India’s Bolar Exception: A Catalyst for Generic Drug Inovation

May. 01, 2025 • BY: Vistar Gupta Law student at Rayat Bahra university Mohali campus
India’s Bolar Exception: A Catalyst for Generic Drug Innovation
Introduction
Atomic research driven by innovation operates within legal frameworks that establish equilibrium between pharmaceutical patents and public wellness standards. The Bolar Exception functions as a vital legal rule that achieves two goals through providing generic medicine availability alongside promoting research and development activities (R&D). The Bolar Exception receives analysis through its historical development while examining India's policy implementation and evaluating legal procedures and examining effects on pharmaceutical research.
Indian pharmaceutical companies serve the global healthcare sector through their capability to generate superior generic medicines at economical rates.the Indian Patents Act, 1999 provides generic manufacturers with protection through the Bolar exclusion when they utilize protected innovations for submitting applications at the regulatory authority for approval purposes. The regulatory Bolar exception guarantees speedy market entry for generic drugs through essential benefits for essential life-saving medicines and improved public health outcomes.The Bolar exception established by Roche products versus Bolar pharmaceutical Co. protects public health needs by allowing generic medicines to market entry before the expiration of patents. The pharmaceutical sector of India requires the Bolar exception to benefit R&D specifically in generic drug development because it simultaneously fuels economic growth and ensures public health goals.
This article examines the aspects of the Bolar exemption in India through legal evaluation of its definition as well as practical implementation and evaluates its effect on pharmaceutical research development activities. Section 107 A's legal structure receives examination together with court interpretations while the research compares Indian laws to international norms and studies their effects on local pharmaceutical companies' clinical trial execution and regulatory submission practices. The study examines both direct and indirect policy effects of the Bolar provision and its capacity to stimulate innovation for generic pharmaceutical development as well as addresses potential implementation barriers. The paper examines whether the existing legal framework establishes sufficient support between innovation promotion and public access to medications.
Definition of Bolar Exception
The Bolar Exception is a provision in patent law that allows generic manufacturers to undertake necessary research and development for regulatory approval before the expiration of a patent. When Roche Products Inc. v. Bolar Pharmaceutical Co. (1984) went to court this marked the beginning of legal history that later became known as the Bolar Exception in patent law. The patent owner Roche Products Inc. filed a patent infringement lawsuit against generic drug producer Bolar Pharmaceutical Co. for its research activities on high blood pressure medication drugs.
Bolar Pharmaceuticals ran laboratory tests on Roche Products' patented drug to create its Generic version. Roche presented evidence to show that Bolar violated its patent rights through its testing activities leading to the regulatory approval process of the generic drug. The U.S. Court of Appeals decided with Roche stating that evaluating patented drugs for research and development goals to secure regulatory clearance counts as patent infringement because it takes place before patent expiration. The court ruling served to protect patent rights yet it created an obstacle for generic drug makers since they remained unable to produce generic versions during the patent duration.
This led to legislative intervention in the form of the Hatch-Waxman Act (1984), which introduced the Bolar Exception in the U.S which states that:-
“It shall not be an act of infringement to make, use, offer to sell, or sell within the United States or import into the United States a patented invention (other than a new animal drug or veterinary biological product (as those terms are used in the Federal Food, Drug, and Cosmetic Act and the Act of March 4, 1913) which is primarily manufactured using recombinant DNA, recombinant RNA, hybridoma technology, or other processes involving site-specific genetic manipulation techniques) solely for uses reasonably related to the development and submission of information under a Federal law which regulates the manufacture, use, or sale of drugs or veterinary biological products.”
“A pragmatic approach that aligns patent rights with public benefit through regulatory research.”Lord Hoffmann (UK Patent Law Expert)
Historical Background
Through the Bolar Exception, U.S. patent law enables generic drug producers to start their development activities on patented drugs before expiration dates to achieve timely affordable generic drug launch. The roots of this principle trace back to Whittemore v. According to Cutter (1813) Justice Joseph Story proposed that experimental applications of inventions should not result in penalties under patent law. Over time this concept developed into the central issue in Roche Products v. Bolar Pharmaceutical (1984) received rejection from the U.S. Court of Appeals because they tested Roche's patented drug for regulatory approval before patent expiration. The Hatch-Waxman Act (1984) became law because of the court ruling which established 35 U.S.C. § 271(e)(1) to explicitly permit testing patented medicines before market approval. Countries worldwide adopted this legal provision after the United States introduced it and today the European Union together with India, Canada , Japan and Australia maintain comparable provisions within their patent legislations. Through the Bolar Exception pharmaceutical competition flourishes while drug prices decrease as generic alternatives enter the market without delay to improve medicine accessibility.
India’s Approach to Bolar Exception
India recognizes the Bolar Exception under Section 107A of the Indian Patents Act, 1970, which was introduced through the Patents (Amendment) Act, 2005 to align with TRIPS (Trade-Related Aspects of Intellectual Property Rights) obligations while ensuring access to affordable medicines.
Legal Provision – Section 107A of the Indian Patents Act, 1970
Section 107A states that "any act of making, constructing, using, selling, or importing a patented invention solely for uses reasonably related to the development and submission of information required under any law for regulatory approval in India or any other country shall not be considered as patent infringement."
This provision allows generic drug manufacturers to conduct research, testing, and regulatory submissions before a patent expires, ensuring that generics can be launched immediately after patent expiry, reducing delays in market entry.
