Industrial Property Law

French law recognizes several compulsory license mechanisms, as set out in Articles L. 613-11 et seq. of the Intellectual Property Code. They constitute non-contractual authorizations to exploit an invention without the consent of the patent proprietor, imposed by judgment or by an administrative body. They are divided into compulsory licenses and automatic licenses. Compulsary licenses may be imposed on the patent proprietor by a court ruling due to insufficient exploitation of the invention by the patentee (license imposed for non-exploitation) or in order to avoid blocking the exploitation of dependent inventions, in particular for improvement (license of dependence). An automatic license, issued by the administrative authority, meets a need to safeguard a general interest, which may be public health, the national economy, national security, the economics of livestock farming or the export of pharmaceutical products to developing countries.

These derogations to the patentee's monopoly over his or her intangible property are justified by economic or social imperatives that prevail over the patentee's private interests. Rarely used in practice, they act as a deterrent to encourage patent owners to conclude licensing agreements.

339. Compulsory licenses