The Statutory Framework
An application for compulsory licence under Section 84 may be made on one or more of the following grounds: that the reasonable requirements of the public with respect to the patented invention have not been satisfied; that the patented invention is not available to the public at a reasonably affordable price; or that the patented invention is not being worked in the territory of India.
Who May Apply
Notably, the provision is not limited to third parties with no connection to the patent — even an existing licensee under the patent may apply for a compulsory licence if it considers the terms of its existing licence do not satisfy the statutory grounds.
Broader Policy Context
Compulsory licensing sits within a broader public-interest framework in Indian patent law, particularly for pharmaceuticals. This is reinforced by parallel regulatory efforts — including government initiatives aimed at preventing generic manufacturers from obtaining marketing approval to sell patented drugs in India without authorisation — reflecting the tension Indian policy continually navigates between incentivising patented innovation and ensuring public access to essential goods, especially medicines.
Practical Implications
- Patentees should actively monitor whether their invention is being adequately worked in India and made available at a reasonable price, since failure on either ground can expose the patent to a compulsory licensing application after the three-year window opens.
- Existing licensees dissatisfied with their commercial terms have a statutory avenue to seek a compulsory licence in appropriate cases, rather than being limited to renegotiating with the patentee directly.
- This remains one of the most consequential — if sparingly used — checks on patent exclusivity in Indian law, with real significance for pharmaceutical and public-health-sensitive technologies.