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The Controller grants Gamma Biotech a compulsory licence under section 84 of the Patents Act, 1970 for a patented vaccine. Gamma Biotech asks that the licence (i) be exclusive, (ii) allow it to import the vaccine freely from its overseas plant, and (iii) be assignable. Which statement best reflects the Controller's duties under section 90?

The Controller must endeavour to make the licence non-exclusive and non-assignable. A compulsory licence cannot authorise import that would otherwise infringe, though the Central Government may, in public interest, direct the Controller to authorise import on conditions such as royalty, quantum, price and period.

  1. AAll three requests can be met if royalty is reasonable
  2. BThe Controller must endeavour to secure a non-exclusive, non-assignable licence, and the licence cannot authorise import that would infringe unless the Central Government directs it in public interestCorrect
  3. COnly the assignability request must be refused; exclusivity and import are at the Controller's discretion
  4. DThe licence must be exclusive for the balance term, but import is barred absolutely

Explanation

Section 90(1)(iv) and (v) require endeavouring to secure that the licence is non-exclusive and the licensee's right non-assignable. Section 90(2) bars authorising import that would otherwise infringe, but 90(3) lets the Central Government, in public interest, direct the Controller to authorise import. Option D wrongly says import is barred absolutely.

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