2. If the patentee fails to exploit or fully exploit the patent within the time limit prescribed by law, and the third party meets the requirements for exploiting the patent, it may apply for compulsory license.
Legal basis: People's Republic of China (PRC) Patent Law.
Article 48 The patent administration department of the State Council and the patent administration department of the local people's government shall, jointly with relevant departments at the same level, take measures to strengthen patent services and promote the implementation and utilization of patents.
Article 49 Where an invention patent of a state-owned enterprise or institution is of great significance to the national interest or public interest, with the approval of the State Council, the relevant competent department of the State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government may decide to popularize and apply it within the approved scope, allowing designated units to implement it, and the implementing units shall pay royalties to the patentee in accordance with state regulations.