Bombay High Court upholds Nexavar compulsory licence

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Bombay High Court upholds Nexavar compulsory licence

The Bombay High Court has rejected Bayer’s challenge to the compulsory licence granted for its Nexavar cancer treatment drug

According to Livemint, Justice MS Sanklecha stated that the court saw no reason to overturn the Intellectual Property Appellate Board’s (IPAB) ruling from last February upholding the licence.

Bayer has stated that it will appeal the decision to the Supreme Court.

The Bombay High Court decision is the latest development involving India’s first compulsory licence, which was granted in March 2012. Then controller of patents PH Kurian granted the application from generic manufacturer Natco under section 84 of the Patents Act. This says that a compulsory licence may be granted if (a) the reasonable requirements of the public with respect to the drug have not been satisfied, (b) the patented invention is not available to the public at a reasonably affordable price, or (c) the patented invention is not worked in India.

The patent controller found that Natco established all three grounds and he granted a compulsory licence with a royalty rate of 6% of net sales.

Bayer appealed the patent controller’s decision to the IPAB. Last February, the Board upheld the compulsory licence grant, though it noted that the patent controller erred in finding that a drug not manufactured in India automatically meant it was not being worked in India. The IPAB also raised the royalty rate to 7%.

To this date, Nexavar is the only drug that has been subjected to a compulsory licence in India, though several other applications have been rejected.



more from across site and SHARED ros bottom lb

More from across our site

How law firms can secure themselves in a technology-driven IP landscape and how IP teams can develop future leadership were among the top talking points
The variety of winners demonstrates that the UPC is now a core benchmark rather than an experimental consideration, while junior lawyers are becoming more deeply involved in key work
The Indian government announcing a fee waiver for sports-related IP registrations, and the US adding the EU to its IP 'watch list' were also among major developments
Sources say the judge could return to a disputes or mediation-focussed role, though others have questioned whether the Texas court will remain a litigation hotspot in his absence
Sheppard, which has hired 14 IP partners in the last 12 months, has cited client demand for expert counsel in SEP, ITC, and district court disputes
Tingxi Huo joins our ‘Five minutes with’ series to discuss boosting the value of clients’ IP and the importance of reflection
Hefty legal teams assembled for a three-day hearing in what was the court’s first foray into SEPs since Unwired Planet v Huawei
IP firm's new base will be located inside the tallest office space in the UK's ‘second city’
Practitioners at four firms across Asia and Europe share the do’s and don’ts of mindful networking ahead of the INTA Annual Meeting
Brand Action explains why the IP community can be a force for good in the world as thousands of professionals prepare to head to London for INTA’s Annual Meeting
Gift this article