Article 1362. The Compulsory Licence for an Invention, Utility Model or Industrial Design

1. If an invention or industrial design is not used or is insufficiently used by the patent holder within four years after the issuance of the patent, and a utility model within three years after the issuance of the patent which leads to the insufficient offer of relevant goods, works or services in the market, any person willing and ready to use the invention, utility model or industrial design -- if the patent holder refuses to conclude a licence contract with this person on the terms meeting the prevailing practices -- is entitled to file a claim with the court for the patent holder to issue a compulsory simple (nonexclusive) licence for the use of the invention, utility model or industrial design on the territory of the Russian Federation. In its claim the person shall set out terms for the provision of the licence, including the scope of use of the invention, utility model or industrial design, the amount of, procedure and term for, payments. Unless the patent holder proves that his/its non-use or insufficient use of the invention, utility model or industrial design was due to a good reason, the court shall take a decision on granting the licence specified in Paragraph 1 of the present Item and on the terms for the granting thereof. The sum total of payments for the licence shall be set in the court's decision at least as equal to a licence price determined in comparable circumstances. A compulsory simple (non-exclusive) licence may be terminated in a judicial procedure on a claim of the patent holder, if the circumstances due to which the licence has been issued are no longer existing and it is unlikely that they are going to appear again. In this case the court shall establish a term and procedure for termination of the compulsory simple (non-exclusive) licence and of the rights that have come into being due to the receipt of the licence.

2. Unless a patent holder cannot use an invention to which he/it has an exclusive right, without infringing on the rights of the holder of another patent (first patent) for an invention or utility model which have refused to conclude a licence contract on the terms complying with the prevailing practices, the holder of the patent (second patent) is entitled to file a claim with the court against the holder of the first patent for the issuance of a compulsory simple (non-exclusive) licence for the use of the invention or utility model of the holder of the first patent on the territory of the Russian Federation. In the claim the holder of the second patent shall indicate his/its terms for granting thereto such licence, including the scope of use of the invention or utility model, the amount of, procedure and term for, payments. If the patent holder having an exclusive right to such dependent invention manages to prove that it is an important technical achievement and that is has significant economic advantages over the invention or utility model of the holder of the first patent, the court shall take a decision on granting a compulsory simple (non-exclusive) licence thereto. The right of using the invention protected by the first patent obtained under such licence shall not be assigned to other persons, except for the case of alienation of the second patent. The sum total of payments for a compulsory simple (non-exclusive) licence shall be set in the court's decision at least as equal to a licence price determined in comparable circumstances. When a compulsory simple (non-exclusive) licence is granted in accordance with the present item, the holder of the patent for the invention or utility model which may be used under the right granted on the basis of the said licence also has the right to obtain a simple (nonexclusive) licence for the use of the dependent invention in connection with which the compulsory simple (non-exclusive) licence was issued, on the terms complying with the prevailing practices. 3. Under the court's decision described in Items 1 and 2 of the present article the federal executive governmental body charged with intellectual property matters shall grant state registration to the compulsory simple (non-exclusive) licence.

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