Patents Act, 1970
101. Right of third parties in respect of use of invention
for purposes of government
(1) In relation to any use of a patented invention, or an
invention in respect of which an application for a patent is pending, made for
the purposes of government
(a) by the Central Government or any person
authorized by the Central Government under section 100; or
(b) by the patentee or applicant for the
patent to the order made by the Central Government, the provisions of any
license, assignment or agreement granted or made, whether before or after the
commencement of this Act, between the patentee or applicant for the patent (or
any person who derives title from him or from whom he derives title) and any
person other than the Central Government shall be of no effect so far as those
provisions-
(i) restrict or regulate the use for the
purposes of government of the invention, or of any model, document or
information relating thereto, or
(ii) provide for the making of payments in
respect of any use the invention or of the model, document or information
relating thereto for the purposes of government (including payments by way of
minimum royalty), and the reproduction or publication of any model or document
in connection with the said use for the purposes of government shall not been
deemed to be an infringement of any copyright subsisting in the model or
document.
(2) Where the patent, or the right to apply for or obtain the
patent, has been assigned to the patentee in consideration of royalties or
other benefits determined by reference to the use of the invention (including
payments by way of minimum royalty), then, in relation to any use of the
invention made for the purposes of government by the patentee to the order of
the Central Government, sub-section (3) of section 100 shall have effect as if
that use were made by virtue of an authority given under that section, and any
use of the invention for the purposes of government by virtue of sub-section
(3) of that section shall have effect as if the reference to the patentee
included a reference to the assignor of the patent, and any sum payable by
virtue of that sub-section shall be divided between the patentee and the
assignor in such proportion as may be agreed upon between them or as may in
default of agreement be determined by the High Court on a reference under
section 103.
(3) Where by virtue of sub-section (3) of section 100, payments
are required to be made by the Central Government or persons authorized under
sub-section (1) of that section in respect of the use of an invention for the
purposes of government, and where in respect of such patent there is an
exclusive licensee authorized under his license to use the invention for the
purposes of government, such sum shall be shared by the patentee and such
licensee in such proportions, if any, as may be agreed upon between them or as
may in default of agreement be determined by the High Court on a reference
under section 103 to be just, having regard to any expenditure incurred by the
licensee-
(a) in developing the said invention; or
(b) in making payments to the patentees other
than royalties or other benefits determined by reference to the use of the
invention including payments by way of minimum royalty in consideration of the
license.