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Sections 93–94 of the Patents Act, 1970: Licence as Deed Between the Parties and Termination of Compulsory Licence

s.93: an order for the grant of a licence under Chapter XVI operates as if it were a deed granting a licence executed by the patentee and all other necessary parties, embodying...

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October 1, 2026
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Last updated: October 2026Verified against: Government sources

Section 93 makes any Controller's order granting a licence under Chapter XVI operate as a deed executed by the patentee and all other necessary parties, embodying the terms he has settled. Section 94 lets the Controller terminate a compulsory licence granted under section 84, on an application by the patentee or a person deriving title or interest, once the circumstances that gave rise to it no longer exist and are unlikely to recur, with a right for the licence holder to object. If you hold or face a compulsory licence, our legal dispute resolution team can advise.

The Chapter ends at section 94

Chapter XVI was recast by the Patents (Amendment) Act, 2002 (from 20 May 2003) and now runs from section 82 to section 94. The Act's numbering then jumps to section 99 in Chapter XVII. The numbers 95, 96, 97 and 98 do not appear in the text: the footnote to the Chapter heading records that the 2002 Act substituted the Chapter (sections 82 to 98) with the present shorter Chapter. So there are no sections 95 to 98 in force. Sections 93 and 94 are printed in their recast form with no footnote of their own, and the Tribunals Reforms Act, 2021 and the Jan Vishwas (Amendment of Provisions) Act, 2023 did not change them.

Section 93: the order operates as a deed

"Any order for the grant of a licence under this Chapter shall operate as if it were a deed granting a licence executed by the patentee and all other necessary parties embodying the terms and conditions, if any, settled by the Controller."

What this means:

  1. "Any order for the grant of a licence under this Chapter" covers orders under section 84 and the other licensing sections of Chapter XVI (88, 91, 92 and 92A).
  2. Operates as a deed: the patentee does not need to sign a licence for it to take effect. The order itself stands in place of the deed, and is treated as executed by the patentee "and all other necessary parties".
  3. Terms: the deed embodies "the terms and conditions, if any, settled by the Controller". The terms in the order are the terms of the licence.

This is a statutory substitute for the written, duly executed document that section 68 normally requires for a licence. Section 68 and our article on section 68 cover the ordinary rule. Section 93 supplies the execution by force of law. The text does not say anything about registration of such a licence in the register; section 69 governs registration generally, and the text of section 93 is silent on whether the Controller registers it of his own motion.

Section 94: termination of compulsory licence

Sub-section (1): when the Controller may terminate

"On an application made by the patentee or any other person deriving title or interest in the patent, a compulsory licence granted under section 84 may be terminated by the Controller, if and when the circumstances that gave rise to the grant thereof no longer exist and such circumstances are unlikely to recur:

Provided that the holder of the compulsory licence shall have the right to object to such termination."

Elements:

ElementText
Who appliesThe patentee or any other person deriving title or interest in the patent
Which licencesA compulsory licence granted under section 84
Who decidesThe Controller
Two conditionsThe circumstances that gave rise to the grant (a) no longer exist and (b) are unlikely to recur
SafeguardThe holder of the compulsory licence has the right to object

The two conditions are cumulative: both must be shown. "If and when" signals that the termination depends on a change of circumstances, not on the passage of time. The word is "may": the Controller has discretion even when both conditions are met.

The sub-section covers licences "granted under section 84" only. It does not mention licences granted under section 91, section 92 or section 92A, so the text does not provide an application for termination of those under this sub-section.

Sub-section (2): protecting the licensee

"While considering an application under sub-section (1), the Controller shall take into account that the interest of the person who had previously been granted the licence is not unduly prejudiced."

Drafting point: the printed text ends with a full stop and a closing bracket ("prejudiced.].") because the whole Chapter was substituted within square brackets. Nothing is missing from the sub-section.

The Controller must weigh the licensee's position, for example investment made in plant and supply commitments. The text does not say how, whether by transitional periods or compensation, and does not give criteria.

Illustration (invented)

Taru Seeds Ltd. holds a patent. Under section 84, the Controller granted Mehra Agro Pvt. Ltd. a compulsory licence because the invention was not worked in India. The order, by section 93, operates as a deed executed by Taru and Mehra, embodying the terms the Controller settled.

Three years later, Taru has set up a plant and supplies the Indian market at reasonably affordable prices. It applies under section 94(1) to terminate the licence, arguing the circumstances that gave rise to it no longer exist and are unlikely to recur. Mehra objects, as it is entitled to do. The Controller considers the application together with the objection and, under section 94(2), takes into account that Mehra's interest, built on the licence, is not unduly prejudiced. He may then terminate the licence if he is satisfied on both conditions, or decline.

What the sections do not say

  • No time limits or form for an application under section 94.
  • No definition of "unduly prejudiced" and no mention of compensation.
  • No statement whether a terminated licence's past acts remain protected.
  • No procedure for hearing the objection; the Act's general hearing provisions apply, and section 87 applies only to applications under sections 84 and 85.
  • The text does not provide for termination of licences granted under section 91, section 92 or section 92A.

Need help with ending or defending a compulsory licence?

Termination turns on whether circumstances have truly changed and on the licensee's protection. Our legal dispute resolution team can prepare your application or objection and appear before the Controller.

Key takeaways

  • A Controller's order for a licence under Chapter XVI operates as a deed executed by the patentee and all necessary parties.
  • The Controller may terminate a section 84 compulsory licence on application, if the circumstances that gave rise to it no longer exist and are unlikely to recur.
  • The holder may object, and the Controller must ensure the holder's interest is not unduly prejudiced.
  • There are no sections 95 to 98 in the Act as it now stands.

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 Sections 93

  • 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.

Does the patentee have to sign a compulsory licence?

No. Under section 93, the order operates as if it were a deed executed by the patentee and all necessary parties.

Who can ask to end a compulsory licence?

The patentee or any other person deriving title or interest in the patent (section 94(1)).

The portal accepting a form does not mean the form was correct — check before you submit.

— TaxClue Compliance Desk

Sections 93: 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.

People also ask

Questions, answered

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

No. Under section 93, the order operates as if it were a deed executed by the patentee and all necessary parties.

The patentee or any other person deriving title or interest in the patent (section 94(1)).

That the circumstances that gave rise to the grant no longer exist and are unlikely to recur.

Yes. The proviso gives the holder the right to object.

That the previous licensee's interest is not unduly prejudiced (section 94(2)).

They no longer exist; Chapter XVI was recast in 2003 and the numbering jumps from section 94 to section 99.