Compulsory licensing (patents)

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1. COMPULSORY LICENCE PRESENTED BY: KUMAR SAURAV PRASAD BBA (4 TH SEMM)

2. WHAT IS PATENT ? Patent , is a legal document granted by the government giving an inventor the exclusive right to make, use, and sell an invention for a specified number of years. Patents are also available for significant improvements on previously invented items.

3. COMPULSORY LICENSE LICENSE: A  license is an official permission or permit to do, use, or own something. A compulsory license provides that the owner of a  patent or copyright  licenses the use of their rights against payment either set by law or determined through some form of adjudication or arbitration

4. COMPULSORY LICENSING OF PATENT IN INDIA Section 84 and 92 of the Indian Patent Act,1970 pertains to the grant of compulsory licenses. Compulsory licenses are granted in order to : Prevent the abuse of patent as a monopoly. Make a way for commercial exploitation of the patented invention by an interested person. Address the public health concern in India.

5. Procedure for grant of Compulsory License under IPA, 1970 Section 84 of the Indian Patent Act allows any interested person after 3 years (expiry) of grant of patent even though if he is licensee under the patent - Reasonable requirement of public with respect to patented invention, have not been satisfied. Patented invention is not available to the public at reasonable price. The Invention is not worked commercially to the fullest extent in the territory of India.

6. While granting a compulsory license the controller has to take into account Nature of the invention Time elapsed Ability of the applicant to work the invention Applicant’s effort for obtaining a license on reasonable terms

7. Revocation of Patents by Controller for Non-Working According to Section 85 of Indian Patent Act, a patent can be revoked, if the applicant to whom the compulsory license is granted does not work the patented invention in the territory of India within two years from the grant of the compulsory license and further, the public requirements has not been met at affordable price.

8. Terms and Conditions of Compulsory License Royalty and other remuneration, if any reserved to the patentee or other person beneficially entitled to the patent. Patented article should be worked to fullest extent by a person to whom the license is granted. Patented article should be made available to the public at reasonably affordable prices. License granted is non-exclusive license. The right of licensee is non-assignable. License is for the balance term of patent unless a shorter term is consistent with the public interest .

9. Licensing of Related Patents Section 94 of the Act deals with termination of compulsory license, It provides that on an application made by the patentee or any other person deriving title or interest in the patent, a compulsory license granted under section 84 may be terminated by the Controller, if and when the circumstances that gave rise to the grant thereof no longer exist and such circumstances are unlikely to recur.

10. Use of Compulsory License by the Government The government undertaking may acquire a patented invention for its own use, make, exercise or vend on payment of adequate remuneration or compensation  (Sections 99 to 103 ). T he Central Government may acquire a patented invention for a public purpose . The patent holder is still the owner of the patented invention even after the issuance of compulsory license for Government use. In the case of acquisition of the patented invention by the Government for public purpose, the patent owner loses all rights in the patent to the Government.

11. India's first compulsory license   The country's first compulsory license has been granted by the Indian Patent Office to Hyderabad-based drug-maker Natco . A landmark decision, under the amended Indian Patents Act (2005), allows Natco to make and sell in India, a similar version of Bayer's Nexavar , an advanced kidney cancer drug.