Manual explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A compulsory licence lets a person other than the patentee work a patented invention in India on terms fixed by the Controller. Paragraphs 14.02 and 14.02.01 of the Manual describe how the Office handles an application under section 84, from the grounds to the terms of the licence. This article follows that practice and leaves the statutory text to the section posts.
The Manual is the Patent Office's guidance and does not have the force of law; the Patents Act, 1970 and the Patents Rules, 2003 as now in force prevail. The Office revises its manuals, so check the current version on ipindia.gov.in.
Any person interested, and a licensee, may apply on Form 17 after three years from the grant of the patent on three grounds: the reasonable requirements of the public are not satisfied, the invention is not available at a reasonably affordable price, or it is not worked in India. The applicant must show a prima facie case, the patentee may oppose, and the Controller settles terms that aim at a non-exclusive, non-assignable licence at reasonable royalty.
Where section 84 sits (14.02)
The Manual lists three routes to a compulsory licence: section 84, section 92 and section 92A. This article covers section 84, the general route. Sections 92 and 92A are in the next article. The statute is explained in our overview of section 84 and, for the procedural sections, in sections 86 and 87.
The grounds and what the Controller weighs (14.02.01)
The Manual says the application is made after three years from the date of grant, on any of three grounds: the reasonable requirements of the public are unmet, the invention is not available at a reasonably affordable price, or it is not worked in the territory of India. A licensee may also apply. A person is not stopped from raising these grounds because of an admission in the licence or because he accepted the licence.
In considering the application the Controller takes into account:
- the nature of the invention, the time since sealing and the patentee's measures to use it fully;
- the applicant's ability to work it to the public advantage and to bear the capital risk;
- whether the applicant tried to obtain a licence on reasonable terms and failed within a reasonable period, which the Manual says should ordinarily not exceed six months, and which does not apply in national emergency, extreme urgency, public non-commercial use or established anti-competitive practice;
- not matters that arose after the application was made.
The reasonable requirements of the public (14.02.01.01)
The Manual lists the situations in which those requirements are treated as unmet. In summary, they cover a patentee's refusal to license on reasonable terms that prejudices an existing or new trade, leaves demand unmet or an export market unserved; licence conditions that burden unprotected materials or trade, including exclusive grant-back, a bar on challenging validity or coercive package licensing; inadequate commercial working in India; and working being hindered by imports. A reader preparing an application should map the facts to each head; a patentee should be ready to show working or supply on reasonable terms. The pricing and working history is usually proven from the patentee's own statements; see Form 27 and working.
Contents of the application (14.02.01.02)
The application, on Form 17, contains a statement of the nature of the applicant's interest, the facts relied on, and the terms and conditions of the licence the applicant is willing to accept. A strong application also attaches its evidence on the grounds: the attempts to obtain a licence, the price and supply position, and the applicant's technical and financial capacity.
If you are considering an application or answering one, our legal dispute resolution service can assess the grounds and prepare the case.
Adjournment (14.02.01.03)
Where the ground is non-working, or inadequate working, and the Controller is satisfied that the time since sealing has been too short for adequate commercial working, he may adjourn the hearing for up to twelve months in aggregate. The Manual adds that no adjournment is ordered unless the patentee has taken prompt and reasonable steps to start working in India. If the patentee shows the delay was caused by a legal or governmental restriction, the adjournment runs from the end of that restriction. See section 86.
Procedure (14.02.01.04)
| Step | What the Manual says |
|---|---|
| Prima facie view | If a prima facie case is made out, the Controller directs the applicant to serve the patentee and persons on the register, and publishes the application |
| Opposition | The patentee or another person may oppose within two months of publication, or such further time as allowed, with grounds, the terms the opponent would grant and evidence |
| Service | The opponent serves the applicant and tells the Controller |
| Further material | No further statement or evidence without leave or requisition |
| Hearing | At least ten days' notice; procedure follows rule 62(2) to (5) as far as may be |
| No prima facie case | The applicant is notified and may ask for a hearing within one month; otherwise the application is refused; a refusal after hearing is by a speaking order |
The rule posts for this stage are rules 96 and 97. Where a period differs, the rule as now in force prevails.
Terms and conditions (section 90 as the Manual states it)
The Controller aims to secure that:
- the royalty is reasonable, having regard to the invention, the patentee's expenditure on developing and patenting it and other relevant factors;
- the invention is worked to the fullest extent with reasonable profit to the licensee;
- patented articles reach the public at reasonably affordable prices;
- the licence is non-exclusive, non-assignable and for the balance term of the patent, unless a shorter term suits the public interest;
- the licence is granted predominantly for the Indian market, with export allowed as the Act provides;
- for semiconductor technology, the licence is for public non-commercial use; and
- where the licence remedies an anti-competitive practice, export is permitted.
Terms may be revised on the licensee's application after at least twelve months of commercial working if they proved more onerous than expected and cause loss, and not a second time. See sections 90 and 91.
Licensee applications and multiple patents (14.02.01.05 and .06)
The Manual explains that where licence conditions prejudice trade in unprotected materials, the Controller may order licences to the applicant's customers as well. Where the applicant is already a licensee, the existing licence may be cancelled or amended if a compulsory licence is granted. Where one patentee holds several patents, and the applicant cannot work the licensed patent without infringing others of important technical advancement or considerable economic significance, the Controller may extend the licence to those patents.
A worked example
Verde Diagnostics Pvt Ltd wants to make a patented test kit that is sold only by import at a high price. Four years after grant, it writes to the patentee for a licence on stated terms and gets no workable reply over six months. It then files Form 17 with the efforts made, the price and supply facts and the terms it will accept. The Controller finds a prima facie case, publishes the application and hears the patentee's opposition on ten days' notice. If the case succeeds, the licence would be non-exclusive, non-assignable and at a reasonable royalty.
Common lapses
- Applying before three years from grant.
- No record of the attempt to obtain a licence on reasonable terms.
- Leaving out the terms the applicant is willing to accept.
- A patentee failing to oppose within two months or to attach evidence.
- Assuming an adjournment is automatic for a young patent.
Need help with a compulsory licence matter?
These cases turn on documentary proof of working, price and efforts to license. If you need an application prepared or opposed, our legal dispute resolution team can assist.
Key takeaways
- Application on Form 17 after three years from grant, on three grounds.
- The applicant must have tried for a licence on reasonable terms, ordinarily within six months, with listed exceptions.
- The Controller needs a prima facie case before publication; opposition is within two months.
- Adjournment of up to twelve months is possible only where the patentee has acted promptly.
- Licence terms aim at non-exclusive, non-assignable, reasonable royalty and affordable supply.
Read next
- Chapter 14: related patents, notification, export of medicines and termination
- Chapters 11 and 14: working of patents and Form 27
- Compulsory licensing under section 84
- Rules 96 and 97: application and prima facie case
Disclaimer: Based on the manuals and guidelines published by the Office of the Controller General of Patents, Designs and Trade Marks that are named in the article, as consulted on 4 October 2026. They are guidance and do not have the force of law; the Patents Act, 1970 and the Patents Rules, 2003 as amended (including the 2024 amendment rules) prevail, and the current versions on ipindia.gov.in should be checked. This article is general information, not legal advice; check the official text before acting.