Compulsory Licence for Patents in India

Patents are granted to encourage the inventorscommercial activities in India;
to disclose their inventions and also to grant them(ii)      Prejudice to the establishment or
monopolistic right to exploit the invention. Thedevelopment of trade or industry in India in goods
objective of Patent Grant in India is to ensurenot protected by the patent arising from
that the inventions are worked in India on arestrictive conditions imposed by the patentee;
commercial scale and to the fullest extent without(iii)     Non-working of the patent in India on a
any undue delay.commercial scale;
Accordingly, any interested person after expiry of(iv)     Demand for the patented articles being
3 years from grant of patent even though if he ismet by importation from abroad; and
a license under the patent, may make an(v)      Commercial working of the patented
application to the Controller for grant ofinvention in India being hindered or prevented by
compulsory license on the grounds that:import of the patented articles from abroad.
(a)      the reasonable requirements of theGrant of Compulsory license is for the remaining
public with respect to the patented invention haveterm of patent unless a shorter period looks
not been satisfied; andreasonable and required in case to the Controller.
(b)      the patented invention is not availableFurther, it is to be noted that while granting the
to the public at a reasonable price.license the Controller shall take into account the
(c)      the invention is not workednature of invention, time elapsed, ability of
commercially to fullest extent in territory of India.applicant, his efforts for obtaining a license on
The circumstances constituting "failure to meetreasonable terms. While granting a compulsory
the reasonable requirements'' of public in respectlicense reasonable royalty is also paid to the
of a patent are as follows:patentee having regard to nature of Invention, its
(i)       Inadequate manufacture in India orutility, expenses incurred in maintaining patent
failure to grant licenses on reasonable terms withgrant in India and other factors.
in a period of 6 months form applying by theNormally request for grant of Compulsory License
applicant resulting in:is published and Patentee and other interested
(a)      Prejudice to an existing trade orpersons are afforded reasonable opportunity to
industry or its development,defend the grant. But in case of national
(b)      Prejudice to the establishment of aemergency and other urgent condition in public
new trade or industry in India,interest the Controller may first grant the License
(c)      Prejudice to the trade or industry ofand then notify the Patentee and other interested
any person or class of persons,persons.
(d)      Demand for the patented article notUnder special circumstances of medical
being met adequately by local manufacture,emergency supported by notification by foreign
(e)      Failure to develop an export marketcountry in this regard controller may grant
for the patented articles made in India,compulsory license to meet the medical
(f)       Prejudice to the establishment ofemergency in that country.