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(1) In settling the terms and conditions of a
licence under section 84, the Controller shall endeavour to secure--
(i) that the royalty and other remuneration, if any, reserved to the patentee or other person
beneficially entitled to the patent, is reasonable, having regard to the nature of the invention, the
expenditure incurred by the patentee in making the invention or in developing it and obtaining a
patent and keeping it in force and other relevant factors;
(ii) that the patented invention is worked to the fullest extent by the person to whom the licence is
granted and with reasonable profit to him;
(iii) that the patented articles are made available to the public at reasonably affordable prices;
(iv) that the licence granted is a non-exclusive licence;
(v) that the right of the licensee is non-assignable;
(vi) that the licence is for the balance term of the patent unless a shorter term is consistent with
public interest;
1[(vii) that the licence is granted with a predominant purpose of supply in the Indian market and
that the licensee may also export the patented product, if need be in accordance with the provisions of
sub-clause (iii) of clause (a) of sub-section (7) of section 84;
(viii) that in the case of semi-conductor technology, the licence granted is to work the invention
for public non-commercial use;
(ix) that in case the licence is granted to remedy a practice determined after judicial or
administrative process to be anti-competitive, the licensee shall be permitted to export the patented
product, if need be.]
(2) No licence granted by the Controller shall authorise the licensee to import the patented article or
an article or substance made by a patented process from abroad where such importation would, but for
such authorisation, constitute an infringement of the rights of the patentee.
(3) Notwithstanding anything contained in sub-section (2), the Central Government may, if in its
opinion it is necessary so to do, in the public interest, direct the Controller at any time to authorise any
licensee in respect of a patent to import the patented article or an article or substance made by a patented
process from abroad (subject to such conditions as it considers necessary to impose relating among other
matters to the royalty and other remuneration, if any, payable to the patentee, the quantum of import, the
sale price of the imported article and the period of importation), and thereupon the Controller shall give
effect to the directions.
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1. Subs. by Act 15 of 2005, s. 54, for clause _(vii)_ (w.e.f. 1-1-2005).
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