India´s first compulsory license: Its impact on the Indian pharmaceutical market as well as the world market

India´s pharmaceutical industry is the fourth largest in the world, by volume. However, between 1970 and 2005, the country did not have product patent. Without any product patent, the Indian pharmaceutical industry developed at a very rapid pace. However, due to the World Trade Organization´s (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), India was required to introduce product patent protection in its patent law. Despite objections to the introduction of product patent, the Indian government revised its patent law in 2005. Specifically, the Patents (Amendment) Act, 2005 includes some sections aimed at supporting a compulsory licensing regime. In 2012, the Indian government issued the country´s first compulsory license against a foreign company´s patented drug. This article examines the impact of the India´s very first compulsory license on both the Indian pharmaceutical market and the world pharmaceutical market. It also analyzes and offers solutions for both developing countries and foreign companies who wish to avoid the compulsory licensing regime.