|Title:||Section 54 of the Patent Law of 15/02/2007|
|Field of IP:||Patents|
|Type of flexibility:||Compulsory licenses and government use|
Section 54. Compulsory Licence
(1) If within four years after filing date of application or within three years after the date when the notification regarding the grant of a patent was published, the patented invention has not been used or has been used in an insufficient amount in the Republic of Latvia, any person may submit to the administrative court an application with a request to provide a permit (compulsory licence) to it to use the patented invention in conformity with this Law and court judgement. This provision shall not be applied if the proprietor of the patent proves to the court that there have been substantiated reasons for the failure to use or insufficient use of the invention.
(2) If the proprietor of the patent of a biotechnological invention is not able to use it without violating the prior rights to the plant variety, he or she may apply for a compulsory licence for the use of such plant variety, which is protected by the referred to rights, and pay a compensation to the proprietor, determined by the court. In the case of a grant of such licence, the proprietor of the plant variety is entitled to qualify for a cross-licence with substantiated requirements for the use of the protected invention.
(3) The compulsory licence of the patented invention may be obtained in conformity with Paragraphs one and two of this Section, if:
1) the patented subject or the product acquired with a patented method is of vital importance for ensuring of the welfare, protection or economic interests of Latvian citizens; or
2) an invention which is of a significant economic importance may not be used without the use of another earlier patented invention.
(4) The compulsory licence shall be granted by the court if the submitter of the claim within a reasonable time period has made an effort to acquire, but has not acquired the licence from the proprietor of the patent with acceptable commercial terms.
(5) If an emergency situation has been declared in the State, a compulsory licence may be granted by the Cabinet.
(6) The court, in the case provided for in Paragraph three, Clause 1 of this Section, reviewing the facts of the case regarding the grant of a compulsory licence, in addition shall observe the following requirements:
1) the amount of and the time period for use of the patent may be restricted, depending on the purpose for which the compulsory licence has been granted;
2) the compulsory licence shall be regarded as equal to a non-exclusive licence;
3) a compulsory licence may not be transferred to another person, except for the case when it is transferred together with an undertaking, which is directly related to the use of the relevant patent or a part of such undertaking; and
4) the compulsory licence shall be granted for use in the internal market of Latvia.
(7) The court, in the case provided for in Paragraph three, Clause 2 of this Section, upon reviewing the facts of the case regarding the grant of a compulsory licence shall, in addition, observe the following requirements:
1) the proprietor of the patent granted earlier (first) may request a cross-licence with reasonable terms for the use of an invention from the proprietor of later granted patent; and
2) the licence to the first patent shall not be transferred further unless it is transferred together with the rights to the later patent.
(8) The court may decide regarding the termination of the time period for a compulsory licence, if the facts referred to in Paragraph one or Paragraph three, Clause 1 of this Section no longer exist and a repeated commencement thereof is hardly credible.
(9) The holder of a compulsory licence shall pay to the proprietor of the patent a compensation, the amount of which shall be determined by the court, observing the economic value of the licence, the extent of use of an invention and other circumstances.