Centre Revamps Patent Penalty Rules; Appeal Period Now Begins On Receipt Of Order Instead of Date Of Order

The Centre government has overhauled the penalty adjudication mechanism under the Patents Rules, 2003 after notifying the Patents (Amendment) Rules, 2025, which came into force on November 25, 2025.

The amendment substitutes the entire Chapter XIV A -Adjudictaion Of Penalties and Appeals, that had been introduced in 2024 and introduces several procedural changes while retaining the structure of the earlier framework.

The most significant change is that the 60 day period for filing an appeal will now begin from the date on which the adjudicating officer's order is received. Earlier, the timeline was calculated from the date of the order. The amendment also renumbers the statutory forms. Complaints must now be filed in Form 32 instead of Form 31, and appeals must be filed in Form 33 instead of Form 32.

The government has also revised the three month timeline for completing inquiries. The inquiry period will run from the date of issuance of the notice requiring appearance under Rule 107C(3). The 2024 rules had calculated this period from the notice issued to the opposite party.

The provision exempting adjudicating officers from following the Bharatiya Sakshya Adhiniyam, 2023 has been shifted to an independent sub rule without altering its substance.

The amendment further empowers adjudicating officers and appellate authorities to extend timelines with or without costs. The rule on service of communications has also been simplified and now states that all correspondence under the chapter must be carried out only through electronic means.

Under the substituted chapter, complaints relating to contraventions under Sections 120, 122 and 123 of the Patents Act must be filed electronically in Form 32 along with supporting evidence and details of the alleged violation. After considering the response to a show cause notice, the adjudicating officer may conduct an inquiry, explain the alleged contravention, permit production of documents, enforce attendance of witnesses and impose penalties through a reasoned, digitally signed order. The officer must pass the order within three months and provide it free of cost to the affected party.

Aggrieved parties may file an appeal in Form 33 within 60 days from the date of receipt of the order. The appellate authority is required to issue notice to the respondent, hear both sides, and ordinarily dispose of the appeal within six months. All orders must be uploaded on the official website, and all penalties collected under the chapter will be credited to the Consolidated Fund of India.

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