Delhi HC patents verdict may hit small-scale, mid-sized manufacturers

A verdict by a two-judge bench of the Delhi High Court last week is expected to have an adverse impact on India's mid and small manufacturers who licence patents from large international firms.

- Pavan Burugula

The court ruled that in the issues pertaining to rights of patentees, the Patents Act overrides the Competition Act and hence the anti-trust regulator cannot probe issues pertaining to rights of patentees.

This verdict was delivered in the appeals moved by global companies Ericsson and Monsanto against a Competition Commission of India (CCI) probe. Earlier, a single bench of Delhi High Court had ruled in favour of CCI-a verdict that has now been overturned.

Legal experts said the judgment implies that CCI cannot probe terms and conditions imposed by patent holders on those who seek licence of these patents. Instead, any grievances regarding patentee rights need to be taken up before controller of patents.