Compulsory v Voluntary Licensing:A Legitimate Way to Enhance Access to Essential Medicines in Developing Countries

Compulsory licensing (CL) (the TRIPS language is that other use without the authorisation of the right holder, A.3) is provided under the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) regime under the World Trade Organization (WTO). Across the world, the CL on IPRs is granted on similar grounds like unreasonably exorbitant prices of a medicine; patent being not worked in the country; where substantial public interest is affected by the way in which IPR holder is exercising his rights etc. The Doha Declaration on Public Health provides special privileges for countries without manufacturing facilities.
Presently, more and more multinational pharma companies are turned into strategic alliances with domestic companies for manufacturing patented drugs in order to avoid CL. For example, the Swiss drug maker Hoffman La Roche has entered into an agreement with Emacure Pharmaceuticals for locally manufacturing three patented cancer drugs in India. Strides Arcolab has entered into collaboration with US Pharma Gilead Sciences for manufacturing HIV/Drugs. The first CL case in India has compelled multinational pharmaceutical companies to change their strategy of strategic collaborations and technology transfers with domestic companies. It is argued that a threat of CL encourages parties for entering into voluntary licensing and it is economical and an alternative option (not exclusive) for developing countries in providing essential medicines to poor people.