Patents Act, 1970
(1) For the purposes of this chapter, an invention is said to be used for the purposes of government if it is made, used, exercised or vended for the purposes of the Central Government, a State Government or a government undertaking.
(2) Without prejudice to the generality of the provisions of sub-section (1)-
(a) the importation, by or on behalf of the government, of any invention being a machine, apparatus; or other article covered by a patent granted before the commencement of this Act, for the purpose merely of its own use; and
(b) the importation, by or on behalf of the government, of any invention being a medicine or drug covered by a patent granted before the commencement of this Act-
(i) for the purpose merely of its own use; or
(ii) for the purpose of distribution in any dispensary, hospital or other medical institution maintained by or on behalf of the government or in any other dispensary, hospital or other medical institution which the Central Government may, having regard to the public service which such other dispensary, hospital or medical institution renders, specify in this behalf by notification in the Official Gazette, shall also be deemed, for the purposes of this Chapter, to be use of such invention for the purposes of government.
(3) Nothing contained in this Chapter shall apply in respect of any such importation making or using of any machine, apparatus, or other article or of any such using of any process or of any such importation, using or distribution of any medicine or drug, as may be made by virtue of one or more of the conditions specified in section 47.