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However, even in the country where a strong opposition procedure

exists, the producers of generic drugs in many countries are lacking skills in
patent search or there is no efficient database on prior art pharmaceuticals

available. Therefore, those producers are still at risk of patent infringements.

The case of Thailand is raised as an example in the next part.

C. Compulsory Licensing

After the exclusive patent rights are granted, governments maintain
certain policy mechanisms to address problems which may occur, i.e.,

compulsory licensing and government use. These tools were commonly used

in Europe in the nineteenth century, and therefore were obviously provided in

the 1883 Paris Convention. Afterwards, both developed and developing nations

mutually recognized the significance of this mechanism during the negotiations
of the TRIPS Agreement. Thus, the TRIPS Agreement clearly allows

compulsory licensing, but delineates its utilization with some procedural
(25)
conditions. Patent owners must be compensated and participated in prior
negotiations, even though, in cases of emergency, the latter condition can be

(26)
exempted for non-commercial use by the government. For example, the
government authorizes a third party to supply drugs in national programs or

hospitals.

Notably, the TRIPS Agreement does not restrict the grounds on which

states can issue the licenses, so the grounds are not limited to the cases of

(25)
TRIPS Agreement, Article 31.
(26)
In the circumstances of the use for non-commercial purpose or public emergency,
governments do not have to negotiate with patentees, but have to inform the patentees

immediately or in the timely manner. TRIPS Article 31(b).

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