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Jan Vishwas Amendment to IP Laws to Come Into Effect on Aug 1
The Department for Promotion of Industry and Internal Trade (DPIIT) has notified August 1 as the date on which provisions of the Jan Vishwas (Amendment of Provisions) Act, 2023, pertaining to patents, trade marks, geographical indications, and copyright laws will come into effect.[1]
This Act amended existing statutes to decriminalise and rationalise offences, with the goal of strengthening trust-based governance and facilitating ease of doing business. Accordingly, changes were made to 42 enactments included in the Schedule to the Act. The amendments made to the IP laws will come into force on August 1. These are summarised below:
Changes to Patents Act, 1970
Enhanced penalty for unauthorised claim of patent rights
As per amended Section 120, if a person falsely represents that any article sold by him is patented in India or is the subject of an application for a patent in India, he will be liable to a penalty that may extend to INR 10 lakh, and in case of a continuing claim, a further penalty of INR 1,000 for every day after the first during which such claim continues. Currently, the fine leviable under Section 120 may extend to INR 1 lakh.
No punishment for wrongful use of ‘patent office’
The use of this term leading to a belief that the person’s place of business is or is officially connected with the patent office will no longer be punishable, with the omission of Section 121. Presently, a person guilty of such use can be punished with imprisonment for a term that may extend to six months, a fine, or both.
Reduced penalty for failing to furnish information
Failure to furnish information to the Controller or the Central Government as specified under Section 122 will render the person liable to a penalty of up to INR 1 lakh, and in case of the continuing refusal or failure, a further penalty of INR 1,000 for every day after the first during which such refusal or failure continues. The maximum fine that may be imposed for such refusal or failure is currently INR 10 lakh.
Further, the amendment decriminalises the furnishing of false information. W.e.f. August 1, a person furnishing false information will no longer be punishable with imprisonment extendable up to six months or with a fine. He will instead be liable to a penalty for a sum equal to one-half per cent of the total sale or turnover, as the case may be, of business or the gross receipts in the profession as computed in the audited accounts of such person or a sum equal to INR 5 crore, whichever is less.
Increased penalty for practice by non-registered patent agents
The amendment to Section 123 provides for an enhanced penalty of up to INR 5 lakh in case of practice by non-registered patent agents in contravention of Section 129. For continuing defaults, a further penalty of INR 1,000 will apply every day after the first day during which such default continues. Prior to the amendment, the fine could be extended to INR 1 lakh for the first offence, and for second or subsequent offences, the maximum was set at INR 5 lakh.
Adjudication of penalties and appeal
The amendment introduces Sections 124A and 124B and provides for the adjudicating officer’s holding of inquiry and imposition of penalty, along with the mechanism to challenge the officer’s order via appeal.
Power to make rules
By the addition of clauses (xiiia) and (xiiib) in Section 159(2), the Central Government is empowered to make rules providing the manner of holding inquiry, imposing a penalty, and preferring an appeal under Sections 124A and 124B. In the exercise of these powers, the Patents (Second Amendment) Rules, 2024, were notified in March 2024.[2]
Changes to Trade Marks Act, 1999
Decriminalisation of select offences
- There is no fine for removing piece goods that are not marked (with the name of the manufacturer, the occupier of the premises in which the piece was finally processed, or the wholesale purchaser in India of the piece) for sale from premises referred to in Section 81.
- The use of words leading to the belief that a person’s place of business is or is officially connected with the Trade Marks Office will no longer attract imprisonment of up to two years or a fine.
- Falsification of register entries will no longer result in imprisonment for up to two years or a fine.
This has been done through omission of Sections 106, 108, and 109.
Turnover-based penalty for falsely representing a trade mark as registered
The amendment to Section 107(2) provides that a person falsely representing a trade mark as registered will no longer be punishable with imprisonment of up to three years or a fine. He will instead be liable for a penalty of a sum equal to one-half per cent of the total sales or turnover, as the case may be, in business or of the gross receipts in the profession, as computed in the audited accounts of such person, or a sum equal to INR 5 lakh, whichever is less.
Adjudication of penalties and appeal
The newly introduced provisions, Sections 112A and 112B provide for the holding of inquiry and imposing of penalty by the authorised officer so authorised by the Registrar, as well as the appeal mechanism.
Failure to furnish information on imported goods bearing false marks
Failure to produce documents or furnish information regarding the imported goods bearing false marks as required by the Commissioner of Customs within 14 days will render the importer or his agent liable to a penalty of INR 10,000. Prior to the amendment, as per Section 140(3), the fine applicable was a mere INR 500.
Power to make rules
The introduction of clauses (xxxiiia) and (xxxiiib) in Section 157(2) make it possible for the Central Government to make rules providing the manner of holding inquiry, imposing a penalty, and preferring the appeal. Click here to read more about the draft rules released by DPIIT earlier this month.
Changes to Geographical Indications of Goods (Registration and Protection) Act, 1999
Adjudication of penalties and appeal
The new provisions, Sections 37A and 37B, provide for the holding of inquiry and imposing of penalty under provisions of the Act, along with the appellate mechanism.
Turnover-based penalty for falsely representing a geographical indication as registered
The punishment applicable for falsely representing a geographical indication as registered has been revised vide amendment to Section 42(2). From August 1, a person will no longer be punished with imprisonment of up to three years or a fine for this infringement. He will be liable to a penalty of a sum equal to one-half per cent of the total sales or turnover, as the case may be, in business or of the gross receipts in the profession as computed in the audited accounts of such person or a sum equal to INR 5 lakh, whichever is less.
Decriminalised offences
- A person will no longer face imprisonment of up to two years or a fine for using words that lead to the belief that the person’s place of business is or is officially connected with the Geographical Indications Registry.
- Falsification of register entries will no longer result in imprisonment for up to two years or a fine.
This has been done through omission of Sections 43 and 44.
Power to make rules
In the introduction of clauses (oa) and (ob) in Section 87(2), the Central Government is empowered to make rules providing the manner of holding inquiry, imposing a penalty, and preferring the appeal.
Changes to Copyright Act, 1957
No penalty for making false statements to deceive any authority
By omitting Section 68, the 2023 Act seeks to do away with the punishment (one-year imprisonment or fine) applicable for making false statements to deceive any officer in the execution of provisions of the Copyright Act.
