Compulsory licencing is when, without the permission of the patent owner or intentions to use the patent-protected invention itself a government permits someone else to manufacture a patented product or process.

It is one of the flexibilities in patent security contained in the TRIPS (Trade-Related Aspects of Intellectual Property Rights) Provision of the WTO Agreement on Intellectual Property. However a number of requirements for the issue of compulsory licences are specified in the TRIPS Agreement.

Nationally, the Indian Patents Act, 1970, governs compulsory licencing.

Conditions to be followed:-

A compulsory licence is issued only if one of the following three requirements is fulfilled:-

1)The fair public obligation with respect to the patented invention is not met.

2)The patented technology is not available at a relatively reasonable price to the public.

3)That the patented invention does not work in India.