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Transfer of Patent Rights & Rights of Patentee 📜

Important Concept: Patent is property. Like a house or car, it can be bought, sold, rented (licensed).

Rights of a Patentee (Patent Owner) 🛡️

Section 48 of Patents Act, 1970

The patent owner has exclusive right to:

Make the patented product.
Use the patented product or process.
Sell the patented product.
Import the patented product.
License others (give permission to use for a fee).
Assign (transfer ownership to someone else).

Meaning: No one else can do these things without the patentee's permission for 20 years.

Exception: Compulsory Licensing

Compulsory License = Government can force a patent owner to allow others to use the patent (if it's in public interest).

Example: During COVID-19, if a company had a vaccine patent but refused to make enough doses, the government could grant compulsory license to other companies to produce it.

Conditions: Patent not worked in India, public need not met, unreasonable price.

Transfer of Patent Rights 📋

1. Assignment (Sale) 💰

Full transfer of ownership.
Original owner loses all rights.
New owner becomes the patentee.

Example: Company A invents a new drug. Company B buys the patent for ₹100 Crores. Now Company B owns it completely.

Requirements:

Written agreement.
Registered with Patent Office.

2. Licensing (Rent) 🏠

Temporary permission to use the patent.
Original owner retains ownership.
Licensee pays royalty (fee).

Types of Licenses:

Type	Meaning
Exclusive License	Only ONE person can use (even owner can't use).
Non-Exclusive License	Owner can give to multiple people.
Compulsory License	Forced by government (public interest).

Example: Microsoft owns Windows patent. Dell gets a license to install Windows on Dell laptops (pays per copy).

Assignment vs Licensing 🆚

Feature	Assignment	Licensing
Ownership	Transferred (Sale).	Retained (Rent).
Duration	Permanent.	Temporary (as per agreement).
Rights	All rights go to buyer.	Limited rights to licensee.
Example	Selling a house.	Renting a house.

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. Exclusive rights of a patentee include:

Make, Use, Sell, Import

Only Make

Only Sell

None

💡 Final Wisdom: "A patent is not just a certificate. It's an asset you can monetize through licensing or sell through assignment!" 💰