Legal Framework in India
Section 107A, Indian Patents Act (1970, Amended 2005): any act of making, constructing, using, selling, or importing a patented invention solely for uses reasonably related to the development and submission of information required under any law for regulatory approval in India or any other country shall not be considered as patent infringement.
The Drugs and Cosmetics Act, 1940: Under this Act, the Central Drugs Standard Control Organization (CDSCO) and the Drug Controller General of India (DCGI) oversee the clinical trials, bioequivalence studies, and regulatory submissions required for the approval of generic drugs. The Act mandates compliance with Good Manufacturing Practices (GMP) and other quality standards, preventing misuse of the Bolar Exception by ensuring that drugs produced for regulatory approval are not sold commercially before patent expiry.
Judicial Interpretations in India
Bayer Corporation v. Union of India & Natco Pharma (2019)
Bayer, a multinational pharmaceutical company, sought to prevent Natco Pharma from exporting its patented cancer drug Sorafenib Tosylate for regulatory approval in China.
The Delhi High Court ruled that exporting a patented drug for regulatory approval in another country falls within the scope of Indian Trade Marks Act,1999, reinforcing that the Bolar Exception in India is not limited to domestic regulatory approval but extends to foreign approvals as well.
Roche v. Cipla (2016)
Roche accused Cipla of patent infringement for manufacturing and exporting Erlotinib for regulatory approval.The Delhi High Court reaffirmed that such activities fall within the Bolar Exception if they are intended for obtaining regulatory approvals.
Problems and Challenges in Implementation
Section 107A of the Indian Patents Act, 1970 through its implementation of the Bolar Exception in India faces numerous barriers which hinder its effectiveness. A major obstacle arises from insufficient legal specification of the Bolar Exception's boundaries which causes both vague legal parameters and many resulting court cases. Since Bayer v. Natco (2019) courts issued clarity by permitting foreign regulatory approval of exports yet the Bolar Exception in India remains unclear through Section 107A of the Indian Patents Act, 1970. Law enforcement remains unclear because Natco (2019) applies the act. Commercial interests pose a great risk because some businesses try to produce at scale for regulatory approval while breaking patents in the process. The establishment of exclusive rights to a patented invention for regulatory purposes requires thorough legal combat which was observed in Roche v. Cipla (2016). India faces opposition from U.S. and EU governments regarding patent laws since the Bolar Exception supports weakening patent protection systems. The drug approval procedure in India extends availability time for affordable medicines even though it was created to expedite generic medication market entry. The adoption of precise legal definitions coupled with enhanced regulatory oversight and expedited approval procedures should be prioritized because they will enable proper deployment of India's Bolar Exception approach.
PERSONAL PERSPECTIVE
In my opinion the Bolar Exception functions as an important public health measure because it prevents patented medicines from becoming unaffordable. The safety that pharmaceutical patents extend to innovation work as a shield but never as a weapon to prevent patients from accessing needed medication. India's Section 107A under the Patents Act 1970 supports innovation together with accessibility because it implements the Bolar Exception despite ongoing regulatory and legal enforcement issues.
Multinational pharmaceutical companies file an excessive number of lawsuits and debates about legal definitions alongside trade pressure from abroad create obstacles that contradict the core purpose of the exception. The judiciary provides important guidance for implementing this exception yet legislation must get clarified to stop delaying generic medicines through avoidable court disputes. The Drugs and Cosmetics Act of 1940 needs streamlining to enable the Bolar Exception to deliver its full benefits in practical health care applications.
Healthcare rights need to stand equally important with intellectual property rights for decision-making purposes. The protection of public health requires India to preserve its sovereign power to rely on TRIPS flexibilities according to my strong interest in law and justice. As an expression of nation-level dedication to healthcare equity the Bolar Exception functions beyond its legal status. To achieve the goal of innovation-through-patents rather than access-barriers the successful implementation of the Bolar Exception needs strengthening in future applications.
Conclusion
The Bolar Exception enables protection of public health by allowing generic drugs to gain approval before patent expiration which results in faster access to medication. The Bolar exception that under Section 107A of India’s 1970 Patents Act falls in line with global TRIPS standards serves to meet safety requirements through the enforcement of the 1940 Drugs and Cosmetics Act. Colorable hurdles like confusing legal definitions along with actual or potential misuse combined with constant court battles and sluggish approval processes and international trade requirements prevent its successful execution. The maximal utilization of this provision needs both strong legal frameworks and efficient regulations as well as consistent judicial decisions. India will preserve its leading position as an affordable medicine provider and healthcare rights protection through TRIPS flexibility utilization while addressing national and international challenges in the future.
REFERENCES
- Roche Products v. Bolar Pharmaceutical Co., 733 F.2d 858 (1984).
- Research paper on "Of Mice and Law. Lords" published in the Law Quarterly Review (LQR) in 2021, specifically in volume 137, pages 371–375.
- EU Directive 2001/83/EC on medicinal products.
- Hatch-Waxman Act, 35 U.S.C. § 271(e)(1) (1984).
- Indian Patents Act, 1970, Section 107A (as amended in 2005).
- Bayer Corporation v. Union of India & Natco Pharma, Delhi High Court (2019).
- Roche v. Cipla, Delhi High Court (2016).
- TRIPS Agreement, Article 30, WTO (1994).
- The Drugs and Cosmetics Act, 1940.
- Canadian Patent Act, Section 55.2(1)
- Image generated by CHAT GPT