Nippon Steel Corporation Wins Appeal; Employment Contracts Recognized as Sufficient Proof of Right for Patent Applications
In a significant ruling, the Delhi High Court has set aside an order by the Controller of Patents that rejected Nippon Steel Corporation's patent application due to the lack of 'proof of right.' The judgment, delivered by Justice Tejas Karia, asserts that an employment agreement and accompanying declarations serve as valid proof of assignment under Section 7(2) of the Patents Act, 1970. The case arose when Nippon Steel's application for a patent titled "High-Strength Steel Sheet And Manufacturing Method Of High-Strength Steel Sheet" was denied on the grounds that the proof of right for one of the inventors, Mr. Kohichi Sano, who is deceased, was not satisfactorily established.
The court analyzed whether the employment agreement, signed by the deceased inventor, and the accompanying corporate policy could be deemed sufficient evidence of the transfer of intellectual property rights. The court noted the absence of the inventor's signature on Form 1, but emphasized the employment agreement's role, which was attested by a guarantor, as adequate proof of assignment of rights.
Justice Karia observed that procedural compliance should facilitate rather than obstruct justice, highlighting that the rejection contradicted the procedural norms applied in similar cases by the patent office. The court emphasized that procedural laws are meant to advance justice, not impede it, and cited previous judgments to reinforce this principle.
The court's decision mandates the patent office to re-examine the application and proceed with the grant of the patent, marking a pivotal moment in the interpretation of 'proof of right' in patent law. This judgment aligns with international patent guidelines and sets a precedent for accepting employment contracts as valid evidence of intellectual property assignment.
Bottom Line:
Patent Law - Employment Agreement signed by deceased inventor and declaration of assignment suffices as 'proof of the right' under Section 7(2) of the Patents Act, 1970 for filing a patent application.
Statutory provision(s): Sections 6(1)(b), 6(1)(c), 7(2), and 68 of the Patents Act, 1970.
Nippon Steel Corporation v. Controller of Patents, (Delhi) : Law Finder Doc Id # 2827152
