Compulsory licences
Section 84 of the Patents Act, 1970 deals with compulsory licences. At any time after the expiration of three years from the date of the [grant] of 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 The Act came into force on 01 Apr 1978.
(1) At any time after the expiration of three years from the date of the 1[grant] of 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 applicants 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 filed 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 anti-competitive practices adopted by the patentee,
but shall not be required to take into account matters subsequent to the making of the application.
2[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.
Section 84, The Patents Act, 1970 (Act 39 of 1970).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 10
- s. 86 Power of Controller to adjourn applications for compulsory licences, etc., in certain cases
- s. 87 Procedure for dealing with applications under sections 84 and 85
- s. 88 Powers of Controller in granting compulsory licences
- s. 89 General purposes for granting compulsory licences
- s. 90 Terms and conditions of compulsory licences
- s. 91 Licensing of related patents
- s. 92 Special provision for compulsory licences on notifications by Central Government
- s. 94 Termination of compulsory licence
- s. 110 Right of licensee under section 84 to take proceedings against infringement
- s. 117A Appeals to Appellate Board
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Bayer Corporation v. Union of India
Court's Decision & Legal Precedent
Final Order order-4.pdf 2014-07-15 DATE VERIFIED. Mohit S. Shah C.J. / M.S. Sanklecha J. WP 1323/2013. Isolate: Patents Act s.84 compulsory licence — after three years, Natco’s Nexavar (sorafenib) licence is upheld because Bayer had not met the reasonable requirements of the public, had not made the drug available at a reasonably affordable price, and had not worked the patent in India on a commercial scale; working may in a given case be by import, but token import is not enough. First post-TRIPS Indian compulsory-licence merits. Distinctive (Bayer/Natco). Leading HC DB. Map 84 only — do not pad 83/86/90 from the scheme recital.
On this section: Patents Act s.84 compulsory licence after three years is available where the reasonable public requirement, reasonably affordable price, or working-in-India grounds are made out; Nexavar was not reasonably affordable or worked on a commercial scale (Bayer Corporation).
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… not invoked the provisions of Section 66 of the Patents Act and after following the procedure referred to therein, made a declaration in the Official Gazette to the effect that the patent of the plaintiffs stand revoked in public interest. Not only this, the defendant has not approached the competent authority under Section 84 of the Patents Act after the expiry of three years from the grant of the patent for grant of compulsory licence of patent on the conditions enumerated therein. 18. At this stage, it is relevant to refer to Section 48 of the Patents Act as it stood prior to the amendment and also post amendment, which amendment …
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… not invoked the provisions of Section 66 of the Patents Act and after following the procedure referred to therein, made a declaration in the Official Gazette to the effect that the patent of the plaintiffs stand revoked in public interest. Not only this, the defendant has not approached the competent authority under Section 84 of the Patents Act after the expiry of three years from the grant of the patent for grant of compulsory licence of patent on the conditions enumerated therein. 19. At this stage, it is relevant to refer to Section 48 of the Patents Act as it stood prior to the amendment and also post amendment, which amendment …
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… not invoked the provisions of Section 66 of the Patents Act and after following the procedure referred to therein, made a declaration in the Official Gazette to the effect that the patent of the plaintiffs stand revoked in public interest. Not only this, the defendant has not approached the competent authority under Section 84 of the Patents Act after the expiry of three years from the grant of the patent for grant of compulsory licence of patent on the conditions enumerated therein. 20. At this stage, it is relevant to refer to Section 48 of the Patents Act as it stood prior to the amendment and also post amendment, which amendment …
Questions about Section 84
What have the courts held on Section 84 of the Patents Act?
Bayer Corporation v. Union of India (15 Jul 2014) is the leading judgment on this section among those set out below: Patents Act s.84 compulsory licence after three years is available where the reasonable public requirement, reasonably affordable price, or working-in-India grounds are made out; Nexavar was not reasonably affordable or worked on a commercial scale (Bayer Corporation).
How do I find court cases under Section 84 of the Patents Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Patents Act 84, section 84 Patents Act, section 84 of the Patents Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Bayer Corporation v. Union of India (15 Jul 2014).
What should I read with Section 84 of the Patents Act, and has it changed?
Its own text turns on section 88 (Powers of Controller in granting compulsory licences), so none of them can safely be read on its own. 10 other provisions in this corpus refer back to it.
When did Section 84 of the Patents Act come into force?
Section 84 of the Patents Act, commonly called compulsory licence patent, and cited as Patents Act 84, came into force on 01 Apr 1978, having been enacted on 19 Sep 1970. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.