Form 27: Everything a Patentee and Licensee Must Know About Statement of Commercial Working in India; Compliance Deadline: 30 September

 ABSTRACT

Form 27 is a statutory obligation under Section 146(2) of the Patents Act, 1970 requiring every patentee and licensee to file a statement of commercial working of the patented invention in India. With the Patents (Amendment) Rules, 2024 coming into effect from 15 March 2024, the filing frequency has changed from annual to once every three financial years. For most existing patents, the first consolidated deadline under the new regime falls on 30 September 2026. This article explains the legal framework, the revised filing timelines, who must file, what information must be furnished, the consequences of non-compliance (including the revised monetary penalties under the Jan Vishwas Act, 2023), the indicative professional fee structure for filing, and the documentary requirements that practitioners should gather from clients in advance of the deadline.

I.  Legal Framework and Purpose

Form 27 is not a voluntary disclosure — it is a statutory obligation under Section 146(2) of the Patents Act, 1970, read with Rule 131(1) of the Patents Rules, 2003, as amended. The provision empowers the Controller General of Patents, Designs and Trade Marks to require patentees and licensees to furnish information regarding the extent to which the patented invention is being commercially worked in India.

The rationale behind the requirement is rooted in the patent bargain: the State grants a limited monopoly in exchange for disclosure of the invention and the expectation that the invention will be worked within the country, thereby benefiting the Indian public. Where an invention is not worked or is inadequately worked, the Patents Act provides mechanisms — most notably compulsory licensing under Section 84 — to correct that imbalance. Form 27 disclosures provide the factual foundation for any such compulsory licence proceedings.

The Jan Vishwas (Amendment of Provisions) Act, 2023 amended Section 122 of the Patents Act to introduce monetary penalties for non-compliance, replacing the earlier criminal liability. This shift underscores the seriousness with which the legislature treats Form 27 obligations, while making enforcement more practical for regulators.

 

II.  Who Must File Form 27?

The obligation to file Form 27 rests on every patentee and every licensee in India. This includes:

•       Individual inventors holding a granted Indian patent

•       Companies, LLPs, partnerships, universities, and government bodies that are patentees

•       Exclusive licensees and non-exclusive licensees under a granted Indian patent

•       Foreign patentees whose inventions are protected by an Indian patent grant

 

Importantly, both the patentee and any licensee may file Form 27 independently and simultaneously for the same patent. There is no bar on multiple stakeholders filing separate statements. A patentee or licensee may also authorise a registered patent agent or attorney to file Form 27 on their behalf, provided a valid Power of Attorney (Form 26) is on record.

Where a patentee holds multiple patents that are related and granted to the same patentee(s), a single Form 27 may be filed covering all such related patents, thereby reducing the administrative burden.

 

III.  What Changed: The 2024 Amendment Rules

The most significant change introduced by the Patents (Amendment) Rules, 2024 (effective 15 March 2024) is the shift from annual filings to a triennial (three-year) filing cycle. Under the previous rules, Form 27 was required to be filed annually, within six months of the close of each financial year. This proved burdensome, particularly for large patent portfolios.

Under the amended rules, Form 27 is to be filed once in respect of every period of three consecutive financial years, beginning from the financial year immediately after the patent is granted, with the filing window opening on 1 April following the three-year period and closing on 30 September of that year.

 

Critical Rule:  The new triennial cycle applies prospectively from 15 March 2024. If a patentee failed to file Form 27 for FY 2021-22 or FY 2022-23 within the time limits prescribed under the earlier rules, those missed years cannot be clubbed into the new three-year block. The obligation for those years has lapsed and cannot be revived.

 

This prospective application means practitioners must carefully audit each client's filing history: any gap in annual filings prior to the amendment rules is effectively an irreversible non-compliance for that period and must be noted separately from current obligations.

