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Himanshu Kulshreshtha
Himanshu KulshreshthaElite Author
Asked: March 16, 20242024-03-16T12:07:18+05:30 2024-03-16T12:07:18+05:30In: Patent Practice

Mention the pre requisites for obtaining compulsory license.

Mention the pre requisites for obtaining compulsory license.

MIR-023
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    1. Himanshu Kulshreshtha Elite Author
      2024-03-16T12:07:44+05:30Added an answer on March 16, 2024 at 12:07 pm

      Obtaining a compulsory license for a patent in India involves fulfilling certain prerequisites and meeting specific conditions outlined in the Indian Patent Act, 1970. A compulsory license allows a third party to use a patented invention without the consent of the patent holder under certain circumstances, primarily to address issues related to access to essential medicines, public health, or national emergencies. Here are the prerequisites for obtaining a compulsory license in India:

      1. Eligibility Criteria:
        To be eligible for a compulsory license, the applicant must demonstrate that they have made efforts to obtain a voluntary license from the patent holder on reasonable commercial terms and conditions. The Indian Patent Act requires the applicant to submit evidence of these efforts to the Controller of Patents, along with the compulsory license application.

      2. National Emergency or Circumstances of Extreme Urgency:
        Compulsory licenses may be granted in cases of national emergency or circumstances of extreme urgency, such as public health crises, epidemics, or emergencies affecting public safety or national security. The applicant must provide evidence of the existence of such emergency or urgency to justify the grant of a compulsory license.

      3. Failure to Work the Invention:
        If the patented invention is not worked or adequately utilized in India within a reasonable period after the grant of the patent, the Controller of Patents may consider granting a compulsory license. The Indian Patent Act defines "working of the invention" as the manufacturing, importing, or marketing of the patented product in India on a commercial scale to meet the reasonable requirements of the public.

      4. Anti-competitive Practices or Abuse of Patent Rights:
        Compulsory licenses may be granted if the patent holder engages in anti-competitive practices or abuses their patent rights, such as imposing unreasonable conditions or prices, engaging in restrictive trade practices, or preventing or limiting competition in the market. The applicant must provide evidence of such practices or abuses to support their compulsory license application.

      5. Public Interest and Access to Essential Medicines:
        Compulsory licenses may be granted to promote the public interest, particularly to ensure access to essential medicines, healthcare, or other vital technologies. The Indian Patent Act recognizes the importance of balancing patent rights with public health concerns and encourages the use of compulsory licenses to address access barriers and ensure affordability and availability of essential medicines.

      6. Notification to Patent Holder:
        Before granting a compulsory license, the Controller of Patents must notify the patent holder and provide them with an opportunity to be heard. The patent holder may oppose the grant of a compulsory license by presenting arguments and evidence to refute the grounds for the application.

      7. Payment of Reasonable Royalties:
        The applicant for a compulsory license is required to pay the patent holder reasonable royalties or remuneration for the use of the patented invention. The amount of royalties may be determined by negotiation between the parties or by the Controller of Patents based on the circumstances of the case.

      In summary, obtaining a compulsory license in India requires demonstrating eligibility based on efforts to obtain a voluntary license, evidence of national emergency or urgency, failure to work the invention, anti-competitive practices or abuse of patent rights, public interest considerations, notification to the patent holder, and payment of reasonable royalties. Fulfilling these prerequisites is essential for the successful grant of a compulsory license to address access barriers and promote public health, innovation, and competition in India.

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