Expropriation in Relation to Drug Patenting Concerning Pharmaceutical Companies

  • Shreya Sarkar1, J.K. Mittal2
Keywords: Expropriation, Drug Patent, Intellectual property, Transnational Corporation, NAFTA Tribunal.


With the development of trade companies started transacting business across its boarders attaining the
character of Transnational Corporation’s/Multinational Corporation’s which in some cases taken over by
the sovereign country what has been called as expropriation. The expropriation at initial stage proceeded
towards immovable and movable properties attracting the attention of international community to ponder
over the issue with the result permitting the expropriation but after satisfying limitations like public purpose,
good faith, non-discriminatory followed by compensation. With the developments in law and technology,
the intellectual property as a patent has also come within the ambit of expropriation. In developing phase of
jurisprudence, the expropriation was said to be either direct or in direct and/or creeping. The Australian case
of concessional rights in favour of US company regarding coral reef and its cancelation had been subject
of debate inter alia as an expropriation. In the world of technology and drug pharmacy, the manufacturing
units of drugs in most of the cases registered their patents with local law protection under the coverage of
WIPO. An emerging concern has been Eli Lilly case of Canada where the patent of the two drugs namely
olanzapine and atomexetine was invalidated in Canada resulting in the litigation. The Company lost both
at original stage as well as before the appellate court in Canada. But before the NAFTA Tribunal the orders
of national courts were reversed in the favour of ELI Lilly. The case has thrown new dimensions towards
expropriation,besides, the status of NAFTA tribunal overruling national courts. In the context the research
article is of essence and is based on doctrinal methodology.

Author Biography

Shreya Sarkar1, J.K. Mittal2

1Ph.D. Research Scholar (Law), Amity Law School, Amity University, Noida,
2Professor Emeritus, Law (Ph.D. Guide), Amity Law School, Amity University, Noida

How to Cite
Shreya Sarkar1, J.K. Mittal2. (2020). Expropriation in Relation to Drug Patenting Concerning Pharmaceutical Companies. Medico Legal Update, 20(2), 298-302. Retrieved from http://ijop.net/index.php/mlu/article/view/1119