The Jan Vishwas (Amendment of Provisions) Act, 2026 marks another significant step in the Government of India’s policy of decriminalisation and promotion of trust-based governance. Among the numerous legislative changes introduced by the Act, the amendment to the Patents Act, 1970 concerning contraventions of foreign filing licence (FFL) requirements under Section 39 is particularly noteworthy for inventors, patent applicants, multinational corporations, universities, and research institutions.
The amendment addresses a longstanding concern of the patent ecosystem in India, namely, the severe criminal consequences that could theoretically arise from violations of India’s foreign filing licence requirements, even where no national security interests were implicated. By introducing a statutory safeguard in cases where the Central Government forms the opinion that the invention was not relevant to defence purposes or atomic energy, the Jan Vishwas Act brings much-needed proportionality and flexibility to the patent regime.
Understanding India’s Foreign Filing Licence Requirement
Section 39 of the Patents Act requires a person resident in India to obtain prior permission from the Indian Patent Office before filing a patent application outside India, unless a patent application has first been filed in India; and a period of six weeks has elapsed without any secrecy direction being issued. The requirement under Section 39 serves a substantive national-security purpose by enabling the Government to examine whether an invention relates to defence technology or atomic energy before it is disclosed abroad. Failure to comply with Section 39 could expose applicants to consequences under Section 118 of the Patents Act.
Position Before the Jan Vishwas Amendment
Prior to the latest amendment, Section 118 prescribed criminal punishment for contravention of secrecy-related provisions, including Section 39. A violation could attract imprisonment for a term that could extend to two years, or fine, or both.
The provision operated irrespective of whether the invention had any connection with defence or atomic energy, and irrespective of whether the contravention resulted from a deliberate act or an inadvertent compliance failure. This created practical difficulties in an era of global research collaborations. Patent filings are often coordinated by multinational corporations, foreign patent counsel, universities, and research institutions operating across multiple jurisdictions. In many cases, foreign filings are prepared and filed without realizing that one or more inventors are residents of India and therefore subject to Section 39. Consequently, applicants and inventors could face criminal exposure even where the invention was a routine commercial innovation entirely unrelated to national security concerns.
The Jan Vishwas Reform
Recognising these realities, the Jan Vishwas Act, 2026 inserted a significant proviso to Section 118 of the Patents Act: In cases involving contravention of Section 39, the punishment under Section 118 shall not apply if, in the opinion of the Central Government, the invention was not relevant to defence purposes or atomic energy at the time of such contravention. This amendment came into force on 1 June 2026.
What the Amendment Does Not Change
While the amendment provides important relief from criminal punishment under Section 118 in specified circumstances, it does not alter the underlying foreign filing licence requirement under Section 39 or the consequences flowing from non-compliance. Section 40 of the Patents Act continues to apply, and a patent application filed outside India in contravention of Section 39 may result in the corresponding Indian patent application being treated as abandoned. Where a patent has already been granted, such non-compliance may also expose the patent to revocation proceedings. Accordingly, the amendment should not be viewed as a relaxation of the foreign filing licence requirement itself. Rather, it introduces a limited safeguard against criminal punishment where the Central Government is satisfied that the invention was not relevant to defence purposes or atomic energy at the time of the contravention. Patent applicants should therefore continue to maintain robust compliance procedures and obtain foreign filing permission wherever required. Contravention of Section 39 also remains relevant under the revocation provisions of the Patents Act.
Key Benefits of this Amendment
- Protection Against Criminal Liability in Appropriate Cases
The most significant benefit is that punishment under Section 118 is no longer an inevitable consequence of every contravention of Section 39. Where the Central Government forms the opinion that the invention was not relevant to defence purposes or atomic energy at the time of the contravention, the punishment under Section 118 will not apply. This provides important relief in cases where non-compliance does not implicate the national security concerns underlying Section 39.
- Alignment with Global Innovation Practices
Modern innovation frequently occurs through international collaborations involving: multinational companies; cross-border research teams; joint development programs; universities; and start-ups with global investors. The amendment acknowledges these realities and reduces the legal risks associated with Section 39 non-compliance in circumstances where the invention is ultimately considered unrelated to defence purposes or atomic energy.
- Restoration of Proportionality
The earlier framework exposed applicants to criminal punishment even where the invention had no apparent connection with defence or atomic energy. The amendment introduces a more calibrated approach by empowering the Central Government to exclude the application of Section 118 in cases where it is satisfied that the invention was not relevant to defence purposes or atomic energy at the time of the contravention. As a result, punishment is no longer an automatic consequence in every case of non-compliance with Section 39.
- Improved Ease of Doing Business
The reform is consistent with the broader objective of the Jan Vishwas Act to reduce undue criminalisation and facilitate ease of doing business in India. Inventors and businesses can operate with greater confidence that contraventions involving inventions unrelated to defence purposes or atomic energy may not necessarily result in criminal punishment under Section 118, subject to the Central Government forming the requisite opinion.
Practical Implications for Patent Applicants
While the amendment provides valuable relief, it does not abolish the requirement to obtain an FFL. Applicants should continue to: assess inventor and applicant residency at the outset; implement foreign filing licence compliance checks for global filing programmes; obtain prior permission where required; document Section 39 assessments and internal decision-making processes; maintain records that may assist in demonstrating the absence of defence or atomic energy relevance; and obtain prompt legal advice and take corrective steps if a potential breach is identified. The amendment serves as a safety valve rather than a replacement for compliance.
Conclusion
The Jan Vishwas (Amendment of Provisions) Act, 2026 introduces an important compliance-related reform by providing relief from punishment under Section 118 in cases where the Central Government concludes that the invention was not relevant to defence purposes or atomic energy at the time of the contravention. Through the new proviso to Section 118, Parliament has recognised that contraventions involving inventions unrelated to defence purposes or atomic energy may warrant a different treatment from cases that potentially engage the national interests underlying Section 39. The amendment strikes a sensible balance between preserving the national security objectives underlying Section 39 and fostering a modern, innovation-friendly patent system. For inventors, start-ups, universities and multinational applicants alike, the reform represents a significant reduction in legal risk and a welcome move toward a more pragmatic and business-friendly intellectual property framework.
Author: Manisha Singh and Joginder Singh