·The Hindu·15 marks·250–350 wordsPolityEconomyIR

"Compulsory licensing under the Patents Act, 1970 remains a remedy more theoretical than practical." Critically examine this statement in light of recent judicial interventions on patented cancer drug pricing.

In this answer
  1. Why the remedy appears largely theoretical
  2. Where it retains practical force

Section 84 of the Patents Act, 1970 permits a compulsory licence (CL) three years after grant if public requirements are unmet, the price is not reasonably affordable, or the patent is not worked in India [1]. Yet India has granted only one CL in five decades — a gap the Kerala High Court's Ribociclib proceedings expose sharply.

Why the remedy appears largely theoretical

  • Locus standi gap: only an interested party — in practice a willing generic manufacturer — can apply. A patient cannot trigger Section 84 directly, which is why the Kerala HC's suo motu case In Re Exorbitant Pricing of Life Saving Patented Medicines has run for years without a CL applicant for Ribociclib (Novartis) [3].
  • Solitary precedent: the Controller's 2012 order for Natco v. Bayer (Sorafenib/Nexavar) cut monthly cost from about ₹2.8 lakh to ₹8,880 — but no CL has followed since [2].
  • Executive caution: DPIIT was merely directed to consider the representation; no licence was issued, reflecting sensitivity to trade pressure and investment signalling [3].
  • Evidentiary weakness: patchy Form 27 working statements make non-working and unaffordability hard to prove.

Where it retains practical force

  • Deterrent value: the Natco outcome, upheld on appeal, created a bargaining shadow encouraging voluntary licences and tiered pricing [2].
  • Reserve powers intact: Section 92 government-use in extreme urgency remains available, and TRIPS as read with the Doha Declaration (2001) protects this flexibility [4][1].
  • Judicial persistence: converting a deceased petitioner's plea into suo motu proceedings, impleading a new patient, and seeking expert opinion on Palbociclib substitutability keep systemic scrutiny alive [3].
  • Parallel routes deliver: DPCO, 2013 ceiling prices under NPPA [5] and PM-JAY helped cut out-of-pocket expenditure from 62.6% to 39.4% between 2014-15 and 2021-22 [6].

The statement holds in practice, not in law: the power exists but lacks an activating agent. Time-bound DPIIT disposal, credible Form 27 enforcement, price negotiation and patent pools for oncology drugs can convert Section 84 from a dormant deterrent into a working guarantee of the Article 21 right to health, advancing SDG-3.

Sources

  1. 1The Patents Act, 1970 — India Code, Ministry of Law and JusticeSection 84 grounds for compulsory licence; Section 92 government use in circumstances of extreme urgency
  2. 2Office of the Controller General of Patents, Designs and Trade Marks (IP India)Compulsory Licence Application No. 1 of 2011, *Natco Pharma v. Bayer* (9 March 2012), India's only granted CL and the resulting price reduction
  3. 3"HC allows cancer patient to join plea on medicine prices" — The Hindu, 24 August 2026Kerala HC suo motu case on Ribociclib pricing, impleadment of a new patient, DPIIT directed to consider CL representation
  4. 4Declaration on the TRIPS Agreement and Public Health (Doha, 2001) — WTOinternational affirmation of compulsory licensing flexibility for public health
  5. 5Drugs (Prices Control) Order, 2013 — National Pharmaceutical Pricing Authorityceiling-price regulation as a parallel affordability instrument
  6. 6National Health Accounts Estimates for India — Press Information Bureau, Ministry of Health and Family Welfaredecline in out-of-pocket expenditure from 62.6% (2014-15) to 39.4% (2021-22)
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