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Federal antitrust service drafted procedure for compulsory licensing

Russian federal antitrust service has drafted and published for public discussion the procedure providing compulsory licensing in medical industry. Actually the heading of procedure shows that the potential appliance of this procedure can go much beyond of medicine. “On procedure to make decision in the interests of defense and security, including gin order to protect citizens’ live and health, to exploit invention, utility model or industrial design without right holder’s consent and with payment to right holder respective remuneration”.

Russian Federal Antitrust Service (FAS) believes if right holders would misuse their dominate position due to exclusive rights in their intellectual property the producers of medical drugs could abandon their manufacturing or supplies in Russia. Such situation could also include the socially important goods (drugs, medical equipment etc.) Consequences could be “worst”, because they put customers of such socially important goods in perilous situation and create disadvantage conditions for development of competition, believes FAS.

In order to avoid such course of events the FAS has proposed this procedure, because the current Russian law lacks the effective mechanisms protecting from “such violation of law”. According to procedure the Russian government would define how the decision issue compulsory license is to be made and how the relevant remuneration is to be paid. The person, the licensee, is to be chosen in the competition among business entities having opportunity or potential opportunity to produce goods, execute work or to provide services to the necessary extent. The licensee can’t be under the control of foreign entity it must be Russian entity.

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