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Compulsory license

A compulsory license is a legal mechanism in intellectual property law that permits a government or authorized entity to grant a third party the right to exploit a patented invention—such as manufacturing, using, or selling it—without the patent holder's consent, provided adequate remuneration is paid to the rights holder and specific procedural conditions are met.^[1] This tool is designed to address situations where patent exclusivity leads to public welfare concerns, including national emergencies, public non-commercial use, or failure by the patentee to work the invention adequately or meet reasonable licensing terms.^[2] Internationally, compulsory licensing is regulated under Article 31 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which mandates safeguards like efforts to obtain a voluntary license on reasonable terms beforehand (except in emergencies), predominance of supply for the domestic market, and judicial or equivalent review of the license terms.^[3] The 2001 Doha Declaration on TRIPS and Public Health affirmed members' rights to use compulsory licensing flexibly for pharmaceuticals to protect public health, particularly in least-developed countries, leading to provisions like the 2005 TRIPS amendment allowing exports of compulsory-licensed generics to countries lacking production capacity.^[1] Nationally, implementation varies; for instance, many jurisdictions limit it to extreme cases to balance innovation incentives with access needs.^[4] Compulsory licenses have been notably applied in the pharmaceutical sector to enable generic production of essential drugs, such as antiretrovirals for HIV/AIDS in countries like Brazil and Thailand, thereby improving affordability and access in resource-limited settings.^[1] However, their use remains controversial, as empirical analyses and economic reasoning indicate they can erode the monopoly rents that patents provide as incentives for high-risk research and development, potentially discouraging future innovations by reducing expected returns on investment.^[5]^[6] Critics argue this effect is pronounced in fields like biopharmaceuticals, where R&D costs exceed billions per successful drug, while proponents emphasize its role in remedying market failures or abuses without broadly undermining patent systems when applied judiciously.^[7]

Definition and Principles

Core Concept and Legal Framework

A compulsory license is a legal mechanism that permits a third party to exploit an intellectual property right—typically a patent or copyright—without the rights holder's consent, subject to payment of statutorily determined royalties or remuneration to the rights holder. This tool is invoked by governments or competent authorities to address specific public interests, such as ensuring access to essential medicines, technologies, or cultural works when voluntary licensing fails or is deemed inadequate. In patent contexts, it enables the making, use, sale, or importation of the patented invention; in copyright, it often applies to limited reproductions, such as mechanical copies of musical works.^[8]^[9]^[10] The core principles underlying compulsory licensing emphasize balance between exclusive rights and societal needs: licenses are non-exclusive, non-transferable, and granted only on predefined grounds like national emergencies, public non-commercial use, or failure to meet domestic demand. Remuneration must be adequate to reflect the economic value of the authorization, and the scope is narrowly tailored to avoid undermining the rights holder's incentives. For patents, prior negotiation for a voluntary license is generally required unless exceptional circumstances apply, such as extreme urgency or antitrust remedies; judicial or administrative review ensures proportionality. In copyright, similar safeguards limit application to specific categories, preventing broad erosion of authors' moral and economic rights.^[11]^[12] Internationally, the legal framework for patents is anchored in Article 31 of the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS, effective January 1, 1995), which authorizes compulsory licenses for WTO members provided they adhere to procedural safeguards, including notification in cases of export-oriented licensing under Article 31bis (amended 2005, effective 2017). For copyrights, the Berne Convention for the Protection of Literary and Artistic Works (1886, revised multiple times, with 181 contracting parties as of 2023) permits compulsory licenses in Articles 11bis(1)(iii) and 13 for mechanical reproductions and recordings of musical works, respectively, allowing states to mandate royalty payments without consent after publication, subject to exceptions for the first few recordings. These treaties set minimum standards, with national laws—such as those in the U.S. under 35 U.S.C. for limited patent scenarios or 17 U.S.C. §115 for mechanical copyright licenses—implementing variations while ensuring compliance.^[11]^[13]^[14]

Preconditions and Procedural Requirements

Compulsory licenses require satisfaction of defined preconditions to ensure they serve exceptional public interests without unduly undermining intellectual property incentives, alongside procedural safeguards for transparency and rights holder protections. These elements differ across intellectual property regimes and jurisdictions, with patent compulsory licensing typically imposing stricter thresholds rooted in international agreements like the TRIPS Agreement, while certain copyright statutory licenses feature more streamlined, administrative processes. In patent law, preconditions under Article 31 of the TRIPS Agreement mandate case-by-case authorization limited to a specific purpose, such as addressing public health crises or national emergencies, where voluntary licensing negotiations on reasonable commercial terms have failed—except in circumstances of extreme urgency, where post-authorization notification suffices.^[15] The license must be non-exclusive and non-assignable without the patent holder's business, with its scope and duration confined to the justifying purpose, and products manufactured thereunder predominantly supplied to the domestic market (subject to the 2005 TRIPS amendment for exports to least-developed countries lacking production capacity).^[15] Adequate remuneration must reflect the economic value to the patent holder, accounting for the compulsory nature of the grant.^[15] Procedurally, national authorities or courts issue the authorization after application by an interested party, promptly notifying the patent holder and establishing terms via independent determination if needed.^[15] Both the authorization decision and remuneration levels remain subject to judicial or other independent review, with termination possible if circumstances change, though good-faith investments by the licensee warrant protection against revocation.^[15] These requirements, implemented variably by WTO members, prioritize proportionality and prevent abuse, as evidenced by rare invocations outside developing economies facing supply shortages.^[1] In copyright contexts, preconditions are generally narrower and tied to prior commercial exploitation by the rights holder. Under U.S. law, for instance, Section 115 permits compulsory mechanical licenses for nondramatic musical works only after phonorecords have been distributed to the public in the United States under the copyright owner's authority, ensuring the work's market viability is established.^[16] Procedural steps involve serving a Notice of Intention on the copyright owner—or filing it with the U.S. Copyright Office if the owner cannot be located—prior to or within 30 days after making the first phonorecord distribution, followed by quarterly royalty payments at statutorily set rates (e.g., 9.1 cents per unit or 1.75 cents per minute as of 2023 adjustments) and detailed accounting reports on units manufactured and distributed.^[17]^[16] Noncompliance voids the license, reverting to infringement liability, thus enforcing ongoing compliance without discretionary governmental approval.^[16]

Historical Development

Origins in Copyright Law

The concept of compulsory licensing in copyright law emerged in the United States as a response to technological advancements in sound reproduction, particularly following the Supreme Court's decision in White-Smith Music Publishing Co. v. Apollo Co. (1908), which held that mechanical reproductions like player piano rolls did not constitute copyright infringement because they were not human-readable copies.^[18] This ruling exposed a gap in the 1790 Copyright Act and subsequent revisions, which protected only printed musical compositions but not their mechanical reproductions, prompting manufacturers to exploit works without compensation.^[19] To address this, the Copyright Act of 1909 introduced the first statutory compulsory mechanical license under Section 1(e), granting copyright owners exclusive rights to make mechanical reproductions of nondramatic musical works while allowing any party to obtain a license without the owner's consent after the owner had commercially released at least one authorized phonorecord.^[20] Licensees were required to provide notice of intent to the Copyright Office, pay a statutory royalty of two cents per record (or one-fourth of a cent per musical composition in printed form, whichever was greater), and adhere to manufacturing restrictions to prevent unauthorized alterations.^[21] This mechanism aimed to foster widespread dissemination of music via emerging recording technologies like phonographs and piano rolls, while ensuring composers received remuneration without granting monopolistic control to publishers or device manufacturers.^[18] The 1909 provisions reflected congressional intent to balance innovation incentives with public access, drawing from earlier debates over player piano monopolies and the American Society of Composers, Authors and Publishers (ASCAP)'s growing influence, which risked stifling competition in the nascent recording industry.^[22] Unlike voluntary licensing, the compulsory framework standardized rates and terms to eliminate protracted negotiations, establishing a precedent for limited exceptions to copyright exclusivity in mechanical rights that influenced subsequent international adaptations, though early implementations faced administrative challenges due to the lack of centralized royalty collection.^[23] This origin in music-specific mechanical rights marked compulsory licensing as a targeted intervention rather than a broad doctrinal shift, confined primarily to phonorecords until later expansions.^[24]

