Measures for the implementation of compulsory patent licensing

Compulsory licensing of patents refers to the legal system that the patent administrative department of the State Council permits others to exploit the invention or utility model patent without the permission of the patentee, and the units or individuals that have obtained compulsory licensing shall pay the patentee a reasonable royalty. Patent license issued by the patent administration department in accordance with the conditions and procedures prescribed by law. After obtaining such permission, the applicant may exploit the patent without the consent of the patentee, but shall pay a reasonable royalty. The objects of compulsory license refer to invention patents and utility model patents, excluding design.

legal ground

Article 51 of the Patent Law of People's Republic of China (PRC)

Where a patented invention or utility model is a major technological progress with great economic significance compared with the invention or utility model of the previous patent, and its implementation depends on the implementation of the previous invention or utility model, the patent administration department in the State Council may grant a compulsory license to exploit the previous invention or utility model upon the application of the latter patentee. Where a compulsory license is granted in accordance with the provisions of the preceding paragraph, the administrative department for patent in the State Council may also grant a compulsory license to exploit the latter invention or utility model upon the application of the former patentee.