Compulsory Licence 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.
Once a compulsory licence is ordered, sections 50 to 53 govern how long it lasts, what terms the Authority must try to secure, what the licensee may not do, and how the licence can be revoked or modified. The Authority also makes the stored seed available to the licensee.
Provisions as amended up to the Tribunals Reforms Act, 2021 (in force 4 April 2021); no later amendment as of 3 October 2026. Later notifications should be checked on plantauthority.gov.in.
The Authority fixes the duration of a compulsory licence case by case, taking account of gestation periods, but never beyond the remaining period of protection (s.50). It must endeavour to secure reasonable compensation for the breeder and a licensee with adequate means to supply seed timely and at a reasonable market price (s.51(1)). The licence cannot authorise an infringing import (s.51(2)). It may be revoked for breach or public interest (s.52) and modified in public interest (s.53).
Section 50: duration and access to stored material
"The Authority shall determine the duration of the compulsory licences granted under this Chapter and such duration may vary from case to case keeping in view the gestation periods and other relevant factors but in any case it shall not exceed the total remaining period of the protection of that variety."
So the ceiling is the unexpired term. A tree crop with a long gestation can justify a longer licence than an annual crop, because the licensee needs time to establish production.
The section also says: "when a compulsory licence is granted the prescribed authority shall, in the prescribed manner, make available to the licensee of such compulsory licence, the reproductive material of the variety relating to such compulsory licence stored in the National Gene Bank or any other centre." That is where the breeder's deposit under section 27 is used. Under rule 72 the Authority makes available to the licensee the reproductive material of the licensed variety from the Gene Bank or any other centre, including the initial breeder of the variety.
Section 51: terms and conditions
| Sub-section | Provision |
|---|---|
| 51(1)(i) | The Authority shall endeavour to secure reasonable compensation to the breeder, having regard to the nature of the variety, the expenditure incurred by the breeder in breeding or developing it, and other relevant factors |
| 51(1)(ii) | The Authority shall endeavour to secure that the compulsory licensee possesses adequate means to provide to the farmers the seeds or propagating material of the variety timely and at a reasonable market price |
| 51(2) | No compulsory licence shall authorise the licensee to import the variety, or any seed or propagating material of it, from abroad where that import would constitute an infringement of the breeder's rights |
The first limb protects the breeder; the second protects farmers. The Act gives no formula for compensation: it is "reasonable compensation", judged on the nature of the variety, the breeder's expenditure and other relevant factors.
The import bar in sub-section (2) is worded narrowly: it applies "where such import would constitute an infringement of the rights of the breeder". A licence cannot be used to bring in seed that infringes.
Where the Authority orders a licence under section 47, it does so "upon such terms and conditions as it may deem fit"; section 51 sets the purposes those terms must serve. Under rule 71(6), the order may be on terms of royalties and other remuneration as the Authority deems fit.
An invented example: a regional cooperative is granted a compulsory licence for a mustard variety for a period the Authority sets, shorter than the remaining period of protection. The terms include a royalty to the breeder that reflects the breeder's breeding expenditure and a commitment that the cooperative will supply seed timely and at a reasonable market price. The cooperative may produce, distribute and sell seed in India but may not import from abroad seed whose import would infringe the breeder's rights.
If you are preparing terms or responding to terms proposed by the Authority, a legal dispute resolution adviser can help you present the evidence on compensation and capacity.
Section 52: revocation
| Element | Provision |
|---|---|
| Who may start | The Authority on its own motion, or on application from an aggrieved person in the prescribed form |
| Grounds | The compulsory licensee registered under the Chapter has violated any terms or conditions of his licence, or it is not appropriate to continue the licence in public interest |
| Safeguard | After giving the licensee an opportunity to file opposition and of being heard |
| Consequence | The Authority sends a copy of the order to the Registrar to rectify the entry or correct the Register, and the Registrar does so (s.52(2)) |
Under rule 73, an aggrieved person applies in Form PV-30 on any of the grounds in section 47(1) or section 52, supported by evidence; the Authority may give notice to the licensee, on its own motion or on receiving the application; the licensee may oppose in Form PV-31; and after considering the opposition and hearing the licensee, the Authority passes an order of revocation or refuses to. See rules 71 to 73.
Section 53: modification
"The Authority may, on its own motion or on application from licensee of a compulsory licence, after providing the opportunity of being heard to the breeder of the variety registered under this Act relating to such compulsory licence, if it considers, in public interest, so to do, modify, by order, such terms and conditions as it thinks fit and send a copy of such order to the Registrar to correct the entries and Register according to such modification and the Registrar shall ensure such corrections to be made accordingly."
Note the difference. Section 52 hears the licensee; section 53 hears the breeder. Section 53 does not give the breeder a right to apply; it gives the Authority the power to act on its own motion or on the licensee's application, in public interest.
Appeals
An appeal lies to the High Court under section 56(1)(d) from an order or decision of the Authority regarding revocation or modification of a compulsory licence, within the period set by the High Court's rules. The Tribunal that earlier heard such appeals no longer exists; see sections 54 to 59.
Need help with compulsory licence terms?
Terms, compensation and capacity evidence decide how a compulsory licence works. Speak to our legal dispute resolution team before the hearing.
Key takeaways
- Duration is fixed by the Authority, cannot exceed the remaining period of protection and may reflect gestation periods.
- The Authority makes stored reproductive material available to the licensee.
- It must endeavour to secure reasonable compensation to the breeder and a licensee able to supply seed timely at a reasonable market price.
- The licence cannot authorise an import that infringes the breeder's rights.
- Revocation (breach or public interest) hears the licensee; modification (public interest) hears the breeder.
Read next
- Sections 47-49: compulsory licence
- Sections 33-34: surrender and revocation of protection
- Rules 71-73: compulsory licence procedure
Disclaimer: Based on the Protection of Plant Varieties and Farmers' Rights Act, 2001 as amended up to the Tribunals Reforms Act, 2021, the PPV&FR Rules, 2003 as amended up to G.S.R. 803(E) of 16 November 2021, and the regulations, rules and scheme named in the article, as published by the PPV&FR Authority and consulted on 3 October 2026. Later notifications should be checked on plantauthority.gov.in. This article is general information, not legal advice; check the official text before acting.