LICENSING AND FRANCHISING: LEGAL PERSPECTIVES

Abstract

In this chapter, the authors consider a complicated legal structure that regulates licensing and franchising in India. It addresses their historical progress, the existing regulations and perspectives. This is concentrated on the provisions of intellectual property licensing, which include patents, trademarks and copyrights. It also analyses the commercial peculiarities of legal concerns and opportunities of franchising modes in the Indian business environment. Central attention is laid on the effect of the unique socio-economic background and the legislation in India with focus on compulsory licensing on these agreements. Also another point covered by the chapter is the reason why the firms adopt the method of licensing as a means of testing the international markets and the form of risks that they face in addition to how they are dealt with by the Indian law. The involvement of the Indian Patent Law on the pharmaceutical industry is particularly given with certain concern on the aspect of compulsory licensing provisions that aim in balancing the intellectual property rights with national health demands. This will involve an excursion on how TRIPS Agreement and Patents Act, 2005, have transformed the intellectual property environment and especially in regard to product and process patents. Indian patent system interprets TRIPS masterfully so as to balance the intellectual property right concerning concerns of national interests and the general good. The challenge to this balance is addressed by legal crises in the pharmaceutical field where the right to access affordable medication comes most of the time against patent claims.