Navigating Patent Disputes Revocation vs. Counterclaim

Navigating Patent Disputes: Revocation vs. Counterclaim

In the high-stakes arena of innovation, patent disputes are more than legal scufflesthey are strategic battles that shape India’s intellectual property landscape. When someone is accused of infringing on a patent, it has a few options to fight back. Two key remedies under the Patents Act, 1970, are filing a revocation petition and a counterclaim for revocation in an infringement suit. Though these remedies may appear similar, a landmark Supreme Court case, Aloys Wobben v. Yogesh Mehradrew a sharp line between themThe verdict made it clear: a party cannot deploy both strategies against the same patent. This distinction isn’t just procedural, it’s pivotal in determining how patent battles unfold in Indian courts.  

Today, we will break down the court’s analysis and offer a simple guide on which route to choose and when. 

The Patents Act, 1970 provides different ways to challenge a patent’s validity. 

  1. Revocation Petition: Any “person interested” can file a petition to revoke a patent with the Intellectual Property Appellate Board (IPAB). This is a standalone proceeding, independent of any infringement suit. 
  2. Counterclaim: If a patent holder files a patent infringement suit against you, you can file a counterclaim within that suit to seek the revocation of the same patentThis action takes place before the jurisdictional High Court. 

In the Aloys Wobben case, the respondents had filed 19 revocation petitions with the IPAB and later, when the appellants filed infringement suits, the respondents also filed counterclaims to revoke the same patents. The Supreme Court had to decide if this simultaneous use of remedies was permissible. 

The Supreme Court held that the word “or” in Section 64(1) of the Patents Act is disjunctiveThis means a party cannot avail of both the revocation petition and the counterclaim remedies for the same purpose at the same timeA person must choose one of the two remedies. 

The court’s decision was based on a fundamental principle of civil procedure: a counterclaim is essentially an independent suitJust as you can’t file two separate suits for the same cause of action, you cannot pursue both a revocation petition and a counterclaim for the same patentThis prevents parties from pursuing the same issue in multiple forums, which would be inefficient and lead to conflicting decisions. 

But, now the key decision awaits – which route to choose and when to make the move

The timing of the legal actions is crucial in determining which remedy is available. The court’s ruling provides a clear sequential guide, i.e., 

  • If you file a revocation petition first, i.e., if you, as an “interested person,” file a revocation petition with the IPAB before an infringement suit is filed against you, you cannot later file a counterclaim for revocation in that infringement suit. Your challenge to the patent’s validity will be decided by the IPAB through your original revocation petition, and 
  • If an infringement suit is filed first, i.e., if a patent holder sues you for infringement, you have the right to file a counterclaim for revocation. Once you file this counterclaim, you cannot later file a separate revocation petition with the IPAB. Your prayer for revocation will be adjudicated by the High Court while it hears the infringement suit. 

This principle ensures that the validity of a patent is adjudicated by a single authority and avoids a situation where a party can pursue multiple, overlapping challenges in different forums. 

Conclusion: 

  1. No Double-Dipping: You cannot pursue a patent revocation petition before the IPAB and a counterclaim for revocation in a High Court infringement suit simultaneously for the same patent. 
  2. Timing is Everything: The forum where the patent’s validity will be determined depends on which action was initiated first—the revocation petition or the infringement suit. 
  3. A “Counterclaim” is a Suit: The court explicitly stated that a counterclaim is treated as an independent suit, making it subject to the same procedural rules that prevent a party from filing multiple suits for the same cause of action. 

Patent litigation is a complex and high-stakes arena where procedural precision and strategic foresight are paramount. The interplay of legal actions such as revocation petitions and counterclaims requires a deep grasp of intellectual property law, as even the timing of a filing can determine jurisdiction and outcome. Each decision carries weight, and missteps can close off critical legal avenues, making it essential to approach every step with clarity, expertise, and a thorough understanding of the legal landscape.