According to Section 5 of the Act, on receipt of an application for registration, the Department shall conduct all investigation or study to ascertain two things:
a. Whether the patent claimed in the application is a new invention or not
b. Whether it is useful to the general public or not.
According to Section 6 of the Act, the Department shall not register any patent under this Act in the following circumstances:
a. In case the patent is already registered in the name of any other person, or
b. In case the applicant him/herself is not the inventor of the patent sought to be so registered nor has acquired rights over it from the original inventor, or
c. In case the patent sought to be registered is likely to adversely affect the public health, conduct or morality or the national interest, or
d. In case it is contradictory to the prevailing laws (the registration of the patent) will constitute a contravention of existing Nepal law.
On receipt of the application submitted by the applicant, the Department shall, on the advice of experts if so considered necessary, conduct all investigations to determine whether the patent application meets the statutory requirements or not. The Examination is conducted in two ways:
Formality Examination
Formality Examination is made to determine whether the application fulfills the necessary procedural and formal requirements. The Department shall invite the applicant to correct where necessary documents are missing.
Substantive Examination
Substantive Examination is carried out by the examiners to assess the patentability of the invention to ascertain whether:
• The claimed invention is the patentable subject matter or not.
• The claimed invention is novel, an invention is new if it is not anticipated by the prior art.
It possesses inventive steps. The invention possesses an inventive step if there is a clearly identifiable difference between the state of the art and the claimed invention.
• It can be applied for practical purposes for its utility or possesses industrial applicability.
• The application must disclose the invention in a manner sufficiently clear for the invention to be carried out by a person skilled in the art.
In case the Department concludes that the claimed invention should not be registered in the circumstances that it does not satisfy the statutory requirements, it shall give notice to the applicant to the effect that the patent application cannot be registered.