90. Terms and conditions of compulsory licences
(1) In settling the terms of a licence under section 84, the Controller shall endeavour to secure: reasonable royalty having regard to the nature of the invention and the patentee’s expenditure; that the invention is worked to the fullest extent with reasonable profit to the licensee; that patented articles are available to the public at reasonably affordable prices; that the licence is non-exclusive and non-assignable; that it runs for the balance term of the patent unless a shorter term suits the public interest; that it is granted with a predominant purpose of supplying the Indian market (though the licensee may also export where section 84(7)(a)(iii) applies); that for semi-conductor technology the licence is for public non-commercial use; and that where the licence remedies anti-competitive conduct, the licensee may export the patented product if need be.
(2) No licence granted by the Controller shall authorise importation of the patented article or a product of the patented process from abroad where that would otherwise infringe the patentee’s rights.
(3) The Central Government may, however, if necessary in the public interest, direct the Controller at any time to authorise a licensee to import the patented article or product from abroad, subject to conditions on royalty, quantum, sale price and period of importation, and the Controller shall give effect to such directions.
