Wednesday, June 19, 2013

The trend of blocking URL's on ISP's continues in India?

Recently, Medianama reported that certain URL's such as Uploaded.net, ul.to, stooorage.com and lookingglass.blog.co.uk have been blocked on certain ISP's in India. These URL's are those of file sharing sites, image hosting sites as well as a foreign blog on politics. These come in a long line of websites blocked on the orders of the DoT, such as the orders to ISP to block 78 URL's in India as well as the April 2013 order to block websites such as Zegde and Care.org in some circles of certain ISP's in India. However, the difference between this recent blocking and the others is the absence of the custom message that states that the website was blocked as per the instructions of the DoT. Therefore, there is lack of clarity on whether the ISP's by themselves or as per the instruction of the DoT blocked these websites. However, as the Medianama article reports, it is unlikely that ISP's would by themselves block a foreign political blog.

ISP's in India generally block websites after receiving John Doe orders which allows the ISP's to "indiscriminately block access to the websites." This is problematic on two levels because, firstly, in cases such as Zegde, as Medianama reports, it was later realized that there was no court order to block the website and the John Doe order was sent to the ISP's directly by the DoT and secondly, in many cases, the websites which are blocked by ISP's based on John Doe orders are not informed about the same. This information asymmetry is not just prior to the blocking but even afterwards, when websites such as Zegde are struggling to find reasons for their blockage. This lack of transparency is a major issue for the websites, users and the ISP's themselves, a major chunk of their revenue being predicated on data usage.  

Therefore, the argument is not a complete pro-speech full access one but merely that there must be complete dissemination of information before websites are blocked, assuming that the blocking is not a random exercise and that there are good reasons for the same. This would result in this being a fairer exercise, more beneficial to all the concerned stakeholders.

Tuesday, June 18, 2013

Guest Post: The opinion of the U.S. Supreme Court in the Myriad case

As many of you may have already heard, the U.S. Supreme Court recently issued a ruling on whether human genes could be patented. We had covered this issue at the stage of arguments in two guest posts, over here and here. One of our regular guest bloggers, Chris Ohly, a partner at a leading U.S. law firm has been kind enough to send us a guest post, analysing the latest opinion of the U.S. Supreme Court in this case. The full version of this post along with footnotes can be accessed over here. The Court's opinion can be accessed over here

The Common Heritage of Mankind:

Isolated Genes

By D. Christopher Ohly[1]


“The human genome underlies the fundamental unity of all members of the human family, as well as the recognition of their inherent dignity and diversity. In a symbolic sense, it is the heritage of humanity.”[2] 

On June 13, 2013, the United States Supreme Court authoritatively answered the question “Are human genes patentable?”[3] and, in doing so, affirmed that at least in the United States the human genome is the common heritage of mankind.[4]

Phrased more precisely, the question before the Supreme Court was “Whether human genes are patent-eligible subject matter under 35 U.S.C. § 101.”[5]

In a unanimous opinion in Association for Molecular Pathology, et al., v. United States Patent and Trademark Office, No. 12-398 (S.Ct. 2012), the United States Supreme Court held that an isolated segment of naturally occurring DNA segment is a product of nature and is not patent eligible merely because it has been isolated. In contrast, the Court held that, because “creation of a cDNA sequence from mRNA results in an exons-only molecule that is not natu­rally occurring,” it “does not present the same obstacles to patentabil­ity as naturally occurring, isolated DNA segments,” and is eligible for patenting in the United States.[6]

Myriad has been the subject of attention since its commencement in 2010.[7] In the Federal Circuit decision in Myriad, which the Supreme Court reviewed, the majority opinion was founded on a “chemical” definition of genetic materials, in determining its eligibility for patenting, found that isolated DNA “is a free-standing portion of a native DNA molecule, frequently a single gene.” Isolated DNA, the Federal Circuit majority said, “has been cleaved (i.e., had covalent bonds in its backbone chemically severed) or synthesized to consist of just a fraction of a naturally occurring DNA molecule. …” The intermediate court held that, as a result of the severing of covalent bonds in the DNA backbone in order to obtain “isolated DNA,” that form of DNA is a “chemical species” that markedly differs from “native DNA,” and is therefore patent eligible subject matter. [8]

The Supreme Court disagreed. “In this case,” the Court said, “Myriad did not create anything. To be sure, it found an important and useful gene,” the Court added, “but separating that gene from its surrounding genetic material is not an act of invention.”[9] In more sweeping language, the Court said that “Groundbreaking, innovative, or even brilliant discovery does not by itself satisfy the §101 inquiry.”[10]

Myriad’s claims were not saved, the Court said, “by the fact that isolating DNA from the human genome severs chemical bonds and thereby creates a non-naturally occurring molecule." Indeed, “Myr­iad’s claims are simply not expressed in terms of chemical composition,” the Court noted, “nor do they rely in any way on the chemi­cal changes that result from the isolation of a particular section of DNA.” Instead, the Court said, “the claims understandably focus on the genetic information encoded in the BRCA1 and BRCA2 genes.” The Court continued: 

