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Ministry of economy dislikes draft on patent compulsory licensing

Russian Ministry of economy (MinEc) dislikes draft proposal on mandatory licensing of patent in the case of threat to life. The proposal drafted by Russian Federal Antitrust Service (FAS) has been not approved by MinEc. In order to proceed with proposal FAS must review it and amend in accordance with MinEc’s comments. But most likely the draft proposal would be thrown out and some provisions, which have been no so criticized, can be transposed to the new draft law.

FAS has proposed to exploit patent without right holders’ consent but under the condition of payment at the rates settled by the government. FAS’s draft prescribed the procedure of mandatory licensing. In other words under FAS’s proposal the patentee could be deprived of its exclusive rights if it refuses to supply patented drugs to Russia or impedes to drags availability in Russian internal market. FAS’s proposal covers drugs, inventions, facilities, in other words on products necessary for medical industry.

What MinEc did not like? First of all, the draft proposal lacks sufficient rationale. The article 1369 of Russian civil code is not enough to substantiate mandatory licensing. The draft lack also mechanism defining calculation and payment of royalties. The draft proposal also provides excessive obligations, prohibitions and restrictions for natural persons and legal entities in the field of business activity. Market stakeholders also don’t praise draft proposal.

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