What is a Compulsory License? A Comprehensive Legal Overview

Definition & Meaning

A compulsory license is a legal provision that allows certain individuals or entities to use copyrighted material or patented inventions without obtaining prior consent from the copyright owner or patentee. In exchange for this use, the licensee must pay a specified royalty. This mechanism is designed to balance the interests of copyright holders with public access to creative works and innovations.

Table of content

Real-world examples

Here are a couple of examples of abatement:

1. A musician wants to cover a popular song. They can obtain a compulsory license to record and distribute their version by paying the required royalty to the original songwriter.

2. A pharmaceutical company seeks to produce a generic version of a patented drug. They may apply for a compulsory license, allowing them to manufacture the drug without the patent holder's consent, provided they pay royalties. (hypothetical example)

What to do if this term applies to you

If you believe you need a compulsory license, start by researching the specific requirements under copyright or patent law. Consider using US Legal Forms to find templates that can help you navigate the licensing process. If your situation is complex, consulting with a legal professional is advisable to ensure compliance with all legal requirements.

Quick facts

Attribute Details
Typical fees Varies based on the work or invention
Jurisdiction U.S. copyright law; varies internationally for patents
Possible penalties Potential legal action for unauthorized use

Key takeaways

Frequently asked questions

A compulsory license is a legal license that allows individuals or entities to use copyrighted material or patented inventions without the owner's consent, provided they pay a royalty.