Section 84 – THE PATENTS ACT, 1970

(1) At any time after the expiration of three years from the date of
the grant of a patent, any person interested may make an application to the Controller
for grant of compulsory licence on patent on any of the following grounds, namely:—
(a) that the reasonable requirements of the public with respect to the patented
invention have not been satisfied,or
(b) that the patented invention is not available to the public at a reasonably affordable
price, or
(c) that the patented invention is not worked in the territory of India.
(2) An application under this section may be made by any person notwithstanding that he is
already the holder of a licence under the patent and no person shall be estopped from
alleging that the reasonable requirements of the public with respect to the patented
invention are not satisfied or that the patented invention is not worked in the territory
of India or that the patented invention is not available to the public at a reasonably
affordable price by reason of any admission made by him, whether in such a licence or
otherwise or by reason of his having accepted such a licence.
(3) Every application under sub-section (1) shall contain a statement setting out the nature
of the applicant’s interest together with such particulars as may be prescribed and the
facts upon which the application is based.
(4) The Controller, if satisfied that the reasonable requirements of the public with respect
to the patented invention have not been satisfied or that the patented invention is not
worked in the territory of India or that the patented invention is not available to the
public at a reasonably affordable price, may grant a licence upon such terms as he may
deem fit.
(5) Where the Controller directs the patentee to grant a licence he may, as incidental
thereto, exercise the powers set out in section 88.
(6) In considering the application field under this section, the Controller shall take into
account,—
(i) the nature of the invention, the time which has elapsed since the sealing of the patent
and the measures already taken by the patentee or any licensee to make full use of
the invention;
(ii) the ability of the applicant to work the invention to the public advantage;
(iii) the capacity of the applicant to undertake the risk in providing capital and working
the invention, if the application were granted;
(iv) as to whether the applicant has made efforts to obtain a licence from the patentee
on reasonable terms and conditions and such efforts have not been successful
within a reasonable period as the Controller may deem fit:
Provided that this clause shall not be applicable in case of national emergency or other
circumstances of extreme urgency or in case of public non-commercial use or on
establishment of a ground of anticompetitive practices adopted by the patentee,
but shall not be required to take into account matters subsequent to the making of the
application.
Explanation.—For the purposes of clause (iv), “reasonable period” shall be construed as
a period not ordinarily exceeding a period of six months.
(7) For the purposes of this Chapter, the reasonable requirements of the public shall be deemed
not to have been satisfied—
(a) if, by reason of the refusal of the patentee to grant a licence or licences on
reasonable terms,—
(i) an existing trade or industry or the development thereof or the establishment
of any new trade or industry in India or the trade or industry of any person
or class of persons trading or manufacturing in India is prejudiced; or
(ii) the demand for the patented article has not been met to an adequate extent
or on reasonable terms; or
(iii) a market for export of the patented article manufactured in India is not being
supplied or developed; or
(iv) the establishment or development of commercial activities in India is
prejudiced; or
(b) if, by reason of conditions imposed by the patentee upon the grant of licences
under the patent or upon the purchase, hire or use of the patented article or
process, the manufacture, use or sale of materials not protected by the patent, or
the establishment or development of any trade or industry in India, is prejudiced; or
(c) if the patentee imposes a condition upon the grant of licences under the patent to
provide exclusive grant back, prevention to challenges to the validity of patent or
coercive package licensing; or
(d) if the patented invention is not being worked in the territory of India on a
commercial scale to an adequate extent or is not being so worked to the fullest
extent that is reasonably practicable; or
(e) if the working of the patented invention in the territory of India on a commercial
scale is being prevented or hindered by the importation from abroad of the
patented article by—
(i) the patentee or persons claiming under him or
(ii) persons directly or indirectly purchasing from him; or
(iii) other persons against whom the patentee is not taking or has not taken
proceedings for infringement.