Nexavar: The First Market Initiated Compulsory Licence
Dr. Feroz Ali*
Volume 9 Issue 3-4 (2016)
This article looks at market-initiated compulsory licences issued under patent regimes, the first of which came into force with the grant of the Nexavar licence in India. By classifying the various types of compulsory licences, this article brings out the differences between government-use and market-initiated licences. I argue that market-initiated licences have many advantages over government-use compulsory licences. Although factors like overcoming capacity barriers of local manufacturers and legislative preparedness of the nation seeking to implement the licences are important for the grant of market-initiated compulsory licences, such licences, when granted, can regulate competition, address non-emergency situations like lack of affordability of life-saving drugs by reducing drug prices, facilitate local production and encourage the practice of price discrimination, while simultaneously resolving antitrust concerns that arise out of a refusal to licence by the patent owner.