Updated on 24 October 2013
A compulsory licence is a permit issued by a Government to local industry for producing copied versions of patented medicines without the consent of the patent holder
Singapore: An Indian news report that appeared in Business Line quoted an unidentified DIPP official who claimed that top officials of many US pharmaceutical companies recently met the Department of Industrial Policy and Promotion (DIPP) Secretary.
He claimed that US pharma majors were lobbying against use of compulsory licences by India. Heads of companies like Pfizer, Mylan and Merck met the DIPP Secretary to urge the Government to stop issuing permits to domestic companies for making low-priced copies of patented life saving drugs.
The report said that a compulsory licence is a permit issued by a Government to local industry for producing copied versions of patented medicines without the consent of the patent holder.
In an effort to dissuade the Government from putting in place restrictions on foreign direct investment in pharmaceuticals, the delegation that had been organized by the US India Business Council (USIBC), also urged it to enforce stricter intellectual property rules.
The Indian government has maintained that it considers issuing compulsory licences only under extreme conditions abiding strictly by global rules on intellectual property prescribed by the TRIPS Agreement, the official said in the report.