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Sections 95, 96, 97 and 98 of the Patents Act 1970 (Omitted)

Sections 95, 96, 97 and 98 under Chapter XVI (Working of Patents, Compulsory Licences and Revocation) of the Patents Act, 1970 were OMITTED by the Patents (Amendment) Act, 2002 (No. 38 of 2002), sec. 39, (w.e.f. 20-May-2003).

Before that the provisions of those sections were as follows:

Section 95 (Terms and conditions of compulsory licenses)

❝(1) In settling the terms and conditions of a license under section 84, the Controller shall endeavor to secure-

(i) that the royalty and other remuneration, if any, reserved to the patentee or other person beneficially entitled to the patent, is reasonable, having regard to the nature of the invention, the expenditure incurred by the patentee in making the invention or in developing it and obtaining a patent and keeping it in force and other relevant factors;

(ii) that the patented invention is worked to the fullest extent by the person to whom the license is granted and with reasonable profit to him;

(iii) that the patented articles are made available to the public at reasonable prices.

(2) No license granted by the Controller shall authorize the licensee to import the patented article or an article or substance made by a patented process from abroad where such importation would, but for such authorization, constitute an infringement of the rights of the patentee.

(3) Notwithstanding anything contained in sub-section (2), the Central Government may,, if in its opinion it is necessary so to do in the public interest, direct the Controller at any time to authorize any licensee in respect of a patent to import the patented article or an article or substance made by a patented process from abroad (subject to such conditions as it considers necessary to impose relating among other matters to the royalty and other remuneration, if any, payable to the patentee, the quantum of import, the sale price of the imported article and the period of importation), and thereupon the Controller shall give effect to the directions.❞

Section 96 (Licensing of related patents)

❝(1) Notwithstanding anything contained in the other provisions of this chapter, at any time after the sealing of a patent, any person who has the right to work any other patented invention either as patentee or as licensee thereof, exclusive or otherwise, may apply to the Controller for the grant of a license of the first-mentioned patent on the ground that he is prevented or hindered without such license from working the other invention efficiently or to the best advantage possible.

(2) No order under sub-section (1) shall be made unless the Controller is satisfied-

(i) that the applicant is able and willing to grant, or procure the grant to the patentee and his licensees if they so desire, of a license in respect of the other invention on reasonable terms; and

(ii) that the other invention has made a substantial contribution to the establishment or development of commercial or industrial activities in India.

(3) When the Controller is satisfied that the conditions mentioned in sub-section (1) have been established by the applicant, he may make an order on such terms as he thinks fit granting a license under the first-mentioned patent and a similar order under the other patent if so requested by the proprietor of the first-mentioned patent or his licensee.

(4) The provisions of sections 92 and 110 shall apply to licenses granted under this section as they apply to licenses granted under section 84.❞

Section 97 (Special provision for compulsory licenses on notification by Central Government)

❝(1) If the Central Government is satisfied in respect of any patent or class of patents in force that it is necessary or expedient in the public interest that compulsory licenses should be granted at any time after the sealing thereof to work the invention or inventions, it may make a declaration to that effect in the Official Gazette, and thereupon the following provisions shall have effect, that is to say-

(i) the Controller shall on application made at any time after the notification by any person interested grant to the applicant a license under the patent on such terms as he thinks fit;

(ii) in setting the terms of a license granted under this section, the Controller shall endeavor to secure that the articles manufactured under the patent shall be available to the public at the lowest prices consistent with the patentees deriving a reasonable advantage from their patent rights.

(2) The provisions of sections 92, 93, 94 and 95 shall apply in relation to the grant of licenses under section 84.❞

Section 98 (Order for license to operate as a deed between parties concerned)

❝Any order for the granting of a license executed by the patentee and all other necessary parties embodying the terms and conditions, if any, settled by the Controller.❞



The Patents Act, 1970 was amended by :
- the Patents (Amendment) Act, 1999 (No. 17 of 1999);
- the Patents (Amendment) Act, 2002 (No. 38 of 2002);
- the Patents (Amendment) Act, 2005 (No. 15 of 2005).

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