Sections 99 and 103 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 99 defines when an invention is "used for the purposes of Government": when it is made, used, exercised or vended for the Central Government, a State Government or a Government undertaking, and says Chapter XVII does not apply to acts done under the section 47 conditions. Section 103 lets either party refer disputes about Government use, its terms, payments or compensation for acquisition to the High Court, and gives the Central Government special rights in such proceedings. The powers themselves, in sections 100 to 102, have their own post. If you are in such a dispute, our legal dispute resolution team can help.
An invention is used for the purposes of Government if it is made, used, exercised or vended for the Central Government, a State Government or a Government undertaking (s.99(1)). Chapter XVII does not apply to importation, making or use done under the section 47 conditions (s.99(3)). Disputes about the exercise of the section 100 powers, the terms of use, who gets a share of payment or the compensation for acquisition under section 102 may be referred to the High Court by either party (s.103). The Central Government may counter-claim for revocation or put validity in issue.
Sections you will want alongside
Sections 100 to 102 (Government's power to use inventions, rights of third parties, and acquisition) are covered in our existing post on Government use of patents under sections 100 to 102; this article does not repeat them. Section 99(2) is omitted: the footnote records that sub-section (2) was omitted by the Patents (Amendment) Act, 2002 (from 20 May 2003). Section 103 has "High Court" where the Appellate Board does not appear. The Tribunals Reforms Act, 2021 and the Jan Vishwas (Amendment of Provisions) Act, 2023 did not alter these sections.
Section 99: meaning of use for purposes of Government
Sub-section (1)
"For the purposes of this Chapter, an invention is said to be used for the purposes of Government if it is made, used, exercised or vended for the purposes of the Central Government, a State Government or a Government undertaking."
| Element | Text |
|---|---|
| Acts | Made, used, exercised or vended |
| For whom | The Central Government, a State Government or a Government undertaking |
| Where it applies | "For the purposes of this Chapter", that is Chapter XVII |
A Government undertaking is a defined term in section 2; see our article on the section 2 definitions.
Sub-section (2): omitted
Omitted by the 2002 Act, as noted above.
Sub-section (3): section 47 conditions
"Nothing contained in this Chapter shall apply in respect of any such importation making or using of any machine, apparatus or other article or of any such using of any process or of any such importation, using or distribution of any medicine or drug, as may be made by virtue of one or more of the conditions specified in section 47."
Section 47 sets conditions subject to which every patent is granted. Where an act is done under those conditions, Chapter XVII, including the compensation and dispute machinery, does not apply. Our article on section 47 describes those conditions.
Section 103: reference of disputes to the High Court
Sub-section (1): what can be referred
"Any dispute as to the exercise by the Central Government or a person authorised by it of the powers conferred by section 100, or as to terms for the use of an invention for the purposes of Government thereunder or as to the right of any person to receive any part of a payment made in pursuance of sub-section (3) of that section or as to the amount of compensation payable for the acquisition of an invention or a patent under section 102, may be referred to the High Court by either party to the dispute in such manner as may be prescribed by the rules of the High Court."
Four kinds of dispute:
- The exercise by the Central Government or a person authorised by it of the powers in section 100;
- The terms for the use of the invention for the purposes of Government;
- The right of any person to receive any part of a payment made under section 100(3); and
- The amount of compensation for acquisition of an invention or patent under section 102.
"Either party to the dispute" may refer the matter, "in such manner as may be prescribed by the rules of the High Court". The procedure is therefore in the High Court's rules, not in this Act.
Sub-section (2): the Central Government's special rights
In a proceeding under this section to which the Central Government is a party, it may:
- (a) if the patentee is a party, "petition by way of counter-claim for revocation of the patent on any ground upon which a patent may be revoked under section 64"; and
- (b) whether the patentee is a party or not, "put in issue the validity of the patent without petitioning for its revocation".
Section 64 is covered in our post on revocation grounds under section 64.
Sub-section (3): confidential disclosure
If a question arises whether an invention has been "recorded, tested or tried" as mentioned in section 100, and disclosure of a document or evidence of a test would, in the Central Government's opinion, be prejudicial to the public interest, "the disclosure may be made confidentially to the advocate of the other party or to an independent expert mutually agreed upon".
Sub-section (4): benefits already received
In deciding terms for use, the High Court "shall have regard to any benefit or compensation which that person or any person from whom he derive title, may have received, or may be entitled to receive, directly or indirectly in respect of the use of the invention in question for the purposes of Government". (The text has "derive" for "derives".)
Sub-section (5): referees and arbitrators
The High Court "may at any time order the whole proceedings or any question or issue of fact arising therein to be referred to an official referee, commissioner or an arbitrator on such terms as the High Court may direct", and references to the High Court in the section are construed accordingly.
Sub-section (6): Government employee inventions
Where the invention claimed in a patent was made by a person who, when he made it, was in the service of the Central Government or a State Government or was an employee of a Government undertaking, and the relevant Government or the principal officer of the undertaking certifies that the subject-matter is "connected with the work done in the course of the normal duties" of the servant or employee, then a dispute of the kind in sub-section (1) relating to the invention "shall be disposed of by the Central Government conformably to the provisions of this section so far as may be applicable". Before doing so, the Central Government must give "an opportunity to the patentee and such other parties as it considers have an interest in the matter to be heard".
| Sub-section | Subject |
|---|---|
| (1) | Four kinds of dispute referable to the High Court; either party; procedure by High Court rules |
| (2) | Central Government's counter-claim for revocation or putting validity in issue |
| (3) | Confidential disclosure to the other party's advocate or an agreed expert |
| (4) | High Court to have regard to benefit or compensation already received |
| (5) | Reference to official referee, commissioner or arbitrator |
| (6) | Government employee inventions: disputes disposed of by the Central Government after hearing |
Illustration (invented)
Spectra Optics Ltd. holds a patent for an imaging sensor. The Central Government authorises a defence contractor to use the invention for the purposes of Government. Spectra and the Government cannot agree on the terms for the use. Either side may refer the dispute to the High Court under section 103(1). In the proceedings the Central Government may counter-claim for revocation of the patent on any ground under section 64, or merely put the validity of the patent in issue. If a question arises whether the invention was recorded or tested by Government as mentioned in section 100, and disclosure of a test report would prejudice the public interest, the report may be disclosed confidentially to Spectra's advocate or an agreed independent expert. The High Court can refer the whole matter, or a question of fact, to an arbitrator.
What the sections do not say
- No time limit for a reference.
- No amounts or principles of compensation beyond those in section 102(3) and section 103(4).
- No definition of "terms" for use of an invention.
- No rule about appeals from the High Court's decision in this Act's text read here.
- Section 99(3) does not say how a person proves that an act was done under a section 47 condition.
Need help in a Government use dispute?
These disputes combine patent law with public interest and special procedure. Our legal dispute resolution team can prepare the reference, address counter-claims and manage confidential disclosure before the High Court.
Key takeaways
- An invention is used for the purposes of Government when it is made, used, exercised or vended for the Central Government, a State Government or a Government undertaking.
- Chapter XVII does not apply to acts done by virtue of the section 47 conditions.
- Either party may refer disputes on section 100 powers, terms of use, shares of payment and compensation for acquisition to the High Court.
- The Central Government may counter-claim for revocation or put validity in issue.
- Disputes about inventions of Government employees in the course of their duties are disposed of by the Central Government after hearing the parties.
Read next
- Section 104: jurisdiction in patent infringement suits
- Government use of patents: sections 100 to 102
- Sections 93 and 94: licence as deed between parties and termination of compulsory licence
- Patent revocation grounds: complete list under section 64
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.