Contemporary Stance of Compulsory Licencing in the Indian Pharmaceutical Industry

Abstract

Patents are monopolies that prevent the infringement of a patent holder's work and encourage innovation. Compulsory licensing, or indirect expropriation, occurs when a government permits third parties to use a patented product or method without the holder's approval under certain conditions. The Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, Doha Declaration, and Indian Patent Act of 1970 contain provisions for pharmaceutical patenting and a compulsory licensing system to prevent patent rights misuse. The COVID-19 pandemic has challenged global structures, particularly in the compulsory licensing arrangement for drugs under patent law. This article discusses the existing legal system for compulsory licensing in India, examines the TRIPS agreement's requirements, and discusses the status of compulsory licensing during the pandemic. The article also analyzes the intersection of CL with competition law and concludes with recommendations.