The Indian Patent Office is set to issue a landmark ruling over the petition of a local drug manufacturer to allow cheaper generic drugs especially for cancer patients for export to poor countries under the "compulsory license" rule.

The case is attracting interest of giant drug manufacturers across the globe because it could open the floodgates for drug manufacturers to make copies of patented drugs.

Natco Pharmaceuticals, an Indian firm drug manufacturer is asking the Indian government allow them to make cheaper cancer drugs such as Roche's Tarceva and Pfizer's Sutent. The generic drugs would be exported to poor countries who cannot afford the pricey cost of patented drugs, the firm said.

Natco Pharmaceuticals secretary M. Adinarayana said before the hearing that the case is India's first test-case of compulsory license to manufacture and export cheaper generic drugs to other countries.

Under the global drug patent system, compulsory licenses allows countries to manufacture copies of patented drugs in cases involving public health and emergencies.

Natco's case will test the compulsory license law to provide poor countries with crucial but very expensive medicines. However, while it may provide poor countries access to key drugs, critics say it might hinder the development and research of new medicines.

In October, Canada allowed copies of anti-AIDS drugs to be exported to Rwanda.