A compulsory licence is a legal permission given by a government to use a patented product or process without the consent of the patent holder. It allows someone else to manufacture or sell the invention during the patent term.
This is usually granted in situations where the patented invention is not made available to the public at a reasonable price, or if it is not being produced in sufficient quantities. The aim is to balance public interest and patent rights.
In India, Section 84 of the Indian Patent Act, 1970 governs the issue of compulsory licences. A person can apply for such a licence after three years from the date of the patent grant. The main grounds include:
- The product is not available to the public at an affordable price.
- The invention is not worked in India.
- The reasonable requirements of the public are not being met.
A landmark example is the Natco Pharma vs. Bayer case. In 2012, India’s patent office allowed Natco to produce a generic version of Bayer’s cancer drug, Nexavar, making it available at a much lower price.
Compulsory licences are especially useful in public health emergencies, like access to life-saving medicines or vaccines. However, fair compensation must still be paid to the original patent holder.
In conclusion, a compulsory licence ensures that patents do not become tools for monopoly, and that innovation serves public good. It is an important part of the intellectual property rights (IPR) framework in developing countries like India.
