By this method it could avoid paying royalty fees to the company which actually owned the product patent. The Indian Patent Act 1970 allows process patents in pharmaceuticals, but not products. Three years after the patent is granted, any body is allowed to use the process and pay royalties to patent holder. The Indian companies incurred a lot of infamy this way amongst the Western pharma organisations. A group representing 39 firms, including world number one Glaxo SmithKline argues that the South African law gives unconstitutional and arbitrary powers to the country's health minister in deciding when the state can make or import generic versions of patent drugs.
Generics are cheaper copies of drugs made by manufacturers other than the patent holder.
Cipla's decision is a boon for poor nations.