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COMPULSORY LICENCES


held that importation from manufacturing facilities outside India did not satisfy the mandatory requirement of working the patent in India. The IPAB, on the other hand, held that working should be decided on a case- by-case basis and it may be proved that in a given case, the ‘working’ may be done by way of ‘import’, but this cannot apply to all cases. The patentee should show why it could not be locally manufactured. A mere statement to that effect is not sufficient and evidence must be shown.


Te IPAB also made it clear that the grant of a compulsory licence is not to favour the licensee, but to make the medicine reasonably affordable and accessible to the public. Te IPAB further emphasised that these proceedings are neither against the inventor, nor against the compulsory licence applicant, but purely based on public interest.


Patent-price linkage


It seems that the compulsory licence is based on public interest which is in turn related to the price of


the drug. Tis seems to link


patents to price control. A similar attempt at ‘patent linkage’ was made in 2009 when Bayer attempted to link the Patent Act with the Drugs and Cosmetics Act.


Incidentally, the drug product in both cases


was the same (sorafenib tosylate). In the patent linkage matter, it was stated that the nodal ministry for the administration of the Drug and Cosmetics Act is the Ministry of Health and Family Welfare whereas for the Patents Act it is the Ministry of Industry and Commerce. The court held against this attempt at bringing in patent linkage.


On similar lines, the price of a drug in India is decided by the National Pharmaceutical Pricing Authority (NPPA) which is under the Department of Pharmaceuticals in the Ministry of Chemicals and Fertilisers. It is a matter of debate whether this could also be considered as patent-price linkage and on how the courts react to it.


A further development relating to compulsory licences is that a committee set up by the Department of Pharmaceuticals to examine the issues of price negotiations for patented drugs, has recently submitted its report. Tis report


110 World Intellectual Property Review Annual 2013


R. Muralidharan is an advocate, mediator, law lecturer and a registered patent agent. He has a Bachelor’s degree in biology and a Master’s degree in


international law and constitutional law. He has participated in some of the leading patent and trademark litigations in India. He


also specialises in competition law


compliance and acts as a resource person regularly in professional skill improvement programmes.


Ashima Katara has about eight years of experience in the biotech and pharma IP rights practice. Her key practice areas include patent drafting, search


and analysis opinions, patent prosecution, litigation and patent portfolio management.


mentions that once a government-appointed committee fixes a price for medicines which is accepted by the government, this fixed price would be supposed to be reasonable and therefore it won’t be possible for the government to use the tool of compulsory licences on grounds related to the price of the patented medicine.


Bayer is said to have disagreed with the


conclusions of the IPAB and is likely to approach the court. Te case is set to be a crucial milestone in deciding the fate of pharmaceutical business in India in the wake of price control measures by the government. 


R. Muralidharan is a patent attorney at Krishna & Saurastri Associates. He can be contacted at: murali@krishnaandsaurastri.com


Ashima Katara is an associate, advocate and patent agent in the life sciences department of Krishna & Saurastri Associates. She can be contacted at: ashima@krishnaandsaurastri.com


www.worldipreview.com


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