Pros and Cons of Compulsory Licensing: An Analysis of Arguments

Patents provide monopoly rights to patent owners to manufacture, sell, and import the product resulting in overpricing of the patented products. Without patents, the inventors and innovators can neither be adequately compensated for their costs of research nor be encouraged or motivated for further research to develop new and improved products. Patent protection is therefore accepted as a necessary evil despite its conflict with the competitions laws and human rights law (in case of pharmaceutical patents). This work analyzes arguments of both opponents and proponents of compulsory licensing which is a legitimate safeguard provided under TRIPS to check misuse of monopoly right and to deal with situations of public health crisis especially in the third world.