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Section 120 of the Patents Act, 1970: Unauthorised Claim of Patent Rights

s.120: whoever falsely represents that an article sold by him is patented in India or is the subject of an application for a patent in India is liable to penalty up to ten lakh...

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Published
October 1, 2026
Last updated
Oct 7, 2026
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8 min
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Last updated: October 2026Verified against: Government sources

Section 120 deals with a seller who falsely represents that an article he sells is patented in India or is the subject of a patent application in India. Since 1 August 2024 the consequence is a penalty, not imprisonment: up to ten lakh rupees, and for a continuing claim a further penalty of one thousand rupees for every day after the first during which the claim continues. Two Explanations say what counts as a representation. If you mark products as patented or patent pending and want your labels checked, our legal consultation team can help.

Amendments to know

The words from "he shall be liable to penalty" to the end of the operative part were substituted by the Jan Vishwas (Amendment of Provisions) Act, 2023 (18 of 2023), with effect from 1 August 2024. The printed text does not reproduce the earlier wording, and this article does not rely on it. Section 121 (wrongful use of the words "patent office") was omitted by the same Act with effect from 1 August 2024, so it no longer forms part of the Act. The Tribunals Reforms Act, 2021 did not touch section 120. The Jan Vishwas (Amendment of Provisions) Act, 2026 changes the Patents Act in three places (the Chapter XX heading, section 118 and section 119) and does not mention section 120.

The rule

"If any person falsely represents that any article sold by him is patented in India or is the subject of an application for a patent in India, he shall be liable to penalty which may extend to ten lakh rupees, and in case of the continuing claim, a further penalty of one thousand rupees for every day after the first during which such claim continues."

The parts of the sentence are:

ElementWhat the text says
Who"any person" who sells an article
ActFalsely represents that the article is patented in India, or the subject of a patent application in India
Consequence"liable to penalty which may extend to ten lakh rupees"
Continuing claim"a further penalty of one thousand rupees for every day after the first during which such claim continues"

The words "may extend to" make ten lakh rupees the ceiling, not a fixed sum. The daily amount is stated as "one thousand rupees", with the first day excluded: the further penalty runs "for every day after the first". The section does not say who fixes the amount; the adjudication scheme in sections 124A and 124B, explained in our article on those sections, applies to penalties under the Act in the manner prescribed.

The test is falsity. A claim that is true, such as marking a patented article with the word "patented" while the patent is in force in India, does not fall within the section. The text does not say whether the claim must be made knowingly.

Explanation 1: what counts as a representation

A person is deemed to represent:

  • (a) that an article is patented in India, if there is stamped, engraved or impressed on, or otherwise applied to, the article the word "patent" or "patented" or some other word expressing or implying that a patent for the article has been obtained in India;
  • (b) that an article is the subject of an application for a patent in India, if there are stamped, engraved or impressed on, or otherwise applied to, the article the words "patent applied for", "patent pending", or some other words implying that an application for a patent for the article has been made in India.

So marking is the test: the words are on the article itself. Whether a statement on packaging, in advertising or in an online listing is "otherwise applied to" the article is not addressed by the words quoted; ask for advice if your use is outside the article itself.

Explanation 2: the words refer to India

The use of "patent", "patented", "patent applied for", "patent pending" or other words expressing or implying that an article is patented or that a patent has been applied for "shall be deemed to refer to a patent in force in India, or to a pending application for a patent in India, as the case may be unless there is an accompanying indication that the patent has been obtained or applied for in any country outside India."

In practice, a product sold in India marked only "patented" is read as claiming an Indian patent. If the patent is foreign, the mark should carry an indication, such as the country, to take the claim out of Explanation 2. The text does not say how that indication must look.

Section 121 and the old position

Section 121, "Wrongful use of words 'patent office'", is shown in the text as omitted by the 2023 Act with effect from 1 August 2024. The article does not describe its former content because the printed Act no longer carries it.

Illustration (invented)

Nirmal Home Appliances Pvt. Ltd. sells a water purifier labelled "Patented" on the body. It has no patent in India; its Singapore partner holds a patent there. Under Explanation 2 the word is deemed to refer to a patent in force in India, since no indication of a foreign country accompanies it. The claim is false. Nirmal is liable to a penalty which may extend to ten lakh rupees. Suppose the claim continues for ten days in all. The further penalty is one thousand rupees for every day after the first, so for nine days it can be up to nine thousand rupees, in addition to the penalty for the claim itself.

In a second case, Zephyr Gadgets Pvt. Ltd. files an application and marks its product "Patent Pending" the same week. The application is pending in India, so the representation is true, and section 120 does not apply. If Zephyr's application were later refused and the mark remained, the claim would no longer be true.

What the section does not say

  • It does not say who may start the proceeding. The adjudication in section 124A is by an officer authorised by the Controller.
  • It does not say whether an innocent mistake is excused.
  • It does not say how the amount within the ceiling is chosen.
  • It does not give a period within which the label must be corrected.
  • It does not deal with trademarks, which are covered by other laws.

The article on sections 109 to 111 separately explains that a bare "patented" mark without the patent number does not prove a buyer's awareness of a patent for the purpose of damages. Section 120 is about the seller's claim, not the buyer's knowledge.

Need help reviewing product marking?

Labels, packaging and listings that say "patented" or "patent pending" are worth checking before launch. Our legal consultation team can compare your claims with the status of your Indian filings and advise on wording and corrections.

Key takeaways

  • Section 120 penalises a false representation that an article sold is patented in India or the subject of a patent application in India.
  • The penalty may extend to ten lakh rupees, plus one thousand rupees for every day after the first for a continuing claim.
  • Marking the article with "patent", "patented", "patent applied for" or "patent pending" is a representation.
  • Such words are deemed to refer to India unless an accompanying indication points to a country outside India.
  • Section 121 stands omitted from 1 August 2024.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Section 120

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What is the penalty under section 120?

Up to ten lakh rupees, and for a continuing claim a further one thousand rupees for every day after the first during which it continues.

Is imprisonment still possible under section 120?

Not in the printed text, which provides a liability to penalty since the 2023 Act, effective 1 August 2024.

Compliance is cheapest on the day it falls due and gets more expensive every day after.

— TaxClue Compliance Desk

Section 120: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Up to ten lakh rupees, and for a continuing claim a further one thousand rupees for every day after the first during which it continues.

Not in the printed text, which provides a liability to penalty since the 2023 Act, effective 1 August 2024.

Yes, Explanation 1(b) names it. It is false if no application has been made in India.

Explanation 2 deems the word to refer to India unless an accompanying indication shows the patent is from a country outside India.

It was omitted by the Jan Vishwas (Amendment of Provisions) Act, 2023 with effect from 1 August 2024.

Under section 124A the Controller may authorise an officer referred to in section 73 as adjudicating officer, after a reasonable opportunity of being heard.