Patent Law of the People's Republic of China (1992)



Chapter II
Requirements for Grant of Patent Right

25. For any of the following, no patent right shall be granted:

(1) scientific discoveries;

(2) rules and methods for mental activities;

(3) methods for the diagnosis or for the treatment of diseases;

(4) animal and plant varieties;

(5) substances obtained by means of nuclear transformation.

For processes used in producing products referred to in item (4) of the preceding paragraph, patent right may be granted in accordance with the provisions of this Law.





Chapter VI
Compulsory Lcense for Exploitation of the Patent

51. Where any entity which is qualified to exploit the invention or utility model has made requests for authorization from the patentee of an invention or utility model to exploit its or his patent on reasonable terms and such efforts have not been successful within a reasonable period of time, the Patent Office may, upon the application of that entity, grant a compulsory license to exploit the patent for invention or utility model.

52. Where a national emergency or any extraordinary state of affairs occurs, or where the public interest so requires, the Patent Office may grant a compulsory license to exploit the patent for invention or utility model.

53. Where the invention or utility model for which the patent right was granted is technically more advanced than another invention or utility model for which a patent right has been granted earlier and the exploitation of the later invention or utility model depends on the exploitation of the earlier invention or utility model, the Patent Office may, upon the request of the later patentee, grant a compulsory license to exploit the earlier invention or utility model.

Where, according to the preceding paragraph, a compulsory license is granted, the Patent Office may, upon the request of the earlier patentee, also grant a compulsory license to exploit the later invention or utility model.

54. The entity or individual requesting, in accordance with the provisions of this Law, a compulsory license for exploitation shall furnish proof that it or he has not been able to conclude with the patentee a license contract for exploitation on reasonable terms.

55. The decision made by the Patent Office granting a compulsory license for exploitation shall be registered and announced.

56. Any entity or individual that is granted a compulsory license for exploitation shall not have an exclusive right to exploit and shall not have a right to authorize exploitation by any others.

57. The entity or individual that is granted a compulsory license for exploitation shall pay to the patentee a reasonable exploitation fee, the amount of which shall be fixed by both parties in consultations. Where the parties fail to reach an agreement, the Patent Office shall adjudicate.

58. Where the patentee is not satisfied with the decision of the Patent Office granting a compulsory license for exploitation or with the adjudication regarding the exploitation fee payable for exploitation, he or it may, within three months from the receipt of the notification, institute legal proceedings in the people's court.






Implementing Regulations of the Patent Law of the People's Republic of China (1992)



Chapter V
Compuslory License for Exploitation of a Patent

68. After the expiration of three years from the grant of the patent right, any entity may, in accordance with the provisions of Article 51 of the Patent Law, request the Patent Office to grant a compulsory license.

Any entity requesting a compulsory license shall submit to the Patent Office a request for compulsory license and state the reasons therefor. together with relevant supporting documents. The request and the supporting documents shall each be in duplicate.

The Patent Office shall send a copy of the request for compulsory license to the patentee. He or it shall make his or its observations within the time limit specified by the Patent Office. Where no response is made within the time limit, the Patent Office will not be affected in making a decision to grant a compulsory license.

Where a national emergency or any extraordinary state of affairs occurs, or in cases of non-commercial use in the public interest, the Patent Office may grant a compulsory license.

The decision of the Patent Office granting a compulsory license shall limit the scope and duration of the compulsory license based on the reasons justifying the grant, and provide that the exploitation under the compulsory license shall be predominantly for supplying the requirements of the domestic market.

The decision of the Patent Office granting a compulsory license shall be notified to the patentee as soon as reasonably practicable, and shall be registered and announced by the Patent Office. If and when the circumstances which led to such compulsory license cease to exist or are unlikely to recur, the Patent Office, upon the request of the patentee, shall have the authority to review the situation and terminate the compulsory license.