{"id":142,"date":"2017-11-22T05:58:43","date_gmt":"2017-11-22T05:58:43","guid":{"rendered":"http:\/\/blogs.lib.purdue.edu\/patents\/?p=142"},"modified":"2020-07-20T04:06:16","modified_gmt":"2020-07-20T04:06:16","slug":"compulsory-license-regime-the-united-states","status":"publish","type":"post","link":"https:\/\/blogs.lib.purdue.edu\/patents\/2017\/11\/22\/compulsory-license-regime-the-united-states\/","title":{"rendered":"Compulsory License Regime: The United States"},"content":{"rendered":"<p><span style=\"font-weight: 400\">This information has been taken from: <\/span><\/p>\n<p><span style=\"font-weight: 400\">THOMAS, John R. (2014) <\/span><i><span style=\"font-weight: 400\">Compulsory Licensing of Patented Inventions. <\/span><\/i><span style=\"font-weight: 400\">CRS &#8211; Congressional Research Service. Available in: <\/span><a href=\"https:\/\/www.ipmall.info\/sites\/default\/files\/hosted_resources\/crs\/R43266_140114.pdf\"><span style=\"font-weight: 400\">https:\/\/www.ipmall.info\/sites\/default\/files\/hosted_resources\/crs\/R43266_140114.pdf<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400\">The Title 35 of the US Code does not include a general compulsory licensing provision. However, a series of circumstances must be taken on account when addressing the US Compulsory Licensing Regime.<\/span><\/p>\n<p><span style=\"font-weight: 400\">On one hand, the United States is a member of the Convention of Paris for the protection of Industrial Property, and a party of the Agreement on Trade-Related Aspects of Intellectual Property Rights (for being a member of the World Trade Organization). Both of these international multilateral agreements address compulsory patent licenses.<\/span><\/p>\n<p><span style=\"font-weight: 400\">On the other hand, other domestic laws include provisions that allow for the compulsory licensing of patented inventions and, additionally, circumstances similar to a compulsory license may occur through judicial determinations in patent infringement, antitrust enforcement and activities of federal government.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Domestic laws:<\/span><\/h2>\n<p><span style=\"font-weight: 400\">The dispositions that allow for the compulsory licensing of patented inventions are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><a href=\"http:\/\/uscode.house.gov\/view.xhtml?hl=false&amp;edition=prelim&amp;req=granuleid%3AUSC-prelim-title42-section2183&amp;num=0&amp;saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGUzNS1zZWN0aW9uMTA0%7C%7C%7C0%7Cfalse%7Cprelim\"><span style=\"font-weight: 400\">The Atomic Energy Act<\/span><\/a><span style=\"font-weight: 400\">: the Nuclear Regulatory Commision may, after giving the patent owner an opportunity for a hearing, <\/span><b>declare any patent to be affected with the public interest <\/b><span style=\"font-weight: 400\">if the invention or discovery covered by the patent <\/span><b>is of primary importance in the production or utilization of special nuclear material or atomic energy <\/b><span style=\"font-weight: 400\">and the licensing of such invention or discovery under this section is of <\/span><b>primary importance to effectuate <\/b><span style=\"font-weight: 400\">the policies and purposes tending to develop and control atomic energy.<\/span><\/li>\n<li style=\"font-weight: 400\"><a href=\"http:\/\/uscode.house.gov\/view.xhtml?hl=false&amp;edition=prelim&amp;req=granuleid%3AUSC-prelim-title42-section7608&amp;num=0&amp;saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGUzNS1zZWN0aW9uMTA0%7C%7C%7C0%7Cfalse%7Cprelim\"><span style=\"font-weight: 400\">The Clean Air Act<\/span><\/a><span style=\"font-weight: 400\">: after the certification of the Attorney General, a district court of the United States may <\/span><b>issue an order requiring the licensing of a patent <\/b><span style=\"font-weight: 400\">when its use is necessary to comply with the implementation of the requirements mentioned in the <\/span><a href=\"http:\/\/uscode.house.gov\/view.xhtml?hl=false&amp;edition=prelim&amp;req=granuleid%3AUSC-prelim-title42-section7411&amp;num=0&amp;saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGUzNS1zZWN0aW9uMTA0%7C%7C%7C0%7Cfalse%7Cprelim\"><span style=\"font-weight: 400\">standards of performance for new stationary sources<\/span><\/a><span style=\"font-weight: 400\">, <\/span><a href=\"http:\/\/uscode.house.gov\/view.xhtml?hl=false&amp;edition=prelim&amp;req=granuleid%3AUSC-prelim-title42-section7412&amp;num=0&amp;saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGUzNS1zZWN0aW9uMTA0%7C%7C%7C0%7Cfalse%7Cprelim\"><span style=\"font-weight: 400\">hazardous air pollutants<\/span><\/a><span style=\"font-weight: 400\"> or <\/span><a href=\"http:\/\/uscode.house.gov\/view.xhtml?hl=false&amp;edition=prelim&amp;req=granuleid%3AUSC-prelim-title42-section7521&amp;num=0&amp;saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGUzNS1zZWN0aW9uMTA0%7C%7C%7C0%7Cfalse%7Cprelim\"><span style=\"font-weight: 400\">emission standards for new motor vehicles or new motor vehicle engines<\/span><\/a><span style=\"font-weight: 400\">; there are no reasonable alternative methods to accomplish such purpose and that the unavailability of such right may result in a substantial lessening of competition or tendency to create a monopoly in any line of commerce in any section of the country.