Evolution in Patent Law

The concept of compulsory licensing in patent law originated in 19th-century Britain, where it served as a remedy for patent non-working and perceived monopoly abuses that hindered domestic industry. Provisions in acts such as the Patent Law Amendment Act of 1852 enabled the Board of Trade to grant licenses if patentees failed to manufacture inventions locally within a specified period, typically three years, thereby promoting technology diffusion without fully revoking patents.^[25] This approach reflected early concerns that exclusive rights, if unused, stifled competition and local production, a principle rooted in the Statute of Monopolies 1623's emphasis on public utility over absolute grants.^[26] The 1883 Paris Convention for the Protection of Industrial Property marked a pivotal internationalization of compulsory licensing, with Article 5A authorizing member states to impose licenses after four years if a patent remained unworked in the protecting country, or sooner under import restrictions, to safeguard national economic interests.^[27] This framework influenced European patent systems, where subsequent laws—such as Germany's post-1918 reforms—expanded applications to include failure to license on reasonable terms, yielding empirical evidence of innovation boosts; German patent applications rose by approximately 30% following these measures, as licensing reduced barriers to cumulative invention rather than deterring it.^[28] In contrast, the United States resisted broad compulsory licensing, viewing it as antithetical to market-driven incentives; early 20th-century proposals, like those in the 1912 Clayton Act debates, focused instead on antitrust remedies such as consent decrees mandating licenses for monopolistic practices, with wartime exceptions like the 1917 Trading with the Enemy Act enabling government seizure and relicensing of foreign-held patents.^[29]^[30] By the mid-20th century, compulsory licensing evolved to encompass public welfare grounds beyond mere non-use, including national emergencies and public health, particularly in Europe and developing nations where statutes like the UK's Patents Act 1949 and India's Patent Act 1970 incorporated safeguards against abuse while allowing royalties calibrated to reasonable profits.^[31] This progression balanced patent exclusivity with causal imperatives for access, as non-licensing could exacerbate shortages in essential technologies, though U.S. policy remained restrictive, relying on narrow statutory bases like 28 U.S.C. § 1498 for government use without broad third-party compulsion.^[32] Empirical critiques from this era, including analyses of pharmaceutical patents, highlighted risks of reduced R&D investment where licenses were granted liberally, prompting refinements in procedural hurdles like prior negotiation requirements to preserve incentives.^[33]

Theoretical Rationales

Public Interest Justifications

Compulsory licenses are invoked in intellectual property law to prioritize societal welfare over absolute exclusive rights when the latter impose significant costs on public access to essential innovations or cultural goods. Proponents argue that intellectual property grants temporary monopolies to incentivize creation, but these can lead to restricted availability, inflated prices, or suppressed dissemination, justifying state intervention to realign incentives with broader utilitarian goals. This rationale draws from the understanding that unchecked exclusivity may generate deadweight losses, particularly in sectors like pharmaceuticals where high costs limit access in low-income populations, or in copyrights where transaction frictions hinder derivative uses.^[1]^[22] In patent contexts, public interest justifications center on safeguarding health and economic welfare during crises or when patents hinder affordable supply. The TRIPS Agreement's Article 31 permits compulsory licensing to address practices that "unreasonably restrain trade" or adversely affect "the international transfer of technology," explicitly allowing grounds like national emergencies or public non-commercial use without prior negotiation. The 2001 Doha Declaration on TRIPS and Public Health reinforced this by affirming that intellectual property protections must not impede members' rights to adopt measures protecting public health, including access to medicines for all, particularly in developing countries facing epidemics or pandemics. For instance, this flexibility enables governments to authorize generic production of patented drugs when voluntary licensing fails to meet urgent needs, as seen in provisions for exporting compulsory-licensed products to nations lacking manufacturing capacity, amended in 2005 and effective from 2017. Such measures counter the causal chain where patent exclusivity drives prices beyond affordability, exacerbating mortality and morbidity in resource-constrained settings.^[1]^[1] For copyrights, justifications emphasize enhancing cultural dissemination and technological adoption without eroding creator rewards. Mechanical licenses for phonorecords, established in the U.S. Copyright Act of 1909, compel owners to allow recordings at statutory rates to prevent music publishers from monopolizing emerging formats like player pianos, thereby fostering public access to musical works through derivatives. This balances the incentive-access tradeoff by mandating compensation while reducing bilateral negotiation costs, which could otherwise stifle innovations in recording and distribution technologies. Statutory frameworks evaluate rates via factors including the work's availability to the public and fair returns to owners, underscoring a policy aim to maximize societal benefit from copyrighted expressions amid concentrated market power among a few publishers.^[22]^[22]^[22] Additional rationales include remedying non-use or suppression of patented technologies that withhold public benefits, as in U.S. provisions under the Bayh-Dole Act allowing "march-in" rights for federally funded inventions failing to meet health or safety needs. These interventions reflect a causal view that intellectual property's social purpose—advancing knowledge and welfare—warrants overrides when exclusivity deviates from that end, though critics note risks of undermining innovation if applied broadly. Empirical support arises from cases where compulsory licensing has expanded access without empirically documented widespread disincentives to R&D, as in pharmaceutical flexibilities under international agreements.^[34]^[34]

Economic Critiques and Innovation Incentives

Economic critiques of compulsory licensing emphasize its erosion of the exclusive rights that intellectual property regimes provide to incentivize innovation. Under standard economic theory, patents and copyrights compensate for the fixed costs and risks of creation by allowing rights holders to capture monopoly rents, enabling recoupment of investments in uncertain R&D endeavors. Compulsory licensing intervenes by forcing technology transfer at predetermined or government-set rates, which dilutes these rents and introduces uncertainty about the durability of exclusivity, potentially reducing the private returns necessary to justify high-risk innovation.^[35]^[36] In patent-dependent fields like pharmaceuticals, this mechanism is particularly contentious, as the threat of compulsory licensing may lead firms to withhold market entry, limit patent filings in prone jurisdictions, or redirect R&D toward less vulnerable areas, thereby curtailing overall inventive output. Theoretical models predict that such ex post interventions exacerbate hold-up problems, where innovators anticipate opportunistic government actions and scale back ex ante investments. Empirical proxies, such as reduced foreign direct investment in countries with frequent compulsory licensing, support claims of diminished innovation incentives, though causation remains debated due to confounding factors like regulatory environments.^[37]^[38] Countervailing evidence from historical episodes, however, tempers these critiques. Analysis of German chemical patents licensed compulsorily to the United States after World War I reveals a 28% surge in subsequent invention, driven by heightened competition and entry by new firms, suggesting that compulsory licensing can stimulate rather than stifle innovation under conditions of credible, limited application. Similar findings emerge from case studies of pharmaceutical compulsory licenses in the 1980s and 1990s, which show no consistent decline in affected firms' patenting or inventive activity. Critics of these studies argue they capture short-term dynamics or exceptional circumstances, failing to account for long-run deterrence in global R&D allocation, where innovators prioritize markets with robust IP enforcement to maximize returns.^[39]^[40] For copyrights, economic concerns are analogous but less acute, as compulsory licenses often apply to derivative or mechanical uses (e.g., sound recordings) rather than core creative works, preserving primary incentives for original authorship. Nonetheless, broadening such regimes risks commoditizing outputs and undercompensating originators, potentially slowing investment in novel content creation where upfront costs involve significant experimentation. Overall, while theoretical incentives point to caution in deploying compulsory licensing, empirical variance underscores the need for context-specific assessment, with overuse risking a chilling effect on the very innovations IP seeks to foster.^[22]

