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EU Reaches Deal on Crisis-Only Patent Licensing, Excludes Defence and Chips

BRUSSELS (CHATNEWSTV) — The European Union on Wednesday struck a provisional deal to allow compulsory patent licensing as a last-resort tool during future crises, aiming to avoid supply disruptions of critical products — but leaving out sensitive sectors such as semiconductors, gas, and defence.

“After the agreement reached today, Europe is better prepared to face the next crisis, while ensuring a high level of protection of intellectual property,” said Krzysztof Paszyk, Poland’s minister for economic development and technology.

The regulation, agreed Thursday by the Council and European Parliament, allows EU-wide compulsory licenses to be issued when voluntary agreements between rights-holders and manufacturers cannot be secured in time. The move responds to gaps exposed during the COVID-19 pandemic, where national-level rules created delays in cross-border cooperation.

Under the deal, trade secrets are protected, and licenses can only be triggered after the EU formally declares a crisis under existing emergency legislation.

The agreement must now be formally endorsed by both institutions.

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