Article Twenty Four:
(a) The City may grant a compulsory license to a third party to exploit an invention covered by the patent or a layout design of an integrated circuit covered by a certificate of design upon an application submitted to it, according to the following:
(1) The application shall be submitted after the elapse of four years from the date of filing the patent application or three years from the date of granting the patent, whichever expires later, without the owner of the protection document exploiting his invention or having exploited it in an inadequate fashion, unless he justifies that with a legitimate excuse.(2) The applicant for the compulsory license must prove that he has exerted -over a reasonable period of time- efforts in order to obtain a contractual license on the basis of reasonable commercial conditions, and for a reasonable financial compensation. However, this provision and the provision of the preceding paragraph do not apply where the applicant is a government body or a person authorized by it, and the aim was to meet public interest - especially security, health, nutrition or the development other vital sectors of the national economy- or to meet a state of emergency or other very compelling circumstances, or where the aim thereof was public non-commercial purposes. In the latter case, and upon knowledge of the existence of a patent or a certificate of design, their holder shall be promptly informed.(3) The compulsory license is basically granted to make the invention or design available in the local markets. But this provision does not apply where the aim of the license is to prevent or restrict practices against which a decision or judgment is issued declaring them to be acts of unlawful competition.(4) The decision granting the license shall specify the scope and term of the license, according to the purpose for which it was granted. The license shall be subject to termination if the conditions for which it was granted cease to exist and their recurrence is not likely, with due regards to the lawful interests of the licensee.
(5) The license shall not be exclusive.(6) Each application shall be independently decided.(7) The owner of the protection document or the holder of a certificate of a design hall be awarded a fair compensation. The Committee shall determine the amount of the compensation, and the licensee undertakes to pay it.
(b) If the compulsory license is related to a patent of semiconductor technology ,
the purpose of the license shall be for public non-commercial purposes only or to control acts concerning which a decision or judgment is issued declaring them to be acts of unlawful competition.
(c) If the patent involves a significant technological advance with a considerable economic value, which requires the exploitation of another patent, the City may grant that owner of the protection document a compulsory license to exploit the other patent. In such a case the compulsory license shall not be assigned unless the other patent is assigned. The owner of the other patent shall be entitled to a counter license from the compulsory licensee, in accordance with reasonable conditions.Article Twenty Five:
(a) The City may grant a compulsory license to a third party to exploit a plant variety patented by a plant patent, upon an application submitted to it in accordance with the following:
(1) The compulsory license is necessary to protect public interest.
(2) The applicant for the compulsory license being able financially and technically.
(3) Failure of the applicant to obtain a license from the owner of the plant patent at reasonable terms.
(4) The elapse of three years between the date of granting the plant patent and the date of applying for the compulsory license.
(5) The compulsory license shall not be restricted to performing all or some of the acts referred to in Article 56 of this Law to meet the needs of the local market.
(6) The owner of the patent shall be awarded a fair compensation. The Committee shall determine the amount of compensation, and the licensee shall undertake to pay it.
(b) The City may instruct the owner of the plant patent to provide the holder of a compulsory license with the required quantity of propagation material for the use of the compulsory license in a reasonable fashion.(c) In other than exceptional circumstances, the compulsory license shall not be granted for a period less than two years or more than four years. The City may extend the term for additional periods, upon verifying that the grounds for granting the compulsory license still exist.Article Twenty Six:
If a compulsory license is granted for a patented subject matter the beneficiary of the compulsory license may not assign it to others, unless the assignment includes all or part of the firm benefiting from the license or its goodwill. The City's approval of the assignment is required; otherwise, it shall be null and void. If the City approves such assignment, the assignee becomes liable for the obligations assumed by the first beneficiary prior to the approval of the assignment.