A compulsory license is a permit issued by government authorities to an interested person to use a patented invention, utility model or industrial design.
A compulsory license is issued to an interested person in cases where the Patent Owner has not used or has not sufficiently used his patented development for a long time, as well as if the Right Holder has refused to grant the interested person the right to use his invention (license agreement).
A compulsory license is issued by government authorities in special cases. For example, it is provided for the production of medicines, which is enshrined in the legislation of many countries.
In Russia, the Federal Antimonopoly Service has developed a bill on compulsory licensing, according to which the Government of the Russian Federation can deprive patent holders of the right to the sole use of an invention, utility model or industrial design (including a medicinal product or medical device), if this is necessary in the interests of national security, to protect the life and health of citizens.
This bill was adopted on the basis that, in practice, Right Holders often abuse their dominant position and refuse to produce or supply medicines in Russia.
The Decree of the Government of the Russian Federation of May 25, 2022 “On the use of an invention for the production of a medicinal product on the territory of the Russian Federation for the purpose of exporting it without the consent of the patent holder” approved the rules for making decisions on the use of inventions for the production of medicinal products in Russia for the purpose of exporting them without the consent of the patent holder. A methodology has also been approved for determining the amount of compensation paid to the patent holder when deciding to use his invention for the production of a medicinal product on the territory of the Russian Federation for the purpose of exporting it without the consent of the patent holder, and the procedure for its payment.
However, compulsory licensing has not only positive but also negative aspects, for example, in the pharmaceutical industry. Thus, the release of medicines on the basis of compulsory licensing:
