CHAPTER VII: COMPULSORY LICENCE
47. Power of Authority to make order for compulsory licence in certain circumstances.—
(1) At any time, after the expiry of three years from the date of issue of a certificate of registration of a variety,
any person interested may make an application to the Authority alleging that the reasonable requirements
of the public for seed or other propagating material of the variety have not been satisfied or that the seed
or other propagating material of the variety is not available to the public at a reasonable price and pray for
the grant of a compulsory licence to undertake production, distribution and sale of the seed or other
propagating material of that variety.
(2) Every application under sub-section (1) shall contain a statement of the nature of the applicant’s
interest together with such particulars as may be prescribed and the facts upon which the application is
(3) The Authority, after consultation with Central Government, and if satisfied after giving an
opportunity to the breeder of such variety, to file opposition and after hearing the parties, on the issue that
the reasonable requirements of the public with respect to the variety have not been satisfied or that the
seed or other propagating material of the variety is not available to the public at a reasonable price, may
order such breeder to grant a licence to the applicant upon such terms and conditions as it may deem fit
and send a copy of such order to the Registrar to register the title of such applicant as licensee under
sub-section (4) of section 28 on payment of such fees by the applicant as is referred to in that sub-section.
48. When requirement of public deemed to have not been satisfied.—
In determining the question as to whether the reasonable requirements of the public for seeds of a variety or its propagating material
as referred to in sub-section (1) or sub-section (3) of section 47, the Authority shall take into account—
(i) the nature of the variety, the time which has elapsed since the grant of the certificate of
registration of the variety, price of the seed of the variety and the measures taken by the breeder or
any registered licensee of the variety to meet the requirement of the public; and
(ii) the capacity, ability and technical competence of the applicant to produce and market the
variety to meet the requirement of the public.
49. Adjournment of application for grant of compulsory licence.—
(1) If the breeder of a variety
registered under this Act in respect of which any application has been pending before the Authority under
section 47 makes a written request to the Authority on the ground that due to any reasonable factor, such
breeder has been unable to produce seed or other propagating material of the variety on a commercial
scale to an adequate extent till the date of making such request, the Authority may, on being satisfied that
the said ground is reasonable, adjourn the hearing of such application for such period not exceeding
twelve months in aggregate as it may consider sufficient for optimum production of the seed or
propagating material of such variety, as the case may be, by such breeder.
(2) No adjournment of the application under sub-section (1) shall be granted unless the Authority is
satisfied that the breeder of the variety registered under this Act in respect of which such application is
made, has taken immediate measures to meet the reasonable requirements of the public for the seed or
other propagating material of such variety.
50. Duration of compulsory licence.—
The Authority shall determine the duration of the compulsory
licences granted under this Chapter and such duration may vary from case to case keeping in view the
gestation periods and other relevant factors but in any case it shall not exceed the total remaining period
of the protection of that variety and when a compulsory licence is granted the prescribed authority shall,
in the prescribed manner make available to the licensee of such compulsory licence, the reproductive
material of the variety relating to such compulsory licence stored in the National Gene Bank or any other
51. Authority to settle terms and conditions of licence.—
(1) The Authority shall, while
determining the terms and conditions of a compulsory licence under the provisions of this Chapter,
endeavour to secure—
(i) reasonable compensation to the breeder of the variety relating to the compulsory licence
having regard to the nature of the variety, the expenditure incurred by such breeder in breeding the
variety or for developing it, and other relevant factors;
(ii) that the compulsory licensee of such variety possesses the adequate means to provide to the
farmers, the seeds or its other propagating material of such variety timely and at reasonable market
(2) No compulsory licence granted by the Authority shall authorise the licensee to import the variety
relating to such licence or any seed or other propagating material of such variety from abroad where such
import would constitute an infringement of the rights of the breeder of such variety.
52. Revocation of compulsory licence.—
(1) The Authority, may on its own motion or on application
from an aggrieved person made to it in the prescribed form, if it is satisfied that a compulsory licensee
registered under this Chapter has violated any terms or conditions of his licence or it is not appropriate to
continue further such licence in public interest, it may after giving such licensee an opportunity to file
opposition and of being heard make order to revoke such licence.
(2) When a licence is revoked under sub-section (1) by an order of the Authority, the Authority shall
send a copy of such order to the Registrar to rectify the entry or correct the Register relating to such
revocation and the Registrar shall rectify the entry or correct the Register accordingly.
53. Modification of compulsory licence.—
The Authority may, on its own motion or on application
from licensee of a compulsory licence, after providing the opportunity of being heard to the breeder of the
variety registered under this Act relating to such compulsory licence, if it considers, in public interest, so
to do, modify, by order, such terms and conditions as it thinks fit and send a copy of such order to the
Registrar to correct the entries and Register according to such modification and the Registrar shall ensure
such corrections to be made accordingly.