Co-owners of a Patent

In one line

Where a patent belongs to two people, each may work it alone and keep the profit, but neither may licence it or sell a share without the other's consent.

In the wording a student can write in an exam: by section 50 of the Patents Act, 1970, where a patent is granted to two or more persons, each is entitled, unless an agreement to the contrary is in force, to an equal undivided share; each may exercise the rights conferred by section 48 for his own benefit without accounting to the others; but a licence shall not be granted and a share shall not be assigned by one of them except with the consent of the others.

The provision itself

Section 50(1): equal undivided shares. Where a patent is granted to two or more persons, each shall, unless an agreement to the contrary is in force, be entitled to an equal undivided share in the patent.

Section 50(2): each may work it alone. Subject to this section and to section 51, where two or more persons are registered as grantee or proprietor, then unless an agreement to the contrary is in force, each shall be entitled, by himself or his agents, to the rights conferred by section 48 for his own benefit without accounting to the other person or persons.

Section 50(3): but not licence or assign alone. Subject to this section and section 51 and to any agreement in force, where two or more persons are registered, a licence under the patent shall not be granted and a share in the patent shall not be assigned by one of them except with the consent of the other or others.

Section 50(4): the purchaser is protected. Where a patented article is sold by one of two or more registered proprietors, the purchaser and any person claiming through him may deal with the article as if it had been sold by a sole patentee.

Section 50(5): movable property rules apply. Subject to the section, the rules of law applicable to the ownership and devolution of movable property generally apply in relation to patents; and nothing in sub-sections (1) or (2) affects the mutual rights or obligations of trustees or of legal representatives, or their rights or obligations as such.

Section 50(6). Nothing in the section affects the rights of assignees of a partial interest in a patent created before the commencement of the Act.

The shape of the default regime

Working: each may, alone, and keeps the money. Sub-section (2) is unusual and it is what students misremember. A co-owner may make, use, sell and import the patented article for their own benefit and need not account to the other co-owner for a rupee of it.