Patents Act, 1970
88. Effect of endorsement of patent with the words "licenses of right"
(1) Where a patent had been endorsed with the words "licenses of right", any person who is interested in working the patented invention in India may require the patentee to grant him a license for the purpose on such terms as may be mutually agreed upon, notwithstanding that he is already the holder of a license under the patent.
(2) If the parties are unable to agree on the terms of the license, either of them may apply in the prescribed manner to the Controller to settle the terms thereof.
(3) The Controller shall, after giving notice to the parties and hearing them and after making such enquiry as he may deem fit, decide the terms on which the license shall be granted by the patentee.
(4) The Controller may at any time before the terms of the license are mutually agreed upon or decided by the Controller, on application made to him in this behalf by any person who has made any such requisition as is referred to in sub-section (1), permit him to work the patented invention on such terms as the Controller may, pending agreement between the parties or decision by the Controller, think fit to impose.
(5) In the case of every patent in respect of an invention referred to in sub-clause (i), sub-clause (ii), or clause (a) of sub-section (1) of section 87 and deemed to be endorsed with the words "licenses of right" under clause (a) or clause (b) of that sub-section, the royalty and other remuneration reserved to the patentee under a license granted to any person after such commencement shall in no case exceed four per cent of the net ex-factory sale price in bulk of the patented article (exclusive of taxes levied under any law for the time being in force and any commission payable) determined in such manner as may be prescribed.
(6) Save as otherwise provided in sub-section (5), the provisions of sub-sections (1), (2), (4) and (5) of section 93 (regarding the powers of the Controller) and of sections 94 and 95 shall apply to licenses granted under this section as they apply to licenses granted under section 84.