The Industrial Property Act, 2001

compulsory
licences

38

requesting the licence:(a) satisfies the Tribunal that he has asked the owner of the patent for a
contractual licence but has been unable to obtain the licence on reasonable
commercial terms and within a reasonable time; and
(b) offers guarantees satisfactory to the Tribunal to work the relevant
invention sufficiently to remedy the deficiencies or to satisfy the
requirements which gave rise to his request.
(2) the requirement under subsection (1)(a) shall be waived in the case of a
national emergency or other circumstances of extreme urgency, provided the
owner of the patent shall be so notified as soon as is reasonably practicable.

Grant and term of
compulsory
licences

75. (1) In considering a request for a compulsory licence, the Tribunal shall
decide whether a compulsory licence may be granted and shall then, if it
decides in favour of the grant taking into account any terms agreed by the
parties, proceed to fix the terms which shall be deemed to constitute a valid
contract between the parties and shall be governed by the provisions of
contractual licences.
(2) In fixing the terms under subsection (1), the Tribunal shall ensure that
the compulsory licence: (a) is limited, in scope and duration, to the purpose for which it was
authorized, and the case of semi-conductor technology, shall only be for
public non-commercial use or remedy a practice determined after a judicial
or administrative process to be anti-competitive;
(b) is limited predominantly for the supply of the domestic market;
(c) does not entitle the licensee to grant further licences, without the consent
of the owner of the patent;
(d) is non-exclusive; and
(e) provides for the payment to the owner of the patent of remuneration
which is equitable with due regard to all the circumstances of the case,
including the economic value of the licence.
(3) A representative of the Institute and of the Government shall have the
right to appear and be heard at the hearing of an application for compulsory
licence, before the Tribunal.

Transfer of
compulsory
licences

76.A compulsory licence may be transferred only with that part of the
industrial undertaking or its goodwill, in which the relevant invention is used
and no such transfer shall be valid until the consent of the Tribunal has been
obtained.

Cancellation of
compulsory
licences

77. (1) On the application of any interested party, the Tribunal may cancel a
compulsory licence if: -

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