IN THE HIGH COURT OF DELHI AT NEW DELHI
RAJIV SAHAI ENDLAW, J.
Bayer Intellectual Property GMBH and Another - Appellants
Versus
Symed Laboratories Ltd. - Respondent
Execution Petition No. 158 of 2016, Execution Application No. 371 of 2015
Decided On : 14-02-2019
Execution - Patents - Indian Patents Act, 1970 - Section 107A - [RIVAROXABAN] - [Patents] - [Section 107A(a) of the Indian Patents Act, 1970] - The court discussed the provisions of Section 107A(a) of the Indian Patents Act, 1970, which allows for the exemption of certain acts from patent infringement. The defendant had undertaken not to use, manufacture, import, offer to sell, and sell 'RIVAROXABAN' for commercial exploitation, and the plaintiff made a statement that they were not pressing for damages and costs. However, the defendant was found to have applied for a commercial license and exported the product, leading to the execution petition. The court held that the defendant should not commercially use the patented product and should not export any goods covered by the patent otherwise than for the purpose prescribed in Section 107A.
Fact of the Case:
Execution is sought of a consent decree dated 24th April, 2015 in CS(OS) No.2434/2013 in terms of the compromise arrived at between the parties. The defendant had undertaken not to use, manufacture, import, offer to sell, and sell 'RIVAROXABAN' for commercial exploitation. However, the defendant was found to have applied for a commercial license and exported the product, leading to the execution petition.
Finding of the Court:
The court found that the defendant had violated the consent decree by applying for a commercial license and exporting the patented product. The court directed the defendant not to commercially use the patented product and not to export any goods covered by the patent otherwise than for the purpose prescribed in Section 107A.
Issues: The issues included the violation of the consent decree by the defendant, the jurisdiction of the court for execution, and the applicability of the Commercial Courts Act, 2015 to the disposed suit.
Ratio Decidendi: The court held that the defendant violated the consent decree by applying for a commercial license and exporting the patented product. The court also clarified the jurisdiction for execution and the applicability of the Commercial Courts Act, 2015 to the disposed suit.
Final Decision: The execution petition was disposed of with a direction that the defendant should not commercially use the patented product and should not export any goods covered by the patent otherwise than for the purpose prescribed in Section 107A.
Rajiv Sahai Endlaw, J.
Execution is sought of a consent decree dated 24th April, 2015 in CS(OS) No.2434/2013 in terms of the compromise arrived at between the parties and as contained in IA No.8386/2015 in the said suit and which forms part of the decree.
2. Under the said consent decree, the defendant has undertaken that it shall not use, manufacture, import, offer to sell and sell "RIVAROXABAN" or any formulation containing "RIVAROXABAN" for the purpose of commercial exploitation or sell the same to manufacturers for commercial purpose and that if the defendant manufactures or sells products falling within the scope of suit patent, the defendant in its invoice will indicate that the sale of "RIVAROXABAN" or the formulation was only for the purpose of as exempted under Section 107A(a) of the Indian Patents Act, 1970. In view of the said undertaking of the defendant/judgment-debtor, the plaintiff/decree-holder made a statement that they were not pressing for damages and costs.
3. Execution petition has been filed pleading that (i) the defendant/judgment-debtor on 29th January, 2013 applied for a Test License (Form 29) for "RIVAROXABAN" and was granted the said licence on 14th May, 2013; (ii) the plaintiff instituted the suit, decree whereunder is in execution, with the cause of action of the defendant/judgment-debtor having applied for manufacturing licence with respect to "RIVAROXABAN" and having advertised "RIVAROXABAN" on its website; (iii) the defendant/judgment debtor on 11th December, 2013 itself when the suit came up before this Court at the after notice stage gave a statement in the Court that it will not commercialize the product and that it only had a Test Licence under Form 29 and will only manufacture "RIVAROXABAN" for the purpose of testing, analysis and experimentation; (iv) the same stand was repeated in the written statement filed on 21st February, 2014 and on the basis of the said stand of the defendant/judgment-debtor, the compromise aforesaid was entered into and the suit disposed of in terms of the compromise decree; (v) the plaintiff/decree-holder subsequently learnt that the defendant/judgment-debtor on 4th February, 2014 i.e. after the institution of the suit, had applied to the Drug Controller for a Commercial Licence (Form 25) for "RIVAROXABAN" for manufacturing "RIVAROXABAN" for domestic use and export and on 11th February, 2014 had been granted the said licence; (vi) however, the defendant/judgment-debtor did not disclose the said facts in its written statement filed on 21st February, 2014 or at the time of entering into the compromise with the plaintiff/decree-holder; (vii) the plaintiff/decree holder entered into the compromise not knowing of the commercial licence having been applied for and granted to the defendant/judgment-debtor; and, (viii) the plaintiff/decree-holder learnt of exports on 5th March, 2015 and 17th October, 2016 by the defendant/judgment-debtor of varied quantities of "RIVAROXABAN" to companies in Turkey, Belarus, US, Germany and Hong Kong and hence, this execution was filed on 8th December, 2016.
4. Notice of the execution was issued and the defendant/judgment debtor in its reply has admitted a commercial licence to export "RIVAROXABAN".
5. The counsel for the plaintiff/decree-holder on 11th February, 2019 proposed that, recording the statement of the defendant/judgment-debtor that the defendant/judgment-debtor will not commercially use any product subject matter of patent with respect to "RIVAROXABAN" and that in the event of the Division Bench of this Court in RFA (OS) (COMM) No.6/2017 holding that export under Section 107A of the Patents Act cannot be made, whether for commercial purpose or otherwise and that the defendant/judgment-debtor shall remain bound by the said outcome, this execution petition be disposed of. Time was granted to the counsel for the defendant/judgment-debtor to take instructions.
6. The counsel for the defendant/judgment-debtor yesterday stated th
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