<\/span><\/li>\n<li style=\"font-weight: 400\"><a href=\"http:\/\/uscode.house.gov\/view.xhtml?hl=false&amp;edition=prelim&amp;req=granuleid%3AUSC-prelim-title7-section2404&amp;num=0&amp;saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGUzNS1zZWN0aW9uMTA0%7C%7C%7C0%7Cfalse%7Cprelim\"><span style=\"font-weight: 400\">The Plant Variety Protection Act<\/span><\/a><span style=\"font-weight: 400\">: the competent authority may <\/span><b>declare a protected variety open to use <\/b><span style=\"font-weight: 400\">on a basis of equitable remuneration to the owner, not less than a reasonable royalty, when it is determined that such declaration is necessary in order to <\/span><b>insure an adequate supply of fiber, food, or feed <\/b><span style=\"font-weight: 400\">in the United States and that the <\/span><b>owner is unable to supply the public needs <\/b><span style=\"font-weight: 400\">for the variety at a price which may be reasonably be deemed fair.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">However, those dispositions have never been invoked. Some commentators consider that the threat of a compulsory license may induce the grant of contractual licenses on reasonable terms. <\/span><span style=\"font-weight: 400\">(PERICLES LADAS, Stephen. (1975) <\/span><i><span style=\"font-weight: 400\">Patents, Trademarks and Related Rights: National and International Protection.<\/span><\/i><span style=\"font-weight: 400\"> Cambridge, Massachusetts: Harvard University Press)<\/span><span style=\"font-weight: 400\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Dispositions similar to Compulsory Licensing:<\/span><\/h2>\n<h3><span style=\"font-weight: 400\">Antitrust Enforcement:<\/span><\/h3>\n<p><span style=\"font-weight: 400\">The enforcement of antitrust laws may end up in a patent owner agreeing to license its patents to competitors or being compelled to do so.<\/span><\/p>\n<h3><span style=\"font-weight: 400\">The \u201cmarch-in right\u201d of the Bayh-Dole Act:<\/span><\/h3>\n<p><span style=\"font-weight: 400\">The \u201cmarch-in right\u201d contained in the Bayh-Dole Act allows the funding agency to grant additional licenses to other responsible applicants for patents made using federal funding.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The license can be nonexclusive, partially exclusive or exclusive in any field, upon terms that are reasonable under the circumstances and only <\/span><a href=\"http:\/\/uscode.house.gov\/view.xhtml?hl=false&amp;edition=prelim&amp;req=granuleid%3AUSC-prelim-title35-section203&amp;num=0&amp;saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGUzNS1zZWN0aW9uMTA0%7C%7C%7C0%7Cfalse%7Cprelim\"><span style=\"font-weight: 400\">where the contractor<\/span><\/a><span style=\"font-weight: 400\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Has not taken, or is not expected to take, effective steps to achieve practical application of the invention;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Has not reasonably satisfied health and safety needs;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Has not met requirements for public use specified by Federal regulations; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Has granted an exclusive right to use the patented invention to another without obtaining the promise that the invention will be manufactured substantially <\/span><a href=\"http:\/\/uscode.house.gov\/view.xhtml?hl=false&amp;edition=prelim&amp;req=granuleid%3AUSC-prelim-title35-section204&amp;num=0&amp;saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGUzNS1zZWN0aW9uMTA0%7C%7C%7C0%7Cfalse%7Cprelim\"><span style=\"font-weight: 400\">in the United States<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400\">Judicial Denial of Injunction:<\/span><\/h3>\n<p><span style=\"font-weight: 400\">Before the ruling in the case <\/span><i><span style=\"font-weight: 400\">eBay Inc. v. MercExchange, LLC<\/span><\/i><span style=\"font-weight: 400\">, courts used to issue an injunction, for the infringer to stop using the patented invention.