What are the consequences of compulsory licensing of patents
Non-exclusiveness, non-transferability and compensation
A unit or individual applying for a compulsory license shall provide proof of failure to sign an implementation license contract with the patentee on reasonable terms. The decision of the patent administration department under the State Council to grant a compulsory license shall be promptly notified to the patentee, and shall be registered and announced. The decision to grant a compulsory license shall specify the scope and time of implementation based on the reasons for the compulsory license. When the reasons for compulsory licensing are eliminated and no longer occur, the patent administration department of the State Council shall make a decision to terminate the compulsory license based on the request of the patentee and after review. A unit or individual that obtains a compulsory license for implementation does not enjoy the exclusive right to implement it and does not have the right to allow others to implement it. If the patentee is dissatisfied with the decision of the Patent Administration Department of the State Council on the implementation of compulsory licenses, and if the patentee and the unit or individual who obtained the compulsory license are dissatisfied with the ruling of the Patent Administration Department of the State Council on the royalties for the implementation of compulsory licenses, they may voluntarily receive the File a lawsuit in the People's Court within three months from the date of notification.
If the invention patents of state-owned enterprises and institutions are of great significance to national interests or public interests, the relevant competent departments of the State Council and the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall report to the State Council After approval, it can be decided to promote the application within the scope of approval, and allow designated units to implement it. The implementing unit will pay royalties to the patentee in accordance with national regulations. If the invention patents of China's collective ownership units and individuals are of great significance to national interests or public interests and need to be promoted and applied, they shall be handled in accordance with the regulations.
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