Applications in Copyright

Mechanical Licenses for Phonorecords

In the United States, mechanical licenses for phonorecords are governed by Section 115 of the Copyright Act (17 U.S.C. § 115), which grants a compulsory license allowing any person to reproduce and distribute nondramatic musical works in phonorecords—defined as material objects in which sounds are fixed by any method now known or later developed, including physical formats like vinyl records, cassettes, and compact discs, as well as permanent digital downloads—provided the work has been previously recorded and distributed to the public with the copyright owner's consent.^[16]^[17] This statutory mechanism limits the copyright owner's exclusive right to control such reproductions after the initial commercial release, requiring only compliance with notice, royalty payment, and accounting obligations rather than direct negotiation.^[41] The license does not extend to sound recordings themselves, which are protected separately under Section 114, nor to dramatic works or public performances.^[17] Eligibility for the compulsory license requires that the musical composition has been commercially released in phonorecords by or under the authority of the copyright owner, establishing a precedent that prevents indefinite withholding of reproduction rights once market entry has occurred.^[42] The licensee's primary purpose must be to distribute the phonorecords to the public for private use, excluding applications like synchronization in audiovisual works or non-interactive streaming, which fall outside Section 115's scope.^[43] Limitations include prohibitions on arrangements that materially alter the original work without consent and requirements to cease distribution upon notice of infringement or copyright termination.^[16] To invoke the license, the prospective licensee must serve a Notice of Intention (NOI) on the copyright owner—at least 30 days before distribution begins for physical phonorecords or via the Copyright Office for certain digital uses—and file a copy with the Office if the owner's address is unknown.^[44] Monthly royalty statements and payments must follow distribution, computed at the statutory rate set by the Copyright Royalty Board (CRB), with late payments accruing interest and potential penalties for underpayment exceeding certain thresholds.^[44] Historically administered through entities like the Harry Fox Agency for individual licenses, the process for digital phonorecord deliveries (DPDs) was streamlined by the Music Modernization Act of 2018, which established the Mechanical Licensing Collective (MLC) to offer blanket compulsory licenses for interactive streaming and certain DPDs, though physical phonorecords retain the traditional NOI framework unless covered by negotiated direct licenses.^[45]^[46] Statutory royalty rates originated in the 1909 Copyright Act at a flat 2 cents per phonorecord, unchanged until the 1976 Act's effective date in 1978 raised it to 2.75 cents, with subsequent adjustments via CRB proceedings to reflect economic factors like inflation and industry shifts.^[47] For the Phonorecords IV period (2023–2027), rates for physical phonorecords and permanent downloads are the greater of a per-unit minimum or a per-minute rate: starting at 11.4 cents per unit or 2.20 cents per minute in 2023, escalating annually to 12.7 cents per unit or 2.45 cents per minute by 2027 for works exceeding five minutes.^[48] These rates apply to songs under five minutes using the minimum, promoting accessibility while compensating owners through formulaic payments verified by audits.^[49] The framework balances innovation in recording dissemination against owner incentives, though critics argue historical under-adjustments eroded real value amid technological transitions from physical to digital formats.^[47]

Limited Uses in Other Copyright Contexts

In United States copyright law, compulsory licenses—also termed statutory licenses—extend beyond mechanical reproduction of nondramatic musical works to facilitate secondary transmissions of broadcast signals by cable systems under 17 U.S.C. § 111. This provision permits cable operators to retransmit over-the-air television and radio broadcasts containing copyrighted programming without individual negotiations, subject to royalty payments deposited with the Copyright Office and distributed to copyright owners via rate-setting proceedings.^[50]^[51] The license applies only to signals carried within specified carriage rules, such as local market protections and signal intensity limits, and excludes retransmissions that alter content or exceed permissible distances from the originating station.^[51] A parallel statutory license governs secondary transmissions by satellite carriers pursuant to 17 U.S.C. § 119, enabling direct-to-home satellite services to deliver distant network and superstation signals to subscribers, particularly unserved households lacking over-the-air access.^[52] Enacted in 1988 and amended multiple times, including by the Satellite Television Extension and Localism Act of 2010, this license requires carriers to pay percentages of gross receipts as royalties, with eligibility restricted to qualifying households verified through surveys or databases to prevent carriage to served areas.^[53] Limitations include prohibitions on commercial alterations and mandates for local-into-local carriage in designated markets, balancing broadcaster incentives with rural access needs.^[52] For sound recordings, 17 U.S.C. § 114 establishes a statutory license authorizing noninteractive digital audio transmissions, such as webcasting or simulcasting by eligible services, without the copyright owner's consent after meeting notice and royalty requirements.^[54] Introduced by the Digital Performance Right in Sound Recordings Act of 1995, this license compensates performers and owners via royalties collected by SoundExchange, determined through Copyright Royalty Board proceedings, but excludes interactive streams or on-demand plays to preserve exclusive licensing markets.^[55] Complementary ephemeral recording rights under § 112 allow temporary copies necessary for such transmissions, further circumscribed to business establishments or public broadcasters.^[56] These licenses remain confined to legacy broadcasting technologies and early digital audio formats, reflecting congressional intent to mitigate monopoly risks in distribution infrastructure while preserving negotiation for emerging uses like streaming video or generative AI applications.^[56] Unlike broader compulsory regimes in patents, copyright's statutory licenses demand detailed accountings, eligibility certifications, and periodic rate adjustments, with non-compliance risking license revocation.^[53] Internationally, analogous retransmission compulsories appear in select jurisdictions, such as Canada's Copyright Act for cable and satellite, but U.S. provisions have influenced frameworks under treaties like the Rome Convention without mandating adoption.^[57]

Applications in Patents

Frameworks in the United States

In the United States, patent law under Title 35 of the United States Code does not provide for a general statutory framework of compulsory licensing, distinguishing it from regimes in many other jurisdictions that permit government-mandated licenses for public interest reasons such as non-working patents or emergencies.^[58]^[59] Instead, limited mechanisms exist primarily tied to government-funded inventions or exceptional circumstances, reflecting a policy emphasis on robust patent exclusivity to promote private innovation over routine state intervention.^[34] The principal framework arises from the Bayh-Dole Act of 1980, codified in part at 35 U.S.C. § 203, which governs subject inventions developed under federal research funding where small businesses, nonprofits, or universities retain title.^[60] Under this provision, federal agencies retain "march-in rights," allowing them to require the patent holder (or its exclusive licensee) to grant nonexclusive, partially exclusive, or exclusive licenses to responsible third parties in specified fields of use if four statutory criteria are unmet: (1) the invention is not being manufactured substantially in the U.S.; (2) action is needed to alleviate public health or safety concerns; (3) requirements for public use under reasonable terms are unmet; or (4) the patent holder fails to meet U.S. small business company requirements in an exclusive license.^[60]^[61] These rights effectively enable compulsory licensing without the patent owner's consent, subject to reasonable royalty compensation, but the process requires formal determination by the agency head after petition and evidentiary review.^[62] Despite these provisions, no federal agency has ever exercised march-in rights to impose a license in the over 40 years since enactment, underscoring their rarity and the high evidentiary threshold.^[63] Additional limited avenues include judicial remedies in antitrust enforcement, where federal courts may order compulsory licensing as an equitable remedy for patent misuse or monopolization under the Sherman Act, as established in cases like United States v. Glaxo Group Ltd. (1970), though such orders remain exceptional and fact-specific.^[29] In national emergencies, the Defense Production Act of 1950 (50 U.S.C. §§ 4501 et seq.) empowers the President to direct production priorities and resource allocation for defense needs, potentially compelling use of patented technologies via rated orders or allocation, but it does not explicitly authorize patent overrides or compulsory licensing; invocations during the COVID-19 pandemic focused on supply chain mandates rather than patent intervention.^[64] For government-owned patents, 35 U.S.C. § 207 permits agencies to grant nonexclusive licenses directly, bypassing owner consent entirely, though this applies only to inventions where the government holds title.^[65] Recent policy debates, particularly post-2021, have explored expanding march-in rights under Bayh-Dole to address high pharmaceutical prices by interpreting unmet "reasonable terms" as including affordability, but as of October 2025, agencies like the NIH have declined such applications (e.g., Xtandi petitions in 2023-2024), maintaining that pricing alone does not trigger the criteria absent evidence of commercialization failure.^[66]^[67] This restraint aligns with critiques that compulsory mechanisms could undermine innovation incentives without clear empirical evidence of net public benefit.^[68]

