How Compulsory Licenses Can Affect Domestic And Foreign Prosecution

Compulsory licensing is a practice that allows a third party to produce or use a patented product or process without the consent of the patent owner. The practice may be implemented to ensure patent owners are utilizing the technology in which they were granted exclusive rights. Additionally, compulsory licenses may be provided in situations where there is a national emergency or great urgency. To compensate patent owners when compulsory licenses are enforced, jurisdictions may require payment of royalties. However, rates are often predetermined and may be less than desirable in exchange for forfeiture of exclusive rights. Understanding licenses, procedures, and affiliated risks across different patenting systems is important for successful multinational prosecution.