USE OF INVENTIONS FOR PURPOSES OF GOVERNMENT AND ACQUISITION OF INVENTIONS By CENTRAL GOVERNMENT

Sections 99 to 103 make provisions as regards these matters. Section 99 defines the meaning of the "use of invention for purposes of government” .It rays down that such use will include (a).importation by government of any invention, being a machine, apparatus or other article covered by a patent for the purpose of merely of governments own use and (b) importation by the government of any invention being a medicine or a drug covered by a patent granted, before the commencement of the Act. In the case of (b), the importation of medicine or drug can be made by the government merely for its own use like the distribution to any dispensary, hospital or other medical institutions of government. 

Section 100 provides that at any time after the application for a patent had been filed at the patent office or patent has been granted, the central Government may use the invention for government purposes. Also in the following situation the government is entitled to make use of the invention without payment of royalty or other remuneration to the application. In case the invention is used by the government before the priority date of the relevant claim of the complete specification fixed by the applicant for giant of patent if there has been a due record of such invention in a government document or tests or trials have been performed by government otherwise than in consequence of the communication of invention by the patentee.

But the government would have to pay royalty in case the invention is used by it without the same invention having come or government record or been tried or tested. In such a case the government is liable to pay to the patentee mutually agreed compensation. If mutual agreement is not arrived at, the compensation payable to the patentee will be determined by the High court in accordance with the provisions of s. 103.

However, if 'he patented product involved is a medicine or a drug an article of food, the royalty and other remuneration payable to the patentee shall not exceed 4 percent of the net ex-factory sale price in bulk of the patented.

Section 102 deals with the subject of acquisition of invention and patent by the government. The Central Government can acquire an invention for a public purpose, either before the grant or after the grant of the patent. The government shall give a notice of acquisition to the applicant, or to the patentee or other person, if any, appearing on the register as the case maybe. The applicant or the patentee in such a case shall be paid compensation, as may be agreed upon between the central government and the applicant or the patentee. If no such agreement is arrived at, the compensation will be determined by the High Court in accordance with the provisions of s.103.