Compulsory Licence and Benefit Sharing — Intellectual Property Rights II Notes
Compulsory Licence and Benefit Sharing
A breeder’s monopoly is worthless to society if he cannot — or will not — supply enough seed. So the Act, like copyright’s compulsory licence, keeps a safety valve: if the public’s reasonable need for seed is not met, the Authority can hand the variety to someone who will supply it. And it makes the breeder share his gains with those who conserved the resource.
Compulsory licence (s.47) and benefit-sharing (s.26)
A. Compulsory licence — s.47
After three years from the grant of a registration certificate, any person may apply to the Authority for a compulsory licence, on the ground that:
- the reasonable requirements of the public for seed of the variety have not been satisfied, or
- the seed is not available to the public at a reasonable price.
The Authority, after hearing the breeder, may grant a compulsory licence on terms it fixes (including a time to arrange production, and a duty on the breeder to provide the reproductive material). This ensures seed actually reaches farmers.
B. Benefit-sharing — s.26
On accepting an application for registration, the Authority publishes it and invites claims of benefit-sharing. Any person/group may claim a share of the benefits arising from the variety. The Authority determines the amount (considering the extent of use of genetic material and commercial utility) and directs it into the National Gene Fund (s.45).
Section 47(1): any person interested may apply for a compulsory licence “on the ground that the reasonable requirements of the public for seeds or other propagating material … have not been satisfied or that the seed … is not available to the public at a reasonable price.”
In Simple Terms: If the breeder does not supply enough seed at a fair price, the Authority can grant a compulsory licence to someone who will (s.47). Separately, benefit-sharing (s.26) makes the breeder share the gains with the resource’s conservers, through the Gene Fund.
🧩 WORKED EXAMPLE — breeder fails to supply seed after a CL
Facts. A person obtains a compulsory licence over a registered variety, but the breeder fails to provide the necessary seed/reproductive material to the licensee.
Rule. s.47 — a compulsory licence carries a duty on the breeder to make available the reproductive material to enable the licensee to produce and supply seed; the Authority enforces the licence terms.
Apply. The breeder’s refusal defeats the very purpose of the compulsory licence; the licensee may move the Authority to direct supply of the material and enforce the licence, and the Authority may impose consequences on the breeder.
Conclusion. The licensee’s remedy is to approach the Authority to enforce the CL and compel the breeder to supply the reproductive material.
flowchart TD
ROOT["Public-interest safeguards"]:::root
ROOT --> A["Compulsory licence (s.47): after 3 yrs, if seed need unmet / overpriced"]:::leaf
ROOT --> B["Benefit-sharing (s.26): invited on acceptance; via Gene Fund"]:::leaf
classDef root fill:#FFF8DC,stroke:#000,stroke-width:1px,color:#000;
classDef leaf fill:#E6F3FF,stroke:#1E3A8A,color:#000;
linkStyle default stroke:#888,stroke-width:1px;
Case Laws
- Monsanto Technology LLC v Nuziveedu Seeds Ltd. (2019) — access, licensing and supply of proprietary plant material.
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