If the patents depended upon the creation of a unique molecule, then a would-be infringer could arguably avoid at least Myriad’s patent claims on entire genes (such as claims 1 and 2 of the ’282 patent) by isolat­ing a DNA sequence that included both the BRCA1 or BRCA2 gene and one additional nucleotide pair. Such a molecule would not be chemically identical to the molecule “invented” by Myriad. But Myriad obviously would resist that outcome because its claim is concerned primarily with the information contained in the genetic sequence, not with the specific chemical composition of a particular molecule.[11]

The Supreme Court also rejected the argument, relied on by Judge Moore in the Federal Circuit, that “the PTO’s past practice of awarding gene patents is entitled to deference,” ultimately agreeing with the position of the United States Solicitor General, as amicus curiae, that " PTO’s practice [is] not ‘a sufficient reason to hold that isolated DNA is patent-eligible.’”[12]

The Supreme Court went to some length to describe what was not “implicated” in its decision. First, the decision said nothing about method claims, since the method claims at issue in Myriad were not before the Supreme Court.[13] Second, the Court noted that Myriad did “not involve patents on new applications of knowledge about the BRCA1 and BRCA2 genes.” Some of Myriad’s “unchallenged claims were limited to such applications.”[14] Third, the Court did not “consider the patentability of DNA in which the order of the naturally occurring nucleotides has been altered.”[15]

As narrow as the Court may have intended its holding in Myriad to be, the decision will undoubtedly have significant implications, both jurisprudentially and practically. The decision will provide additional basis, in future cases, for distinguishing between “invention” and “mere discovery.” As a practical matter, the decision will affect the manner in which patent claims are written and examined,[16] and may well impact patent claims that might have been asserted in future litigation over biosimilar medical products. There are still a myriad of possibilities.

[1] NOTE: The views expressed in this article are entirely my own and do not necessarily reflect the views of my law firm, or of any of its other attorneys or clients. Nothing in this article is intended to provide any form of legal advice.

SpicyIP Tidbit Update: Thai Compulsory Licensing issuance of Antiretroviral

This is regarding the recent post( here) on the Thai Government's plans to issue a compulsory licence for an anti-retroviral drug Efaverenz, as reported by IP Komodo. The post has been updated to reflect that the first compulsory licence was issued in 2006, which expired in 2011. Furthermore, the drug was be manufactured by the Government Pharma Organisation(GPO) on a five-year compulsory license. In fact, the Thai govt. imported generic Efaverenz from Ranbaxy as an interim measure in 2007 until the GPO had production of the same in place.

We thank our diligent readers for informing us of the same in the comments section.

Copyright Hiccup: Madras High Court allows release of Thillu Mullu 2

Image from here
First Bollywood, now Kollywood scriptwriters have started making use of the copyright act to restrain release of remakes based on claims of authorship of original scripts. Whether these claims turn out to be true is still to be seen but most claims have been unsuccessful at the interim injunction stage thereby failing to prevent release of the films (e.g. Bombay Talkies, Nautanki Saala, Chashme Budoor). 

In Kollywood, Thillu Mullu-2, starring Shiva, Prakash Raj, Santhanam and Isha Talwar, faced a last minute copyright hiccup with veteran film maker Vishu (M Vishawanathan) filing a suit to restrain Vendhar Movies and the producer of the film, from releasing the same. 

As reported, Vishu contended that he was the author of the script of the original Thillu Mullu (starring Rajnikanth). According to Vishu, Thillu Mullu 2 was a remake of the original Thillu Mullu and contained the same screenplay and dialogues. He sought to restrain the release of Thillu Mullu 2 as the producer of the film had not sought his permission in using his screenplay/dialogues for the remake. 

The court (as reported), however, relied on the affidavits of the Director (R Badri) and Balagurunathan (a partner in Vendhar Movies) which stated that the screenplay of Thillu Mullu-2 was written by Badri and the dialogues were written by Balaji. It was further stated that the movie Thillu Mullu was itself a remake of the Hindi movie Golmal (1979). 

On the basis of these statements the court held that the screenplay and dialogues were completely different from Vishu’s Thillu Mullu and hence denied an injunction on the release of the movie. This case is posted for final hearing in July.

Monday, June 17, 2013

SpicyIP Weekly Review(June 3rd Week)


The week started off with Sai Vinod bringing us up to speed with trademark infringement threats against movie producers lately. Recently, two movies- ‘Yeh Jawaani Hai Deewani’ and ‘Ankur Arora Murder case’ were on the receiving end for trademark infringement on account of allegedly objectionable references to Rooh Afza(a fruit squash) and a certain biscuit brand respectively. In the former case, Justice Manmohan Singh passed an order restraining the home video release of the movie Yeh Jawaani Hai Deewani (the order clarifies that the injunction will not affect theatre exhibition of movie). In the latter, the production house of ‘Ankur Arora Murder Case’ agreed to blur the wrapper of the biscuit packet to avoid unnecessary trouble. Sai further analysed the references in the movies and concluded that the references in both these movies were inconsequential and at best coincidental to the narrative.

