Legal basis: People's Republic of China (PRC) Patent Law.
Article 48 Under any of the following circumstances, the administrative department for patent in the State Council may grant a compulsory license to exploit a patent for invention or utility model upon the application of a unit or individual with the conditions for implementation:
1. Where the patentee has not implemented or not fully implemented his patent for three years from the date when the patent right was granted, and four years have elapsed since the date when the patent application was filed. 2. The patentee's behavior of exercising the patent right is recognized as monopolistic behavior according to law, in order to eliminate or reduce the adverse effects of this behavior on competition.
Article 49 In case of national emergency or special circumstances, or for the purpose of public interest, the patent administration department in the State Council may grant a compulsory license to exploit a patent for invention or utility model.
Article 50 For the purpose of public health, the patent administration department in the State Council may grant compulsory licenses for the manufacture and export of patented drugs to countries or regions that meet the requirements of relevant international treaties to which People's Republic of China (PRC) is a party.
Article 51. The invention or utility model that has been granted a patent right is a significant technological progress with significant economic significance compared with the invention or utility model that has been previously granted a patent right; Where the exploitation depends on the exploitation of the previous invention or utility model, the administrative department for patent in the State Council may, upon the application of the latter patentee, grant a compulsory license to exploit the previous invention or utility model.