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Section 92 of the Patents Act, 1970: Compulsory Licence on Central Government Notification

Trigger: the Central Government is satisfied that, in respect of a patent in force, there are circumstances of national emergency, extreme urgency or public non-commercial use...

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Published
October 1, 2026
Last updated
Oct 1, 2026
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8 min
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Last updated: October 2026Verified against: Government sources

Section 92 is a special route to a compulsory licence. If the Central Government is satisfied that, for a patent in force, a national emergency, extreme urgency or public non-commercial use makes compulsory licences necessary, it can declare so by notification in the Official Gazette. The Controller must then grant a licence to any interested applicant on terms he thinks fit, aiming for the lowest prices consistent with a reasonable advantage to the patentees. In such cases he does not apply the section 87 procedure. If a patent stands in the way of an urgent need, our legal dispute resolution team can advise on this route.

Amendments to know

Section 92 is printed without any footnote. The Tribunals Reforms Act, 2021 and the Jan Vishwas (Amendment of Provisions) Act, 2023 did not change it. It is a special provision, separate from the ordinary route under section 84; see our post on compulsory licensing under section 84. The text uses the words "after the sealing thereof", which is the older expression; see the note on "sealing" in our article on sections 86 and 87.

Sub-section (1): the declaration and its effects

"If the Central Government is satisfied, in respect of any patent in force in circumstances of national emergency or in circumstances of extreme urgency or in case of public non-commercial use, that it is necessary that compulsory licences should be granted at any time after the sealing thereof to work the invention, it may make a declaration to that effect, by notification in the Official Gazette, and thereupon the following provisions shall have effect, that is to say,—"

Three trigger circumstances: national emergency, extreme urgency and public non-commercial use. The text does not define any of them in this sub-section. The declaration is by notification in the Official Gazette, and the licence may be granted "at any time after the sealing" of the patent. There is no three-year wait as in section 84(1).

Once a declaration is made:

  • Clause (i): "the Controller shall, on application made at any time after the notification by any person interested, grant to the applicant a licence under the patent on such terms and conditions as he thinks fit". The word "shall" leaves the Controller no discretion on whether to grant to an applicant after the notification; the discretion lies in the terms.
  • Clause (ii): "in settling the terms and conditions of a licence granted under this section, the Controller shall endeavour to secure that the articles manufactured under the patent shall be available to the public at the lowest prices consistent with the patentees deriving a reasonable advantage from their patent rights."

Compare the aim in section 90(1)(iii), "reasonably affordable prices". Under section 92 the aim is the "lowest prices" consistent with a reasonable advantage to the patentee.

Sub-section (2): sections carried over

"The provisions of sections 83, 87, 88, 89 and 90 shall apply in relation to the grant of licences under this section as they apply in relation to the grant of licences under section 84." So the general principles of working (section 83), procedure (section 87), the Controller's powers (section 88), the general purposes (section 89) and the terms (section 90) apply here too, subject to sub-section (3). Our articles on sections 82 and 83 and sections 90 and 91 cover those.

Sub-section (3): no section 87 procedure in urgent cases

"Notwithstanding anything contained in sub-section (2), where the Controller is satisfied on consideration of the application referred to in clause (i) of sub-section (1) that it is necessary in—

  • (i) a circumstance of national emergency; or
  • (ii) a circumstance of extreme urgency; or
  • (iii) a case of public non-commercial use,

which may arise or is required, as the case may be, including public health crises, relating to Acquired Immuno Deficiency Syndrome, human immunodeficiency virus, tuberculosis, malaria or other epidemics, he shall not apply any procedure specified in section 87 in relation to that application for grant of licence under this section:

Provided that the Controller shall, as soon as may be practicable, inform the patentee of the patent relating to the application for such non-application of section 87."

Key points:

  1. The Controller must be satisfied that the application is necessary in one of the three circumstances, "including public health crises" and the named diseases: AIDS, HIV, tuberculosis, malaria "or other epidemics".
  2. If so, he "shall not apply" any section 87 procedure: no prima facie case stage, no service and publication, no notice of opposition, no hearing under section 87(4).
  3. The patentee is not left unaware: the Controller must inform him "as soon as may be practicable" that section 87 has not been applied.
PointOrdinary section 84 routeSection 92 route
Who triggersAny person interested, on grounds in section 84(1)Central Government, by notification
Waiting periodThree years from grant"At any time after the sealing"
ProcedureSection 87: prima facie, service, publication, opposition, hearingSection 87 not applied where sub-section (3) is satisfied
Price aimReasonably affordable prices (section 90(1)(iii))Lowest prices consistent with reasonable advantage to patentees
Patentee toldThrough service of the applicationBy the Controller, as soon as practicable

Illustration (invented)

A sudden outbreak of a respiratory epidemic creates an urgent need for a patented antiviral held by Medora Pharma Ltd. The Central Government is satisfied that, in circumstances of extreme urgency and for public non-commercial use, compulsory licences are necessary. It publishes a notification in the Official Gazette to that effect. A manufacturer, Sahay Drugs Pvt. Ltd., applies to the Controller. The Controller is satisfied that the case is urgent and that the application concerns a public health crisis. He grants Sahay a licence on terms he thinks fit, aiming at the lowest prices consistent with Medora deriving a reasonable advantage from its patent, and does not apply the section 87 procedure. As soon as practicable, he informs Medora that section 87 has not been applied.

What the section does not say

  • It does not define "national emergency", "extreme urgency" or "public non-commercial use".
  • It does not say who can challenge a declaration or how.
  • It does not set a time for the Controller to decide an application.
  • It does not state a royalty or fee.
  • It does not limit the duration of the notification.
  • Whether the Central Government has made any declaration under this section is not in the sources and is not stated here.

Need help understanding a Government notification and your rights?

A section 92 notification moves faster than an ordinary application and the patentee may only be told after the fact. Our legal dispute resolution team can advise manufacturers who want a licence and patentees who want to protect their position.

Key takeaways

  • The Central Government can declare, by notification, circumstances of national emergency, extreme urgency or public non-commercial use for a patent in force.
  • The Controller then grants a licence to any person interested who applies, on terms he thinks fit, aiming at the lowest prices consistent with a reasonable advantage to the patentees.
  • In such circumstances, he does not apply the section 87 procedure but must inform the patentee as soon as practicable.
  • Sections 83, 88, 89 and 90 still apply, as does section 87 except where sub-section (3) applies.

Read next

Disclaimer: Based on the Patents Act, 1970 as amended up to the Jan Vishwas (Amendment of Provisions) Act, 2023, as consulted on 1 October 2026. Forms, fees and time limits under the Patents Rules, 2003 change from time to time and are not covered here. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Section 92

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who decides that there is a national emergency?

The Central Government, by a declaration by notification in the Official Gazette.

Is there a three-year waiting period?

No. Section 92(1) allows licences "at any time after the sealing" of the patent.

The right form filed late and the wrong form filed on time cause the same trouble — file the right one on time.

— TaxClue Compliance Desk

Section 92: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

The Central Government, by a declaration by notification in the Official Gazette.

No. Section 92(1) allows licences "at any time after the sealing" of the patent.

The lowest prices consistent with the patentees deriving a reasonable advantage from their patent rights.

Section 87 is not applied where sub-section (3) is satisfied; the Controller must inform the patentee as soon as practicable that it was not applied.

AIDS, HIV, tuberculosis, malaria or other epidemics, as examples of public health crises.

No. Section 92A is a separate provision for export of pharmaceutical products to countries with insufficient manufacturing capacity.