I blogged about reports indicating the Thai Government’s plans to issue a compulsory licence for an anti-retroviral drug Efaverenz. The drug is manufactured by Merck. Plans for issuance of licence were announced way back in 2006, which did not materialise. In 2007 it was reported that Merck had substantially reduced prices for AIDS afflicted poor nations. However, this particular development about revival of plans to license Efaverenz, as reported by IP Komodo is subject to verification from a secondary source. 

Rajiv wrote about a recent notification issued by the DIPP, the Ministry of Commerce and Industry which proposes to raise the fee levied for filing and prosecuting patents before the Indian patent office. The notification may be accessed directly here. The proposed rules provide an incentive to filers for electronic filing and levy additional fees of 10% on any filing done on paper. Further, the fees for most tasks are low for individuals, and higher when filed for by- other than natural persons. He opines that the fee raise is a welcome change and a part of the overhaul of the Indian IP system.


Prashant blogged about the grossly unfair terms on which Google has been contracting with Indian users regarding use of its Ad-Sense program. The program places relevant advertisements during the search results on the Google search engine and also on third-party websites. The procedure for termination of the program is rather opaque without appropriate disclosure of the reasons for the same. Furthermore, Google’s contracts for Indian user of the Ad-Sense program are riddled with biased and unfair clauses. The clauses specify that in the event of a dispute an Indian user shall submit to the laws of California for arbitration, thus putting the Indian consumer at a huge disadvantage. 



SpicyIP Events

Event: IPEX -2013

Conference & Exposition

26-27 July 2013: Taj Krishna: Hyderabad: India

Andhra Pradesh Technology Development and Promotion Centre (APTDC) and Confederation of Indian Industry (CII) are organizing their flagship event IPEX-2013 -An International Conference and Exposition on “Building and Managing an IP Ecosystem for Business Excellence”. The conference will provide a forum for senior government officials, Industry leaders ,academicians and business executives from India and abroad to discuss current trends on IP Management and issues, exchange best practices, develop solutions and publicize new initiatives on building an IP Ecosystem in an Organization.

For the brochure, see here. For the registration form, click here

SpicyIP readers should note that mentioning SpicyIP at the time of registration will give them a 30% discount on registration fees (for non-members).



Event: DSIR-FMC Workshop on Facilitating Technology Acquisition

Venue: National Institute for Micro,Small and Medium Enterprises, Yusufguda, Hyderabad

Date: 28th June, 2013

The Andhra Pradesh Technology Development & Promotion Centre (APTDC) has partnered with the Department of Scientific and Industrial Research(DSIR) and Foundation for MSME Clusters (FMC) to conduct a one day workshop on Facilitating Technology Acquisition in Hyderabad on 28th June, 2013. The Workshop is set to be conducted in light of the new Patent Acquisition and Collaborative Research and Technology Development Scheme (PACE), launched by the Government of India. 

A questionnaire has been released for Patent Providers as well as Patent Seekers by the DSIR. The deadline for submission of the filled questionnaires are 15th June, 2013. The workshop will also feature officials from DSIR who will speak about PACE, its working and its benefits.

The brochure for the workshop is available here.


International developments

1. National Security Agency( NSA) continued to be in the news regarding its outrageous surveillance program PRISM.


2. The US Supreme Court delivered its judgment in the Myriad case (Association for Molecular Pathology v. Myriad Genetics). In an unanimous ruling, the nine Justices came to the conclusion that DNA sequences are products of nature; isolating them from their natural environment does not create anything with markedly different characteristics. Isolated human genes are therefore not considered patentable. However, cDNA is deemed patent eligible, because its chemical composition is different from that of naturally occurring DNA.
IPKat has already carried a few posts( here and here). Readers can expect a detailed analysis of the decision on SpicyIP soon!


Indian start-up complains about unfair Google Ad-Sense contracts

For several years now the Google Empire has been built on the fabulous success of its Ad-Sense program, which places relevant advertisements during the search results on the Google search engine and also on third-party websites. Google usually charges the advertiser only when a user clicks on the advertisement. Inevitably, as is always the case with Google, the program faced more than its share of legal challenges, especially multiple lawsuits for the infringement of trademarks.

Recently, Kashyap a school-friend of mine informed me of a different kind of dispute he had with Google over its Ad-Sense program. Kashyap is one of the founders of the start-up, Octathorpe, which runs the increasingly popular ‘Hitwicket’ online multiplayer cricket managementgame, where users manage and run their own cricket teams. I’m not much of a cricket fan (Yes, I’m still an Indian citizen) but I was one of the beta-testers of the game and I found it really fascinating. For those of you familiar with start-ups, you must know how difficult it is for most start-ups to just survive, especially in a country like India. One very small source of revenue for Octathorpe, the company which owns ‘Hitwicket’, was advertising revenue from Google Ad-Sense, i.e. they used to host Google-Adwords on their website, until Google terminated the contract for an alleged violation of the terms and conditions.
Image from here

I went through the emails sent by Google and I am very, very surprised that a company like Google would conduct its business in such an opaque and obviously unfair manner. The first email which Octathorpe received from Google alleging a violation of the terms and conditions can be accessed over here.