Implementations in Developing Economies

Developing economies have invoked compulsory licensing under national patent laws compliant with TRIPS Agreement Article 31 to address barriers to essential medicines, primarily by authorizing generic production or imports after negotiations fail due to excessive pricing or inadequate supply.^[69] These implementations often target pharmaceuticals for diseases like HIV/AIDS and cancer, where patent monopolies elevate costs beyond affordability for low-income populations.^[70] By 2012, at least a dozen developing countries had issued such licenses, with India, Brazil, and Thailand as leading cases, resulting in price drops of 50-97% for affected drugs and expanded treatment access without documented widespread deterrence to foreign investment in those sectors.^[71] In India, the Controller General of Patents granted the country's first compulsory license on March 12, 2012, for Bayer's patented kidney and liver cancer drug sorafenib (Nexavar), licensing generic manufacturer Natco Pharma to produce it domestically.^[72] Bayer's version cost approximately 280,000 Indian rupees (about $5,404) per month per patient, deemed unaffordable and inadequately supplied under Section 84 of India's Patents Act, which permits licenses if the patented invention fails to meet public needs reasonably.^[73] Natco sold the generic at 8,800 rupees ($175) monthly, a 97% reduction, enabling broader access; Bayer received 6% royalties, and the decision withstood Bayer's appeals, upheld by the Intellectual Property Appellate Board in 2014.^[74] This precedent facilitated subsequent licenses, such as for Bristol-Myers Squibb's dasatinib in 2017, reinforcing India's use of TRIPS flexibilities to prioritize public health over exclusive patent rights.^[75] Brazil issued a compulsory license for Merck's HIV antiretroviral efavirenz on May 4, 2007, authorizing imports of generic versions after price negotiations stalled amid rising treatment costs for 75,000 patients.^[76] Under Brazil's Industrial Property Law (Article 68), the government declared a "public interest" exception, citing efavirenz's role in standard regimens and Merck's refusal to lower prices below levels straining the national AIDS program budget.^[77] The license, non-exclusive and limited to domestic use, cut costs by over 80%, from $1.59 to $0.35 per daily dose via Indian generics, saving Brazil an estimated $1 billion in HIV expenditures over subsequent years through sustained generic procurement.^[78] Merck contested the move legally but settled on voluntary licensing terms post-issuance, highlighting compulsory licensing's leverage in negotiations.^[79] Thailand employed "government use licenses," a TRIPS-permissible variant of compulsory licensing, for multiple HIV drugs between 2006 and 2008 to combat escalating procurement costs amid a 20-fold antiretroviral price surge from 2000-2005.^[80] In November 2006, licenses covered Merck's efavirenz and Abbott's lopinavir/ritonavir (Kaletra), followed by others like Roche's oseltamivir in 2008, enabling generic imports and local production without patentee consent after failed talks.^[81] Efavirenz prices fell 75% and Kaletra by 80-90%, treating an additional 30,000 patients annually without budget shortfalls; royalties paid to originators ranged 0.5-4%.^[82] These actions, justified under Thailand's Patent Act Sections 51 and 52 for national emergencies, prompted threats of trade retaliation from the U.S. but ultimately led to price concessions and no rescission of licenses.^[83] Such implementations demonstrate a pattern: licenses issued as last-resort measures post-negotiation, confined to public non-commercial use, with adequate remuneration to patentees, yielding empirical gains in affordability and health outcomes in resource-limited settings.^[84] However, uptake remains limited due to procedural hurdles like prior negotiation requirements and capacity constraints in least-developed economies, with only sporadic use beyond pharmaceuticals.^[85] Critics from originator firms argue potential chilling effects on R&D investment, though econometric analyses of post-license FDI in Brazil and Thailand show no significant decline.^[86]

International Frameworks

Berne Convention Provisions

The Berne Convention for the Protection of Literary and Artistic Works, as revised in Paris in 1971, permits compulsory licensing in specific copyright contexts to enable public access while mandating equitable remuneration for authors. These provisions apply only in countries that enact them domestically and are confined to the enacting jurisdiction, ensuring they do not undermine authors' moral rights or core exclusive rights.^[87] Article 13 addresses mechanical reproduction of musical works, allowing member states to impose reservations on the author's exclusive right to authorize sound recordings. Specifically, countries may condition subsequent recordings on statutory terms, provided authors receive remuneration fixed by agreement or competent authority, with the mechanism limited to non-prejudicial application within the prescribing nation.^[87]^[88] Article 11bis extends similar flexibility to broadcasting and related rights, granting authors the exclusive right to authorize initial broadcasts or communications to the public via wireless means, but permitting national legislation to regulate secondary uses such as retransmissions or the making of phonogram records from broadcasts. Member states may authorize these acts subject to equitable remuneration, determined by authority if parties fail to agree, without extending protections to prejudice the author's broadcasting authorization right.^[87]^[89] This framework supports compulsory licensing for retransmissions by entities other than the original broadcaster, common in regimes for secondary diffusion via wire or loudspeaker, while preserving moral rights and remuneration obligations.^[87] For developing countries, the Convention's Appendix introduces targeted compulsory licensing to promote access to knowledge. Under Article II, such nations may substitute non-exclusive, non-transferable licenses for translation rights after three years (or one year for works in local languages) if no authorized translation exists, restricted to teaching, scholarship, or research purposes with fair payment to the right holder.^[87] Article III similarly enables non-exclusive, non-assignable licenses for reproducing and publishing translated editions for systematic instructional activities, applicable after three to seven years depending on the work type, prohibiting exports and requiring fair remuneration, applicable solely to printed or analogous forms.^[87] These measures, declared upon accession, balance development needs against international minimum standards, with no broader application to digital works or non-educational uses.^[90]

TRIPS Agreement and Flexibilities

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), effective from January 1, 1995, establishes minimum standards for intellectual property protection enforceable among World Trade Organization members, including provisions for compulsory licensing primarily under Article 31 to permit non-voluntary use of patented inventions in the public interest. Article 31 authorizes WTO members to grant compulsory licenses on a case-by-case basis, provided the authorization follows judicial or administrative review and efforts to obtain a voluntary license on reasonable commercial terms have failed, though this prior negotiation requirement may be waived in cases of national emergency, extreme urgency, or for public non-commercial use, such as government procurement without competitive bidding.^[1] The provision mandates adequate remuneration to the patent holder, determined by reference to economic value, with licenses being non-exclusive, non-transferable except with the enterprise, and limited in scope and duration to the purpose justifying issuance; furthermore, products manufactured under such licenses must predominantly supply the domestic market of the issuing member.^[1]^[11] TRIPS flexibilities for compulsory licensing accommodate public policy objectives, such as safeguarding public health, by allowing members to derogate from exclusive patent rights without violating the agreement's core obligations, provided procedural safeguards are observed.^[69] These include the ability to issue licenses for government use without the domestic market predominance constraint in certain export scenarios, addressed by the 2005 protocol amending TRIPS via Article 31bis, which entered into force on January 23, 2017, after ratification by two-thirds of members; this amendment permits exporting members to disregard Article 31(f)'s domestic supply rule when granting licenses for pharmaceutical products destined for countries with insufficient manufacturing capacity, particularly least-developed countries facing health crises.^[91] Additional flexibilities encompass parallel imports under Article 6, which exhausts rights after first lawful sale without impeding compulsory licensing, and limited exceptions under Article 30 for research or experimental use that do not conflict unreasonably with normal exploitation. Article 31 applies mutatis mutandis to other subject matter like layout-designs and undisclosed information, extending these mechanisms beyond patents while preserving the balance between rights holders' interests and societal needs.^[15] Dispute settlement under TRIPS has clarified these flexibilities, as in the 2000 WTO panel ruling in Canada – Patent Protection of Pharmaceutical Products, which upheld Canada's stockpile exception as compliant with Article 30 but struck down a pre-grant regulatory review exception for exceeding reasonable limits, reinforcing that compulsory licensing must not authorize uses that prejudice patent owners' legitimate interests.^[92] Despite these provisions, implementation varies, with developing members leveraging flexibilities more frequently for pharmaceuticals amid access challenges, though enforcement remains subject to WTO oversight to prevent abuse.^[1] The agreement's framework thus embeds compulsory licensing as a calibrated tool, not an unrestricted override, requiring proportionality in application.^[11]

