Economic, Commercial and Intellectual Property Laws · Law relating to Patents

Compulsory Licence, Revocation and Surrender of Patents

Updated 11 October 2026 · Fact-checked

A compulsory licence lets the Controller authorise someone other than the patentee to work a patent, on terms he fixes. Under Section 84 you can apply three years after grant if public needs are unmet, the price is unaffordable, or the invention is not worked in India. Revocation and surrender end the patent itself.

Understand Compulsory Licences, Revocation and Surrender

A patent gives the patentee a monopoly. The law balances this with public interest. If the patentee sits on the invention, overprices it or does not work it in India, the Act lets others obtain a compulsory licence. This is a licence granted by the Controller without the patentee's consent.

There are two routes. The ordinary route is Section 84. Any person interested may apply after three years from the date of grant of the patent. The grounds are: (a) reasonable requirements of the public are not satisfied, (b) the invention is not available at a reasonably affordable price, or (c) the invention is not worked in the territory of India. Section 84(7) lists when public requirements are deemed unmet. Examples are demand not met adequately, an export market not supplied, trade prejudiced by the patentee's refusal to license, and conditions such as exclusive grant back, a bar on challenging validity, or coercive package licensing.

The special route is Section 92. If the Central Government is satisfied that there is a national emergency, extreme urgency or public non-commercial use, it notifies this in the Official Gazette. The Controller then grants a licence to an interested applicant. Under Section 92(3), for such cases, including public health crises like HIV, tuberculosis, malaria or other epidemics, the Controller does not apply the Section 87 procedure. He must inform the patentee as soon as practicable.

The Controller fixes the terms. Under Section 90 he tries to secure a reasonable royalty, affordable prices, a non-exclusive and non-assignable licence, and a licence for the balance term of the patent unless a shorter term suits public interest. The licence is mainly for supply in the Indian market, and export is allowed if needed. Importing the patented article is not allowed under the licence, unless the Central Government directs it in public interest.

Section 85 adds a further check. After a compulsory licence has been granted, the Central Government or any person interested may apply for revocation for non-working once two years have passed from the first compulsory licence order. Beyond what is given here, the Act also provides for surrender of a patent by the patentee and for revocation by the High Court or in public interest. Study those from your ICSI material, and write them without section numbers unless you are certain of them. Licence of right is an older concept. Follow your study material on whether it is examined, and do not confuse it with a compulsory licence.

Key rules to remember

Time bar for Section 84 application: Application allowed only after 3 years from the date of grant of the patent; The time runs from grant, not from filing. Section 84(1). This bar does not apply to Section 92 licences.
Grounds under Section 84(1): (a) public requirements not satisfied; (b) not available at a reasonably affordable price; (c) not worked in India; Any one ground is enough. The applicant may even be an existing licensee.
Prior effort to get a voluntary licence: Reasonable period ordinarily not more than 6 months; Section 84(6)(iv). It is not required in national emergency, extreme urgency, public non-commercial use, or anti-competitive practices by the patentee.
Section 92 trigger: Central Government notification + Controller grants licence on application; Triggers: national emergency, extreme urgency, public non-commercial use. Section 87 procedure is not applied under Section 92(3), and the patentee is informed.
Terms of licence (Section 90): Reasonable royalty; affordable price; non-exclusive; non-assignable; balance term of patent; A shorter term is allowed if consistent with public interest. The licence is for predominantly Indian market supply.
Revision of terms (Section 88(4)): Licensee may apply after working on a commercial scale for at least 12 months; Only if the terms prove more onerous than expected and the licensee can work only at a loss. No second application will be entertained.
Revocation for non-working (Section 85): Application after 2 years from the order granting the first compulsory licence; ordinarily decided within 1 year; Made to the Controller by the Central Government or any person interested.

How to solve Compulsory Licences, Revocation and Surrender questions

Use this order for any question on compulsory licensing, revocation or surrender. It keeps your answer in the provision, facts, conclusion format.

1Identify the route: ordinary compulsory licence (Section 84), government-notified licence (Section 92), revocation (Section 85 or other), or surrender.
2State the provision in plain words with the section number only where you are sure of it.
3Check the time condition. For Section 84, three years from grant must have passed. For Section 85, two years from the first compulsory licence order.
4Match the facts to a ground: unmet public requirements, unaffordable price, or non-working in India. Use Section 84(7) to support the first ground.
5Check the Section 84(6) factors: the applicant's ability and capacity, and efforts to get a voluntary licence within about six months, unless the exceptions apply.
6State what the Controller does on terms: Section 90 conditions, and any Section 88 powers.
7Write a clear conclusion that answers the question asked, such as whether the application is maintainable or the licence can be granted.
8 Add a one-line note on related remedies if relevant, for example revocation after a compulsory licence.

Quickest way: Three-check shortcut for application questions

When to use it: Use this when a short fact pattern asks whether a compulsory licence or revocation application will succeed.

