Australia-Selected Compulsory Licensing, Government Use, and Notable Patent Exception Provisions


Patents Act 1990



CHAPTER 2-PATENT RIGHTS, OWNERSHIP AND VALIDITY

Part 3-Validity

Division 1-Validity

(Patentable inventions)

18.-(2) Human beings, and the biological processes for their generation, are not patentable inventions.


CHAPTER 12-COMPULSORY LICENCES AND REVOCATION OF PATENTS

(Compulsory licences)

133.-(1) A person may apply to a prescribed court, after the end of the prescribed period, for an order requiring the patentee to grant the applicant a licence to work the patented invention.

(2) After hearing the application, the court may, subject to this section, make the order if satisfied that:

(a) the reasonable requirements of the public with respect to the patented invention have not been satisfied; and

(b) the patentee has given no satisfactory reason for failing to exploit the patent.

(3) An order must direct that the licence:

(a) is not to give the licensee, or a person authorised by the licensee, the exclusive right to work the patented invention; and

(b) is to be assignable only in connection with an enterprise or goodwill in connection with which the licence is used;

and may direct that the licence is to be granted on any other terms specified in the order.

(3A) Before making the order, the court must be satisfied that the applicant has tried for a reasonable period, but without success, to obtain from the patentee in respect of the patented invention an authorisation to work the invention on reasonable terms and conditions.

(3B) If the patented invention cannot be worked by the applicant without his or her infringing another patent:

(a) the court is to make the order only if the court is further satisfied that the patented invention involves an important technical advance of considerable economic significance on the invention ("other invention") to which the other patent relates; and (b) the court must further order that the patentee of the other invention:

(i) must grant to the applicant a licence to work the other invention insofar as is necessary to work the patented invention; and

(ii) is to be granted, if he or she so requires, a cross-licence on reasonable terms to work the patented invention; and

(c) the court must direct that the licence granted by the patentee of the other invention may be assigned by the applicant:

(i) only if he or she assigns the "licence granted in respect of the patented invention; and

(ii) only to the assignee of that licence.

(4) An order operates, without prejudice to any other method of enforcement, as if it were embodied in a deed granting a licence and executed by the patentee and all other necessary parties.

(5) The patentee is to be paid in respect of a licence granted to the applicant under an order:

(a) such amount as is agreed between the patentee and the applicant; or

(b) if paragraph (a) does not apply such amount as is determined by a prescribed court to be just and reasonable having regard to the economic value of the licence.

(6) The patentee or a prescribed court may revoke the licence if:

(a) the patentee and the licensee are agreed, or the court on application made by either party finds, that the circumstances that justified the grant of the licence have ceased to exist and are unlikely to recur; and

(b) the legitimate interests of the licensee are not likely to be adversely affected by the revocation.



CHAPTER 17-THE CROWN

Part 2-Exploitation by the Crown

(Exploitation of inventions by Crown)

163.-(1) Where, at any time after a patent application has been made, the invention concerned is exploited by the Commonwealth or a State (or by a person authorised in writing by the Commonwealth or a State) for the services of the Commonwealth or the State, the exploitation is not an infringement:

(a) if the application is pending of the nominated person's rights in the invention; or

(b) if a patent has been granted for the invention of the patent.

(2) A person may be authorised for the purposes of subsection (1):

(a) before or after any act for which the authorisation

is given has been done; and

(b) before or after a patent has been granted for the invention; and

(c) even if the person is directly or indirectly authorised by the nominated person or patentee to exploit the invention.

1. Subject to section 168, an invention is taken for the purposes of this Part to be exploited for services of the Commonwealth or of a State if the exploitation of the invention is necessary for the proper provision of those services within Australia.



Patents Act 1994


Part 4-Compulsory Licences

(Compulsory licences)

11. Section 133 of the Principal Act is amended:



(a) by inserting in subsection (2) ", subject to this section," after "may";

(b) by inserting after subsection (3) the following subsections:

"(3A) Before making the order, the court must be satisfied that the applicant has tried for a reasonable period, but without success, to obtain from the patentee in respect of the patented invention an authorisation to work the invention on reasonable terms and conditions.

(3B) If the patented invention cannot be worked by the applicant without his or her infringing another patent:

(a) the court is to make the order only if the court is further satisfied that the patented invention involves an important technical advance of considerable economic significance on the invention ('other invention') to which the other patent relates; and

(b) the court must further order that the patentee of the other invention:

(i) must grant to the applicant a licence to work the other invention insofar as is necessary to work the patented invention; and

(ii) is to be granted, if he or she so requires, a cross-licence on reasonable terms to work the patented invention; and

(c) the court must direct that the licence granted by the patentee of the other invention may be assigned by the applicant:

(i) only if he or she assigns the licence granted in respect of the patented invention; and

(ii) only to the assignee of that licence.";

(c) by adding at the end the following subsections:

"(5) The patentee is to be paid in respect of a licence granted to the applicant under an order:

(a) such amount as is agreed between the patentee and the applicant; or

(b) if paragraph (a) does not apply such amount as is determined by a prescribed court to be just and reasonable having regard to the economic value of the licence.

(6) The patentee or a prescribed court may revoke the licence if:

(a) the patentee and the licensee are agreed, or the court on application made by either party finds, that the circumstances that justified the grant of the licence have ceased to exist and are unlikely to recur; and

(b) the legitimate interests of the licensee are not likely to be adversely affected by the revocation."


Part 5-Crown Use

(Exploitation of inventions by Crown)

14. Section 163 of the Principal Act is amended by adding at the end the following subsection:

"(3) Subject to section 168, an invention is taken for the purposes of this Part to be exploited for services of the Commonwealth or of a State if the exploitation of the invention is necessary for the proper provision of those services within Australia.".

(Remuneration and terms for exploitation)