Doha Declaration on Public Health

The Doha Declaration on the TRIPS Agreement and Public Health was adopted unanimously by the World Trade Organization (WTO) at its Fourth Ministerial Conference in Doha, Qatar, on November 14, 2001.^[93] The declaration addresses tensions between intellectual property protections under the TRIPS Agreement and the need to safeguard public health, particularly in developing and least-developed countries facing epidemics such as HIV/AIDS, tuberculosis, malaria, and other infectious diseases.^[93] It emphasizes that TRIPS implementation must not undermine members' sovereign rights to prioritize public health measures, including access to affordable pharmaceuticals.^[93] A core provision reaffirms WTO members' authority to issue compulsory licenses for patented pharmaceuticals, stating explicitly that "each member has the right to grant compulsory licences and the freedom to determine the grounds upon which such licences are granted."^[93] This clarification counters interpretations that might restrict compulsory licensing to narrow scenarios, confirming instead that members retain discretion over grounds, including national emergencies or other extreme urgencies, which they alone define.^[93] The declaration further specifies that public health crises, such as those from HIV/AIDS, tuberculosis, malaria, or similar epidemics, may qualify as national emergencies justifying such measures.^[93] Paragraph 6 of the declaration highlights a key limitation in TRIPS Article 31(f), which generally requires compulsory licenses to be predominantly for domestic supply, posing barriers for landlocked or least-developed countries lacking sufficient pharmaceutical manufacturing capacity to produce generics for their own needs.^[93] It instructs the TRIPS Council to address this expeditiously, enabling such countries to import affordable generics produced under compulsory licenses elsewhere.^[93] This provision directly spurred the 2003 WTO decision waiving certain TRIPS obligations for exports to address shortages and the 2005 protocol amending TRIPS to incorporate these flexibilities permanently, effective after two-thirds ratification by members.^[1] Post-adoption, the declaration has underpinned compulsory licensing actions in several jurisdictions, including Brazil's 2007 issuance for efavirenz (an HIV antiretroviral) and Thailand's 2006-2008 licenses for drugs treating HIV/AIDS and heart disease, citing public health imperatives.^[1] These implementations demonstrate the declaration's role in legitimizing flexibilities without requiring TRIPS renegotiation, though utilization remains limited by domestic regulatory capacity, negotiation complexities with patent holders, and concerns over retaliatory trade measures.^[1] Empirical analyses indicate modest increases in generic availability for priority diseases in invoking countries, but no widespread erosion of global pharmaceutical innovation incentives attributable to Doha-enabled licenses.^[94]

Case Studies

Pharmaceutical Patents for Essential Medicines

In response to the HIV/AIDS epidemic, Brazil implemented a policy of universal free access to antiretroviral (ARV) therapy in 1996, which strained public health budgets due to high prices of patented drugs.^[95] Negotiations with pharmaceutical companies often failed to yield sufficient price reductions, leading to the use of compulsory licensing threats as a bargaining tool; for instance, threats in the early 2000s prompted voluntary discounts on several ARVs.^[78] On May 4, 2007, Brazil issued its first compulsory license under national law aligned with TRIPS flexibilities for the Merck-patented drug efavirenz, an essential non-nucleoside reverse transcriptase inhibitor used in first-line HIV treatment, authorizing imports of generic versions for public non-commercial use.^[76] The license was justified by public interest, as efavirenz treated approximately 75,000 patients annually, and Merck's pricing—equivalent to about 40% of Brazil's ARV budget despite comprising 15% of patients—imposed unsustainable costs; post-license, generic imports reduced the price from $1.59 per daily dose to $0.45, saving an estimated $40 million in the first year alone and enabling sustained access without production disruption.^[96] Merck received royalties at 1.5% of sales value, complying with TRIPS requirements, though the company criticized the move as undermining innovation; empirical outcomes showed no long-term supply interruptions and facilitated local generic production capacity building.^[77]^[79] India's patent regime, post-2005 TRIPS compliance, permitted compulsory licensing under Section 84 of the Patents Act if a patented invention failed to meet public needs, was unaffordable, or was not sufficiently worked locally.^[97] In a landmark application, on March 12, 2012, the Controller General of Patents granted Natco Pharma the first such license for Bayer's sorafenib tosylate (Nexavar), a patented treatment for liver and kidney cancers classified as an essential medicine by Indian health authorities due to limited alternatives and high mortality rates.^[75] Bayer's pricing at 280,000 rupees (about $5,500) for a monthly supply made it inaccessible to most patients, with only 200 units sold annually in India despite patent grant in 2008, failing to satisfy "reasonable requirements of the public" and local working criteria; Natco was authorized to produce and sell a generic version at 8,800 rupees monthly, a 97% reduction, while paying Bayer 6% royalties.^[72]^[98] Bayer's legal challenges, including appeals to the Intellectual Property Appellate Board and Supreme Court, were rejected by 2014, upholding the license on grounds that patents must balance exclusivity with public welfare, not absolute monopolies.^[99] This case expanded access—estimated to benefit thousands with advanced hepatocellular carcinoma, where sorafenib extends survival by months—but drew industry claims of eroding R&D incentives, though data indicated continued oncology investments globally without direct causal linkage to this instance.^[100]^[101] These cases illustrate compulsory licensing's role in addressing access barriers for essential medicines in developing economies, where patented drugs often exceed 50-100 times generic costs, per WHO analyses of ARV pricing pre-flexibility use.^[102] In Brazil, cumulative savings from efavirenz licensing and related negotiations reached over $1 billion by 2017 for HIV treatment overall, supporting treatment for 600,000+ patients without compromising efficacy or adherence.^[78] India's Nexavar decision similarly prioritized empirical affordability thresholds over originator pricing, aligning with Doha Declaration affirmations of TRIPS public health safeguards, though both faced WTO-compliant scrutiny without violation findings.^[1] Critics from pharmaceutical trade groups argue such measures deter innovation by reducing recoupment of $1-2 billion average development costs, yet evidence from post-license periods shows no aggregate decline in new drug filings, suggesting localized impacts amid global markets.^[103] Proponents counter that without flexibilities, untreated disease burdens—e.g., 2.1 million annual HIV deaths pre-ARV scale-up—impose greater societal costs, validating causal prioritization of immediate public health over long-term incentive risks in resource-constrained settings.^[104]

