What does compulsory licensing mean?

Legal analysis: Compulsory patent license refers to the license issued by the patent administration department according to the conditions and procedures. After obtaining this license, the applicant may exploit his patent without the consent of the patentee, but he shall pay the patentee a reasonable royalty. The object of compulsory license only refers to patents for inventions and utility models, excluding designs.

Legal basis: Article 53 of the Patent Law of People's Republic of China (PRC) is under any of the following circumstances, and the the State Council Patent Administration Department may grant a compulsory license to exploit the invention patent or utility model patent upon the application of a unit or individual with implementation conditions:

(1) It has been three years since the patent right was granted and four years since the patent application was filed, and the patentee has not implemented or not fully implemented his patent;

(2) The patentee's act of exercising the patent right is recognized as a monopolistic act according to law, so as to eliminate or reduce the adverse effects of the act on competition.