Compulsory licensing (CL) is a legal tool that allows governments to authorize third parties to produce patented products without the patent holder’s consent in exceptional situations. While it benefits public access to essential medicines, CL raises concerns for patent holders due to reduced incentives for research and development, impacting innovation and investments.
The World Trade Organization’s TRIPS Agreement aims to strike a balance between public health needs and patent holders’ rights by permitting CL under certain conditions. However, despite guidelines, challenges persist, particularly for patent holders who may face reduced incentives for innovation. Alternatives such as partnerships, voluntary licensing, donations, differential pricing programs, and non-assert declarations offer ways to address these challenges.
CL remains a crucial tool for public health, improving access to necessary medicines during crises. It’s essential to navigate the complexities of this issue by implementing flexible yet robust regulations that safeguard public health without jeopardizing the rights of patent holders.
For the complete blog, check out: Compulsory Licensing in Pharma Patents: A Win-Win Solution or a threat to innovation? — PatSeer
