Section 34 provides that the Minister may decide that, even without the agreement of the owner of the patent, that a Government agency or a third person designated by the Ministry may exploit the invention where
(a) the public interest, in particular, National Security, Nutrition, Health, or the development of other vital sectors of the national economy so requires; or
(b) the Minister has determined that the manner of exploitation, by the owner of the patent or his or her licensee, is anti-competitive, and he or she is satisfied that the exploitation of the invention in accordance with this subsection would remedy such practice.
The exploitation of the patented invention shall be limited to the purpose for which it was authorised and shall be subject to the payment to the said owner of an adequate remuneration therefor, taking into account the economic value of the Minister's authorisation, as determined in the said decision, and, where a decision has been taken under subsection (b) above, the need to correct anti-competitive practices.
Before deciding to issue a compulsory license, the Minister shall hear the owner of the patent and any interested person. A request for the Minister's authorization to exploit a patented invention must be prefaced by a request to the patent holder for a contractual licence. It must be shown that that person was unable to obtain such a licence on reasonable commercial terms and conditions and within a reasonable time. The requirement to obtain the right holder's permission can be waived in cases of public non-commercial use, anti-competitive practices and circumstances of national or extreme urgency (patent owner should be notified by the Minister as soon as is reasonably practicable in the latter case).
Additionally, under s. 37 of the Act, the Court may grant a non-voluntary licence. At any time after four years has passed since the date of the grant or three years from the date of filing (whichever later) an interested person may apply to the Court for such a licence on the grounds that the patented invention is not being exploited or is being insufficiently exploited by working the invention within the Federation or by importation thereinto. Where the Court is satisfied that such non-exploitation or insufficient exploitation has not been justified, it will grant the non-voluntary licence. The Court is then bound to fix the scope and function of the licence, the time limit within which the licensee must begin to exploit the patented invention and the amount and conditions of the remuneration to be paid to the patentee.
