Compulsory License - Patents

Patents

Licensing of patents
Overviews
  • Licensing
  • Royalties
Types
  • Compulsory licensing
  • Cross-licensing
  • Defensive Patent License
  • Defensive termination
  • Fair, reasonable, and non-discriminatory (FRAND, RAND)
  • Shop right
Strategies
  • Catch and release
  • Defensive patent aggregation
  • Patentleft
  • Patent monetization
  • Patent pool
  • Stick licensing
Clauses in patent licenses
  • Field-of-use limitation

Many patent law systems provide for the granting of compulsory licenses in a variety of situations. The Paris Convention of 1883 provides that each contracting State may take legislative measures for the grant of compulsory licenses. Article 5A.(2) of the Paris Convention reads:

"Each country of the Union shall have the right to take legislative measures providing for the grant of compulsory licenses to prevent the abuses which might result from the exercise of the exclusive rights conferred by the patent, for example, failure to work." (See also Article 5A.(3) to (5) of the Paris Convention.)

According to historian Adrian Johns, the idea of compulsory licensing "seems to have originated as a serious proposition in the 1830s, although predecessors can be traced back into the eighteenth century," and it was popular in the British anti-patent movement of the 1850s and 1860s. More recently an area of fierce debate has been that of drugs for treating serious diseases such as malaria, HIV and AIDS. Such drugs are widely available in the western world and would help to manage the epidemic of these diseases in developing countries. However, such drugs are too expensive for developing countries and generally protected by patents.

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