Thirteen (13) years back, in Yahoo v. Controller of Patents (2010) case, Yahoo sought to patent a computer network search apparatus method that allowed advertisers to bid for favorable ad placement on web pages. However, the Controller and the Intellectual Property Appellate Tribunal (IPAB) determined that the invention was merely a business strategy and not eligible for a patent. The IPAB observed that the method was essentially an electronic form of advertising and did not introduce any significant technical advancements beyond existing practices. They emphasized that business methods cannot be patented according to Section 3(k), and the presence of some improvements did not change this conclusion. This is just an example and of course, a few more cases were decided in the interim.
Now in Open TV Inc. Vs Controller of Patents (May, 2023), while the decision is along the similar lines, there is a sea change in the thought process of judiciary and a move to keep Indian Patents Act updated has at least been initiated. The Delhi High Court dismissed an appeal by OpenTV Inc. seeking a patent for its gift media system, stating that it fell under the exclusion of patentability. The Court held that the invention was a business method and therefore, it was attracted by the exclusion from patentability under Section 3(k) of the Patents Act, 1970.
The Court, however, expressed concerns about the Patents Act provisions that prevent the patenting of business methods and noted that this exclusion could hinder innovation in emerging technologies, including those by start-ups, SMEs, and educational institutions. The Court referred to the 161st report of the “Review of the Intellectual Property Rights Regime in India” presented by the parliamentary standing committee and said that even the committee has expressed similar concerns. While acknowledging that amending the Act is a legislative decision, the Court directed the Patent Office to share the judgment with the Secretary of the Department for Promotion of Industry and Internal Trade for consideration. This move by the Court signals a commitment to keeping the Patents Act updated and supportive of innovation in India. Of course, there is a contrary argument but then, law has to adapt faster to catch up with the fast pace of innovation and there is no denying this fact.
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