Indian Government Decriminalises Key Offences in Trade Marks and Patents Acts Under Jan Vishwas Act 2023

The Indian government has taken a major step to enhance the ease of doing business by decriminalising various offences under intellectual property statutes through the Jan Vishwas (Amendment of Provisions) Act, 2023 (JVA), which came into effect on August 1, 2024. This legislation revises penalties under 42 statutes, including the Trade Marks Act, 1999, and the Patents Act, 1970, with the objective of fostering a more conducive business environment and attracting foreign direct investment.

Under the amended Trade Marks Act, the offence of falsely representing a trademark as registered, previously punishable by imprisonment of up to three years or a fine or both under Section 107(2), has been decriminalised. Instead, offenders face a monetary penalty equal to half a per cent of total sales or turnover, or INR 500,000, whichever is less. Similarly, Section 108’s provision penalising the false implication of connection with the Trade Marks Office by imprisonment or fine has been removed.

The penalty for falsifying entries in the Trade Marks Registry under Section 109, which previously included imprisonment of up to two years or a fine, has also been omitted. To strengthen administrative enforcement, new Sections 112A and 112B empower the registrar to authorise officers as adjudicating officers (AOs) to conduct inquiries and impose penalties after hearing parties. Aggrieved persons may appeal AO orders within 60 days, with appeals disposed of within 60 days. Non-compliance with AO or appellate orders within 90 days attracts additional fines of INR 100,000 or imprisonment up to one year, or both.

Supporting these changes, the government introduced the Trade Marks (Holding Inquiry and Appeals) Rules, 2024 on August 16, 2024. These rules enable electronic filing of complaints to AOs regarding violations such as false trademark representation and outline procedures for inquiries, appeals, and dispute resolution.

Regarding import controls, Section 140(2) now mandates importers of prohibited goods liable to confiscation under the Customs Act, 1962, to furnish documentation and consignment details upon request by the customs commissioner. Failure to comply within 14 days results in a penalty of up to INR 1,000.

In the Patents Act, 1970, the JVA similarly removes imprisonment provisions for offences related to false information. For instance, Section 122(2) no longer prescribes imprisonment for knowingly providing false information but imposes a fine equal to half a per cent of total sales or turnover or INR 50 million, whichever is less. The penalty for falsely claiming an article is patented or subject to a pending patent application has increased under Section 120 from INR 100,000 to INR 1 million, with an additional daily penalty of INR 1,000 for continuing violations.

The offence of wrongfully using the term “patent office” to imply connection with the Indian Patent Office, previously punishable by six months’ imprisonment or fine under Section 121, has been deleted.

New Sections 124A and 124B mirror the Trade Marks Act reforms by authorising controllers to appoint AOs for inquiries and penalties, with similar appeal timelines and penalties for non-compliance.

The JVA’s overarching goal is to reduce bureaucratic hurdles, encourage entrepreneurship, and attract investment by shifting minor offences from criminal to administrative penalties. This approach aligns with the government’s vision of positioning India as a global business hub. While some criminal provisions have been removed, the absence of reported convictions under the previous regime suggests the reforms are pragmatic and business-friendly.

Moreover, eliminating court intervention for minor offences is expected to ease the burden on the judiciary, reduce case backlogs, and expedite justice delivery. The new framework balances enforcement with efficiency, promoting transparency and accountability in IP compliance.

These legislative changes mark a significant evolution in India’s IP enforcement landscape, reflecting a modernised approach to regulation that supports economic growth and innovation.