India’s Supreme Court declines to hear compulsory licence appeal

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Cookies Settings

India’s Supreme Court declines to hear compulsory licence appeal

India’s first compulsory licence has survived its latest and likely final court challenge

Last Friday, the Supreme Court handed down a two-sentence long order rejecting Bayer’s petition for special leave for appeal of the compulsory licence granted for its Nexavar cancer drug.

In July, the Bombay High Court held that there was no reason to overturn the compulsory licence originally granted by the patent controller and later upheld by the Intellectual Property Appellate Board.

India’s patent law has several provisions that allow for compulsory licences. Section 84 of the Patents Acts allows generic manufacturers to apply for a compulsory licence if it can show that: (a) 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 India.

The patent controller sided with Natco on all three grounds, granting the licence with a royalty rate of 6% of net sales. The IPAB in March 2013 upheld the decision, though it questioned the patent controller’s holding that a drug is not being worked if it is imported into India rather than produced domestically. The Bombay High Court again upheld the compulsory licence and made a point of agreeing with the IPAB on the issue of whether importation constitutes the working of a patent.

A possible but unlikely challenge

Though the Supreme Court denied the special leave petition, Bayer may still choose to file a review petition with the Supreme Court. Such a petition would be reviewed by the same bench that handed down the original denial, which may be overturned if Bayer can prove that there is “apparent error”. If this is denied, the Supreme Court may further consider a curative petition to prevent abuse of process or to cure gross miscarriage of justice.

However, one India lawyer suggests that this will be a difficult to get the Supreme Court to reverse its own decisions absent a strong case. One of the more high-profile examples, he explains, is the so-called 2G spectrum scam cases, where the Supreme Court agreed to review parts of its own decision to cancel 122 licences for spectrum for use with wireless communications.

more from across site and SHARED ros bottom lb

More from across our site

AI can exploit longstanding gaps in copyright protection at remarkable speed, but EU law still provides tools to fight back, says Simon Hembt at Bird & Bird
The firm has tapped a local patent trio to establish a foothold in the market and broaden its national presence
New Asia-Pacific IP head Jonathan Chu is eyeing opportunities arising from Chinese technology licensing, overseas enforcement and increasingly IP-heavy cross-border deals
Europe’s largest intellectual property convention and trade fair is back: IP Service World 2026 takes place in Munich from November 23–25 – the 16th edition, with 1,400-plus attendees from 55-plus nations, 100-plus speakers, and 100-plus exhibitors. Three days. Two focused areas. One IP marketplace.
Mehmet Gün and Uğur Aktekin discuss four decades of change in Türkiye’s legal market, the firm’s commitment to independence and the challenge of building an institution that can outlast its founders
Boehringer Ingelheim has instructed a team from Kirkland, while Teva is being represented by Pinsent Masons
The Delhi High Court’s latest directions offer an opportunity to move beyond remedies against bad-faith registrations and address how suspicious applications are identified in the first place, says Fatima Baig at Lexlinc
Camilla Hamrin describes how the acquisition by Acapo Onsagers will impact Bergenstråhle’s trademark practice – and reflects on changes she has seen over 30 years in IP
On a recent trip to the French capital, we learned that the UPC is squeezing domestic litigation while firms are chasing senior talent, experimenting with AI and considering new ways of organising their practices
Daniel Law says a string of lateral hires and broader expansion plans will strengthen its position to capitalise on Brazil’s burgeoning IP and patent litigation market
Gift this article