 

IV.  Filing Deadlines: A Category-Wise Analysis

The filing deadline varies depending on when the patent was granted and when its three-year block commences. The table below consolidates the applicable deadlines for all patent categories:

 

Patent Category	3-Year Block	Base Deadline	Ext. (Rule 131(2))	Ext. (Rule 138)
Granted before FY 2022-23	FY 2023-24 to 2025-26	30 Sep 2026	31 Dec 2026	30 Jun 2027
Granted in FY 2022-23	FY 2023-24 to 2025-26	30 Sep 2026	31 Dec 2026	30 Jun 2027
Granted in FY 2023-24	FY 2024-25 to 2026-27	30 Sep 2027	31 Dec 2027	30 Jun 2028
Granted in FY 2024-25	FY 2025-26 to 2027-28	30 Sep 2028	31 Dec 2028	30 Jun 2029
Expired in FY 2023-24	FY 2023-24 only	30 Sep 2024	31 Dec 2024	30 Jun 2025
Expired in FY 2024-25	FY 2023-24 to 2024-25	30 Sep 2025	31 Dec 2025	30 Jun 2026

 

Note: Where a patentee or licensee does not avail the three-month extension under Rule 131(2), the outer limit for extension under Rule 138 is 31 March of the relevant year — not 30 June. Practitioners should advise clients to always file Form 4 for the Rule 131(2) extension if there is any possibility that the base deadline cannot be met, as this preserves the longer Rule 138 window.

 

V.  What Information Must Be Furnished?

Form 27 requires disclosure of the following information for the three-year reporting period:

A.  Where the Invention Has Been Commercially Worked in India

•       The nature of working: whether the patented product has been manufactured in India, imported, or worked through a licensee

•       The quantum of the patented product or process worked — expressed in units of measurement appropriate to the product

•       The value of the patented product worked in India, in Indian Rupees

•       The country or countries from which the product has been imported, if applicable

•       A statement as to whether the reasonable requirements of the public with respect to the patented invention have been satisfied

 

A note on “reasonable requirements of the public”: The Patents Act does not prescribe an objective formula for assessing whether the reasonable requirements of the public have been met, and the question is therefore answered on the facts of each case. In practice, practitioners generally relate this to the demand and supply position of the patented product. Where the supply is short and the product is over-priced, demand is treated as not satisfied; conversely, where the supply meets or exceeds demand at a reasonable price, the requirement is treated as satisfied. The patentee’s response on this point also feeds directly into Section 84 of the Patents Act, since unsatisfied public requirements are a recognised ground for grant of a compulsory licence.

B.  Where the Invention Has NOT Been Commercially Worked in India

•       Reasons for non-working — for example, the product is in the pre-commercialisation stage, regulatory approvals are pending, market conditions do not support commercial launch, or the patent covers a platform technology not yet in commercial production

•       Steps being taken towards working the invention in India and the expected timeline

 

Standard non-working statement: Where a client is unable to provide specific facts on non-working, the following neutral statement is generally inserted in Form 27 to record the patentee’s position and demonstrate continuing interest in working the invention:

 

“The patented invention is not worked in India yet. Patentees are desirous to work the patented invention in India and are looking for collaboration / licence for working the invention in India on reasonable terms with capable partners having requisite experience, expertise and infrastructure.”

 

This formulation has the advantage of being factually accurate while signalling that the patentee is open to commercialisation through Indian partners, which can also be relevant if a compulsory licence application were to be made on the ground of non-working.

C.  Licensing Information

•       Details of any licences granted — voluntary, compulsory, exclusive, or non-exclusive — including the name of each licensee, the territory, and the type of licence

•       Whether each licensee is filing a separate Form 27

 

VI.  Consequences of Non-Compliance

Non-filing or delayed filing of Form 27 carries the following consequences:

•       Imposition of a monetary penalty under Section 122 of the Patents Act, 1970 as amended by the Jan Vishwas Act, 2023 of up to INR 1,00,000 (approximately USD 1,200), with a continuing failure attracting a further penalty of INR 1,000 (approximately USD 12) for each day of continued default

•       Where the statement furnished is false — whether knowingly or without believing it to be true — an enhanced penalty of 0.5% of total turnover or INR 5,00,00,000 (approximately USD 60,000), whichever is lesser, becomes payable

•       Delay cannot be condoned by filing a petition under Rule 137(2), which expressly bars condonation of delay in Form 27 filings

•       Where the filing deadline expired before the commencement of the 2024 Amendment Rules, it is not possible to file Form 27 at all for those periods — the obligation is extinguished with no remedy

•       Non-working or inadequate working disclosures can provide the factual basis for a compulsory licence application under Section 84 by third parties

 

Practitioner's Note:  The prohibition on delay condonation under Rule 137(2) makes Form 27 unique among patent filings. Unlike missed renewal fees or response deadlines, there is no safety net. Practitioners must proactively diarise Form 27 deadlines for every client's patent portfolio and initiate the information-gathering process well before the base deadline — ideally at least three months in advance.

