Article 28 of the Saudi Patents Law
المادة 28 من نظام براءات الاختراع · الفصل الأول: أحكام عامة
The article requires the City to cancel a compulsory license if the beneficiary has not exploited it sufficiently within two years, has not paid amounts due within 90 days, or has breached its conditions.
Official text (Arabic)
This article has not been amended since the law was issued.
تقوم المدينة بإلغاء الترخيص الإجباري في الحالات الآتية:
أ - إذا لم يقم المستفيد من هذا الترخيص باستغلاله على نحو كاف يفي باحتياجات المملكة خلال سنتين من منح الترخيص قابلة للتمديد مدة مساوية، إذا أثبت أن هناك سببًا مشروعًا.
ب - إذا لم يقم المستفيد من الترخيص بتسديد المبالغ المستحقة عليه، خلال تسعين يومًا من تاريخ استحقاقها، بما في ذلك التعويضات المستحقة لمالك وثيقة الحماية، المنصوص عليها في قرار المنح.
جـ - إذا أخل المستفيد من الترخيص بأي شرط من شروط منح الترخيص.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 28 explained in plain English
This article sets out the cases in which a compulsory license is cancelled. The text uses the wording "the City shall cancel", meaning cancellation takes place when one of the following cases is established:
- Insufficient exploitation (A): the beneficiary has not exploited the license sufficiently to meet the needs of the Kingdom within two years of its grant. This period may be extended by an equal period if the beneficiary proves a legitimate reason.
- Non-payment (B): the beneficiary has not paid the amounts due within 90 days of the date they fell due, including the compensation owed to the owner of the protection document as stated in the grant decision.
- Breach of conditions (C): the beneficiary has breached any condition of the license grant.
What does this mean for the beneficiary? A compulsory license is granted to be actually exploited and in return for specific obligations. Whoever obtains one must begin sufficient exploitation, meet payment deadlines and respect the conditions of the decision.
And for the document owner? If the owner has not received the compensation fixed for them within 90 days of its due date, that is one of the cases of cancellation.
Cancellation differs from amendment, which Article 27 allows when grounds require it, and from relinquishment, which the beneficiary requests in writing under Article 29 and which takes effect from the date of the City's approval.
If you hold a compulsory license and have difficulty with exploitation or payment, consult a lawyer specializing in intellectual property and patents before the periods run out.
Practical example
A company obtained a compulsory license to manufacture a medicine but did not pay the compensation fixed for the patent owner within 90 days of its due date. This is one of the cases of cancellation of a compulsory license under the article.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 28 of the Saudi Patents Law
When is a compulsory license cancelled?
If the beneficiary has not exploited it sufficiently within two years, has not paid the amounts due within 90 days of the due date, or has breached any condition of its grant.
Can the two-year period for exploitation be extended?
Yes, by an equal period, if the beneficiary proves a legitimate reason.
Is the license cancelled if the patent owner is not paid the compensation?
Yes, if the amounts due, including compensation, are not paid within 90 days of the date they fell due.
More articles on Compulsory Licensing
- Article 24
The article allows the City to grant a third party a compulsory license to exploit a patented invention or an integrated circuit layout design, on set conditions and with fair compensation to the owner.
أ - يجوز للمدينة أن تمنح ترخيصًا إجباريًّا للغير باستغلال الاختراع المشمول بالبراءة، أو التصميم التخطيطي للدارة المتكاملة المشمول بشهادة التصميم بناء على طلب يق
- Article 25
The article allows the City to grant a compulsory license for a plant variety covered by a plant patent on set conditions, including public interest, three years from grant and fair compensation, for two to four years.
أ - يجوز للمدينة أن تمنح ترخيصًا إجباريا للغير باستغلال الصنف النباتي المشمول ببراءة نباتية، وذلك بناء على طلب يقدمه إليها وفقًا لما يأتي : 1- أن يكون الترخيص ا
- Article 26
The article prevents the compulsory licensee from assigning the license to others except together with the enterprise, part of it or its goodwill, and with the City's approval, otherwise the assignment is void.
إذا منح ترخيص إجباري لموضوع من موضوعات الحماية، فإنه لا يجوز للمستفيد من الترخيص الإجباري أن يتنازل عنه للغير، إلا إذا كان التنازل شاملًا للمنشأة المستفيدة من ا
- Article 27
The article allows the City to amend a compulsory license decision if grounds require it; the owner or the beneficiary may request amendment, and the decision to amend or refuse must state its reasons.
يجوز للمدينة تعديل قرار منح الترخيص الإجباري إذا قامت أسباب تقتضي ذلك. ولمالك وثيقة الحماية أو المستفيد من الترخيص الإجباري أن يطلب من المدينة إجراء هذا التعديل
- Article 29
The article allows the beneficiary of a compulsory license to relinquish it by a written request to the City; relinquishment takes effect from the date of the City's approval.
يجوز للمستفيد من الترخيص الإجباري التخلي عن الترخيص، بناء على طلب كتابي يقدمه إلى المدينة، على أن يسري أثر التخلي من تاريخ موافقة المدينة عليه.
- Article 30
The article requires decisions granting, amending, withdrawing, transferring or relinquishing compulsory licenses to be recorded in the Administration's records, announced in the Bulletin and notified to the owner of the protection document.
تسجل في سجلات الإدارة قرارات الترخيص الإجباري وتعديلها، وسحبها، ونقلها للغير، والتخلي عنها، وتعلن في النشرة، ويبلغ مالك وثيقة الحماية بها.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.