Compulsory License

The patent and other intellectual property laws of several jurisdictions, as well as the TRIPS, provide that countries may, in limited circumstances, compel the grant of a license. Usually such provisions apply to pharmaceuticals not otherwise available in that jurisdiction, although other goods may be subject to a compulsory license on similar grounds. The TRIPS Agreement provides strict conditions under which compulsory licensing may be required by states, and requires fair compensation, based on the value of the product. In addition, compulsory licensing is sometimes used as a remedy in competition and antitrust cases, or as a remedy in otherwise potentially anti-competitive mergers and acquisitions, particularly with respect to “essential facilities”. See Magill.

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