly for the importation of the patented article;

·      that the protection and enforcement of patent rights contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations;

so the submission of Form -27 ensures that a patent right is exercised for commercial benefits and not for monopolisation.

What are timelines and frequencies attached to Form -27?

As per the amended Rule 131 (2):

"(2) The statements referred to in sub-rule (1) shall be furnished once in respect of every financial year, starting from the financial year commencing immediately after the financial year in which the patent was granted, and shall be furnished within six months from the expiry of each such financial year."

What if a patentee fails to file Form -27?

Under the Indian Patent Act, non-filing Form 27 is a punishable offence with a fine, which may extend to INR 10 lakh approximately USD 12000, under Section 122 of the Act. Also furnishing of any false information in the Form 27 is punishable with imprisonment which may extend to six months, or with a fine, or both.

Highlight other important Form – 27 directives?

It is to be noted that no official fee is required to be paid for filing the statement of working on form 27. This encourages the patentees and licensees to furnish the information multiple times without paying an official fee. Also, Form 27 can be signed by the Patentee/Licensee or by the Agent of the Patentee.