(1) If a patented invention falls under any of the following, and a person who intends to practice the patented invention fails, or is unable, to reach agreement with the patentee or exclusive licensee of the patented invention on the grant of a non-exclusive license (hereafter referred to as "agreement" in this Article) under reasonable terms and conditions, although the person has negotiated the agreement, the person may file a petition for adjudication on the grant of the non-exclusive license (hereinafter referred to as "adjudication") with the Commissioner of the Korean Intellectual Property Office: Provided, That such a person may file a non-negotiated petition for adjudication, if he or she intends to non-commercially practice a patented invention for the public interests or in cases falling under subparagraph 4:
1. If the patented invention has not been practiced in the Republic of Korea for at least three consecutive years, except in cases of a natural disaster, force majeure event, or due to other just grounds specified by Presidential Decree;
2. If the patented invention has not been practiced for business purposes in the Republic of Korea on a substantial scale for at least three consecutive years without any just grounds, or fails to meet the demand in the Republic of Korea to an appropriate extent under reasonable terms and conditions;
3. If it is particularly necessary to practice the patented invention for the public interests;
4. If it is necessary to practice the patented invention to rectify unfair trade practices found through judicial or administrative proceedings;
5. If it is necessary to practice the patented invention to export medicines to a country that intends to import (hereafter referred to as "importing country" in this Article) the medicines (including effective ingredients necessary for manufacturing the medicines and diagnostic kits necessary for using such medicines) to treat diseases that threaten the health of the majority of its citizens.
(2) Paragraph (1) 1 and 2 shall not apply to a patented invention, unless four years have passed since the filing date of the patent application for the patented invention.
(3) When the Commissioner of the Korean Intellectual Property Office adjudicates on petitions, he or she shall examine the necessity to grant a non-exclusive license for each petition.
(4) When the Commissioner of the Korean Intellectual Property Office adjudicates on a petition under any of the provisions of paragraph (1) 1 through 3 and 5, he or she shall impose the following conditions upon the petitioner:
1. In cases of adjudication under any of the provisions of paragraph (1) 1 through 3, the non-exclusive license shall be practiced primarily for the purpose of supply to meet domestic demand;
2. In cases of adjudication under paragraph (1) 5, the assigned medicines shall be exported entirely to the importing county.
(5) When the Commissioner of the Korean Intellectual Property Office adjudicates on a petition, he or she shall ensure that a reasonable price is paid therefor. In such cases, he or she may consider the following factors in determining the price when he or she is petitioned to adjudicate under paragraph (1) 4 or 5:
1. In cases of adjudication under paragraph (1) 4, the purpose to rectify unfair trade practices;
2. In cases of adjudication under paragraph (1) 5, the economic value created in the importing country by practicing the patented invention.
(6) A petition for adjudication regarding semi-conductor technology may be filed only in cases falling under paragraph (1) 3 (limited to where a patented invention shall be non-commercially practiced for the public interests) or 4.
(7) The importing countries shall be limited to the World Trade Organization member countries that have notified the World Trade Organization of the following matters, or non-WTO member countries that have notified the Government of the Republic of Korea of the following matters, among the countries specified by Presidential Decree:
1. The names and quantities of medicines required by each importing country;
2. Each importing country's confirmation that it is incapable of producing the relevant medicines or lacks the ability if the relevant country is not among the least developed countries listed in a resolution by the General Assembly of the United Nations;
3. Each importing country's confirmation that it has granted, or is willing to grant, a compulsory license, if the relevant medicines are patented in the importing country.
(8) Medicines referred to in paragraph (1) 5 shall be as follows:
1. Patented medicines;
2. Medicines manufactured by patented manufacturing methods;
3. Patented effective ingredients necessary for producing medicines;
4. Patented diagnostic kits necessary for using medicines.
(9) Documents to be submitted by petitioners for adjudication and other matters necessary for adjudication shall be prescribed by Presidential Decree.[This Article Wholly Amended on Jun. 11, 2014]