How to determine the royalties for compulsory patent licenses under the 2023 Patent Law?

If a patent is subject to compulsory licensing, the unit or individual that obtains the compulsory license shall pay reasonable royalties to the patentee. If royalties are paid, the amount shall be negotiated by both parties; if the two parties cannot reach an agreement, the patent administration department of the State Council shall make a ruling. Regarding the question of how to determine the royalties for compulsory patent licenses stipulated in the Patent Law, the editor of Legal Savior Network will give you a detailed answer below.

1. How to determine the royalties for compulsory patent licenses stipulated in the Patent Law

1 . If a patent is subject to compulsory licensing, the unit or individual that obtains the compulsory license shall pay the patentee a reasonable fee for use, which shall be determined in the following manner:

(1) If royalties are paid, the amount shall be negotiated by both parties;

(2) If the two parties cannot reach an agreement, the patent administration department of the State Council shall make a ruling.

2. Legal basis: "Patent Law of the People's Republic of China"

62 Article 1 An entity or individual that obtains a compulsory license shall pay reasonable royalties to the patentee, or handle the issue of royalties in accordance with the provisions of relevant international treaties to which the People's Republic of China is a party. If royalties are paid, the amount shall be negotiated by both parties; if the two parties cannot reach an agreement, the patent administration department of the State Council shall make a ruling.

2. What are the circumstances for applying for a compulsory license to implement a patent?

According to the relevant laws and regulations of our country, after three years from the date when the patent right is granted, if the unit with the conditions for implementation requests the invention under reasonable conditions or If a utility model patentee has a license to exploit his or her patent but fails to obtain such permission within a reasonable period of time, he or she may apply to the State Intellectual Property Office for a compulsory license to exploit the invention patent or utility model patent.

A patented invention or utility model is a major technological advancement of significant economic significance compared to previously patented inventions or utility models, and its implementation is If it relies on the implementation of the previous invention or utility model, the latter patentee may apply to the Patent Administration Department of the State Council for permission to implement the previous invention or utility model.For a compulsory license for a utility model, the former patentee may also apply to the Patent Administration Department of the State Council for a compulsory license to implement the subsequent invention or utility model.

In addition, the unit or individual applying for a compulsory license shall submit a request for compulsory license to the Patent Administration Department of the State Council, explaining the reasons and attaching relevant information regarding the failure to do so in a reasonable manner. Conditions: Documents proving the signing of an implementation license contract with the patentee must be made in duplicate.

According to the provisions of the Patent Law, if a patent is subject to compulsory licensing, the unit or individual that obtains the compulsory license shall pay the patentee a reasonable royalty. . If royalties are paid, the amount shall be negotiated by both parties; if the two parties cannot reach an agreement, the patent administration department of the State Council shall make a ruling. I hope the above content can be helpful to you. If you have other questions, you can click the button below for consultation, or go to the Legal Savior website to consult a professional lawyer.