Even inventors who hold strong patent portfolios often stumble when they neglect Form 27, the mandatory working statement in India. In a recent IPO circular, patentees were reminded that non-compliance or false disclosures can attract severe penalties. With the 2024 amendments to the Patents Rules, the obligations around Form 27 have shifted, making it imperative for every patentee or licensee to understand the new requirements.
This article guides you through: the legal mandate for Form 27, what’s changed under the 2024 Rules, procedural requirements, content and drafting, consequences of default, and strategic points to watch out for.
Legal Mandate & Rationale
Statutory Basis
Section 146(2) of the Patents Act requires that every patentee and licensee furnish a statement, in the prescribed form, regarding the working of the patented invention on a commercial scale in India.
Rule 131(1) of the Patents Rules prescribes Form 27 as that statement.
The rationale: Indian patent law aims to ensure that patents are not merely monopolies, but contribute to domestic manufacturing, dissemination, and public access. Section 83 states that patents are granted “to encourage inventions and to secure that the inventions are worked in India on a commercial scale… without undue delay.” (This working requirement is a policy backstop, not a strict revocation trigger.)
In practice, Form 27 disclosures serve as:
Prima facie evidence in compulsory license proceedings (non-working is one ground).
Public record to assess whether patented inventions are contributing to Indian industry.
A compliance checkpoint; failure or false statements may attract penalties under Section 122 including fine or imprisonment.
Key Changes Under the 2024 Amendment
The Patents (Amendment) Rules, 2024 (effective 15 March 2024) introduced several important changes to when and what must be disclosed in Form 27.
Old regime (pre-amendment) | New regime (post-amendment) |
Annual filing: Form 27 had to be filed every financial year (or earlier, calendar year). | Filing once every three financial years for each patent, beginning from the financial year following grant. |
Deadline: within 6 months from end of financial year (i.e. by 30 September) | Same deadline applies to each 3-year block: within 6 months after the block ends, i.e. by 30 September. |
Required disclosures: worked / not worked; approximate revenue and/or value; quantum (units) manufactured/imported; country-wise import details; details of licensees/sub-licensees; extent of public requirement met. | Simplified: you need only affirm worked / not worked. If worked, no need to provide quantum or country-wise import detail. If not worked, give reasons (from list or specify). New optional module: indicate whether the patent is open for licensing and provide contact info (if you wish). |
Some clarifications from IPO FAQs:
Patents granted prior to FY 2022-23: if SOW was filed for FY 2022-23 under old rules, the next block’s working statement is due by 30 September 2026.
For patents granted in FY 2022-23, regardless of grant date, the first 3-year block ends in FY 2025-26 (due 30 September 2026).
Patents expiring within a 3-year block: you file for the period during which the patent was active (i.e. truncated block).
Extensions: under Rule 131(2), you may request up to 3 months extension (Form 4). Under Rule 138, additional extension of 6 months.
No condonation of delay under Rule 137 is permitted for Form 27.
Thus, the new regime significantly reduces reporting frequency and data burden, while retaining the statutory importance of the working statement.
Format & Content of Form 27
You can download the latest Form 27 from the IPO site.
Key fields and how to fill
Patentee(s) / Licensee(s) details
Name, address, nationality, patent number(s).
Note: A single Form 27 may cover multiple related patents (if: same patentee(s), and you cannot segregate revenue among them).
Financial Year / 3-year block
State which FY (or block of 3 FYs) the statement pertains to.
Worked / Not Worked
Indicate for each patent whether it is “worked” on a commercial scale (tick) or “not worked”.
If worked
Under revised rules, you do not need to provide detailed quantum or import country breakdowns.
Earlier you had to provide approximate revenue/value, a short explanation (max ~500 words), separately for manufacturing/import.
If not worked
Select one (or more) of the standard reasons:
Patent under development / commercial trial
Review / approval with regulatory authorities
Exploring commercial licensing
Any other - specify
Optionally explain steps taken to work the invention.
Optional licensing declaration
Under the new rules, you may optionally declare that the patent is available for licensing, and provide contact information for interested parties.
Signature, date, authorization
Patentee or authorized licensee (or agent via valid Form 26).
Stamp/ seal, if required by state law.
No official fee is required for Form 27.
Timeline & Deadline
The first working statement is due at the end of the 3-year block starting in the FY immediately after grant.
The deadline is within 6 months following the block’s end, i.e., by 30 September.
Example: If your patent was granted in FY 2023-24, the first block is FY 2024-25, FY 2025-26, FY 2026-27. The statement is due 30 September 2027.
You may request extension (as above) via Form 4 (up to 3 months) and further under Rule 138 (up to 6 months).
But if the due date passed before 15 March 2024 (when the amendment took effect), you may not retrospectively file for that block.
Consequences of Non-Compliance & Risks
Penalty under Section 122: submitting false or misleading information, or failing to comply with the Form 27 requirement, may lead to fines (up to ₹10 lakh) or imprisonment (up to 6 months) or both.
Compulsory license ground: non-working (or inadequate working) is a ground for someone to apply for compulsory license (after 3 years). Form 27 statements are prima facie evidence in such proceedings.
Judicial and commercial leverage: courts may refer to Form 27 disclosures in infringement or injunction cases - a statement of willingness to license may weaken your case for exclusivity.
However:
Non-working does not invalidate the patent per se - it is not an automatic revocation.
The Controller has discretion to examine the sufficiency (i.e. whether “commercial scale,” “reasonably practicable” etc. are met).
If you fail to file but later comply (within extension), you may mitigate penalties depending on Controller’s view.
Strategic Best Practices & Tips
Plan compliance from the start
Build internal systems to monitor working, revenues, manufacturing/import figures, and licensing interest.
Decide early whether the invention will be worked, licensed, or remain dormant (but disclosed).
Use the simplified disclosure to your benefit
Under the new rules, minimal burden exists: you only confirm worked/not worked and supply reasons. Avoid over-disclosure of commercially sensitive data.
Be consistent and truthful
Conflicting statements (e.g. claiming you plan to license, but taking no steps) can be used against you.
If you declare openness to licensing, be prepared to respond to offers or justify your decision.
When multiple patents exist
Use the “related patents” provision to file one consolidated Form 27 rather than multiple separate forms.
Watch for patent expiry blocks
If your patent expires mid-block, file for the period when it was valid.
Don’t miss deadlines - IPO has clarified that condonation is unavailable.
Record the factual basis carefully
Steps taken, trials, regulatory hurdles, commercialization efforts — maintain internal logs to justify your reason if “not worked.”
Agent authorisation
If using an agent to file Form 27, ensure a valid Form 26 (authorization) is in place for that matter.
Monitor IPO FAQs & updates
The IPO periodically issues clarifications (e.g. for patents granted before FY 2022-23) about transition deadlines.
