Manual 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.
A patent is a monopoly granted so that the invention is worked in India. Paragraph 11.05 and paragraph 14.01 of the Manual set out the principles of working, the Controller's power to call for information and the duty to file Form 27. The Manual's filing cycle was overtaken in 2024, so this article separates what it says from what the rule now requires.
The Manual is the Patent Office's guidance and does not have the force of law; the Patents Act, 1970 and the Patents Rules, 2003 as now in force prevail. The Office revises its manuals, so check the current version on ipindia.gov.in.
Every patentee and every licensee must furnish a statement of working in Form 27, and the Controller may call for information at any time. The Manual says the statement is due for every calendar year; the Rules as now in force, after the 2024 amendment, require it once for every period of three financial years, and the Rules prevail. The Manual's consequence line for default also predates the Jan Vishwas Act, 2023.
The principles of working (14.01)
Paragraph 14.01 restates the general principles of section 83. In the Manual's words, adapted, they run as follows:
- Patents are granted to encourage invention and to secure that the invention is worked in India on a commercial scale, to the fullest extent reasonably practicable, without undue delay.
- They are not granted merely so that the patentee can enjoy a monopoly over importing the patented article.
- Protection should promote technological innovation and the transfer and dissemination of technology, with a balance of rights and obligations.
- Patents should not impede public health and nutrition and should serve public interest in sectors of vital importance; they do not stop the Central Government from taking measures to protect public health.
- Patent rights should not be abused, nor used for practices that unreasonably restrain trade or hinder international transfer of technology.
- The benefit of the invention should be available at reasonably affordable prices.
These principles matter beyond Form 27, since they are the background to compulsory licensing; see the compulsory licence procedure.
The duty to furnish information (11.05)
The Manual says the Controller may call for periodical statements on the extent of commercial working in India, as specified in a notice, at any time while the patent is in force. A patentee or licensee furnishes the information within two months of the notice or such further time as the Controller allows. The Manual then says that the patentee and every licensee furnish a statement in Form 27 for every calendar year, within three months of the end of the year. The legal basis is section 146 and rule 131(2).
What has changed in 2024
The calendar-year cycle in the Manual is not the law as now in force. The Patents (Amendment) Rules, 2024 substituted rule 131(2). As the live rule post sets out:
| Point | Manual (2019) | Rule 131 as now in force |
|---|---|---|
| Who files | Patentee and every licensee | Patentee and every licensee (exclusive or otherwise) |
| How often | Every calendar year | Once for every period of three financial years |
| First period | Not applicable | Starts with the financial year after the year of grant |
| Deadline | Within three months of the end of the year | Within six months of the end of each such period |
| Late filing | Not addressed | Controller may condone delay or extend time up to three months on Form 4 |
| Form | Form 27 | Form 27, substituted in 2024 |
The Act and Rules as now in force prevail; read the rule 131 article for the exact words and the fee position, and how to file Form 27 for the practical steps. Our short note on Form 27 is a background summary.
To check which cycle applies to your patent and to prepare the statement from licensee and sales records, see our patent renewal service.
Default and the penalty position
Chapter 17 of the Manual, which this series does not follow, attaches an imprisonment or fine consequence to failure or false statement; those terms predate the Jan Vishwas (Amendment of Provisions) Act, 2023 and are not the law now. Penalties under the Act have been replaced by adjudicated penalties from 1 August 2024; see sections 124A and 124B. No penalty is stated in this article. The practical point is simple: file the statement, and keep a record of how it was verified.
What the statement is for
In practice, Form 27 is the Office's window on whether the monopoly is being used. The Controller may publish information received, and third parties use it when they consider a compulsory licence application. A statement should therefore be consistent with the facts in the patentee's own records, in each licensee's records, and with any earlier statement. The Manual does not prescribe the fields of the Form; use the current Form from the Office and the Second Schedule article.
Checklist table
| Question | What the patentee or licensee shows | Reference |
|---|---|---|
| Are we a patentee or a licensee? | Each files; a joint patent can be filed jointly | Rule 131(1) |
| Which period are we in? | The block of three financial years after the year of grant | Rule 131(2) as amended |
| Has the Controller called for information? | A reply within the time given in the notice | Manual 11.05, section 146 |
| Is the statement verified? | Verification by patentee, licensee or authorised agent | Rule 131(1) |
| Are we late? | A Form 4 request within the up to three-month extension | Rule 131(2) proviso |
A worked example
Helio Pumps Pvt Ltd holds a patent on a solar pump controller and has granted a non-exclusive licence to a manufacturer. Following the Manual, it has been filing every calendar year. After 2024 it checks rule 131(2), identifies the three-financial-year block that applies to its patent, and prepares one statement for the block, with the licensee filing its own. The statement reflects the units made in India, those imported if any, and the licence, taken from the books of both companies. If a notice from the Controller arrives under section 146(1), Helio replies within the time the notice gives.
Common lapses
- Continuing the calendar-year cycle without checking rule 131(2).
- The patentee filing and the licensee assuming it need not.
- A statement that does not match the books or earlier filings.
- Missing the deadline and not using the Form 4 route.
- Treating the Manual's penalty line as current.
Need help with Form 27?
Working statements are simple to prepare and costly to get wrong. If you want your Form 27 cycle checked and your statements prepared, speak to our patent renewal team.
Key takeaways
- Both patentees and licensees owe the statement.
- The Manual's calendar-year cycle is overtaken; rule 131(2) as amended in 2024 gives a three-financial-year block.
- The Controller can also call for information by notice at any time.
- Delay can be condoned or time extended up to three months on Form 4.
- Penalties are now adjudicated; do not rely on the Manual's imprisonment line.
Read next
- Rule 131: statement of working in Form 27
- Chapter 11: renewal and restoration
- Chapter 14: compulsory licence under section 84
- Form 27: annual working statement
Disclaimer: Based on the manuals and guidelines published by the Office of the Controller General of Patents, Designs and Trade Marks that are named in the article, as consulted on 4 October 2026. They are guidance and do not have the force of law; the Patents Act, 1970 and the Patents Rules, 2003 as amended (including the 2024 amendment rules) prevail, and the current versions on ipindia.gov.in should be checked. This article is general information, not legal advice; check the official text before acting.