Guest post by Preston Richard*
It is that time of the year again in India when the patentee must file an annual statement of working of their every granted patent. The statement has to be filed by the 31st of March each year.
Unique to India, this annual ritual mandated under Art. 146 (2) of the Indian Patent Act requires the patentee (and licensees) to furnish a statement to the extent to which the patented invention has been worked on a commercial scale in India.
This requirement stems from the Ayyangar Report (PDF), a policy document drafted in 1959 that forms the basis of the Indian Patent Regime.
While some countries chose to have no working requirement of patents, the Ayyangar Report reasoned that the quid pro quo the society receives in return for the grant of the monopoly could only be ensured if the patent is used for the purpose for which it is granted. Therefore, the report concluded that for a then under-developed country like India, certain safeguards against patents of foreigners was necessary. This resulted in the principles relating to the working of the patent and the consequences in case of failure being codified in the Indian Patent Act.