Types of compulsory licensing for patent implementation

(1) Compulsory license is not implemented.

Where a unit with implementation conditions requests the patentee of an invention or utility model to license the exploitation of its patent on reasonable terms, but fails to obtain the license within a reasonable period of time, the patent administration department of the State Council may, upon the application of the unit, grant a compulsory license to exploit the invention patent or utility model patent.

(2) Compulsory permission of national interests or public interests.

In case of national emergency or special circumstances, or for the purpose of public interest, the administrative department for patent in the State Council may grant a compulsory license to exploit a patent for invention or utility model.

(3) Compulsory licensing of subordinate patents

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.