Legal Question in Intellectual Property in India
Assignor's Lien on the subject matter
Can the Assignor have a lien over the yet-to-be delivered Deliverables, the IPR over which has been assigned to the Assignee as per a deed of assignement, for non-payment of the Contract Price by the Assignee? If so, is there any decided case law on the point?
1 Answer from Attorneys
Re: Assignor's Lien on the subject matter
If the IPR has been assigned and registered as
per provisions of Indian trademarks / patent laws
etc. then the assignor has following legal rights
against assignee :-
1] To claim lien over yet-to-be-delivered
deliverables for non-payment of contract price by
the Assignee, there must be specific clause in the
Deed of Assignment - vide Section 68 of Patents
Act, 1970 which clearly states that all the terms
and conditions governing rights and obligations of
both the parties are embodied in the Deed of
Assignment.
2] The Assignor can invoke provisions of Section
69 of Patents Act, 1970, the proviso of said
section cleary states that the Controller may
refuse to take any action, unless the rights of
the parties have been determined by a competent
court. In other words, Assignor can go for either
specific performance of contract or can revoke the
registration of Deed of Assignment by Controller who will
exercise powers only when the rights of parties have
been determined by a competent court.
3] Under equity, the assignor can have lien over
yet to be delivered deliverables until the
contract price is paid by the Assignee, for which
institution of civil suit before competent court
is must.
Relevant Case Law :
M/s. National Research Development Corporation
Versus M/s. Silcon Ceramics Ltd., AIR 1998 Del 52.
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