The Dynamics Of Compulsory Licensing In Indian Patent Law
- IJLLR Journal
- Sep 22
- 2 min read
Sohini Seal, Techno India University
ABSTRACT
Patents are granted to inventors as a form of exclusive right, rewarding their ingenuity and investment while encouraging technological progress. However, this exclusivity is not without limitations, as it must coexist with the broader objective of ensuring that innovation ultimately serves public welfare. When patent monopolies restrict access to essential goods, medicines, or technologies, compulsory licensing provides a critical safeguard. It allows governments or authorized third parties to use a patented invention without the consent of the patent holder under defined circumstances, ensuring that the interests of society are not overshadowed by commercial considerations.
The basis of compulsory licensing is firmly rooted in international intellectual property law, particularly the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which recognizes the need for flexibility in situations such as national emergencies or public health crises. The Doha Declaration on TRIPS and Public Health reaffirmed this principle, emphasizing that the protection of public health and equitable access to medicines must take precedence over patent exclusivity.
In India, the Patents Act, 1970 incorporates these principles within its statutory framework, most notably through Sections 84 to 92. These provisions empower the government to issue compulsory licenses in cases where patented products are priced excessively, inadequately supplied, or withheld from the market in a manner detrimental to public interest. The Indian pharmaceutical industry has demonstrated the effective use of compulsory licensing, producing affordable generics for diseases such as cancer and HIV/AIDS, thereby cementing India’s role as the “pharmacy of the developing world.”
Although critics caution that frequent recourse to compulsory licensing may discourage investment in research and innovation, safeguards such as fair remuneration to patent holders mitigate this concern. Supporters argue that the mechanism promotes a healthier competitive environment and prevents patent abuse, thereby maintaining the delicate balance between protecting intellectual property rights and ensuring accessibility.
Compulsory licensing thus emerges as a vital instrument that harmonizes innovation with social justice. By preventing intellectual property from becoming a barrier to essential goods and services, it reinforces the foundational principle that the rewards of innovation must extend beyond private profit and contribute meaningfully to the collective welfare of society.
Keywords: Patents, Compulsory Licensing, Intellectual Property Rights, TRIPS Agreement, Indian Patent Act
