An important news for patent professionals – starting August 1, 2024, the Jan Vishwas (Amendment of Provisions) Act, 2023 is rolling out some major updates that will affect patents, trademarks, geographical indications, and copyright laws.

Ahead, big changes in the the Patents Act 1970 can be a boon for many of us. What is the goal of the Jan Vishwas Act here? To reshape the landscape of patent management in India, focusing on simplifying processes, reducing criminal penalties, and making doing business a whole lot easier.

Let’s dive deeper into the key modifications by the Jan Vishwas Act and their implications for patent holders, agents, and the broader business community.

Enhanced Penalties for False Claims

The revised Section 120 of the Patents Act introduces a more stringent penalty regime for unauthorised claims about patent rights. If a person falsely represents that their product is patented or under patent application in India, they could face a penalty of up to INR 10 lakh.

This enhancement by the Jan Vishwas Act is designed to curb misleading claims and ensure that only accurate information about patents is circulated. By increasing financial penalties, the law aims to deter fraudulent activities and protect the integrity of the patent system. For businesses, this means a greater emphasis on verifying patent claims and ensuring that all representations are truthful and substantiated.

Decriminalisation of Certain Offences

Several offences previously punishable by imprisonment are now subject to financial penalties. Specifically:

• Misuse of “Patent Office”: 

The removal of Section 121 means that using terms that might suggest a false connection with the patent office is no longer a criminal offence.

• Furnishing False Information:

Previously, providing false information by businesses could lead to imprisonment. Under the new provisions, offenders will face a financial penalty instead, calculated as a percentage of their sales or turnover, with a cap of INR 5 crore.

The shift from criminal penalties to financial ones by the Jan Vishwas Act reflects a move towards a more business-friendly regulatory environment. This change aims to reduce the burden of criminal proceedings on businesses and focus on financial deterrents. For businesses and individuals, this means that while the risk of imprisonment has been removed, significant financial consequences still apply for non-compliance.

Increased Penalties for Non-Registered Patent Agents

The revised Section 123 imposes higher penalties for practising as a patent agent without proper registration. The maximum fine has been increased to INR 5 lakh, with additional daily fines of INR 1,000 for ongoing violations.

These changes are intended to enhance the credibility and accountability of patent agents. By imposing stricter penalties for unregistered practice, the law aims to ensure that only qualified and properly registered agents handle patent-related matters. This move is expected to improve the overall quality of patent services and protect the interests of patent holders.

Introduction of Adjudication and Appeal Processes

New provisions, specifically Sections 124A and 124B, introduce formal procedures for adjudicating penalties and handling appeals:

• Adjudication: 

An authorised officer will now be responsible for holding inquiries and imposing penalties for patent-related violations.

• Appeals:

A structured process for appealing the adjudicating officer’s decisions has been established, allowing affected parties to challenge penalties in a fair and organised manner.

The introduction of these procedures is aimed at bringing more transparency and fairness to the penalty process. Businesses and individuals will have a clear pathway for resolving disputes and contesting decisions, which enhances the overall effectiveness of the regulatory framework.

Things to keep in mind for Patent Holders, Agents, and Law Firms

Bottom-Line

So, what does all this mean? The Jan Vishwas Act is all about making IP laws simpler and more business-friendly. By moving away from criminal penalties and focusing on financial fines, it aims to make compliance easier and reduce the stress of dealing with legal issues.

Keep these changes in mind as they come into effect, and feel free to share this update with friends and colleagues who might find it helpful. For more insights and updates, stay tuned – we’ve got your back!

Happy navigating the new IP landscape! 🌐💼