The email informs Octathorpe “In your case, we have detected invalid activity on your site and your account has been disabled.” But what was this invalid activity? Strangely Google does not inform Octathorpe of the activity which led to its account being disabled. Instead, it informs its users “We're limited in the amount of information we can provide about your specific violation. We understand this can be frustrating for you, but we've taken these precautionary measures because intentional violators can use this information to circumvent our detection systems.” How is it fair to terminate a contract without informing the opposing party the reason for the termination?

At best, Google does provide a link to go through the most common reasons for termination of Ad-sense accounts but that still does not help its users understand why exactly their accounts have been terminated.    Google then offers an appeals process to contest the closure of the account but then again how is one supposed to appeal without knowing the actual reason for terminating the account?

In any case, the guys at Octathrope filled in the appeal form. Unfortunately, they had not saved the final version because of which they reproduced the answers, to the best of their memory, in a separate email for me. You can access that email over here.

The most frequent reason for shutting down an “Ad-Sense” account, is “invalid clicks” where either the owner of the website or an automated bot or the same visitor keeps clicking on the advertisement to generate more revenue. In Octathrope’s case, the company is quite confident that they did not indulge in any such activity. As they explain in their appeal, most of the users of the game are in Universities and since all students in Universities use the same IP address, it was possible that Google’s program recognized all clicks from the same University as “irregular activity”. However it is not possible to confirm this because Google does not disclose the details of its irregular activity.

In response to this appeal process, Octathrope receives what appears to be a standard form response from Google, which can be accessed over here. The reply denies the appeal and informs Octathrope that they are forever barred from the Ad-sense program and that all money for the last month would be refunded to the advertisers. In ending the letter Google once again states “We understand that you may want more information about your account activity. However, because we have a need to protect our proprietary detection systems, we're unable to provide our publishers with any details about their account activity.”  
  
As a lawyer, I find this entire process to be extremely unfair and lacking in transparency. I tried examining the possible legal remedies available to Octathrope when I came across this incredible clause in Google’s contracts for Indian user of the Ad-Sense program:

This Agreement shall be governed by the laws of California, except for its conflicts of laws principles. The parties specifically exclude from application to the Agreement the United Nations Convention on Contracts for the International Sale of Goods and the Uniform Computer Information Transactions Act. The parties agree that they will try in good faith to settle within thirty (30) days any dispute relating to this Agreement ("Dispute").  If the Dispute is not resolved within thirty (30) days after such Dispute arose, the Dispute must be resolved by arbitration.  The arbitration will be submitted to the International Centre for Dispute Resolution of the American Arbitration Association ("AAA") and conducted in accordance with the Expedited Commercial Rules of the AAA in force as of the date of this Agreement ("Rules"). There will be one arbitrator selected by mutual agreement of the parties. The arbitration will be conducted in English and the place of arbitration will be in Santa Clara County, California, USA.” (emphasis supplied)

Does Google Inc. actually expect Indian Ad-sense users to resolve their disputes with Google through arbitrators in Santa Clara County, U.S.A, using the laws of California? Does Google Inc. realistically expect Indian users to have the resources to fight Google in California especially since Indian users earn in rupees but have to pay in dollars to resolve a dispute with Google? Why can’t Google provide for country-wise dispute resolution process? A company situated in Hyderabad, India should not be expected to travel to California to resolve a $300 dispute. The mere cost of filing an arbitration proceeding in California would cost more than $300.

What makes this entire process even more unfair is the fact that Google’s Indian subsidiary has huge offices in Hyderabad and Gurgaon, Delhi and from what I’ve heard the main purpose of these offices is to provide marketing services for Google Inc.’s Ad-Sense program. Why then does Google not submit itself to Indian jurisdiction instead of dragging its users to California?

Unfortunately, I do not know of anybody in Google India’s legal team to ask them for their side of the story but I am in the process of contacting them for their side of the story.

In any case these are serious questions because over time Google will be looking at launching its ‘Google Wallet’ services in India and if it is going to have such contractual terms, the Indian consumer will be seriously disadvantaged.

Is there any remedy under Indian law against such unfair contracts? Do such contracts violate Indian competition law? Google Ad-words is already under investigation by the Competition Commission India (CCI) due to a complaint by Consim. Would Google really dare to have such unfair contracts if it had sufficient competition in the Indian market? Is it abusing its dominant position as a result?

All of these are interesting questions, which I hope to answer over the next few weeks.

