India-UK trade pact subtly curtails India's ability to issue compulsory licenses: GTRI

New Delhi: India has accepted language in the intellectual property chapter of the free trade agreement with the UK that subtly curtails its ability to issue compulsory licences, a critical tool for accessing life-saving technologies during emergencies, think tank GTRI said on Thursday.

It also said that India has agreed to "adequate remuneration" norms for compulsory licensing for the pharma sector in the agreement with the UK, thus risking delays in future access to affordable medicines and green tech.

The Global Trade Research Initiative (GTRI) said that in "a significant concession, India has accepted language in the Intellectual Property (IP) chapter of the agreement that subtly curtails its ability to issue compulsory licenses (CL), a critical tool for accessing life-saving technologies during emergencies".


"For the first time" in any trade agreement, India has explicitly agreed to wording that stresses the need for 'adequate remuneration' to patent holders, GTRI founder Ajay Srivastava said.

While this may seem like a reaffirmation of existing rights, he said, its inclusion in an FTA elevates this principle to a binding bilateral obligation, potentially constraining India's flexibility under domestic law.

"Even more concerning, the agreement promotes voluntary licensing as the preferred route, alongside so-called 'fair, reasonable, and non-discriminatory' (FRAND) practices, which are framed around the interests of patent holders rather than public need," he said.

These soft-law concepts carry the risk of being interpreted in ways that delay access to affordable medicines or green technologies, especially during pandemics or climate-related crises, Srivastava said.

He added that while India formally retains its sovereign right to issue compulsory licenses, the bar has been raised..

The agreement's emphasis on transparency, adequate royalties, and voluntary mechanisms could subject India's licensing decisions to greater scrutiny, both domestically and internationally, he said.

"In effect, the free trade agreement shifts India from being a defender of public health exceptions to a rule-taker in IP enforcement-compromising its ability to act swiftly in future emergencies," he added.