Bombay High Court upholds Nexavar compulsory licence

Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

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

Bombay High Court upholds Nexavar compulsory licence

The Bombay High Court has rejected Bayer’s challenge to the compulsory licence granted for its Nexavar cancer treatment drug

According to Livemint, Justice MS Sanklecha stated that the court saw no reason to overturn the Intellectual Property Appellate Board’s (IPAB) ruling from last February upholding the licence.

Bayer has stated that it will appeal the decision to the Supreme Court.

The Bombay High Court decision is the latest development involving India’s first compulsory licence, which was granted in March 2012. Then controller of patents PH Kurian granted the application from generic manufacturer Natco under section 84 of the Patents Act. This says that a compulsory licence may be granted if (a) the reasonable requirements of the public with respect to the drug have not been satisfied, (b) the patented invention is not available to the public at a reasonably affordable price, or (c) the patented invention is not worked in India.

The patent controller found that Natco established all three grounds and he granted a compulsory licence with a royalty rate of 6% of net sales.

Bayer appealed the patent controller’s decision to the IPAB. Last February, the Board upheld the compulsory licence grant, though it noted that the patent controller erred in finding that a drug not manufactured in India automatically meant it was not being worked in India. The IPAB also raised the royalty rate to 7%.

To this date, Nexavar is the only drug that has been subjected to a compulsory licence in India, though several other applications have been rejected.



more from across site and SHARED ros bottom lb

More from across our site

Lateral hires at Thompson Hine and Pierson Ferdinand said they were inspired by fresh business opportunities and innovative strategies at their new firms
The launch of a new IP insurance product and INTA hiring a former USPTO commissioner were also among the top talking points this week
The firm explains how it secured a $170.6 million verdict against the government in a patent dispute surrounding airport technology, and why the case led to interest from other inventors
Developments of note included the court partially allowing a claim concerning confidentiality clubs and a decision involving technology used in football matches
The firm said adding capability in the French capital completes its coverage of all major patent litigation jurisdictions as it strives for UPC excellence
Marc Fenster explains how keeping the jury focused on the most relevant facts helped secure a $279m win for his client against Samsung
Clients are divided on what externally funded IP firms bring to the table, so those firms must prove why the benefits outweigh the downsides
Rahul Bhartiya, AI coordinator at the EUIPO, discusses the office’s strategy, collaboration with other IP offices, and getting rid of routine tasks
A boom in transactional work and a heightened awareness of IP have helped boost revenue for the rebranded commercial services team
Clemens Heusch, head of global litigation and dispute resolution at Nokia, tells us why open conversations – and respectful challenges – lead to the best results
Gift this article