Responses During the COVID-19 Pandemic

During the COVID-19 pandemic, governments invoked compulsory licensing under TRIPS Agreement Article 31 flexibilities to authorize production or importation of patented treatments without patent holder consent, citing national emergencies that waived prior negotiation requirements as per the Doha Declaration.^[69]^[105] These measures targeted repurposed antivirals amid global shortages, though actual issuances were rare due to supply chain dependencies, litigation risks, and preferences for voluntary licensing.^[85] Israel issued one of the earliest compulsory licenses on March 23, 2020, when the Ministry of Health authorized government importation of generic lopinavir/ritonavir (AbbVie's Kaletra), an HIV protease inhibitor under investigation for COVID-19 efficacy, after failing to secure adequate supplies from the patent holder.^[106]^[107] The license applied to specific patents and enabled local stockpiling without royalties exceeding 5% of sales value, prioritizing public health over exclusive rights.^[105] In Hungary, the government granted a compulsory license in late 2020 for Gilead's remdesivir (Veklury), the first antiviral conditionally authorized by the European Medicines Agency for COVID-19, permitting domestic manufacturer Richter Gedeon to produce up to 3,000 treatment courses for six months exclusively within Hungary.^[108]^[109] This invoked a new public health ground under Hungarian patent law, with royalties set at 0.5% of net sales; however, the Hungarian Intellectual Property Office's decision was annulled by the Constitutional Court in October 2023 on procedural grounds, including lack of patent holder hearings.^[110]^[111] Similar government use authorizations occurred in Indonesia for remdesivir and favipiravir production.^[85] Russia also issued a compulsory license for remdesivir.^[85] In Chile, parliament unanimously approved a March 17, 2020, resolution declaring the pandemic a state of exception justifying compulsory licenses for relevant patents, facilitating potential overrides for treatments and diagnostics, though specific issuances focused on enabling generic access rather than broad vaccine application.^[112]^[113] High-income countries like Canada and Germany prioritized legislative expansions over frequent issuances. Canada's COVID-19 Emergency Response Act, effective March 26, 2020, amended the Patent Act to allow the Commissioner of Patents to license any invention for government use in addressing public health emergencies until September 30, 2020, without prior negotiation or adequate remuneration disputes blocking implementation.^[114]^[115] Germany's March 2020 Act on Protection in Epidemic Situations of National Scope broadened compulsory licensing for urgent public interest, including potential vaccine manufacturing, but no public issuances were reported, with reliance on voluntary partnerships prevailing.^[116]^[117] For vaccines, compulsory licensing threats surfaced but rarely materialized; companies like AstraZeneca and CureVac faced discussions in Europe, yet production scaled via contracts rather than overrides.^[118] Overall, while TRIPS flexibilities enabled rapid responses, limited empirical use highlighted barriers like unpatented know-how and global manufacturing constraints, prompting over 100 developing countries to propose a broader TRIPS waiver in October 2020, partially adopted in 2022 for vaccines but excluding therapeutics.^[85]^[119]

Recent Developments

EU Compulsory Licensing for Crises

The European Commission proposed a regulation on compulsory licensing for crisis management on April 27, 2023, aiming to establish an EU-wide framework for granting compulsory licenses on patents during cross-border crises or emergencies, such as public health threats, natural disasters, or environmental catastrophes with significant Union impact. This initiative addresses limitations in existing national patent laws and the EU's Regulation (EC) No 816/2006, which primarily facilitates compulsory licensing for exporting medicines to countries with insufficient production capacity but does not cover internal EU crisis response.^[120] The proposal was motivated by experiences during the COVID-19 pandemic, where fragmented national compulsory licensing efforts highlighted coordination gaps, supply chain vulnerabilities, and delays in accessing patented technologies for critical products like vaccines and medical devices.^[121] Under the proposed mechanism, compulsory licensing would serve as a last-resort tool, activated only after exhausting voluntary negotiations and alternative measures, such as pooled procurement or technology transfer. The process involves the Commission recommending a crisis declaration to the Council, which, upon approval, enables rapid EU-wide licensing of relevant patents without the patent holder's consent, subject to fair compensation based on economic value and crisis circumstances.^[122] Licenses could cover manufacturing, distribution, and use of crisis-relevant products, including intermediates, with provisions for sub-licensing to ensure swift scaling of production across Member States.^[123] Safeguards include time-limited licenses tied to the crisis duration, post-crisis reviews, and exclusions for non-essential patents, aiming to balance rapid access with intellectual property protections under the TRIPS Agreement.^[124] On May 21, 2025, the European Parliament and Council reached a provisional political agreement on the regulation, refining the proposal to emphasize proportionality, transparency in compensation calculations, and integration with broader EU crisis preparedness tools like the Health Emergency Preparedness and Response Authority (HERA).^[125] The agreement specifies that licensing applies solely to "clearly defined" emergencies with cross-border dimensions, prohibiting retroactive application and requiring public justification to mitigate risks of overuse.^[126] As of October 2025, the regulation awaits formal adoption and entry into force, potentially by early 2026, representing a shift from purely national approaches to a unified EU response capability.^[127] Industry stakeholders, including pharmaceutical associations like EFPIA, have expressed concerns that the framework could deter innovation by introducing uncertainty over patent enforcement in foreseeable crises, advocating for stricter triggers and enhanced compensation to preserve R&D incentives.^[128] Public health advocates, conversely, view it as essential for equitable access, arguing that empirical evidence from national uses during COVID-19 demonstrates compulsory licensing's role in accelerating supply without broadly undermining patent systems when limited to genuine emergencies.^[129] The mechanism aligns with TRIPS flexibilities but requires careful implementation to avoid geopolitical tensions, such as retaliatory measures from non-EU patent holders.^[130]

Controversies and Impacts

Effects on Research and Development

Compulsory licensing reduces the duration and exclusivity of patent protections, thereby diminishing the monopoly rents that pharmaceutical firms rely on to recover substantial upfront research and development (R&D) costs, which average $2.6 billion per new drug according to estimates from the Tufts Center for the Study of Drug Development.^[134] This erosion of expected returns can deter investment in high-risk, long-term innovation, as firms anticipate lower profitability from future breakthroughs due to the threat of government-mandated generic competition.^[33] Empirical analyses support this deterrent effect; for instance, a study examining pharmaceutical markets found that each additional compulsory license issuance correlates with a 5.10% reduction in subsequent innovation output, particularly when licensees capture significant market share.^[135] Historical evidence from patent suspensions during World War I similarly indicates that weakening intellectual property enforcement through compulsory mechanisms leads to decreased inventive activity, as inventors face reduced incentives to disclose and develop novel technologies.^[136] While some research suggests minimal aggregate impact on global R&D when compulsory licenses are confined to developing countries and global blockbuster drugs, this overlooks localized disincentives, such as reduced foreign direct investment in affected markets like India following high-profile licenses for drugs like sorafenib.^[137]^[38] Surveys of industry executives further reveal perceptions that such policies heighten uncertainty, prompting firms to redirect R&D toward less vulnerable therapeutic areas or markets with stronger IP enforcement.^[138] Overall, the causal mechanism—undermining the temporal exclusivity essential for amortizing R&D expenditures—predominates in economic models, outweighing potential spurs to incremental innovation from generics.^[139]

Risks of Abuse and Geopolitical Tensions

Compulsory licensing mechanisms, while permitted under the TRIPS Agreement for specific scenarios like public health emergencies, carry risks of governmental abuse when invoked beyond their intended scope, such as to favor domestic industries or circumvent patent protections without genuine necessity. For instance, in 2012, India issued its first compulsory license for Bayer's patented cancer drug Nexavar (sorafenib), authorizing local firm Natco Pharma to produce and sell a generic version at a fraction of the price, on grounds of inadequate supply and affordability despite TRIPS requirements for prior negotiation attempts. Critics from the pharmaceutical sector contend this exemplified abuse by prioritizing local generics over patent incentives, potentially deterring foreign investment in R&D. Similarly, Indonesia's 2016 patent law amendments empowered the government to grant compulsory licenses more readily for pharmaceuticals, ostensibly for public interest but enabling broader seizures that erode originator firms' market control and profitability.^[103] Such abuses can diminish the economic returns on innovation, as compulsory licensees often pay minimal royalties—typically 4-6% under TRIPS guidelines—while undermining the exclusivity that funds drug development, with studies estimating that unchecked licensing could reduce global pharmaceutical R&D investment by shifting risks to innovators without reciprocal protections. In developing economies, where institutional oversight may be weaker, governments have issued licenses for non-emergency cases, such as routine drugs, leading to parallel imports or local production that floods markets and bypasses voluntary licensing negotiations, as highlighted in analyses of TRIPS Article 31 violations. This pattern raises concerns over arbitrary state intervention, where political pressures or protectionism supersede contractual IP rights, potentially fostering a precedent for expropriation akin to nationalization.^[140] Geopolitically, compulsory licensing has exacerbated tensions between intellectual property-exporting nations like the United States and European Union, which view it as de facto theft undermining global innovation, and importing developing countries advocating access flexibilities. The U.S. Trade Representative's annual Special 301 reports have repeatedly flagged countries like India for compulsory licensing practices, citing them as barriers to fair trade and prompting threats of retaliatory tariffs or investigations under Section 301 of the Trade Act of 1974, as seen in pressures following India's 2012 Nexavar decision. In 2025, Brazil's enactment of laws permitting intellectual property suspensions and compulsory licensing amid U.S. tariff impositions on steel and other goods intensified bilateral frictions, with U.S. officials warning of escalated trade disputes over perceived IP retaliations. These conflicts underscore a broader North-South divide at the WTO, where developed nations resist expansions of licensing flexibilities—evident in stalled COVID-19 waiver negotiations—fearing erosion of TRIPS safeguards, while developing states leverage them to assert sovereignty over essential medicines, often amplifying diplomatic strains without resolving underlying access inequities.^[141]^[142]^[143]

