In contrast to the
First, a qualified entity that has made reasonable requests for authorization but has failed to come to terms with the patent holder in a reasonable time. Second, SIPO may grant a compulsory license in the event of a national emergency, extraordinary state of affairs, or where the public interest so requires. Finally, a compulsory license may be granted when the exploitation of a later invention depends on the exploitation of the patent right in question.
A compulsory license is not an exclusive right and does not permit the licensee to further authorize others to exploit the patent right. In addition, an entity or individual that is granted a compulsory license is required to pay a reasonable fee to the patentee. The fee should be negotiated between the parties, but failing an agreement, SIPO determines an appropriate payment. Finally if the patentee is dissatisfied with the grant of the compulsory license, or the licensee is dissatisfied with SIPO's adjudication of the reasonable fee, either party may institute legal proceedings within three months of being notified.
Leave a comment