Thursday, June 13, 2013

DIPP issues notification proposing an across the board hike in patent filing fees

In a recent notification issued by the DIPP, the Ministry of Commerce and Industry proposes to raise the fee levied for filing and prosecuting patents before the Indian patent office.  The notification may be accessed directly here.  This gazette notification of May 6, 2013 notifies the Draft Patent Rules 2013 and it is expected that they would be tabled in the upcoming monsoon session of the Parliament.  Comments are due by June 21 
(Long post follows).

As regards the fee increase, I personally have no issues with the fee being increased - but I would suggest that at least 50% - if not more, of the total fee received at our patent office be granted to the receiving patent office to update its systems, facilities, and Human Resources including increased training of Examiners, and Controllers.  
  
These proposed rules provide an incentive to filers for electronic filing and levies an additional fees of 10% on any filing done on paper.  This (incentive for e-filing) is the best part of the notification - the notification proposes an across the board hike of 100% - and existing fees is simply doubled for most of the common tasks.  For example, the proposed notification provides that a patent application (provisional or complete) may be filed electronically by an individual for Rs.2000, and for Rs.8000 by - other than natural persons.  Similarly the costs for publication have increased to Rs. 2500 and Rs.10000 for the above categories respectively.

Indeed, there are cases where it would seem that it is unreasonable and unjust to increase the fees drastically and simply double it.  This is when practitioners face tremendous problems when dealing with the patent office.  For instance, a regular reader of our blog (who for obvious reasons wishes to remain anonymous) sent in the following comment (some formatting changes and minor edits) to me:

"Considering that there is hardly any improvement in the services provided by the Patent Office and as you are aware, we are perhaps the only patent office in the world who can't handle modernization.  Digitization has made matters worse and our patent office has become a slave of the electronic mode.  There are many problems which we face everyday and which don't seem to be fading any soon.  I have been practicing since the past X years and have also seen the Patel Nagar days but I feel, we have not improved in the real sense. Sometimes, I feel that we were better off when the Patent Office used to handle files manually. At least, we could finalize cases by the last date, whether rejection or grant. Now, applications are pending for years, even after the final deadline is over for want of review by Controllers. The reason given is mostly, the module takes time since scanning etc. is slow thus causing heavy backlog. Even orders in case of hearings under Section 14 have a backlog of many months or even years.  Interpretation of provisions, especially pertaining to pharma and biotech has reached the lowest ebb in terms of understanding of our Examiners and Controllers who are not even interested in listening to a reasoned argument well supplemented by technical or legal submissions. Most of the time, the responses are not even read properly..."
"We are already witnessing a drop in the number of filings in India by multinational companies, especially the pharma  and biotech sector, what with most of these companies shifting base to other pastures like China. Arbitrary procedural changes time and again by the IPO make things worse and extremely applicant unfriendly."
This anonymous reader then concludes: 
"With this backdrop, I find it completely unreasonable and unjustified to have a 100% hike in official fees across the Schedule. It is definitely a suicidal mission which will have even worse effect on the number of applications being filed in India, by Indians as well as foreigners...."
It is extremely difficult to argue against the "public interest" argument raised on account of the fees raise:  I, however, have a different opinion re the fee raise and consider it as a part of the overhaul of our IP system. For example, upon review of the latest filing data by WIPO - it is clear that the overall patent filing in India has increased to a great extent.  WIPO publication (statistics) 941_2012 concludes that patent filing in India has increased with foreign applicants filing a major share of the patent applications.  This increase in fee also needs to be contrasted with other countries: Even after taking into account the increased fee, Indian patent filing overall are at one-fifth US / European levels.   

SpicyIP Tidbit: Thai Govt. plans to issue compulsory license for antiretroviral

The Thailand Government announced plans to issue a compulsory licence for an anti-retroviral drug Efaverenz, as reported by IP Komodo (a blog covering South East Asian IP developments). Thailand has previously issued licences for other anti-cancer drugs, but this is a first for an anti-retroviral drug(used in second-line treatment for HIV-AIDS). The drug is manufactured by Merck. Plans for issuance of licence were announced  way back in 2006. In 2007 it was reported that Merck had substantially reduced prices for AIDS afflicted poor nations. The license expired in 2011. However, this particular development in 2013-about  plans to license Efaverenz, as reported by IP Komodo is subject to verification from a secondary source. 

Merck reportedly is keen on persuading the Thai Government to reverse the decision by suggesting alternative pricing and supply plans. Merck has also claimed to supply the drug at a lower price in Thailand compared to prices elsewhere.

The drug will be manufactured by the Government Pharma Organisation(GPO) on a five-year compulsory license. In fact, the Thai govt. imported generic Efaverenz from Ranbaxy as an interim measure in 2007 until the GPO had production of the same in place. Thailand has over 500,000 people affected by HIV, and 80,000 are already receiving antiretroviral treatment.

[Note: The post stands updated to reflect that the first CL expired in 2011 and that the Thai govt. imported generic Efaverenz from Ranbaxy as an interim measure in 2007 until the GPO had production of the same in place.]

