The underlying statutory amendments replaced criminal liability for certain specified contraventions with monetary penalties enforceable through administrative adjudication.

Following the Jan Vishwas amendments, Sections 120 and 122 of the Patents Act were amended to remove imprisonment as a prescribed sanction. Section 120, which addresses false or unauthorised claims of patent rights, and Section 122, which relates to failure to furnish information required under the Act, now provide only for monetary penalties, including continuing penalties in specified circumstances. The amendments also inserted Sections 124A and 124B, which provide for the appointment of adjudicating officers and the constitution of an appellate authority. The Act, however, did not specify the procedure for the initiation of proceedings, conduct of inquiry or disposal of appeals.

The Patents (Amendment) Rules 2025 amend the Patents Rules 2003 by inserting a new chapter beginning with Rule 107, which governs adjudication of penalties and appeals. This chapter defines the expressions “adjudicating officer” and “appellate authority” by reference to the Patents Act. It further prescribes the procedural steps for penalty proceedings, including the filing of complaints, issuance of notice, conduct of inquiry, passing of orders and appellate review.

Under the Rules, proceedings are initiated by the filing of a complaint in Form 32 through electronic means before the adjudicating officer. Complaints may relate to contraventions including unauthorised claims of patent rights, failure to furnish information required under the Act or practice as a patent agent without valid registration. Upon receipt of the complaint, the adjudicating officer issues a show cause notice electronically, specifying the alleged contravention and calling upon the noticee to submit a written response along with supporting material within the prescribed period.

The adjudicating officer is required to conduct an inquiry, which may include calling for additional information, examination of documents and grant of an opportunity of hearing, before determining whether a contravention has occurred and, if so, the quantum of penalty within the limits prescribed by the Act. The Rules indicate that such proceedings are ordinarily to be concluded within three months from the date of issuance of notice.

Where the noticee fails to respond or appear despite service of notice through electronic means, the adjudicating officer may proceed ex parte. In such cases, the determination is required to be based on the material available on record, and the order must record reasons for both the finding of contravention and the imposition of penalty. A copy of the order and the relevant record is required to be furnished to the concerned person without charge.

An appeal against the order of the adjudicating officer may be filed in Form 33 before the appellate authority through electronic filing. The appeal is required to be filed within sixty days from the date of receipt of the order, subject to the appellate authority’s power to condone delay for sufficient cause. The appellate authority issues notice to the respondent, permits the filing of a reply, affords an opportunity of hearing and thereafter disposes of the appeal by a reasoned order. The Rules contemplate that appeals are ordinarily to be disposed of within six months from the date of receipt.

The Rules mandate the use of electronic means for the filing of complaints, issuance of notices, submission of replies, communication of hearing dates and issuance of orders. Orders passed under the Rules are required to be dated, digitally signed and uploaded on the official website of the Patent Office. All penalties realised pursuant to these proceedings are required to be credited to the Consolidated Fund of India.

Accordingly, while the Jan Vishwas (Amendment of Provisions) Act 2023 establishes the substantive framework for decriminalised penalties under the Patents Act, the Patents (Amendment) Rules 2025 supply the procedural mechanism for their enforcement through administrative adjudication and appellate review.