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Russian Federal Antimonopoly Service proposes compulsory licencing for patent holders

Very soon authority will publish its legislative proposal. Authority proposes to amend the current copyright law in such a way that invention can be used under compulsory licence in accordance with court decision. It is some kind of punishment for abuse of domination in marketplace. If right holders refuse often to produce or supply socially necessary products like drugs, medical goods etc., the state don’t have opportunity to do something about.

Therefore Russian Federal Antimonopoly Service (FAS) proposes to sell licence under court decision if patent owner restrict production and make deficit in marketplace. If the court agrees with applicant, it can order to sell licence on market conditions for certain term. The right to apply to court for compulsory licence would have the FAS and company, ready to produce patented product but having no proper licence from patent owner. The object of proposed compulsory licence is any good whose manufacturer is monopolist. The law would govern only patent owners incorporated or resided in Russia. The law raises concerns about abuse of compulsory licence regime, quality issues. Stakeholders also warn that proposed amendments don’t guarantee price-cutting; patent owners can take original goods out of the market and cease implementation of new technologies.