Compulsory License Law and Legal Definition

Under Copyright law, compulsory license is a statutorily created license. A compulsory license allows certain parties to use copyrighted material without the explicit permission of the copyright owner in exchange for a specified royalty. Compulsory license is also known as equitable remuneration.

Under Patents law, compulsory license is a statutorily created license allowing certain people to pay a royalty and use an invention without getting the consent of the patentee. The U.S. does not recognize compulsory licenses, but there are other nations having compulsory licenses.