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Mar 12, 2012 · The decision requires Bayer to license the drug Nexavar to Natco Pharma, which must pay Bayer a royalty on its sales but will sell the drug ...
[73]
India Grants a Compulsory Licence of Bayer's Patented Cancer Drug
Nexavar was unaffordable to Indian consumers and thus unreasonable6. Indeed,. Bayer's. Nexavar-based therapy cost Rs. 280,000. (around. US$. 5,404) per month.
[74]
Indian Court Upholds Breaking Of Bayer Patent - C&EN
Dec 17, 2014 · In 2012, India's controller general for patents issued a compulsory license of Nexavar, a liver and kidney cancer treatment known ...
[75]
Background Information on India's First Compulsory Licence
Apr 10, 2012 · The compulsory licence was granted under Section 90 of the Indian Patents Act, on 12th March 2012 by India's Controller of Patents.
[76]
Brazil issues compulsory license on efavirenz - Aidsmap
May 7, 2007 · The Brazilian government issued a compulsory license last Friday allowing the import of generic versions of efavirenz.
[77]
Brazil Breaks Patent On A Merck Drug - C&EN
"The compulsory licensing of efavirenz is a legitimate and necessary measure to guarantee that all patients have access to the drug," he said. Brazil has been ...
[78]
Threat to break patents saves Brazil $1bn in cost of HIV treatment
Last May Brazil broke the patent on efavirenz (marketed as Stocrin in Brazil by Merck Sharp & Dohme), to import a cheaper generic version from India instead.
[79]
[PDF] Nationalizing efavirenz: compulsory licence, collective invention and ...
Feb 6, 2023 · In May 2007, the President of Brazil signed a compulsory licence decree to authorize the use of two patents belonging to Merck, on efavirenz ...
[80]
Government use licenses in Thailand: The power of evidence, civil ...
Sep 12, 2011 · In 2006 and 2008, the government of Thailand decided to grant government use licenses1 to enable the import and local production of the generic ...
[81]
Impact of the Introduction of Government Use Licenses on the Drug ...
The government use licenses (GUL) policy, a form of compulsory licensing, was implemented by the Thai government to limit exclusive patenting by using more ...
[82]
Assessing the implications of Thailand's government use licenses ...
One such measure was the government's decision to grant government use licenses for seven drugs over the period 2006-2008. The seven drugs are efavirenz ...
[83]
[PDF] Timeline for US-Thailand Compulsory License Dispute - infojustice
A number of Thai civil society groups demanded that the Health Ministry not rescind compulsory licenses issued on drugs for heart disease and HIV/AIDS. The ...<|control11|><|separator|>
[84]
[PDF] Compulsory licensing and access to drugs | CRESSE
Abstract Compulsory licensing allows the use of a pat- ented invention without the owner's consent, with the aim of improving access to essential drugs.
[85]
why countries will not use compulsory licensing – and how to fix it
Sep 9, 2025 · The 2001 Doha Declaration on the TRIPS Agreement and Public Health affirmed that trade rules should not hinder public health measures.4 ...<|control11|><|separator|>
[86]
Compulsory licensing, price controls, and access to patented foreign ...
Following in Thailand's footsteps, in May 2007 Brazil decided to issue a compulsory license for Efavirenz, another patented AIDS drug, after price ...
[87]
[PDF] Guide to the Berne Convention for the Protection of Literary ... - WIPO
compulsory licensing could be confined to the act of recording. This was done in Stockholm (1967) and confirmed at Paris (1971). 13.7. Secondly, the licence ...
[88]
BERNE CONVENTION, AS REVISED - Article 13 - Law.Cornell.Edu
Article 13 (1) Each country of the Union may impose for itself reservations and conditions on the exclusive right granted to the author of a musical work.Missing: compulsory mechanical license
[89]
BERNE CONVENTION, AS REVISED - Article 11bis - Law.Cornell.Edu
Article 11bis. (1) Authors of literary and artistic works shall enjoy the exclusive right of authorizing: (i) the broadcasting of their works or ...
[90]
Summary of the Berne Convention for the Protection of Literary and Artistic Works (1886)
### Summary of the Berne Convention's Stance on Compulsory Licenses and Exceptions
[91]
[PDF] 31bis_trips_e.pdf - World Trade Organization
Jan 23, 2017 · The obligations of an exporting Member under Article 31(f) shall not apply with respect to the grant by it of a compulsory licence to the extent ...
[92]
intellectual property - overview of TRIPS Agreement - WTO
Compulsory licensing and government use without the authorization of the right holder are allowed, but are made subject to conditions aimed at protecting ...
[93]
Declaration on the TRIPS Agreement and public health
Nov 20, 2001 · Each member has the right to grant compulsory licences and the freedom to determine the grounds upon which such licences are granted. Each ...
[94]
Importance of the intellectual property system in attempting ...
Jun 27, 2019 · The Doha declaration was quite effective in issuance of compulsory licensing in the short run [1]. A few attempts to issue compulsory licensing, ...
[95]
When access to drugs meets catch-up: Insights from the use of CL ...
In 1996, Brazil initiated a policy of universal and free access to highly-active ARV therapy, which put an enormous pressure on the Brazilian Ministry of Health ...
[96]
Compulsory license | Access - Medicamentalia
In 2007, 75,000 patients were treated with efavirenz in Brazil. With a disappearing budget, the government negotiated prices with Merck, the pharmaceutical ...
[97]
[PDF] An Exploration of Compulsory Licensing as an Effective Policy Tool ...
Jan 24, 2013 · Compulsory licensing has been used by a number of countries in the last few years, including the United States, Canada, Indonesia, Malaysia,.
[98]
India issues compulsory licence for sorafenib - Nature
The Indian Controller of Patents has issued a compulsory licence for Bayer's anticancer drug sorafenib (Nexavar), meaning that the generics company Natco ...
[99]
Bayer loses bid to overturn India's first compulsory licence
Dec 18, 2014 · German drug major Bayer has lost its long-running battle to get India's first-ever compulsory licence – for its liver and kidney cancer drug ...
[100]
Indian Supreme Court upholds patent breaking of Bayer drug
In 2012, India's controller general for patents issued a compulsory license of Nexavar, a liver and kidney cancer treatment known generically as sorafenib ...
[101]
[PDF] THE FIRST MARKET- INITIATED COMPULSORY LICENCE
This article looks at market-initiated compulsory licences issued under pat- ent regimes, the first of which came into force with the grant of the Nexavar.<|separator|>
[102]
Changing global essential medicines norms to improve access ... - NIH
Although Brazil did not actually issue a compulsory license for an ARV drug until 2007, the controversy received global media coverage, prompted a 2001 WTO ...
[103]
Compulsory licensing: A misused and abused international trade law
May 16, 2017 · Yet despite these abuses, studies have actually proven that compulsory licensing is an ineffective and unsustainable tactic. Rather, voluntary ...
[104]
insights from the Brazilian policy of universal access to HIV/AIDS ...
Jan 30, 2019 · The Brazilian case study demonstrates the crucial role of industrial policy in making the use of compulsory licensing in price negotiations with ...
[105]
The case for compulsory licensing during COVID-19 - PMC - NIH
Compulsory licensing was used as a successful policy tool for improving access to antiretroviral drugs in the face of the AIDS epidemic.Missing: studies | Show results with:studies
[106]
Covid-19 and the comeback of compulsory licensing
Mar 23, 2020 · On 19 March, Israel issued compulsory patent licences related to lopinavir/ ritonavir (brand name Kaletra), which is an HIV medicine currently ...
[107]
Israel issues compulsory license to allow the government to import ...
Mar 23, 2020 · Israel issues compulsory license to allow the government to import generic versions of Kaletra. Posted on March 23, 2020 by Thiru. (More on ...Missing: molnupiravir | Show results with:molnupiravir
