In the complainants’ view, the drugs prices were excessive because even when taking account of the need to recoup R&D costs and make profits, as well as the obligation to pay certain licensing fees, the prices remained unjustifiably elevated. Before the Tribunal could adjudicate on the issue, however, the affected companies agreed to license the right to use the patented substances to a number of local manufacturers. Such agreements had existed before, but under terms and conditions that proved impracticable for the local producers (e.g. sales only allowed to the public sector, at a 30 per cent royalty rate). The TRIPS Agreement (Article 31) leaves members free to determine excessive prices as a substantive ground for compulsory licensing (see above, the section on compulsory licenses).