Department of Industrial Policy and Promotion (DIPP)discussion paper on Compulsory Licencing of Patents

The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India, has kick off the issue of compulsory licencing, in a direction of ramifications of policies. In a move to curb excessive monopolistic prices of medicines, DIPP has threw open a draft discussion paper on Compulsory Licencing of Patents.
This seems to be a magnificent tool to curb/ regulate such practices and to make sure the availability of medicines at a competitive prices.
Compulsory Licencing:
The Compulsory Licencing is noting but a Government order to patentee, compelling him to licence his patents to third party on certain terms and conditions. The third party is supposed to pay a royalty for using his patent. The Patent Act provides that a third party can apply for a Compulsory Licence, subject to certain grounds, after a period of three (3) years from the grant of patent to patanee.
It is to be noted that below are the grounds on which third party can apply for Compulsory Licencing:
  1. The prices of the products are excessive;
  2. The products are not suitably quantified to the general public;
  3. The products are not worked in the country; and
  4. The products are not manufactured in the country.
It is of worth noting that number of pharmaceutical patents have been granted since 2006 by the Indian Patent Office and despite of efflux of four (4) years, no Compulsory Licence has been issued so far.
By opening this issue to the public discussion, the DIPP seeks to unearth the cause of this situation.
Curtsy: Gaurav Garg (Company Secretary)