Nexavar: The First Market-Initiated Compulsory Licence
Feroz Ali, Nexavar: The First Market Initiated Compulsory Licence, 9 NUJS L. Rev. (2016)
33 Pages Posted: 9 Feb 2016 Last revised: 15 Mar 2017
Date Written: February 9, 2016
This article looks at market-initiated compulsory licences issued under patent regimes, the first of which came into force with the grant of the Nexavar licence. By classifying the various types of compulsory licenses, this article brings out the differences between government use licences and market-initiated licences. The author argues that market-initiated licenses have many advantages over government use compulsory licences. Though factors like overcoming capacity barriers of local manufacturers and legislative preparedness of the nation seeking to implement the licence are important for the grant of market-initiated compulsory licences, such licences when granted can regulate competition, address non-emergency situations like lack of affordability of life saving drugs by reducing drug prices, facilitate local production and encourage price discrimination, while simultaneously resolving antitrust concerns that arise out of a refusal to licence by the patent owner.
Keywords: compulsory licence, Nexavar, government use licence, market-initiated licence, capacity barriers, legislative preparedness, local working
JEL Classification: 031, 034
Suggested Citation: Suggested Citation