Ace the USPTO Registration Exam 2025 – Ignite Your Path to Patent Success!

Question: 1 / 400

Which of the following best describes the nature of compulsory licensing?

It is always favorable to patent owners

It allows government intervention in patent rights

Compulsory licensing is fundamentally a legal mechanism that allows governments to intervene in the patent system under specific circumstances. The correct description emphasizes that it enables a government to authorize the use of a patented invention without the consent of the patent holder. This practice is often invoked to serve public interests, such as ensuring access to essential medicines or technologies, especially during public health emergencies or when the patent owner is not making the product available at a reasonable price.

The imposition of compulsory licensing balances the rights of patent owners with the need to protect public health or welfare. It is not inherently favorable to patent owners; in fact, it can undermine their control over the use of their inventions. Compulsory licensing does not prevent all use of patented products; rather, it allows certain uses under a government grant. It also doesn't require a court decision for enforcement in all cases, as government authorities can grant licenses based on legislative frameworks without needing a judicial order. Hence, the choice that accurately captures the essence of compulsory licensing is the one that highlights government intervention in patent rights.

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It prohibits any use of patented products

It requires a court decision for enforcement

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