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page 19  3. The refusal of the patent holder to grant licenses on reasonable commercial conditions and terms; 4. The establishment or development of industrial or commercial activities suffers unfair or substantial damage. Nevertheless, a compulsory license may not be granted if the patent holder gives legitimate grounds to justify his failure to work the invention. Section 2: Compulsory licenses for dependent patents Article 79: In the event that an invention protected by a patent cannot be used without infringing the rights attached to a prior patent whose holder refuses to authorize use on reasonable commercial conditions and procedures, the holder of the subsequent patent may obtain a non-voluntary license from the court for such use, on the same conditions as those which apply to the non-voluntary licenses granted under Article 78 as well as on the following additional conditions: 1. The invention claimed in the subsequent patent represents significant technical progress of considerable economic interest in relation to the invention claimed in the prior patent; 2. The holder of the prior patent is entitled to a reciprocal license on reasonable conditions to use the claimed invention; 3. The use authorized in relation to the prior patent shall be non-transferable unless the subsequent patent is assigned as well. Section 3: Compulsory licenses granted by the Minister responsible for trade Article 80: The Minister may decide that, even without the consent of the patent holder, a State service or a third party designated by him may exploit the invention. Every request for compulsory licensing shall be examined by the Minister on its own merits. Exploitation of the invention shall be limited to the purposes for which the license was granted and shall be subject to the payment, to the patent holder, of appropriate compensation according to the case at hand, in view of the economic value of the Minister’s decision, as it is determined in said decision and, if the decision is taken on the basis of a court judgment, in view of the need to correct anti-competitive practices. The Minister shall take his decision after hearing the patent holder and any interested persons, if they wish to be heard. Article 81: Decisions relating to compensation for a compulsory license covering a patent claiming a pharmaceutical product or manufacturing process for a pharmaceutical product must take into consideration, as the case may be, the procedures and conditions set in the decision of the WTO General Council of August 30, 2003, if no other process for manufacturing the same product is known or available.

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