Navigating Patents and Patent Litigation in Malaysia
Patents are a crucial component of intellectual property, safeguarding the inventive efforts of individuals and businesses. In Malaysia, the realm of patents is regulated by a comprehensive legal framework that encompasses laws, regulations, and international agreements. To comprehend the landscape of patents and patent litigation in Malaysia, it is essential to delve into the principal sources of law, the judicial forums involved, the language of proceedings, and the intricacies of infringement and invalidation actions.
1. Principal Sources of Law and Regulation
The foundation of patent law in Malaysia is primarily laid out in the Patents Act of 1983 (PA 1983) and the Patents Regulations of 1986. These statutes, in force since October 1, 1986, form the bedrock of patent regulation within the country. Malaysia operates under the common law system and adheres to the doctrine of judicial precedent (stare decisis), which lends significant weight to past legal decisions.
In addition to domestic laws, Malaysia is an active participant in several international agreements that influence its patent framework:
- Paris Convention for the Protection of Industrial Property (1883): Malaysia became a party to this convention on January 1, 1989, underscoring its commitment to international standards of patent protection.
- WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (1994) (TRIPs): Effective from January 1, 1995, Malaysia's participation in TRIPs reflects its alignment with global trade regulations, emphasizing the importance of intellectual property.
- Patent Cooperation Treaty (1970):Since August 16, 2006, Malaysia has been a signatory to the Patent Cooperation Treaty, streamlining patent filing and management procedures on an international scale.
While these sources coalesce to form Malaysia's patent landscape, the hierarchy of precedence between domestic statutes and international agreements remains somewhat undefined. In the absence of specific guidance in the Constitution, domestic statutes generally take precedence over international law. This principle is firmly rooted in the common law tradition, exemplified by the precedent-setting case of PP v Wah Ah Jee (1919) 2. F.M.S.L.R. 193.
2. Courts and Government Bodies for Patent Enforcement
Patent enforcement in Malaysia primarily takes place in the High Court. To expedite intellectual property (IP) cases, a specialized IP High Court has been established in Kuala Lumpur, dedicated to hearing IP disputes. However, if the defendant resides or conducts business outside Kuala Lumpur, the litigation must occur in the High Court within the defendant's jurisdiction. The Courts of Judicature Act of 1964 confers unlimited jurisdiction on the High Court for handling all civil proceedings.
Notably, judges presiding over IP cases may lack technical or scientific expertise, relying on expert witnesses from both parties to illuminate technical intricacies. When it comes to cross-border issues, the High Court's jurisdiction hinges on factors such as the location of the cause of action, the defendant's residence or business operations, the occurrence of relevant events in Malaysia, and the location of disputed land ownership.
It is worth noting that, even when the court has jurisdiction, it retains discretion in choosing the applicable jurisdiction, employing the principles of forums non conveniens. Factors considered include convenience, witness availability, and the governing law of the transaction, as exemplified in the case of American Express Bank Ltd v Mohamod Toufic Al- Ozeir & Ors [1995] 1 MLJ 160.
3. Simultaneous Handling of Infringement, Invalidity, and Unenforceability Actions
In Malaysia, the courts are amenable to hearing both invalidation and infringement proceedings concurrently. However, the norm is to address invalidation claims before tackling infringement disputes. This approach ensures that the validity of the patent is established or refuted before proceeding to assess allegations of infringement.
4. Representation of Parties
Parties involved in patent litigation in Malaysia must be represented by practising advocates and solicitors who are members of the Malaysian Bar. This requirement ensures that legal professionals with the requisite qualifications and experience represent the interests of the parties involved.
5. Language of Proceedings
Malaysia's national language is Malay, as established by the National Language Act of 1963/67. While proceedings, except for witness testimonies in court, are mandated to be conducted in Malay, there is a degree of flexibility, particularly in IP cases, where technical jargon is prevalent. In patent cases, where the subject matter often involves intricate technical details, the court frequently permits proceedings to be conducted in English, enhancing clarity and precision.
For documents filed with the High Court of Malaysia, Malay is the mandatory language, although English translations are permitted as supplements. In contrast, cause papers for the High Court of Sabah and the High Court of Sarawak must be in English, with Malay translations optional.
6. Consideration of Foreign Court Opinions
Malaysian courts adhere to the doctrine of judicial precedent (stare decisis), which means they are bound by the decisions of higher courts within the country. As a common law jurisdiction and a member of the Commonwealth, Malaysian judges also consider decisions from courts in other Commonwealth countries, including the UK, Singapore, Australia, Hong Kong, and New Zealand, as persuasive authorities.
7. Claimant's Burden in Patent Infringement Claims
In patent infringement claims, the claimant must establish that a product or process falls within the scope of protection defined by the patent and has been exploited without the patentee's consent. The burden of proof lies with the claimant, with the standard of proof being the balance of probabilities.
Malaysian courts apply the purposive construction approach to determine whether a product or process falls within the patent's scope. In cases where an alleged infringing product or process represents a variation of the patented invention, the courts employ the three-stage test known as the Improver questions. These questions assess whether the variant has a material effect on the invention's functioning, whether such variation would have been obvious to a skilled person at the patent's publication date, and whether strict compliance with the primary meaning of the patent's language is essential.
In recent times, the courts have also applied reformulated questions based on the doctrine of equivalents, aligning with international patent law trends.
8. Defenses Available to Alleged Infringers
Alleged infringers can mount various defenses, including arguing the patent's invalidity on multiple grounds:
- Not an invention.
- Not patentable.
- Contrary to public policy.
- Not new.
- Lacking inventive step.
- Not industrially applicable.
- Non-compliance with patent specifications.
- Absence of necessary drawings.
- Lack of entitlement to patent rights.
Additionally, special defenses such as time-barred actions, non-obtained patented processes, exhaustion of patent rights, private acts for non-commercial purposes or scientific research, acts involving foreign vessels or vehicles, post-lapse acts, compulsory licensing, and government-authorized acts can be invoked.
9. Grounds for Patent Invalidation
Patent invalidation proceedings can be initiated in the High Court, with the same judge handling infringement cases when applicable. Grounds for invalidation include claims that the patent is not an invention, not patentable, contrary to public policy, not new, lacks an inventive step, is not industrially applicable, does not comply with patent regulations, or lacks necessary drawings.
Furthermore, opposition proceedings against a patent can be initiated by any interested party before the Registrar of Patents. These opposition proceedings, governed by the Patents (Amendment) Act of 2022, are currently not in force.
In conclusion, Malaysia's patent landscape is shaped by a robust legal framework, international agreements, and a commitment to safeguarding innovation. Understanding the principal sources of law, the legal forums, the language of proceedings, and the intricacies of infringement and invalidation actions is crucial for businesses and individuals seeking to protect their intellectual property in the Malaysian context.