Court Rules Data Privacy Prevails Over Business Methods in E-Commerce
In a pivotal decision, in the case Priya Randolph v the Deputy Controller of Patents and Designs, the Madras High Court has significantly impacted the criterion of patentable inventions in India, safeguarding a privacy-focused technology amidst e-commerce giants.
Priya Randolph and Rohit Chaturvedi (inventors) sought patent protection for their system that selectively conceals user data, specifically physical addresses, during e-commerce transactions. However, after their application was dismissed as a non-patentable “business method” under Section 3(k) of the Indian Patents Act, 1970 (the Act), the inventors approached the Court.
The inventors primarily contended that the claimed invention, encompassing hardware, software and firmware, was a technological advancement that furthers privacy and data protection, not business method, as asserted by the Deputy Controller of Patents and Designs (Deputy Controller).
The Deputy Controller argued that since the invention has involvement in e-commerce, it naturally fell under business methods and Section 3(k) automatically applied, rendering it ineligible for patent protection.
The Court, guided by para 4.5.2 of the Guidelines for Examination of Computer Related Inventions of 2017 (CRI Guidelines), clarified that merely touching upon e-commerce doesn’t automatically classify an invention as a business method. It emphasized the importance of the invention’s substance, specifically in this case, the invention’s distinct technological contribution to data privacy beyond routine business processes.
Consequently, the initial rejection was set aside, and the matter remanded for reconsideration by a different officer. The inventors were granted a reasonable opportunity to further present their case, with a reasoned decision expected within four months.
This order re-emphasizes the important markers made in the CRI guidelines for business method that the substance of claims matter, not the form in which they are presented.
Verdict on Assessing Technical Contributions in Computer Patents
In a recent case of Microsoft Technology Licensing, LLC v Assistant Controller of Patents and Designs, Microsoft filed a patent application in India in 2003, for an invention that enables secure user authentication when accessing network locations, thereby enhancing the network’s security and safeguarding it against potential breaches or unauthorized activities.
Assessing Technical Contributions in Computer-Related Inventions
In a recent case of Microsoft Technology Licensing,
LLC v Assistant Controller of Patents and Designs,
Microsoft filed a patent application in India in 2003, for
an invention that enables secure user authentication
when accessing network locations, thereby enhancing
the network’s security and safeguarding it against
potential breaches or unauthorized activities.
In mid2016, the Indian Patent Office (IPO) issued the First Examination Report (FER) which raised objections regarding novelty, inventive step in view of cited prior art references (D1-D5), non-patentability of the invention under Section 3(k) of the Indian Patents Act, 1970 (the Act) which relates to algorithm and the computer program per se, and the lack of clarity and conciseness regarding the scope of the claimed invention under Section 10(4)(c) of the Act.
Current Trends and Future Needs – Protecting IoT in India with IP
Notice
This article was also published in Lexology.
The Internet of Things (IoT) refers to billions of physical devices around the world that are connected to the internet and share data with each other. As the name implies, IoT refers to devices that traditionally may not have internet connections but can become ‘digitally intelligent’ when connected to the network without human intervention.
Today, anything can potentially be an IoT; a lightbulb that can be operated via a smartphone app, smart meters that can monitor and record electricity consumption, or even a driverless car. On an even bigger scale, smart city projects fill entire regions with different types of sensors to monitor and even control the environment.
Kevin Ashton who coined the phrase ‘Internet of Things’ in 1999, describes IoT as “The IoT integrates the interconnectedness of human culture — our ‘things’ — with the interconnectedness of our digital information system — ‘the internet.’
Protecting IoT in India with IP – Current and Emerging Trends
Notice
This article was also published in ET Insights.
The Internet of Things (IoT) refers to billions of physical devices around the world that are connected to the internet and share data with each other. As the name implies, IoT refers to devices that traditionally may not have internet connections but can become ‘digitally intelligent’ when connected to the network without human intervention.
Today, anything can potentially be an IoT; a lightbulb that can be operated via a smartphone app, smart meters that can monitor and record electricity consumption, or even a driverless car. On an even bigger scale, smart city projects fill entire regions with different types of sensors to monitor and even control the environment.
Kevin Ashton who coined the phrase ‘Internet of Things’ in 1999, describes IoT as “The IoT integrates the interconnectedness of human culture — our ‘things’ — with the interconnectedness of our digital information system — ‘the internet.’