BDR Pharmaceuticals v. Bristol Myers Squibb (2013)
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CASE_TITLE
BDR Pharmaceuticals International Pvt Ltd v. Bristol Myers Squibb Co. (2013)
Keywords
PRIMARY_KEYWORDS: compulsory licence; Section 84(6)(iv); Section 87; dasatinib
SECONDARY_KEYWORDS: BDR Pharma; Bristol Myers Squibb; Controller of Patents; Competition Act Section 61
Quick Summary
BDR asked for a compulsory licence to make and sell dasatinib. The Controller said: show that you tried for a voluntary licence on fair terms and failed within a reasonable time, and follow the Section 87 procedure. BDR’s outreach and follow-up were not enough. The application was rejected.
Issues
- Do delayed or missing communications count as a procedural irregularity when applying for a compulsory licence?
- Did BDR meet Section 84(6)(iv): real efforts, reasonable terms, and reasonable time?
Rules
- Section 84(6)(iv): Applicant must try to obtain a licence on reasonable terms; efforts must fail within a reasonable period fixed by the Controller.
- Section 87: Follow the prescribed procedure for hearing and evidence during compulsory licence applications.
- Competition Act, Section 61: Civil courts cannot entertain matters reserved to competition authorities; no injunctions against actions under the Act.
Facts (Timeline)
Arguments
Applicant (BDR)
- Asked for a licence and faced delays; considered that refusal.
- India needs affordable access to dasatinib.
- Licence should be granted to meet public interest and pricing concerns.
Patentee (BMS)
- BDR did not answer key queries (capacity, quality, supply).
- Negotiation attempts were thin and not timely.
- Section 84(6)(iv) and Section 87 requirements were not met.
Judgment
The Controller held that BDR’s communications and follow-up did not show real, continuous efforts on reasonable terms. The year-long gap before filing, and lack of full replies to BMS’s queries, weighed against BDR. The application failed the procedural path under Section 87 and was rejected.
Ratio Decidendi
- Show genuine, timely negotiation efforts on fair terms (Section 84(6)(iv)).
- Follow the Section 87 procedure strictly.
- Breaks in dialogue and incomplete responses hurt the prima facie case.
Why It Matters
Compulsory licences in India demand paperwork and proof. You must negotiate seriously, respond fully, and file with clean procedure. Public interest matters, but it cannot replace the statutory steps.
Key Takeaways
- Reasonable-terms negotiation + reasonable time are mandatory showings.
- Answer patentee’s queries; keep the trail active and documented.
- Section 87 procedure can decide the fate of the application.
- Competition Act Section 61 limits civil court roles in competition matters.
Mnemonic + 3-Step Hook
Mnemonic: “Ask-Answer-Apply”
- Ask: Request on reasonable terms and keep talking.
- Answer: Reply to every query with proof.
- Apply: File under Section 87 with full compliance.
IRAC Outline
| Issue | Rule | Application | Conclusion |
|---|---|---|---|
| Did BDR meet the Section 84(6)(iv) requirement? | Must try for a licence on reasonable terms; fail within a reasonable time. | BDR’s communication gaps and limited replies weakened its showing. | No; threshold not met. |
| Was Section 87 procedure followed? | Statutory steps for hearing and evidence are mandatory. | Controller found non-compliance. | Application rejected. |
Glossary
- Compulsory Licence
- Government-authorised licence without patentee consent, if legal tests are met.
- Reasonable Terms
- Fair price and conditions expected in good-faith negotiations.
- Prima Facie Case
- Minimum proof needed to move forward to a full hearing.
FAQs
Related Cases
- Bayer v. Natco — first Indian compulsory licence (sorafenib).
- Telefonaktiebolaget LM Ericsson v. CCI — interface of patents and competition law.
- FRAND/SEP jurisprudence — negotiations and reasonable terms context.
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