SpicyIP Events: FMC-DSIR-APTDC Workshop for Identifying the Technologies for Acquisition


The Andhra Pradesh Technology Development & Promotion Centre (APTDC) has partnered with the Department of Scientific and Industrial Research(DSIR) and Foundation for MSME Clusters (FMC) to conduct a one day workshop on Facilitating Technology Acquisition in Hyderabad on 28th June, 2013. The Workshop is set to be conducted in light of the new Patent Acquisition and Collaborative Research and Technology Development Scheme (PACE), launched by the Government of India. The scheme intends to facilitate technology acquisition by industries and especially SME's on an exclusive and non-exclusive basis as well as to encourage and strengthen research and development and consequently, assist in the development of new technology.

The DSIR-FMC Workshop is specifically intended to provide the industry with a better understanding of the PACE scheme and the benefits provided therein. Therefore, technology seekers and technology providers and other experts from the industry have been invited for discussing and deliberating on the subject. Moreover, a questionnaire have been released for Patent Providers as well as Patent Seekers by the DSIR. The deadline for submission of the filled questionnaires are 15th June, 2013. The workshop will also feature officials from DSIR who will speak about PACE, its working and its benefits.

Event: DSIR-FMC Workshop on Facilitating Technology Acquisition
Venue: National Institute for Micro,Small and Medium Enterprises, Yusufguda, Hyderabad
Date: 28th June, 2013

The brochure for the workshop is available here. It contains the necessary contact details for participation in the workshop as well as for obtaining the forms for Patent Providers and Patent Seekers.

Wednesday, June 12, 2013

Movie makers threatened for trademark dilution, Karan Johar's movie temporarily restrained

Image from here
Times of India yesterday carried a news report of an order passed by the Delhi High Court restraining home video release of producer Karan Johar’s latest movie, ‘Yeh Jawaani Hai Deewani’. The suit was filed by Hamdard National Foundation over certain ‘objectionable’ references to ‘Rooh Afza’, a traditional Unani squash made of fruits, vegetables and herb. Hamdard National Foundation, a fully funded charitable organization of Hamdard (Wakf) Laboratories which manufactures the Unani beverage, holds registration for the word mark ‘ROOHAFZA’ (No. 266280) for syrups included in Class 32. Hamdard claimed that their product is a household name and that “the dialogues in the movie... definitely damage the goodwill and reputation of the plaintiffs and is an actionable wrong in common law as well as statute.” Justice Manmohan Singh while passing the order clarified that the injunction will not affect theatre exhibition of movie, as per a report on Firstpost. The matter has been posted for July 16, 2013. 

To the best of my recollection, the beverage is referred only twice in the movie. In both instances, actor Ranbir Kapoor’s step mother offers him Rooh Afza in a plain glass (without any labeling). The actor after taking a sip says that it’s not good (and that’s it!). The dialogue is a mere expression of taste and a claim of loss of reputation and goodwill is a huge stretch. And surely, Hamdard is not the only manufacturer of the drink and claims of any association with plaintiff or its product in the movie is unfounded. 

Times of India today reported another instance of ludicrous threat of trademark infringement against a movie producer. A well-known biscuit manufacturer issued a legal notice to Vikram Bhatt for showing their product in poor light in a trailer of their soon to be released movie, ‘Ankur Arora Murder Case’. The trailer is available here (0:55). The biscuit manufacturer claimed 1 crore rupees as damages and an unconditional apology for loss of reputation and unauthorized visual representation of their mark. Bhatt’s ASA Production stated that allegation of tarnishment made by the manufacturer was ill-founded and denied all charges of infringement. The trailer shows a biscuit packet on a table next to a kid lying on a hospital bed admitted for treatment for appendicitis. The doctor neglecting the standard procedure conducts the surgery on empty stomach of the patient and in the course the kid dies for allegedly consuming biscuits before the surgery. There is nothing in the trailer which links the cause of death to biscuits let alone its manufacturer. Nonetheless, the production house agreed to blur the wrapper to avoid unnecessary trouble. 

Last year too, UK based Murphy Radio sued UTV over its production, Barfi, for depicting their mark ‘Murphy’ in poor light. In 2010, Zandu Balm sued makers of Dabangg for use of their trade name in a hit song without their permission. The parties eventually settled out of court. (Do drop a comment if you know of other similar claims of trademark dilution against filmmakers.)

Where is the ‘use’ of the mark? 

Though the actual claims of alleged by Hamdard or the biscuit manufacturer is unclear, I presume it is either trademark infringement or defamation or both. To constitute trademark infringement, the infringer should have used the registered mark in the manner specified in Section 29 of the Trade Marks Act, 1999. The representation or use of the registered mark could take any form, including spoken words or visual representation of the mark [Section 29(9)]. Furthermore, the use of the mark by the alleged infringer should be in the ‘course of trade’. Section 29(6) gives an indicative list of circumstances of deemed use of mark; namely: 
  1. affixing of the registered mark on goods or packaging;
  2. offer to sale or stock goods under the registered mark or offer or supply services under the registered mark;
  3. imports or exports goods under the registered mark; 
  4. use the registered trade mark on business papers or in advertising.
These circumstances suggest an ‘active’ use of the trademark in conducting business operations. In other words, the use of the mark has an effect on result, i.e. consumption of the infringing product. The reference to trademarks in both these movies is inconsequential and at best coincidental to the narrative. Such coincidental reference to trade name does not constitute use of the mark ‘in the course of trade’, in my opinion. Defamation would be more appropriate. 

