Patent ownership is one of the most important yet frequently misunderstood aspects of Indian patent law. While inventors create inventions, patent applications are often filed by employers, corporations, research institutions, or assignees. In such situations, Indian patent law requires the applicant to establish its legal entitlement to file the patent application.
What Is Patent Assignment?
A patent assignment is the transfer of rights relating to an invention from one person to another. The transfer may occur before a patent is granted, in the form of an assignment of the right to apply for a patent, or after grant, in the form of an assignment of the patent itself.
Under Section 6(1)(b) of the Patents Act, 1970, an assignee of the true and first inventor is entitled to apply for a patent.
Proof of Right Under Section 7(2)
Where a patent application is filed by an assignee rather than the inventor, Section 7(2) requires the applicant to furnish proof of its right to make the application.
The provision does not prescribe a single mandatory form of evidence. The requirement is not merely to produce a particular document but to establish that the right to apply has validly vested in the applicant.
Traditionally, proof of right may be established through:
- Assignment deeds;
- Inventor declarations;
- Employment agreements;
- Corporate intellectual property policies;
- Other documentary evidence demonstrating transfer of rights.
Employment Agreements and Employer Ownership:
Modern innovation is frequently generated within corporations by employees acting in the course of their employment. In such cases, ownership of inventions often vests in the employer pursuant to employment contracts and company intellectual property regulations.
The Delhi High Court in Nippon Steel Corporation v. Controller of Patents (2025) clarified that a duly executed employment agreement, read together with company intellectual property policies and supporting declarations, can constitute sufficient proof of right under Section 7(2). The Court rejected the view that only a separate assignment deed could satisfy the statutory requirement.
A crucial distinction exists between:
- Assignment of the right to apply for a patent; and
- Assignment of a granted patent.
The former is governed principally by Sections 6 and 7 of the Patents Act. The latter falls within Section 68, which deals with assignments, licences, mortgages, and other interests in a granted patent.
Courts have repeatedly emphasized that Section 68 concerns transactions relating to an existing patent and should not be mechanically applied to pre-grant assignments of the right to apply.
The NEC Decision and Inventor Declarations:
In NEC Corporation v. Assistant Controller of Patents (2023), the Madras High Court clarified another important aspect of proof of right. The Court held that the date on which an inventor signs a declaration is not necessarily the date on which the assignment occurred.
A declaration may merely confirm a prior assignment. Patent authorities must therefore examine the substance of the evidence rather than rely solely upon dates appearing on declarations.
Practical Importance for Patent Applicants:
Patent applicants should ensure that documentary evidence establishing ownership is available at the time of filing or within the prescribed statutory period. Employment agreements, assignment deeds and internal intellectual property policies should be maintained carefully and produced whenever necessary. Applicants must maintain a clear documentary trail showing how rights passed from the inventor to the applicant.
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