Section 88 Patents Act 1970 deals with POWERS OF CONTROLLER on application for compulsory licence under Section 84. The Controller may:
Aonly refuse the application — has no power to grant compulsory licences in any case (cf. Patents Act 1970, Section 88) (cf. Patents Act 1970, Section 88)
Bgrant the licence on terms it deems fit, including royalty, scope, duration, conditions for working — and may include amendment or revocation of certain existing licences
Cautomatically grant a compulsory licence whenever an application is filed (cf. Patents Act 1970, Section 88) (cf. Patents Act 1970, Section 88)
Dissue compulsory licences only on Central Government's prior written direction (cf. Patents Act 1970, Section 88) (cf. Patents Act 1970, Section 88)
Answer & Solution
Correct answer: B. grant the licence on terms it deems fit, including royalty, scope, duration, conditions for working — and may include amendment or revocation of certain existing licences
1. Section 88 Patents Act 1970: 'In settling the terms of a licence under section 84, the Controller shall endeavour to secure that — (a) 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; (b) the patented invention is worked to the fullest extent reasonably practicable and at the price reasonably affordable to the public; (c) the patentee or other person beneficially entitled to the patent derives a reasonable advantage from his patent rights.'
2. Section 89: general purposes for granting compulsory licences (commercial working, reasonable price, fullest extent practicable).
3. Section 90: terms and conditions.
4. Hence option B is correct.
_Source: Patents Act 1970 / Copyright Act 1957 / Trade Marks Act 1999 (Bare Acts, IPIndia portal + Copyright Office) — Patents Act 1970, Section 88_
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