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Under the <\/span><i><span style=\"font-weight: 400\">eBay<\/span><\/i><span style=\"font-weight: 400\"> ruling, however, courts must weigh equitable factors to determine if an injunction should issue, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Whether the patent proprietor suffered an irreparable injury;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The award of damages would be inadequate to compensate for that injury;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Considering the balance of hardships between the patent owner and the infringer, an injunction is warranted; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The public interest would not be disserved by a permanent injunction.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">In most of the cases, courts often award an injunction to the prevailing patentee, but they can decline to do so where (i) the patent owner <\/span><b>does not commercialize the claimed invention<\/b><span style=\"font-weight: 400\">, where (ii) the patented invention <\/span><b>forms a small component of a larger product<\/b><span style=\"font-weight: 400\">, and where (iii) the patent owner <\/span><b>had liberally licensed its patented invention to others.<\/b><\/p>\n<p><span style=\"font-weight: 400\">In such cases, the adjudicated infringer may continue to practise the patented invention, but usually must pay a royalty to the patent proprietor until the term of the patent expires. This has been called an \u201c<\/span><b>ongoing royalty<\/b><span style=\"font-weight: 400\">\u201d, which theoretically differs from a compulsory license because it is adjudicated to a specific infringer, but whose effects are very similar in practice.<\/span><\/p>\n<h3><span style=\"font-weight: 400\">Uses by the US Government:<\/span><\/h3>\n<p><span style=\"font-weight: 400\">As a general principle, the government possesses the power to take private property for public use, and it could potentially apply to Intellectual Property rights.<\/span><\/p>\n<p>In fact, Title 28, in its section 1498, establishes the procedure to be followed in case that the Government makes or uses a protected invention.\u00a0<span style=\"font-weight: 400\">28 USC \u00a71498 (a) states that: <\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cWhenever an invention described in and covered by a patent of the United States is used or manufactured by or for the United States without license of the owner thereof or lawful right to use or manufacture the same, the owner\u2019s remedy shall be by action against the United States in the United States Court of Federal Claims for the recovery of his reasonable and entire compensation for such use and manufacture\u201d.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This information has been taken from: THOMAS, John R. (2014) Compulsory Licensing of Patented Inventions. CRS &#8211; Congressional Research Service. Available in: https:\/\/www.ipmall.info\/sites\/default\/files\/hosted_resources\/crs\/R43266_140114.pdf The Title 35 of the US Code does not include a general compulsory licensing provision. However, a series of circumstances must be taken on account when addressing the US Compulsory Licensing Regime. [&hellip;]<\/p>\n","protected":false},"author":146,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10065,9029,7896,8303],"tags":[],"class_list":["post-142","post","type-post","status-publish","format-standard","hentry","category-compulsory-license-regime","category-content","category-legal-systems","category-united-states-regime"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blogs.lib.purdue.edu\/patents\/wp-json\/wp\/v2\/posts\/142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.lib.purdue.edu\/patents\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.lib.purdue.edu\/patents\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.lib.purdue.edu\/patents\/wp-json\/wp\/v2\/users\/146"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.lib.purdue.edu\/patents\/wp-json\/wp\/v2\/comments?post=142"}],"version-history":[{"count":4,"href":"https:\/\/blogs.lib.purdue.edu\/patents\/wp-json\/wp\/v2\/posts\/142\/revisions"}],"predecessor-version":[{"id":148,"href":"https:\/\/blogs.lib.purdue.edu\/patents\/wp-json\/wp\/v2\/posts\/142\/revisions\/148"}],"wp:attachment":[{"href":"https:\/\/blogs.lib.purdue.edu\/patents\/wp-json\/wp\/v2\/media?parent=142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.lib.purdue.edu\/patents\/wp-json\/wp\/v2\/categories?post=142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.lib.purdue.edu\/patents\/wp-json\/wp\/v2\/tags?post=142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}