Section 84 of The Patents Act, 1970, PA : Section 84: Compulsory Licences

Explanation using Example

Consider a scenario where a pharmaceutical company, PharmaCo, holds a patent for a life-saving drug. The patent was granted three years ago. However, the drug is priced extremely high, making it unaffordable for the majority of the Indian population.

Another company, HealthFirst, sees this situation and applies to the Controller for a compulsory licence to produce the drug, citing that the patented invention is not available to the public at a reasonably affordable price (as per Section 84(1)(b)). HealthFirst also demonstrates its ability to produce the drug and sell it at a lower cost, thus working the invention to the public advantage (as per Section 84(6)(ii)).

The Controller, after considering the application and the public's needs, may grant the compulsory licence to HealthFirst. This allows HealthFirst to produce the same drug at a more affordable price, making it accessible to a larger portion of the population.