Compulsory Licensing:
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Compulsory licensing(CL) is a process that allows governments to license third parties (that is, parties other than the patent holders) to produce, use and sell a patented product or process. By that, producers can manufacture patented drugs without the requirement of consent of patent owners.
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The WTO’s agreement on intellectual property TRIPS allows countries to issue compulsory licenses to domestic producers.
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In India, Compulsory licensing is allowed and regulated under the Indian Patent Act, 1970.
Section 84 of the (Indian) Patent Act,1970: It provides that after three years from the date of the grant of a patent, any person can apply for the compulsory license, on certain grounds:
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the reasonable requirements of the public with respect to the patented invention have not been satisfied
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the patented invention is not available to the public at a reasonably affordable price
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Lastly, the patented invention is not used in the territory of India.
However, compulsory licenses can also be granted under exceptional circumstances.
Section 92 of the (Indian) Patent Act,1970: It authorizes the central government to issue a compulsory license at any time after the grant of the patent, in the case of:
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National emergency; or
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Extreme urgency; or
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Case of public non-commercial use.
After the government issues a notification under Section 92 the companies can approach the government for a license. They can start manufacturing the patented drug by reverse-engineering the product.
Section 100 of the (Indian) Patent Act,1970:
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It gives the central government the power to authorize anyone to use the invention for the purposes of the government.
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Basically, this provision enables the government to license patents of the vaccine to specific companies. This is done to speed up manufacturing and ensure equitable pricing.