Tarnishment or bullying?

Dilution by ‘tarnishment’ is a well-recognized concept in trademark law. As the name suggests, ‘tarishment’ occurs when a mark is portrayed in a poor light which results in lowering the commercial value or reputation of products or services in public eye. To illustrate, the US District Court of New York in 2009 found the image of two models posing to ride on missile prototype, titled ‘Viagra’, was found to be tarnishing Pfizer Inc.’s reputation. Unlike the US and few others which have separate statutes which define and regulate dilution claims, Section 29 is the only substantive provision in India. Courts in India too have hardly dealt with the issue to give any guidance in deciding claims on tarnishment. 

Claim on dilution rely on Section 29(4)(c). As per the provision, the use of similar or identical mark for dissimilar goods or services can be said to be infringing if the following is satisfied: 
  1. the registered mark has reputation in India; 
  2. the use of the mark is without due cause; and
  3. use of the mark results in unfair advantage to the infringer or detrimental to the distinctive character or reputation of the registered mark.
Again, there is limited guidance on scope of 'due cause' in Section 29(4)(c). Nonetheless, one has to examine the 'due cause' with respect to use of the mark in 'the course of trade'. Be that as it maybe, what is definitive though is the chilling effect on free expression of filmmaker because of such frivolous dilution claims.  However, Article 19(1)(a) of the Indian Constitution guarantees a wider right of free speech and expression. Any expression will be protected as long as it falls outside any of the reasonable restrictions mentioned in Art. 19(2). Tata Sons Ltd. v. Greenpeace International (2011) is a rare instance where the defense of free speech was raised against trademark infringement. The Delhi High Court refused to grant an injunction against Pac-Man style ‘Turtle v. Tata’ game created by Greenpeace India to raise awareness on environmental hazards caused by construction of certain port by Tata Steel. The court allowed parody on Tata's trademark. A categorical pronouncement recognizing free speech as a defense for trademark infringement India is long overdue in India. 

Tuesday, June 11, 2013

SpicyIP Event: IPEX - 2013, Hyderabad

SpicyIP is happy to announce IPEX - 2013, a conference and exposition on "Building and Managing an IP Ecosystem for Business Excellence". The event is partnered by the Indian Patent Office, USPTO-GIPA as well as Nalsar University of Law. We're also happy to announce that SpicyIP is the Media partner for this event. Please see the details as below. SpicyIP readers should note that mentioning SpicyIP at the time of registration will give them a 30% discount on registration fees (for non-members).

IPEX -2013
Conference & Exposition
26-27 July 2013: Taj Krishna: Hyderabad: India


Andhra Pradesh Technology Development and Promotion Centre (APTDC) and Confederation of Indian Industry (CII) are organizing their flagship event IPEX-2013 -An International Conference and Exposition on “Building and Managing an IP Ecosystem for Business Excellence” on 26-27 July 2013 at HyderabadThe Indian Patent office is our Government Partner and USPTO-GIPA and NALSAR are the  partners for IPEX. SpicyIP is our Media partner. 

The objectives of IPEX-2013 will be to:

  • Develop an understanding on roles to be played by companies, Government and all stakeholders to build an IP Ecosystem.
  • Build a common understanding on the values of IP for business success.
  • To share best strategies and case studies on Building an in-house  IP Culture from leading Corporates, MSMEs and Institutions.
  • Establish linkages and partnerships with IP management professionals, experts and researchers in the country and abroad.
  • Integrate and collaborate with other business units in your organization.
  • Showcasing of IP Initiatives and value added IP services which lead to an IP Ecosystem.

The conference will provide a forum for senior government officials, Industry leaders ,academicians and business executives from India and abroad  to discuss current trends on IP Management  and issues, exchange best practices, develop solutions and publicize new initiatives on building an IP Ecosystem in an Organization.

For the brochure, see here. For the registration form, click here.


Saturday, June 08, 2013

The Sunitinib Saga continues: Third time’s the charm?

