Section 70 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 70 says what a person whose name stands on the register as grantee or proprietor of a patent can do: assign it, grant licences under it, otherwise deal with it, and give effectual receipts for the money. The power is subject to the rules on co-ownership and to rights of other persons that are noted in the register. A proviso says that equities in the patent can be enforced as for any other movable property. If you are buying from or licensing from a registered owner, our patent assignment team can check the register first.
The person or persons registered as grantee or proprietor have power to assign, grant licences under, or otherwise deal with the patent, and to give effectual receipts for the consideration (s.70). That power is subject to the Act's provisions on co-ownership and to rights vested in any other person of which notice is entered in the register. Equities in respect of the patent may be enforced as for any other movable property.
Amendments to know
Section 70 is printed in its original form and no footnote touches it. The Tribunals Reforms Act, 2021 and the Jan Vishwas (Amendment of Provisions) Act, 2023 did not change it. It follows section 69, which deals with registering title; see our article on section 69.
The text
"Subject to the provisions contained in this Act relating to co-ownership of patents and subject also to any rights vested in any other person of which notice is entered in the register, the person or persons registered as grantee or proprietor of a patent shall have power to assign, grant licences under, or otherwise deal with, the patent and to give effectual receipts for any consideration for any such assignment, licence or dealing:
Provided that any equities in respect of the patent may be enforced in like manner as in respect of any other movable property."
Who has the power
"The person or persons registered as grantee or proprietor of a patent." The test is the register. Section 67 describes what the register records; see our article on section 67. A person who has acquired title but whose name is not yet entered has not yet been registered as proprietor, so the text of section 70 does not give him this power. This is why section 69 asks the new holder to apply for registration promptly.
What the power covers
| Power | Wording in section 70 |
|---|---|
| Assign | "assign" the patent |
| Licence | "grant licences under" the patent |
| Other dealings | "otherwise deal with" the patent |
| Receipts | "give effectual receipts for any consideration for any such assignment, licence or dealing" |
The power to give an effectual receipt matters to buyers and licensees. A person who pays the registered proprietor can obtain a receipt that discharges the payment; the text speaks of an "effectual" receipt for "any consideration". That protects a payer from a later claim for the same money by some other person with an interest in the patent.
The power to "otherwise deal with" the patent is wide; it is not limited in the text to the kinds of dealing named. A dealing still needs to meet section 68, which requires a written document embodying all terms and duly executed; see our article on section 68.
The two limits
1. Co-ownership provisions
The power is "subject to the provisions contained in this Act relating to co-ownership of patents". Where two or more persons are registered, sections 50 and 51 apply. Under section 50(3), a licence cannot be granted and a share cannot be assigned by one registered co-owner without the consent of the others, unless an agreement says otherwise. Section 70 therefore cannot be read as letting one co-owner act alone. Our article on sections 50 to 52 sets this out.
2. Rights noted on the register
The power is also "subject also to any rights vested in any other person of which notice is entered in the register". If a mortgage, licence or other interest has been entered, the registered proprietor cannot deal with the patent in a way that defeats it. The corollary is that interests that are not entered in the register are not within this limit. This is a reason for any holder of an interest to apply under section 69 for notice of the interest to be entered.
The proviso: equities
"Provided that any equities in respect of the patent may be enforced in like manner as in respect of any other movable property."
Here "equities" means rights that are not shown as legal title: for example, a claim that the registered owner holds the patent for someone else, or an agreement to assign that has not been carried through. The proviso says such equities can be enforced as for any other movable property. It does not create the equities and does not list them; it keeps the ordinary law of movable property available for patents. This links to section 50(5), which applies the rules of law on ownership and devolution of movable property to patents. Remember that section 67(2) bars entry in the register of any notice of trust; an equity based on a trust is therefore enforced under the proviso, not through an entry.
Illustration (invented)
Veda Optics Pvt. Ltd. is the sole registered proprietor of a patent for a lens coating. It assigns the patent to Crown Lens Ltd. by a written, duly executed deed and receives the price. Because Veda is the registered proprietor and no one else's interest is noted on the register, Veda has power under section 70 to assign and to give an effectual receipt to Crown Lens for the price.
Suppose, instead, that a lender, Capital Trust, has a registered mortgage over the patent and notice of it is entered in the register. Veda's power to assign is then subject to the rights vested in Capital Trust of which notice is entered.
Suppose a third person, Anil, claims that Veda promised to assign the patent to him last year. His claim is an equity. Under the proviso, he may enforce it as for any other movable property, but it is not a right noted on the register for the purposes of the limit above.
What the section does not say
- It does not say what happens to a buyer who deals with a registered proprietor without knowing of an unregistered equity; the text says only that equities may be enforced as for movable property.
- It does not define "equities".
- It does not list the notices that can be entered; section 67(1) and section 69 deal with entries.
- It does not set any procedure or fee for the dealing itself.
Practical points
- Before you buy or license, inspect the register for the proprietor's name and any entries of mortgages, licences and other rights; see section 72 on inspection.
- If you hold an interest, apply under section 69 so that notice of it is entered.
- Where there are several registered owners, get written consent as section 50(3) requires, or rely on an agreement that says otherwise.
- Take a written receipt from the registered proprietor for any payment.
Need help buying or licensing a patent safely?
Whether a registered proprietor can deal with a patent depends on the register, co-owners and written terms. Our patent assignment team can inspect the register, structure the transaction, take the receipts and register your interest.
Key takeaways
- The registered grantee or proprietor may assign, license or otherwise deal with the patent and give effectual receipts.
- The power is subject to the co-ownership provisions and to rights of others noted in the register.
- Equities may be enforced as for any other movable property.
- Register your interest so that it is noted and cannot be overridden.
Read next
- Section 69: registration of assignments and transmissions
- Sections 71 and 72: rectification of the register by the High Court and inspection
- Patent assignment deed: draft template
- Patent licence agreement: draft template
Disclaimer: Based on the Patents Act, 1970 as amended up to the Jan Vishwas (Amendment of Provisions) Act, 2023, as consulted on 1 October 2026. Forms, fees and time limits under the Patents Rules, 2003 change from time to time and are not covered here. This article is general information, not legal advice; check the official text before acting.