- Concept: Compulsory licensing means a government allows someone else to produce a patented product or process without the patent owner’s consent.
- Under TRIPS:
- TRIPS allows member countries to enact provisions for granting Compulsory Licenses.
- This is to prevent the abuse of patent rights.
- Member countries have freedom to determine the grounds for granting Compulsory Licenses.
- In India (Patent Act 1970):
- Section 84: Manufacturer can approach government if patent owner fails to supply or drug is not affordable, after voluntary negotiation fails.
- Section 92: Government can issue notification for compulsory licenses in national emergency or extreme urgency.
- The compulsory license holder must pay royalty to the patent owner.