One of our regular readers, Irfan Modi, has brought to our attention this news report in the Mumbai Mirror regarding the criminal investigation of Raymond Industries and its Chairperson for alleged infringement of certain patent rights held by Mr. Bharat Bhogilal Patel. We had earlier blogged about Bharat Bhogilal Patel’s patents over here. As per the news that we had with us at that time, Mr. Patel was trying to replicate the Ramkumar saga by enforcing two of his patents under the IPR (Imported Goods) Enforcement Rules, 2007 in a bid to have the Customs Authorities impound all imports allegedly infringing his patents. At that time the Customs Authorities were reportedly reluctant to do so since they had serious doubts about the validity of Mr. Patel’s patents.
Both of Mr. Patel’s patents which are available over here, here and here relate to the use of lasers to carry out etchings, marking and engravings on metallic surfaces by using laser beam technologies. Mr. Patel has allegedly filed cases against more than 50 companies for infringement of his patents. Companies like Raymond have claimed that there is nothing novel about Mr. Patel’s technology and that it is of an early nineties vintage i.e. even before Mr. Patel filed for the present patents.
The curious part of this entire saga is the criminal investigation referred to in the Mumbai Mirror report. Irfan was kind enough to point us to the order of the Bombay High Court referred to in the Mumbai Mirror. The order pertains to a petition filed by Raymond’s seeking quashing of the investigation on the grounds that patent infringement is not a criminal offence under the Patents Act or the Indian Penal Code. The order of the Bombay High Court records the submission of the Public Prosecutor that the investigation is almost complete and that the investigating officer has no intention of arresting any of the accused.
Now while Raymond Industries is right in stating that patent infringement is not a criminal offence under the Patents Act or the IPC, it is a fact that import of patent infringing goods is very sadly a criminal offence under the Customs Act, 1962 which is the parent statute of the IPR (Imported Goods) Enforcement Rules, 2007. The reason for this being the fact that imports infringing patents in India are deemed to be prohibited goods under Section 11 of the Customs Act, 1962 and the import of prohibited goods into India is a criminal offence. Thus once the Customs Department registers a certain patent under the IPR Rules, 2007 and it establishes that the importee is infringing a patent it is required to carry out a criminal investigation because the import would not be classified as a prohibited good under the IPR Import Rules, 2007.
Anyway this is just me guessing the reasons for the criminal investigation against Raymond Industries. The actual grounds could be something else.
Dear Prashant,
The fact that import of IPR infringing products is indeed a criminal offence under the Customs Act 1962 read with IPR (Imported Goods) Enforcement Rules 2007 is a news to me.
Do you mean that Customs can arrest an infringer-importer once it is established that goods violated the IPR of the right holder ?
Technically yes although I doubt whether they would really do it.
Prashant