Form 27 – Understanding Form 27 for Patentees and Licensees in the Post-2024 Amendment

Patents grant inventors exclusive rights over their creations for a specific period. In India, patentees and licensees have a responsibility to disclose how their patented inventions are being utilized within the country. This is achieved through Form 27, an essential document for patent compliance. Recent amendments to the Indian Patent Rules in 2024 have brought about some key changes regarding Form 27.

What is Form 27?

Form 27 is the designated form, as prescribed by the Indian Patents Rules, 2003 (as amended in 2024), titled “Statement Regarding the Working of the Patented Invention.” This form serves as a mandatory disclosure document under Section 146(1) of the Patents Act, 1970. Patentees (as defined in Section 2(f) of the Act) and licensees (granted permission under Section 66 of the Act) are obligated to file this form with the Indian Patent Office (IPO).

Recent Amendments and their Impact on Form 27

The Indian Patents (Amendment) Rules, 2024, introduced significant modifications to Form 27, prescribed under Rule 131(2) of the Indian Patents Rules, 2003. These amendments aim to streamline the filing process and lessen the compliance burden on patentees and licensees.

Key Changes and their Impact:

• Filing Frequency: Previously, Section 146(1) of the Patents Act, 1970, mandated the filing of Form 27 annually. The 2024 amendments extend this timeframe. Now, patentees and licensees are required to file the statement once every three financial years, commencing from the year the patent is granted. This extended timeframe offers patentees greater flexibility in terms of time and resource allocation for compliance.
• Simplified Information Requirements: The amended form eliminates the need to disclose the exact value or sales figures accrued in India for the reported patent. Previously, such data was mandatory under Rule 131(2). Now, patentees are only obligated to submit an approximate revenue/value accrued through the manufacturing or import of the patented invention. This reduces the data collection and reporting burden for patentees.
• Consolidated Reporting for Related Patents: The new rules, introduced by the 2024 amendments, permit patentees to file a single Form 27 for multiple related patents, provided that the revenue/value generated from each individual invention cannot be segregated. This simplifies reporting for patentees holding extensive patent portfolios, reducing the number of forms required to be filed.

Continued Importance of Form 27

While the recent amendments implemented through the Indian Patents (Amendment) Rules, 2024, have extended the filing frequency of Form 27, the form remains a critical component of the patent compliance process in India for several reasons:

• Statutory Obligation: Section 146(1) of the Patents Act, 1970, mandates that patentees and licensees furnish the information required under Form 27. Filing the form ensures compliance with this statutory obligation for disclosing the working of their patented inventions.
• Transparency: The information submitted through Form 27 assists the Indian Patent Office (IPO) in maintaining a record of how patented inventions are being commercially exploited within India. This data contributes to transparency and aids in assessing the impact of patents on the nation’s technological development.
• Potential Licensing Opportunities: Form 27 allows patentees to express their interest in receiving inquiries from potential licensees. This provision can be strategically leveraged to connect with interested parties seeking licensing arrangements for the patented invention.

How and When to File Form 27

The amended rules dictate that Form 27 can be filed electronically or in physical form with the IPO. The deadline for submission is now six months from the expiry of every three financial years, typically falling around September 30th.

Additional Resources

For further information on the amended Form 27, patent working requirements, and the filing process, visit the official website of the Indian Patent Office: https://ipindia.gov.in/writereaddata/Portal/IPOFormUpload/1_39_1/form-27.pdf