The IPAB has set aside the revocation of Sunitinib patent due to procedural lapses again!!(IPAB order can be accessed here). As Sunny Deol would drawl “tariq pe tariq, tariq pe tariq...” (movie buffs you know what I’m talking about).Well Justice Prabha Sridevan also expressed a similar sentiment albeit in different way and stated that the Sunitinib litigation has been delayed endlessly owing to procedural lapses in the IPO and this is unfair to both the patentee and the challenger and also detrimental to public interest.
Sunny Deol Image from here



Sunitinib’s protracted journey
Pfizer/Sugen was granted a patent on anti-cancer drug Sunitinib (Patent number: 209251) on Oct 5, 2007.Nearly 5 years later in a post grant opposition initiated by Cipla, this patent was revoked by the patent office.After patentees (Pfizer/Sugen) filed a writ petition before Delhi High court, the first revocation decision was set aside, on the grounds that the recommendations of the opposition board were not furnished to the patentee. 
The Sunitinib patent was revoked by the Controller of Patents for the second time around in mid-February this year. We had blogged about this decision over here and here.On April 5, 2013 the IPAB stayed the revocation of Sunitinib patent. Sugen’s appeal against the revocation was fixed for hearing on May 14th 2013 subject to the undertaking given by the appellant (Sugen) that they will not use the revoked patent against the second respondent (Cipla) in other proceedings.


According to the appellant (Sugen/Pharmacia) the opposition was not sustainable (second revocation decision) due to the following grounds, which are detailed below:

Consideration of Section 25(2) (b):

Sugen argued that Section 25(2) (b) should have not been taken into account by the Controller since that ground was not specifically pleaded by Cipla (respondent); and hence the decision of the Controller based on prior publications wasn’t valid. Bachhaj Nahar v. Nilima Mandal (2008) was cited to show that in absence of pleadings, no evidence can be considered.
The IPAB however held that S 25(2)(e) had been raised by the respondent, and Section 25(2)(e) is a ground for revocation if that the invention so far as claimed in any claim of the complete specification is obvious and clearly does not involve any inventive step, having regard to the matter published as mentioned in clause (b) or having regard to what was used in India before the priority date of the applicant's claim; The IPAB thus held that Section 25(2)(e) clearly and unambiguously takes Section 25(2)(b) within its ambit and rejected this ground. It also held that if a ground has been pleaded in the written statement, but not listed in the grounds then the Controller may apply it provided the patentee is in the know.

Should the Controller have received the reply evidence under Rule 59?
The appellant (Sugen) argued that respondent (Cipla’s) reply statement had been filed beyond time and request for extension had not been made within prescribed period and therefore should not have been considered by Controller. Patentee’s reply statement was served on the respondent on 5th November 2008 and hence the extension petition should have been filed within prescribed period, which is one month from the date of delivery to the opponent of a copy of the patentee’s reply statement i.e. on or before 5th December 2008.Sugen contented that the reply evidence was filed by Cipla only on 16th December 2008 and therefore time could not have been extended. 
Placing reliance on 2011(46) PTC 70(Mad) – (Nokia Corporation Vs. Deputy Controller the IPAB stated that a true interpretation of Rule 138 would be that application for extension is to be filed within one month after the expiry of the prescribed time. The IPAB held that by applying the Nokia case standard, the reply evidence had been filed by Cipla within time and the Controller hadn’t erred.

Failure to forward Expert’s affidavit to Opposition board
Sugen then argued that the failure to forward a crucial expert affidavit Cui 2, (filed under Rule 60) to the Opposition board for its recommendations had resulted in injustice. Pursuant to Section 25(3) (b) the Controller is required to forward the notice of opposition along with all the documents to the Board so that the board could give its recommendations. Sugen realized that the expert affidavit had not been forwarded to the Board only after the report was furnished (previous revocation decision was set aside because the report was not furnished); hence Sugen was completely justified in raising this ground. The IPAB lambasted the patent office for this procedural lapse and held that “The unexplained non-forwarding the reply evidence of the appellant would render the Opposition Board’s recommendation defective. Therefore the Controller’s decision which is arrived at after consideration of the defective recommendations also becomes flawed. As we have stated earlier, there is no reason why this affidavit was not sent to the Board. On this ground we have no option but to set aside the order

Section 8 disclosures: Achilles’ heel
The IPAB also stated that the respondent’s appeal against the Controllers finding on Section 8 disclosures, should be heard de novo right from the stage of the Constitution of the Opposition Board. In its past decisions the IPAB has clearly emphasized the importance of S8 disclosures. The IPAB criticized the patent office for its observation that S8 information is available on the internet(Howler!).It stated that “This is not the law. This duty under Sect 8 cannot be breached and if violated results in revocation. It deserves to be accorded due respect.” Readers may remember that Prashant had made similar observations in his post earlier.
While it is indeed frustrating for a patentee to comply with S8 requirement, any slackness in compliance will adversely affect the validity of the resultant patent.


Image from here
Conclusion: The IPAB expressed disapproval at the manner in which the Controller had dealt with the opposition proceedings and reiterated the importance of providing sound reasons for arriving at conclusions. Now this is something we have lamented about here, here and here.The IPAB then held that the Opposition Board should be constituted again and a different Controller should hear the matter afresh within a strict time-frame. To quote “We make it clear that we have not even examined the findings in the impugned order regarding obviousness and the relevance of the prior arts, so the Controller is free to decide the issues in accordance with law uninfluenced by the earlier decisions

As they say the devil is in the details, so procedural formalities should not be taken casually!