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Bombay High Court Imposes ₹1 Lakh Penalty on German Company for Delayed Patent Filing

In a recent ruling, the Bombay High Court imposed a ₹1 lakh cost on the German company AIC246 AG & Co. KG for a 91-day delay in filing a petition in a patent dispute

The company had sought the Court’s approval to condone the delay, citing the complexity of the case and the time required to obtain instructions from Germany due to the technical nature of the patent issues.

Justice RI Chagla, however, dismissed these arguments, stating that the provisions of the Patent Act, 1970 apply uniformly to all companies, whether Indian or foreign. The Court was unimpressed by the company’s claim that being based in Germany contributed to the delay, especially in getting documents executed and notarized. Justice Chagla emphasized that the fact that the applicant was a German company did not justify the delay, and the statutory deadlines under the Patents Act must be respected.

AIC246 AG & Co. KG had approached the Court after the Indian Patent Office rejected its patent application in June 2023. The company explained that the delay in filing the challenge was due to consultations between its legal teams in India and Germany. These consultations were reportedly necessary because of the technical complexities surrounding the patent rejection, including issues related to novelty, inventive steps, and non-patentability under Section 3(d) of the Patents Act.

The Court, however, found the petition lacking in necessary details to justify the delay. Justice Chagla noted that the delay was twice the statutory period allowed for such filings under the Patents Act, and remarked that the company had shown no urgency to meet the deadline.

As a condition for accepting the late petition, the Court directed AIC246 AG & Co. KG to pay ₹1 lakh to the Baldeodas Bhagirathi Shah Trust within two weeks.

AIC246 AG & Co. KG was represented by advocates Amey Nargolkar, Nisha Austine, and Dhiren Karania, briefed by Khaitan & Co. The respondents were represented by advocates Rashmin Khandekar, Anand Mohan, Vandita Malhotra Hegde, Rishi Mody, and Archi Gala, briefed by VMH & Associates.

(With inputs from agency)

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