What is Compulsory License?

Compulsory License allows the company or an individual seeking other’s intellectual property to use it without having to seek the consent of the owner/ the right holder by paying a predetermined fee for the license.

Aspirants can find relevant information related to the Compulsory License for IAS exam in this article.

How many Compulsory Licenses have been issued in India?

Only 1 compulsory license has been issued in India by the Patent Office on March 9, 2012. The license was issued to Natco Pharma for the generic production of Bayer Corporation’s Nexavar, which is a life-saving medicine used for treating Cancer(Liver & Kidney).

What is the fee payment procedure for Compulsory License?

The fee is set by the law or through any arbitration or adjudication process. Copyright law many countries provide for compulsory licensing of copyrighted works for certain uses.

In most of the cases, the fee or royalty to be paid for a work that is copyrighted under the compulsory license is defined by the local law, however, it can be negotiated.

The fee may be determined through negotiations but must contain terms within the boundaries of the compulsory license.

How many industries are under Compulsory Licensing in India?

Only 6 industries fall under the compulsory licensing category in India.

They are listed below:

  1. Distillation and brewing of alcoholic drinks.
  2. Cigars and Cigarettes of tobacco and manufactured tobacco substitutes.
  3. Electronic Aerospace and Defence equipment: all types.
  4. Industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and matches.
  5. Hazardous chemicals.
  6. Drugs and Pharmaceuticals (As per the modified Drug Policy issued in September 1994).

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