Patent Law in Nepal

What is a Patent?

Under the Patent Law in Nepal, a patent is defined as “any useful invention relating to a new method of process or manufacture, operation or transmission of any material or a combination of materials, or that made on the basis of a new theory or formula.” Patents protect new inventions that are novel, non-obvious, and have industrial applicability. They grant the inventor exclusive rights to make, use and sell the invention for a limited period of time in exchange for public disclosure of the invention.

Should Patent be registered to be enforced?

Yes, patent registration is mandatory in Nepal for the rights to be enforced. According to Section 3 of the Patent, Design and Trademark Act, a person desirous of obtaining rights over any patent must register such patent in their name under the Act. Without registration, the patent rights cannot be legally enforced in Nepal.

Where can Patents be registered in Nepal?

Patents in Nepal are registered with the Department of Industry (DOI) under the Ministry of Industry, Commerce and Supplies. The DOI is the authorized government body responsible for registering and administering patents in Nepal.

Patent Rights in Nepal

Registering a patent in Nepal confers the following exclusive rights to the patent holder:

• Right to prevent others from making, using, offering for sale, selling or importing the patented invention without permission
• Right to assign, transfer or license the patent rights to others
• Right to take legal action against infringers

The patent rights are valid for 7 years from the date of registration and can be renewed twice for 7 years each time, allowing a maximum protection period of 21 years.

Requirements for Filing Patents in Nepal

To file a patent application in Nepal, the following requirements must be met:

• The invention must be new, non-obvious and industrially applicable
• The applicant must be either the inventor or have acquired rights from the inventor
• The application must include details of the invention, claims, drawings and abstract
• The prescribed fees must be paid
• For foreign applicants, a Power of Attorney is required

Procedure of Patent Registration in Nepal

• Step 1: Filing of Application at DOI
• Step 2: Formal Examination of Documents
• Step 3: Substantive Examination of Patent
• Step 4: Grant of Patent

The patent registration process in Nepal involves the following key steps:

Step 1: Filing the Application

The applicant must submit a patent application to the Department of Industry along with the prescribed fees. The application should include:

• Name, address and occupation of the inventor
• Description of the invention
• Claims defining the scope of protection
• Drawings if necessary
• Abstract summarizing the invention

Step 2: Formal Examination

The DOI conducts a formal examination to check if all required documents are submitted and formalities are complied with. Any deficiencies must be rectified by the applicant.

Step 3: Substantive Examination

The DOI examines the application to determine if the invention meets the criteria of novelty, inventive step and industrial applicability. Objections may be raised which the applicant must respond to.

Step 4: Grant of Patent

If the examination is successful, the DOI grants the patent and issues a certificate of registration to the applicant after payment of registration fees.

Documents Required for Patent Registration in Nepal

The following documents are required when filing a patent application in Nepal:

• Patent application form
• Specification of the invention including claims
• Drawings (if applicable)
• Abstract
• Power of Attorney (for foreign applicants)
• Priority documents (if claiming priority)
• Proof of payment of official fees

Investigation of Patent by the Department

As per Section 5 of the Patent Act, upon receiving a patent application, the Department of Industry conducts an investigation to ascertain:

• Whether the invention is new
• Whether it is useful to the general public
• Whether it meets the criteria of patentability

The DOI may seek expert advice if needed during the examination process. Based on the investigation, the DOI decides whether to grant or refuse the patent.

Publishing Registered Patents in Nepal

Section 7A of the Patent Act mandates that patents registered in Nepal, except those which must be kept secret in the national interest, shall be published by the Department of Industry in the Nepal Gazette. This allows the public to be informed about new patents granted. Any person can inspect or obtain copies of published patent documents by paying the prescribed fees.

Term of Validity of Patents in Nepal

A patent in Nepal is valid for an initial period of 7 years from the date of registration. It can be renewed twice for 7 year periods each time. Therefore, the maximum term of patent protection available is 21 years from the filing date. To maintain the patent, renewal fees must be paid before expiry of each term.

Time Frame for Patent Registration in Nepal

The time taken for patent registration in Nepal can vary depending on various factors like complexity of the invention, backlog at the patent office, etc. Typically, it takes around 1-2 years from the date of filing the application to grant of the patent, provided there are no objections or oppositions. However, the actual time may be longer in some cases.

Penalties for Violation of Patent Rights

The Patent Act prescribes penalties for infringement of patent rights in Nepal:

• Fine of up to NPR 500,000 for copying or using a registered patent without permission
• Fine of up to NPR 250,000 for attempting or abetting patent infringement
• Confiscation of infringing goods/articles

The Department of Industry is empowered to impose these penalties based on the gravity of the offense.

Registration of International Patents in Nepal

Foreign patents can be registered in Nepal under the following provisions:

• Nepal is a member of the Paris Convention, allowing priority claim of patents filed in other member countries within 12 months
• Patent applications can be filed directly in Nepal by foreign applicants
• A certified copy of the foreign patent registration certificate must be submitted
• The application and documents should be in English or Nepali language

Patent Infringement in Nepal

Patent infringement occurs when someone makes, uses, sells or imports a patented invention without the patent owner’s permission. The patent owner can file a complaint with the Department of Industry against the infringer. The DOI is authorized to hear such cases and impose penalties on infringers as per the Patent Act.

Read More:

• Trademark Registration in Nepal
• Intellectual Property Law in Nepal
• Trademark Law in Nepal
• Industrial Design Law in Nepal
• IP Licensing, Enforcement & Investigation in Nepal
• Highlights of Copyright Act, 2002
• Highlights of Patent, Design & Trademark Act, 1965
• Copyright Law in Nepal

Also Read: Copyright Act, 2002 Patent, Design and Trademark Act, 1965

Cancellation of Patent Registration in Nepal

The Department of Industry may cancel a patent registration in Nepal under the following circumstances:

• If the patent is already registered in someone else’s name
• If the applicant is not the true inventor or has not acquired rights from the inventor
• If the patent is likely to adversely affect public health, morality or national interest
• If the patent contravenes any existing Nepali law
• If renewal fees are not paid within 6 months after the due date

The patent owner is given an opportunity to defend before cancellation.

Laws and Authorities governing Patent Law in Nepal

The key laws and authorities related to patents in Nepal are:

Laws	Authorities
Patent, Design and Trademark Act 2022 (1965)	Department of Industry – For registration and administration of patents
Patent, Design and Trademark Rules 2033 (1977)	Ministry of Industry, Commerce and Supplies – Appellate authority
	High Court – For appeals against DOI decisions

International Conventions of Patents

Nepal is a member of the following international patent conventions:

• Paris Convention for Protection of Industrial Property (1883)
• Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)

This allows Nepal to provide patent protection to foreign applicants and claim priority for international patent applications.

Conclusion

The patent system in Nepal provides protection for new inventions and encourages innovation. While the current Patent Act dates back to 1965, it incorporates key principles of patent law. Proper registration and enforcement of patent rights is essential for inventors and businesses to benefit from their innovations in Nepal.

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Disclaimer: This material is presented solely for informational purposes, without constituting legal advice, counsel, or solicitation, and no liability shall arise from any actions, omissions, or reliance on its contents, directly or indirectly, in any manner whatsoever, irrespective of the jurisdiction or specific circumstances.