THE STATE DUMA APPROVED DRAFT LAW THAT EMPOWERS THE GOVERNMENT TO USE INVENTIONS IN EXCEPTIONAL CASES WITHOUT THE CONSENT OF THE PATENT OWNER

The draft law developed by the FAS Russia was approved in the third reading

The draft Federal Law "On Amendments to the Article 1360 of the Civil Code of the Russian Federation" enables the Government of the Russian Federation to use an invention, useful model or industrial standard without the consent of the patent owner and to notify him about it as soon as possible in a case of extreme necessity related to the protection of life and health of citizens. The draft law, among other things, provides for the development by the Government of the Russian Federation of a methodology for calculating the payment of compensation to the patent owner.

The right of the Government to use a patented invention in an emergency situation will increase the level of economic security of the state, as well as provide patients with access to life-saving medicines and medical products at economically reasonable prices.

The practice of using compulsory licensing has been used for many years in many countries including the United States, Canada and Europe.

As a rule, the issuance of a compulsory license is applied in cases where the actions of the copyright holder violate the balance of public and state interests (in particular, in the field of security, health, and other socially significant areas). For example, if we are talking about economic abuse by patent holders who take advantage of inelastic demand and set discriminatory, prohibitively high prices in individual markets, or refuse to supply goods that are necessary to ensure the defence and security of the state, as well as to protect the life and health of citizens.