Article 74

A compulsory license shall mean a license to implement a patent that is granted based on a decision of the Directorate General based on an application.

Article 75

1. Any party, after the expiration of a period of 36 (thirty six) months commencing from the date of grant of a patent, may file a request for a compulsory license at the Directorate General, with the payment of a fee
2. A request for a compulsory license as referred to in paragraph (1) shall only be made on the grounds that the relevant patent has not been implemented or only partially implemented by the patent holder
3. A request for a compulsory license may also be filed at any time after the grant of patent on the grounds that the relevant patent has been implemented by the patent holder or the licensee in a form and manner that contravenes the public interest

Article 76

1. In addition to the truth of grounds as referred to in Article 75 paragraph (2), a compulsory license may only be granted if:
   1. The person filing the request can provide convincing evidence that he:
      - has the ability to personally and fully implement the relevant
        patent,
      - has his own facilities to readily implement of the relevant patent
      - has made efforts in a sufficient period of time to acquire a license
        from the patent holder on the basis of normal terms and conditions
        but did not succeed.
   2. The Directorate General is of the opinion that relevant patent can be implemented in Indonesia on a feasible economic scale and can be of benefit to the majority of the society.
2. The examination of a request for a compulsory license shall be carried out by the Directorate General by hearing the opinion of other related government agencies and parties, as well as the relevant patent holder
3. A compulsory license shall be granted for a period no longer than the period of patent protection

Article 77

If, based on the evidence and opinions as referred to in Article 76, the Directorate General is convinced that the period as referred to in Article 75 paragraph (1) is insufficient for the patent holder to commercially implement the patent in Indonesia, or within a regional scope as referred to in Article 17 paragraph (2), it may stipulate to temporarily postpone the decision to grant a compulsory license or to refuse to grant one.

Article 78

1. The implementation of a compulsory license shall be accompanied by the payment of royalties by the compulsory licensee to the patent holder
2. The Directorate General shall stipulate the amount of royalty to be paid and the method of payment
3. The stipulation of the amount of royalty shall take into account the common practices in patent licensing or other similar agreements.

Article 79

The decision of the Directorate General regarding the grant of a compulsory license shall include the followings:

1. That the compulsory license shall be non-exclusive,
2. The grounds for granting of the compulsory license,
3. Evidence, including convincing information or explanations, which form the basis for the granting of the compulsory license,
4. The period of the compulsory license,
5. The amount of royalties to be paid by the compulsory licensee to the patent holder and the method of payment therefore,
6. Conditions on the termination of the compulsory license and matters, which may cause revocation of the compulsory license,
7. That the compulsory license will be primarily used to supply the demand in the national market,
8. Other matters necessary to fairly protect the interest of the parties concerned.

Article 80

1. The Directorate General shall record and announce the grant of a compulsory license
2. The implementation of a compulsory license shall be deemed to be the implementation of the relevant patent.