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First compulsory patent licence for Russian Pharm company under court decision

Russian Pharm company has obtained first compulsory patent licence under decision of Moscow commercial court. This patent licence provides the Russian company with right to produce and distribute in Russian market the medicament patented by USA pharm company. The Russian analogue of patented medicament is “much cheaper” in comparison with its original.

Russian pharm company has produced one medicament for treatment of leprosy, AIDS and other diseases and intended to sell it in Russian market. The USA company has patent on this medicament. After discovery by USA company of Russian company’s intention to sell patented medicament in Russia, the USA company has filed a suit against Russian company. The USA company sought to prohibit the Russian company to sell patented medicament in Russia. The Russian company has filed countersuit and asked the court to allow Russian company selling the patented medicament under the conditions of compulsory licence.

The court sided with Russian company because the medicament is “dependent invention”. But USA company has underlined that the licence has been granted to natural person – the founder of Russian pharm company. The company also has mentioned that the court decision has not entered into force and the appeal will follow.