[108]
Hungarian compulsory license for remdesivir raises a stir with BIO ...
Mar 8, 2021 · In late 2020, the Hungarian Government granted a compulsory license for remdesivir, a COVID-19 treatment conditionally approved by the EMA, ...
[109]
Hungarian Constitutional Court annuls first public health compulsory ...
Oct 19, 2023 · The compulsory license was granted for the manufacture of remdesivir for six months and was only valid for Hungary. Patentee's course of action.
[110]
Bird & Bird successfully represents Gilead in Hungarian compulsory ...
Oct 20, 2023 · In December 2020, the Hungarian Intellectual Property Office (HIPO) granted compulsory licenses for three patents concerning remdesivir, an ...
[111]
Compulsory licensing of pharmaceuticals during public health crisis
Sep 12, 2025 · During the COVID-19 pandemic, multiple countries invoked Article 31 of the TRIPS Agreement to issue compulsory licenses for COVID-19 treatments, ...
[112]
Chilean Chamber of Deputies approves resolution for compulsory ...
Mar 17, 2020 · Chilean Chamber of Deputies approves resolution for compulsory licenses for patents relating to the coronavirus virus. Posted on March 17 ...
[113]
Chilean lawmakers support compulsory licensing for coronavirus ...
Mar 18, 2020 · Chile's lower house of Congress passed nearly unanimously a resolution that would permit the government to issue compulsory licenses for any medicines, ...
[114]
Changes to the Patent Act: COVID-19 Emergency Response Act ...
Mar 26, 2020 · The amendments to the Patent Act effectively introduce compulsory licensing during the COVID-19 public health emergency.
[115]
COVID-19: Canadian Government Can Now Use Patented ...
Mar 26, 2020 · The Commissioner has the power to authorize the Government's use of patented inventions until September 30, 2020. In order to be eligible to use ...
[116]
[PDF] compulsory licenses, the trips waiver and access to covid-19 ...
May 21, 2021 · A compulsory license is a permit granted by the government to allow alternative production or importation of a generic version of a patented ...<|separator|>
[117]
Compulsory licensing in Germany – the coronavirus crisis and beyond
Jun 1, 2021 · Exploring the compulsory licensing and governmental use of patents since the start of the COVID-19 pandemic.
[118]
Compulsory licences in times of crisis | US - Murgitroyd
Sep 10, 2021 · ... patents granted between 2018 and 2020 relevant to their vaccine against COVID-19. Another example is the alliance of the British–Swedish ...
[119]
Compulsory licenses, the TRIPS Waiver, and access to COVID-19 ...
May 26, 2021 · This briefing document provides an overview of a key TRIPS flexibility: compulsory licensing, including government-use licensing.
[120]
Compulsory licensing - Internal Market, Industry, Entrepreneurship ...
The initiative on compulsory licensing for crisis management aims at creating, at EU level, an efficient compulsory licensing framework to address EU crises.
[121]
compulsory licensing - Carriages preview | Legislative Train Schedule
On 27 April 2023, the Commission tabled a proposal that aims to create, at EU level, a compulsory licensing framework for patents to address EU crises. As ...
[122]
Crisis preparedness: Council and Parliament strike deal on last ...
May 21, 2025 · The Council and the European Parliament reached a provisional agreement on the regulation on compulsory licensing for crisis management purposes.
[123]
Deal on patent rules exception to ensure the supply of critical products
May 21, 2025 · New “compulsory licensing” regime agreed by EU co-legislators. Emergency products covered by patents to be immediately available to EU countries.
[124]
The European Commission's proposal on a new EU-wide ...
Sep 8, 2023 · The new EU-wide compulsory licensing scheme seems to be a hybrid between compulsory licensing and government use envisaged in Article 31 TRIPS.
[125]
Commission welcomes political agreement on compulsory licensing ...
May 21, 2025 · The new Regulation establishes an EU-level framework to efficiently grant a compulsory licence in clearly defined cross-border crisis or emergency situations.
[126]
One step closer to EU-wide compulsory licences for crisis ...
Jun 24, 2025 · Compulsory licensing is a mechanism by which governments or other competent authorities can grant companies and individuals a licence to exploit ...
[127]
Union compulsory licensing of patents for crisis management
Oct 13, 2025 · Following this experience, EU lawmakers negotiated a compulsory licensing scheme intended to facilitate rapid use of patents while ...
[128]
Joint business statement on the EU Proposal on Compulsory ...
May 13, 2024 · Regulation on compulsory licensing for crisis management and amending Regulation (EC) 816/2006 (Compulsory Licensing proposal). List of co- ...
[129]
European Parliament's amendments make the Regulation for EU ...
Apr 9, 2024 · It fills an important void in European Union law where today only individual member states can issue a compulsory licence (CL). Without an EU- ...Missing: 2022/1031 | Show results with:2022/1031
[130]
New era for European compulsory licensing on the horizon?
Sep 25, 2024 · The Commission's proposal for a Compulsory Licensing Regulation will introduce a legal regime for EU-wide compulsory licences available in times of crises.
[131]
https://sipla.ip.mpg.de/es/noticias/detalles/ecuador-concede-licencia-obligatoria.html
[132]
https://www.minsalud.gov.co/Normatividad_Nuevo/Resoluci%C3%B3n%20No%201579%20de%202023.pdf
[133]
[PDF] A fact-based case for the extension of the TRIPS COVID-19 decision
Compulsory licensing is a legal tool in the TRIPS agreement which is freely used by high-income countries as noted above. What is under consideration is an ...
[134]
Compulsory Licensing: A Cure for Distributing the Cure? - CSIS
May 8, 2020 · Compulsory licensing is a process by which a government licenses companies or individuals other than the patent owner to use the rights of the ...
[135]
The Effect of Compulsory Licensing on Innovation in Pharmaceuticals
The results indicate that issuing of an additional compulsory license is associated with 5.10% decrease in innovation. Specifically, when the market share ...
[136]
[PDF] did patent violations during the great war discourage invention?
Aug 28, 2014 · This suggests that compulsory licensing can discourage innovation by weakening the effectiveness of intellectual property and by reducing ...
[137]
[PDF] Compulsory Licensing and Access to Medicine in Developing ...
This conclusion, which applies to pharmaceutical companies, shows that compulsory licensing did not cause a reduction in investments in R&D.Missing: evidence | Show results with:evidence
[138]
[PDF] Cheap Drugs at What Price to Innovation: Does the Compulsory ...
is a perception that compulsory licensing can discourage R&D. A survey of British pharmaceutical executives suggested that they believed that, in some ...
[139]
The Effects of Compulsory Licensing on Innovation and Access to ...
Aug 6, 2025 · As a limit to the exclusive rights entitled to patent holders, CL decreases their anticipated returns on R&D investments and prevents them from ...
[140]
[PDF] Compulsory Licenses and Why Abuses of the TRIPS Article 31 ...
Nov 20, 2010 · your patented products without your consent. As a result, profits are diminished and control of your product weakened. This is an example of ...
[141]
[PDF] a timeline of us attacks on india's patent law & generic - january 2015
Jan 30, 2015 · The letter highlighted India's. “harmful trade policies” including revocations of medical patents and issuing compulsory licenses.36. 25 ...
[142]
Compulsory licensing tensions loom in clash over US tariffs, Brazil ...
Aug 27, 2025 · Amid the USA's tariffs and trade investigation, Brazil's new law allowing IP suspension and discussion of compulsory licensing present risks ...<|separator|>
[143]
[PDF] The Geopoliticization of TRIPS Rules on Access to Medicine
Dec 2, 2024 · This article examines the differential application of. TRIPS across diverse national contexts, focusing on how developed and developing nations.