Check the clock: 3 years from grant (Section 84), or 2 years from first licence order (Section 85), unless it is a Section 92 case.
Check the ground: unmet need, unaffordable price, or not worked in India.
Check the extras: voluntary licence attempted for about six months, or an exception such as emergency, and the applicant's capacity.
Conclude in one line, then name the Section 90 terms the licence would carry.

Common mistakes in Compulsory Licences, Revocation and Surrender

Counting the three years from the date of filing the patent application.
Students link patent term to filing date.
Fix: Section 84(1) counts from the date of grant of the patent. Read the facts for the grant date.
Applying the three-year bar and the six-month negotiation rule to Section 92 licences.
Students merge the two routes.
Fix: Section 92 works on a Central Government notification of national emergency, extreme urgency or public non-commercial use. Section 84(6)(iv) negotiation is not required in those circumstances.
Saying a compulsory licence is exclusive or can be assigned.
Students assume it works like an ordinary licence.
Fix: Section 90 aims at a non-exclusive, non-assignable licence for the balance term, unless a shorter term suits public interest.
Letting the licensee import the patented article.
Students think any licence allows import.
Fix: Section 90(2) bars it. Only the Central Government can direct import in public interest under Section 90(3).
Confusing revocation under Section 85 with the Section 84 application.
Both are about non-working.
Fix: Section 85 needs a compulsory licence already granted and two years from the first order. It ends the patent itself.
Treating licence of right and compulsory licence as the same.
Both mean a licence without free negotiation.
Fix: A compulsory licence is granted by the Controller on stated grounds after an application. Treat licence of right as a separate, older concept and answer from your study material.

Worked examples

Example 1

A patent for a cancer drug was granted to Medilife Pharma Ltd on 1 February 2022. On 10 March 2024 Arogya Labs applies to the Controller for a compulsory licence, saying the drug is priced beyond the reach of most patients. Is the application maintainable?

Show the solution

Provision: Section 84(1) allows an application for a compulsory licence at any time after three years from the date of grant of the patent.
Ground: unaffordable price is a valid ground under Section 84(1)(b), so the ground is not the problem.
Time: three years from 1 February 2022 ends on 1 February 2025. The application was made on 10 March 2024, which is before that date.
No exception applies. The facts do not mention a Section 92 notification by the Central Government.

Answer: The application is premature and not maintainable under Section 84(1). Arogya Labs may apply after 1 February 2025 on the affordability ground, if the other conditions are met. It must also show its capacity to work the invention and its efforts to get a voluntary licence.

Example 2

The Controller granted the first compulsory licence on a patent held by Zenith Chemicals Ltd on 10 January 2025. Ravi Textiles applies on 5 January 2027 to revoke the patent on the ground that it is not worked in India. Advise.

Show the solution

Provision: under Section 85(1), once a compulsory licence has been granted, the Central Government or any person interested may apply for revocation after two years from the date of the order granting the first compulsory licence.
Grounds: non-working in India, unmet public requirements, or unaffordable price. Non-working is valid.
Time: two years from 10 January 2025 ends on 10 January 2027. The application of 5 January 2027 is five days early.
Procedure: the application must state the facts and the applicant's interest. The Controller, if satisfied, may revoke, and ordinarily decides within one year of the application.

Answer: The application is premature under Section 85(1). Ravi Textiles may apply after 10 January 2027, stating its interest and facts. The Controller may then revoke the patent if satisfied, and should ordinarily decide within one year.

Exam tips

Write the section number of the main provision, and the time limit, in the first line.
Use the three grounds of Section 84(1) as a checklist and quote the wording briefly.
For long answers, compare Section 84 and Section 92 in a short list: who triggers, time bar, negotiation requirement, procedure.
In problem questions, calculate the dates yourself and say clearly whether the application is early.
Finish every answer with a conclusion sentence that matches the question asked.

Practice questions from Law relating to Patents

Compulsory Licences, Revocation and Surrender: frequently asked questions

What are the grounds for a compulsory licence under the Patents Act, 1970?

Under Section 84(1), after three years from the grant of the patent, any person interested can apply on three grounds. These are that public requirements are not satisfied, that the invention is not available at a reasonably affordable price, or that it is not worked in India. Any one ground is enough.

What is the difference between a compulsory licence and a licence of right?

A compulsory licence is granted by the Controller on an application, on stated grounds such as unmet public needs. A licence of right is an older concept where the patent was made open to licensing. Check your study material for how far it is examined, and do not mix the two.

When can the Central Government trigger compulsory licences under Section 92?

It can do so when it is satisfied there is a national emergency, extreme urgency or public non-commercial use, and it makes a declaration by notification in the Official Gazette. The Controller then grants a licence on an application. The Section 87 procedure is not applied, and the patentee is informed as soon as practicable.

Can a compulsory licence be exclusive or assigned?

No. Section 90 directs the Controller to aim for a non-exclusive and non-assignable licence. It runs for the balance term of the patent unless a shorter term suits public interest.