 

VII.  Extension of the Filing Deadline

The deadline for filing Form 27 may be extended in two stages:

•       First stage — Rule 131(2) read with Form 4: An extension of up to three months may be obtained by filing Form 4 along with the prescribed fee, before the expiry of the base deadline. For most patents granted before FY 2023-24, this moves the outer date from 30 September 2026 to 31 December 2026.

•       Second stage — Rule 138: A further extension of up to six months may be obtained by way of a request under Rule 138 along with the prescribed fee and reasons for delay. This extends the outer date to 30 June 2027 for the current reporting block.

•       Important caveat: If the three-month extension under Rule 131(2) is not first availed of, the outer limit available under Rule 138 is restricted to 31 March of the relevant year — not 30 June. Beyond these stages, no further extension is available, and delay cannot be condoned under Rule 137.

 

VIII.  Professional Fees and Filing Costs

While Form 27 itself does not attract a separate Government filing fee where the statement is filed within the base deadline, patentees and licensees should plan for the professional fee payable to their patent agent / attorney for preparation, review and filing of the statement. 

Government Fee / Additional Service Fee  NIL — provided the statement is filed within the base deadline. Extension fees under Rule 131(2) (Form 4) and / or Rule 138 will additionally apply if the filing is delayed beyond the base deadline.

A few practical notes on cost: the per-statement basis applies even where a single Form 27 is filed jointly for multiple related patents (in line with Section 146(2) read with Rule 131(1)) — the fee is not multiplied by the number of patents clubbed. Where the deadline is missed and an extension under Rule 131(2) or Rule 138 becomes necessary, the prescribed Government extension fees will apply over and above the professional fee, and these increase progressively with the length of delay. Out-of-pocket expenses such as notarisation, courier and translation, where required, are charged at actuals.

 

Set against the penalty exposure outlined in Section VI — up to INR 1,00,000, with INR 1,000 per day of continuing default and an enhanced penalty of up to INR 5,00,00,000 / 0.5% of turnover for false statements — timely filing through a registered patent agent remains, by a wide margin, the most cost-effective course of action.

 

IX.  Practical Compliance Checklist for Patentees and Licensees

To ensure timely and complete compliance, patentees and licensees should take the following steps no later than three months before the applicable deadline:

•       Identify all granted Indian patents and determine the applicable three-year reporting block for each

•       Confirm the role in which the statement is being filed — patentee or licensee — and obtain appropriate authorisation

•       Audit the commercial working history for the reporting period: gather sales data, production figures, import records, and licensing agreements

•       Where the invention has not been worked, document the reasons clearly and in sufficient detail

•       Gather details of all licences granted or sub-licences executed during the reporting period

•       Where multiple related patents are held by the same patentee, confirm whether a consolidated filing is appropriate

•       Verify whether any co-patentees or licensees are filing separate statements for the same patent

•       Engage a registered patent agent or attorney at least 60 days before the deadline to prepare and review the draft Form 27 before submission

 

X.  Conclusion

Form 27 is one of the most frequently overlooked yet consequential obligations in Indian patent practice. The shift to a triennial filing cycle under the 2024 Amendment Rules has simplified the calendar but has also concentrated the compliance burden into a single, non-extendable event with limited relief if missed. For most patentees and licensees holding patents granted before the financial year 2023-24, the immediate deadline is 30 September 2026 — with a possible extension to 31 December 2026 under Rule 131(2) and a final outer limit of 30 June 2027 under Rule 138.

Practitioners are strongly advised to commence the information-gathering process from clients immediately. The absence of any condonation mechanism under Rule 137(2) means that a missed Form 27 deadline is an irrecoverable compliance failure. Proactive engagement, early diarising, and structured client communication are the only effective safeguards.