Indian compulsory licence appeal begins in Bombay

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

Indian compulsory licence appeal begins in Bombay

Oral arguments in the appeal over India’s compulsory licence grant for Bayer’s Nexavar are set to begin today in the Bombay High Court

The patent controller issued India’s first compulsory licence for the cancer treatment in March 2012.

Generic manufacturer Natco applied for the licence under section 84 of the Patents Act, arguing 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 Intellectual Property Appellate Board upheld the licence in March, setting up the appeal to the Bombay High Court. Speaking to Managing IP a few days after the decision, then IPAB chairperson Prabha Sridevan argued that compulsory licences are not an attack on IP rights.

“IP laws say, ‘these are the owner’s rights, and of course this means ownership and control’,” she stated. However, Sridevan pointed out that all rights are limited by law, and compulsory licenses are simply a part of that law.

The Nexavar decision has raised concerns among international drug companies that it would be the first of many compulsory licences, a fear that has been partially realised. In January, the Department of Pharmaceuticals started the process to procure compulsory licences for three more cancer drugs under section 92 of the Patents Act, which allows the government to request a compulsory licence during national emergencies. However, the Department of Industrial Policy and Promotion has denied the compulsory licence application for Roche’s Trastuzumab. Meanwhile, the decisions concerning Bristol Myers-Squibb‘s Ixabepilone and Dasatinib are still pending.

more from across site and SHARED ros bottom lb

More from across our site

Erise IP has added a seven-practitioner trademark team from Hovey Williams, signalling its intention to help clients at all stages of development
News of prison sentences for ex-Samsung executives for trade secrets violation and an opposition filed by Taylor Swift were also among the top talking points
A multijurisdictional claim filed by InterDigital and a new spin-off firm in Germany were also among the top talking points
Duarte Lima, MD of Spruson & Ferguson’s Asia practice, says practitioners must adapt to process changes within IP systems, as well as be mindful of the implications of tech on their practices
Practitioners say the UK Supreme Court’s decision could boost the attractiveness of the UK for AI companies
New awards, including US ‘Firm of the Year’ and Latin America ‘Firm to Watch’, are among more than 90 prizes that will recognise firms and practitioners
DWF helped client Dairy UK secure a major victory at the UK Supreme Court
Hepworth Browne led Emotional Perception AI to victory at the UK Supreme Court, which rejected a previous appellate decision that said an AI network was not patentable
James Hill, general counsel at Norwich City FC, reveals how he balances fan engagement with brand enforcement, and when he calls on IP firms for advice
In the second of a two-part article, Gabrielle Faure-André and Stéphanie Garçon at Santarelli unpick EPO, UPC and French case law to assess the importance of clinical development timelines in inventive step analyses
Gift this article