compulsory licence (patents)

Compulsory licence in patent law refers to a legal mechanism that permits a third party to use a patented invention without the consent of the patent holder, subject to specific conditions and safeguards. It is an exception to the exclusive rights granted by a patent.

Compulsory licences are typically granted in situations where public interest considerations prevail. Common grounds include failure to work the patent, anti-competitive practices, dependency of patents, or urgent public health needs. In such cases, authorities may authorize use of the invention to ensure access, supply, or technological development.

Internationally, compulsory licensing is recognized under the TRIPS Agreement, which allows member states to define the conditions under which such licences may be granted. These conditions generally include prior negotiation with the patent owner (unless waived in emergencies), limited scope and duration, and payment of adequate remuneration.

Compulsory licences are an important tool for balancing patent protection with broader societal interests, particularly in sectors such as pharmaceuticals, where access to essential medicines is a critical concern.