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Legislative Implementation of Flexibilities - Uruguay

Title:Articles 54-55, 60-61, 69-70 and 73 of the Law No. 17.164 of 13/01/2000 Regulating Rights and Obligations Relating to Patents, Utility Models and Industrial Designs
Field of IP:Patents
Type of flexibility:Compulsory licenses and government use
Summary table:PDF

Provisions of Law

54. Any interested party may request a compulsory license after three years have elapsed since the grant of the patent or four years since the date of application, whichever expires last, if the invention has not been exploited or if serious and effective preparations have not been made for its exploitation or if exploitation has been suspended for more than one year, provided that there are no reasons of force majeure.

In addition to the reasons recognized in the legislation, insurmountable objective problems of a technical or legal nature such as delays in the granting of authorizations by government bodies, independent of the will of the owner of the patent, which make working the patent impossible, shall be considered reasons of force majeure.

The exploitation of a patent shall include its production, use, import or any other commercial activity undertaken and related to its subject matter.

In this respect, the working of the patent by a representative or licensee shall be considered carried out by the owner of the patent.

55. In special situations that might affect the general interest, defense or national security, the economic, social and technological development of certain sectors strategic for Uruguay, as well as for urgent health reasons or other like reasons of public interest, the Executive may, by means of a special resolution, grant compulsory licenses or other uses without the patent owner's consent and their scope and term shall be adapted to the purpose for which they were granted.

60. By means of a special decision, the National Industrial Property Directorate may grant compulsory licenses for a patent if the competent authority, following administrative or judicial proceedings which give the owner the right of defense and other guarantees, has determined that the owner has been involved in anti-competitive practices, or has abused the rights conferred by the patent or a dominant market position.

61. The circumstances cited in the preceding Article shall include the following:

(a) the fixing of prices that are excessive in comparison with the average international market price for the patented product;

(b) offers to supply the market at prices significantly lower than those proposed by the owner of the patent;

(c) refusal to furnish the local market with adequate and regular supplies of the raw materials or the product patented, on fair commercial terms;

(d) obstructing or causing prejudice to commercial or production activities in Uruguay;

(e) any acts which restrict trade to an unjustified degree or are detrimental to the transfer of technology.

69. If a patented invention or utility model cannot be exploited in Uruguay without infringing an earlier patent, the owner or a licensee under any title of one of the patents may request the grant of a compulsory license covering the other dependent patent if it is needed to work the patent and avoid infringement.Where the subject matter of one patent is a product and the subject matter of the other a process, it shall be considered that they are dependent patents for the purposes of their working.

70. Licenses or uses without the owner's consent for the purpose of working a dependent patent shall be granted subject to the following conditions:

(a) the invention claimed in the second patent must represent a significant technical step of considerable economic importance in comparison with the invention claimed in the first patent;

(b) the owner of the first patent shall have the right to obtain a cross license on fair terms in order to work the invention claimed in the second patent;

(c) assignment of the authorized use of the first patent shall include use of the second patent.

73. A compulsory license or other uses without the owner's consent may not:

(a) be exclusive;

(b) be the subject of a sublicense;

(c) be granted to a defrauder;

(d) be transferred without the firm or enterprise or the part thereof which exploits the subject matter of the license.